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Wednesday 18 January 2017
Bridgeport Man Charged with Distributing Heroin Involved in Woman's OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RAMON L. KILLINGS, also known as “Blade,” 39, of Bridgeport, was arrested today on a federal criminal complaint charging him with distributing heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
After his arrest, KILLINGS appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
As alleged in court documents, in the early morning of December 4, 2016, Stratford Police responding to a 911 call encountered a 33-year-old female who had died from a suspected drug overdose in the bedroom of a residence. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. The investigation revealed that the victim’s boyfriend purchased heroin from KILLINGS the previous evening, and then he and the victim injected the heroin he had purchased.
In December 2016 and January 2017, law enforcement made controlled purchases of heroin from KILLINGS.
It is alleged that, when he was arrested this morning, KILLINGS possessed quantities of heroin and crack cocaine.
The complaint charges KILLINGS with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stratford Police Department. The task force includes personnel from the Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bookkeeper Pleads Guilty to $1.5 Million Fraud SchemeRead the Press Release
RICHMOND, Va. – Amy Lynn Galloway, 45, of Cumberland, pleaded guilty today to charges related to running a bookkeeping fraud scheme that caused a loss of approximately $1.5 million over eight years from a Richmond residential development and construction company.
According to the filed court documents, Galloway, who worked as the bookkeeper of the construction business, stole approximately $1.54 million from 2009 until 2016. Galloway’s scheme had two parts. First, Galloway wrote unauthorized checks on several business checking accounts, then would deposit the checks into her own bank accounts and joint bank accounts she shared with her children. She would then use the funds for personal purposes. Galloway hid the check misappropriations by not recording the fraudulent checks in the accounting records she regularly prepared, maintained and submitted to the outside accountants for tax purposes.
The second part of Galloway’s scheme was fraudulently misusing business credit card accounts for personal purposes. From 2007 to 2016, Galloway deposited approximately 578 fraudulent business checks worth approximately $1.1 million into personal bank accounts, and misused the credit card numerous times in the approximate total amount of $440,000.
Galloway faces a maximum penalty of 20 years in prison when sentenced on April 20. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-CR-157.
Ashburn Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Roger Wheaten Webb, 53, of Ashburn, pleaded guilty today to receipt of child pornography.
According to the statement of facts filed with the plea agreement, between February and March 2015, the FBI identified an Internet Protocol (IP) address in Fairfax accessing child pornography. Based on that investigation, law enforcement officers executed a federal search warrant on a business in Fairfax where Webb worked. During the search, several electronic devices were located and reviewed, including a Dell computer and a flash drive that contained over 5,000 image files and 300 video files of child pornography. The analysis of the computer confirmed that it had been used to download child pornography from the Internet using peer-to-peer software. When interviewed, Webb admitted that he had used the business’s computer to access, receive, and download child pornography and that he had transferred and stored child pornography to an external drive or flash drive he possessed.
Webb faces a mandatory minimum of five years in prison and a maximum penalty of 20 years in prison when sentenced on April 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia, and Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section, are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-298.
Arizona Man Pleads Guilty to Federal Cocaine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Jesus Quiroz, 36, of Tucson, Ariz., pled guilty today in federal court in Las Cruces, N.M., to cocaine trafficking charges arising from the seizure of 72.1 kilograms (158.95 pounds) of cocaine at the New Mexico Port of Entry near Lordsburg, N.M.
Quiroz was arrested on Sept. 9, 2016, on a criminal complaint charging him with possession of more than 72 kilograms of cocaine with intent to distribute in Hidalgo County, N.M. According to the complaint, Quiroz was arrested after law enforcement officers at the New Mexico Port of Entry on Interstate 10 in Lordsburg seized 61 individually wrapped packages containing more than 72 kilograms of cocaine from a tractor and trailer in which Quiroz was traveling. At the time of his arrest, Quiroz was on probation for a state cocaine trafficking conviction in Arizona.
Quiroz subsequently was indicted on Dec. 14, 2016, and charged in a two-count indictment with possession of cocaine with intent to distribute, and possession of visual depiction of a minor engaged in sexually explicit conduct. According to the indictment, Quiroz committed the crimes on Sept. 9, 2016, in Hidalgo County.
During today’s proceedings, Quiroz pled guilty to Count 1 of the indictment charging him with possession of cocaine with intent to distribute. In entering the guilty plea, Quiroz admitted that on Sept. 9, 2016, he drove a commercial vehicle containing 72.1 kilograms of cocaine into the Lordsburg, New Mexico Port of Entry. Quiroz further admitted that he intended to deliver the cocaine to another person.
At sentencing, Quiroz faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Albuquerque Resident Pleads Guilty to Meth Trafficking Charge Under Plea Agreement Requiring 84-Month SentenceRead the Press Release
ALBUQUERQUE – Rumaldo Olivas, 27, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Olivas will be sentenced to 84 months in prison followed by a term of supervised release to be determined by the court.
Olivas was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support 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 collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Olivas was arrested in Aug. 2016, on an indictment charging him distribution of methamphetamine on July 27, 2016, in Bernalillo County, N.M. The indictment included forfeiture provisions requiring Olivas to forfeit $1,000. During today’s proceedings, Olivas entered a guilty plea to the indictment. He remains in custody pending a sentencing hearing which has yet to be scheduled.
To date, 21 of the 104 defendants have entered guilty pleas and one has been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque offices of ATF. Assistant U.S. Attorneys Paul Mysliwiec and Letitia C. Simms are prosecuting the case.
Alabama U.S. Attorney's Offices Reach A Settlement Agreement to Ensure ADA Compliance at Dollar General Stores Throughout the StateRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that the U.S. Attorney’s Office recently entered into a statewide settlement agreement with Dolgencorp, LLC, to ensure that all Dollar General stores in the state of Alabama are in compliance with the requirements of the Americans with Disabilities Act (ADA). His office partnered with the U.S. Attorney’s Offices for the Northern and Middle Districts of Alabama in reaching that agreement.
Dolgencorp, doing business as Dollar General, operates discount department stores nationwide. There are 693 stores located in the state of Alabama. After receiving complaints about disability access to the stores, an investigation revealed a recurring problem with many stores having merchandise, shopping carts, boxes, and other items stored in the common areas of the stores’ exterior and interior spaces. These kinds of obstructions reduced or eliminated accessibility for disabled customers.
To correct these problems, Dolgencorp has agreed to implement a policy that will prohibit its employees from placing items in areas such as handicap parking spaces and interior access aisles. Dolgencorp also has agreed to provide annual training to all of its employees in the state to ensure that they are knowledgeable about the requirements of the ADA, and the corporation will have an ADA Coordinator to assist with the handling of complaints and employee training.
United States Attorney Brown said, "I applaud Dollar General for its commitment to bringing its stores into compliance with the ADA. It is of great importance that all patrons in Alabama, especially those with disabilities, are able to enjoy equal access during their shopping experiences. Dollar General adopted our recommendations and moved swiftly to remedy the issues."
Title III of the ADA prohibits discrimination in “the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation.” 42 U.S.C. § 12182. The Department of Justice recognizes that importance of those with disabilities being integrated in society and having “full and equal enjoyment” of the services provided.
Southern District of Alabama Assistant United States Attorney Suntrease Williams-Maynard is the U.S. Attorney’s Office point of contact on this case.
More information regarding maintaining accessible features in retail establishments may be found at https://www.ada.gov/business/retail_access.htm. People interested in learning more about the requirements of the ADA may visit the website www.ada.gov or call the toll free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). They may also learn more about the U.S. Attorney’s Office’s own civil rights enforcement program, which includes enforcement of the ADA, at https://www.justice.gov/usao-sdal/civil-rights-enforcement-unit.
Akron man likely to be sentenced to 20 years in prison after admitting selling fentanyl obtained from China that resulted in fatal overdoseRead the Press Release
An Akron man will likely be sentenced to 20 years in prison after he admitted selling fentanyl obtained from China that resulted in a fatal overdose, law enforcement officials said.
Leroy Shuarod Steele, 36, pled guilty to conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl.
The fentanyl Steele distributed resulted in the fatal overdose of a person identified only as T.R. on March 21, 2015 in Akron, according to court documents.
Steele, Sabrina M. Robinson and Ryan Sumlin conspired together between March and April of this year to possess and distribute fentanyl. They obtained fentanyl from suppliers in China and then distributed the drug to people in Akron, Fairlawn and elsewhere, according to court documents.
Sumlin faces an additional charge of distribution of fentanyl that caused the overdose death of someone in Akron on March 28, 2015, according to court documents.
Robinson has pled guilty in the case. Sumlin’s case is pending.
Steele and Robinson are scheduled to be sentenced on April 19.
“This is another human life lost to opioids brought to Ohio from China,” U.S. Attorney Carole S. Rendon said. “We will continue to push for long prison sentences for drug dealers who kill our neighbors and relatives, while also working to reduce the number of opioids on the street, making treatment more readily available and educating our community about the dangers posed by these drugs.”
This case is being prosecuted by Assistant U.S. Attorney Linda H. Barr following an investigation by the Drug Enforcement Agency, the Akron Police Department and the Fairlawn Police Department.
Akron man charged for failing to disclose service in unit involved in war crimes in the former YugoslaviaRead the Press Release
An Akron man was charged in federal court related to failing to disclose his involvement in a military unit engaged in war crimes in the former Yugoslavia, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Ilija Josipovic, 59, was charged in a two-count criminal information with possession of immigration documents procured by fraud.
Josipovic, on Feb. 1, 2012, possessed a Permanent Resident Card in his name, which he knew to be procured by means of a false claim and statement while obtaining an Ohio driver’s license at the Ohio Bureau of Motor Vehicles office 7744, located at 1030 East Tallmadge Avenue in Akron, according to the information.
Josipovic, on Sept. 10, 2014, he possessed a Permanent Resident Card in his name, which he knew to be procured by means of a false claim and statement while at his residence in Akron, according to the information.
In 2002, Josipovic omitted or failed to disclose his military service in the 6th Battalion, Zvornik Infantry Brigade, Army of the Republic of Srpska, which began around May 25, 1992 and continued until approximately 1996, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Dept. of Homeland Security, Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tuesday 17 January 2017
Woman Sentenced for Virginia Employment Commission FraudRead the Press Release
NORFOLK, Va. – Paula Lane (a.k.a. Paula Hipps), 47, formerly of Corapeake, North Carolina, now residing in Danville, was sentenced today to 57 months in prison for her role in an insurance fraud scheme that caused a loss over $150,000 to the Virginia Employment Commission (VEC) and similar agencies in Indiana and Pennsylvania.
Lane pleaded guilty to mail fraud and aggravated identity theft on Sept. 15, 2016. According to court documents, Lane devised and executed a complex unemployment insurance fraud scheme that resulted in payments of more than $150,000 in one year. Lane, at the time operating out of her home in Corapeake, North Carolina, created fake companies and reported to the VEC that the companies had employees who earned wages. The employees were real people whose identities Lane stole for the purpose of this scheme. Between August 2013 and August 2014, Lane filed unemployment claims under the names of 28 different identities stating that they had been laid off. Lane was then able to receive unemployment insurance money that was deposited directly into her bank account or onto debit cards that she controlled. Lane also filed false claims in Indiana and Pennsylvania.
In addition to the prison sentence, Lane was also ordered to pay $152,449 in restitution to the Virginia Employment Commission.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robin Blake, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Joseph Cronin, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Randy Stoker prosecuted the case.
The case was investigated by the Department of Labor Office of the Inspector General along with Homeland Security Investigations, the United States Postal Inspection Service, the Virginia Employment Commission, and the North Carolina State Bureau of Investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-089.
Wife of Pulse Nightclub Shooter Charged with Aiding and Abetting Her Husband and Obstruction of JusticeRead the Press Release
Noor Salman, 30, formerly of Fort Pierce, Florida, was charged by indictment with aiding and abetting Omar Mateen’s attempted provision and provision of material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and obstruction of justice. If convicted on all counts, Salman faces a maximum penalty of life imprisonment.
Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney A. Lee Bentley, III for the Middle District of Florida made the announcement.
Salman was arrested in northern California on Monday, January 16, and made her initial appearance in federal court in Oakland, California earlier today. Salman was temporarily detained pending a status hearing on Wednesday, January 18.
According to the indictment, from no later than end of April 2016 through and including June 12, 2016, Salman aided and abetted Mateen’s attempted provision and provision of material support, namely, personnel and services, to ISIL, and the death of multiple victims resulted. Further, on June 12, 2016, Salman obstructed justice by engaging in misleading conduct towards officers of the Fort Pierce Police Department and special agents of the FBI in order to prevent them from communicating to agents, the U.S. Department of Justice and judges of the United States of America, information relating to the attack at the Pulse Night Club in Orlando, Florida.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI; the Orlando Police Department; the Orange County Sheriff’s Office in Florida; the Fort Pierce Police Department; the Saint Lucie County Sheriff’s Office in Florida; and the Florida Department of Law Enforcement. Assistance was provided by the IRS - Criminal Investigation division; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Martin County Sheriff’s Office in Florida; and the Sebastian Police Department in Florida. This case will be prosecuted by Assistant U.S. Attorneys Sara C. Sweeney, James D. Mandolfo and Roger B. Handberg for the Middle District of Florida and Trial Attorney Kevin C. Nunnally for the National Security Division’s Counterterrorism Section
Wife of Pulse Nightclub Shooter Charged with Aiding and Abetting Her Husband and Obstruction of JusticeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III and Acting Assistant Attorney General for National Security Mary B. McCord announce the return of an indictment charging Noor Salman (30, formerly of Fort Pierce, Florida) with aiding and abetting Omar Mateen’s attempted provision and provision of material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and obstruction of justice. If convicted on all counts, she faces a maximum penalty of life imprisonment. Salman was arrested in northern California on Monday, January 16, 2017, and made her initial appearance in federal court in Oakland earlier today. She has been detained pending a status hearing on Wednesday, January 18, 2017.
According to the indictment, from no later than end of April 2016 through and including June 12, 2016, Salman aided and abetted Mateen’s attempted provision and provision of material support, namely, personnel and services, to ISIL, and the death of multiple victims resulted. Further, on June 12, 2016, Salman obstructed justice by engaging in misleading conduct towards officers of the Fort Pierce Police Department and special agents of the Federal Bureau of Investigation in order to prevent them from communicating to agents, the U.S. Department of Justice, and judges of the United States of America information relating to the attack at the Pulse Night Club in Orlando.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Orlando Police Department, the Orange County Sheriff’s Office, the Fort Pierce Police Department, the Saint Lucie County Sheriff’s Office, and the Florida Department of Law Enforcement, with assistance from the Internal Revenue Service - Criminal Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Martin County Sheriff’s Office and the Sebastian Police Department. It will be prosecuted by Assistant United States Attorneys Sara C. Sweeney, James D. Mandolfo, and Roger B. Handberg, and Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.
U.S. Navy Sailor Pleads Guilty to Production of Child PornographyRead the Press Release
NORFOLK, Va. – Jordan Lee Adams, 26, of Wayne County, North Carolina, pleaded guilty today to charges of production of child pornography.
According to the statement of facts filed with the plea agreement, Adams produced sexually explicit videos and images of four minor females on various occasions from 2009 through 2013. One of the graphic videos depicts Adams engaging in sexual acts with a 14-year-old girl when he was a 21-year old. In addition, Adams also uploaded a sexually explicit image he produced of a 15-year-old girl to a social media group. The image was later sent to the victim by a stranger on the internet who threatened to ‘sextort’ her, meaning he would distribute the image further unless she sent him additional images of herself. Adams also possessed sexually explicit images of 10 minor females previously identified as victims by the National Center for Missing and Exploited Children.
Adams faces a maximum penalty of 30 years in prison when sentenced on April 13. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Tim Quick, Special Agent in Charge of Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Arenda Wright Allen. Special Assistant U.S. Attorney Alyssa Nichol is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-163.
Two Men Plead Guilty to Charges in Killing of Man Following Fistfight in Southeast WashingtonRead the Press Release
WASHINGTON - Anthony Wade, 31 of Washington, D.C., and his uncle, Antwain Bailey, 47 of Temple Hills, Md., have pled guilty to charges stemming from their roles in the killing of a man in Southeast Washington, U.S. Attorney Channing D. Phillips announced today.
Both men entered their guilty pleas on Jan. 12, 2017, in the Superior Court of the District of Columbia. Wade pled guilty to second-degree murder while armed, and Bailey pled guilty to voluntary manslaughter while armed. The guilty pleas, which are contingent upon the Court’s approval, call for Wade to be sentenced to between 15 and 24 years in prison and for Bailey to be sentenced to a 13-year-prison term. The Honorable Milton C. Lee set a hearing for May 19, 2017 to determine whether the pleas and sentences will be accepted.
According to the government’s evidence, in the late afternoon of March 9, 2016, Bailey had a verbal altercation with the victim, Aubrey Dansbury, in an apartment in the 800 block of Chesapeake Street SE. During the argument, Wade called his uncle, Bailey, and provided Bailey with his location. Wade then walked outside and Mr. Dansbury followed. Once outside, the two men began to fist fight. People from the neighborhood tried unsuccessfully to break up the fight.
As the fight continued, Bailey drove onto the block in a black Lexus sedan. Bailey parked the car and got out, and Wade ran over to him. When Mr. Dansbury and Wade began to fight again, Bailey intervened and walked Wade to the front of the car. Bailey then handed Wade a gun. Wade turned and began shooting at Mr. Dansbury, who was standing at the back of the Lexus. Wade fired the gun at least two times, but neither shot hit Mr. Dansbury. The gun jammed. Wade handed the gun to Bailey, who unjammed the weapon and handed it back. Wade then repeatedly fired the gun as he followed Mr. Dansbury around the car. Mr. Dansbury got inside of the back seat of the sedan to seek cover. Wade then shot Mr. Dansbury multiple times. Mr. Dansbury fell out of the car onto the sidewalk. Bailey got into the driver’s seat and Wade got into the back seat and the car pulled off. Mr. Dansbury, 27, died from the gunshot wounds on March 17, 2016.
In announcing the pleas, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including Victim/Witness Advocate Diana Lim and Paralegal Specialist Lashone Samuels. Finally, he commended the work of Assistant U.S. Attorneys Adrienne Dedjinou, Matthew Massey and Allessandra Stewart, who investigated and prosecuted the case.
Two Members of Cowboys Gang Plead Guilty to Racketeering Conspiracy, Attempted Murder and Related OffensesRead the Press Release
Two members of the Cowboys street gang have pleaded guilty to racketeering conspiracy and attempted murder in aid of racketeering for their roles in gang-related shootings in South Carolina.
Acting Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina, Field Division; Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Atlanta Field Office; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland, of the Colleton County, South Carolina, Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina, Police Department; Sheriff Al Cannon of the Charleston County, South Carolina, Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina, Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina, Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Christopher Sean Brown, aka Rougish, 23, of Walterboro, pleaded guilty today to attempted murder in aid of racketeering activity. Matthew Rashaun Jones, aka Boogie Mac, 23, also of Walterboro, pleaded guilty today to racketeering conspiracy. Both defendants admitted their involvement and membership in the Cowboys street gang.
According to admissions made in connection with the plea agreements, the Cowboys is a violent criminal street gang operating in South Carolina since at least 2009, with members who resided in an area known as the “Eastside” of Walterboro. Members of the Cowboys show their allegiance by wearing red, white and blue clothing and carrying rags in these colors, including depictions of the American flag. Further, members of the Cowboys greet each other and show their membership in the gang using a set of hand-signs intended to evoke the shape of a “b.” This hand sign also shows an affiliation with the “Bloods” gang. Members of the Cowboys also show allegiance to the gang by having the words “Cowboy(s)” or “GMC” tattooed to some part of their body.
As part of their plea agreements, Brown and Jones admitted that during the time of the conspiracy, they and other members of the Cowboys were involved in robberies, attempted murder and narcotics trafficking. On or about May 30, 2013, Brown and Jones participated in a drive-by shooting. Specifically, Brown and Jones, both passengers in the vehicle, admitted that they fired multiple shots at a residence where suspected members of the Dooley Hill gang – a rival of the Cowboys – were believed to reside.
As part of his plea agreement, Jones admitted that on or about May 12, 2011, he shot at a person whom he believed was an associate of a rival gang, which had an ongoing dispute with the Cowboys. This shooting led to a retaliatory shooting on May 14, 2011, during which an innocent bystander was shot and injured.
Brown, Jones and seven other members and associates of the Cowboys gang were charged in a Feb. 9, 2016, indictment with racketeering conspiracy and related offenses including attempted murder in aid of racketeering and firearms offenses. An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ATF, HSI, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases. The Criminal Division’s Organized Crime and Gang Section is prosecuting indictments against the Cowboys gang in partnership with the 14th Circuit Solicitor’s Office.
Trio Sentenced to 17 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that three defendants were sentenced to federal prison last week for drug trafficking. Santiago Salinas (aka Chuco), age 47, of Commerce, Oklahoma, was sentenced to 151 months followed by three years of supervised release and ordered to pay a $3,000 fine on one count of Delivery of More than 50 Grams of a Mixture of Methamphetamine. Co-Defendant, Misty Macell Wilson (aka Molly Rockstar), age 46 of Bentonville, was sentenced to 34 months followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Co-Defendant, Melissa Marie Myers, age 31 of Bentonville, was sentenced to 27 months followed by one years of supervised release on one count of Knowingly Using a Communication Facility in a Drug Trafficking Crime. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, on May 3, 2016, during a controlled purchase arranged by law enforcement, Santiago Salinas and his co-defendant Misty Wilson, sold seven (7) ounces of methamphetamine to a confidential source. When the transaction was complete, Salinas and Wilson engaged in talk with the confidential source about future meth deals between them. Later testing at the Arkansas State Crime Lab confirmed the meth to be a gross weight of 220 grams.
Misty Wilson was present on two other occasions when meth was sold to the confidential source. After waiving her Miranda rights, she admitted obtaining meth in the past from Salinas, to wiring money to him in Oklahoma to pay for meth, and to selling meth she had obtained from him. The government forfeited more than $20,000 in cash stemming from this case.
In April, 2016, Melissa Myers was observed leaving the residence of co-defendant Misty Wilson and was stopped by Bentonville Police Department for committing a traffic offense. During the traffic stop, she was arrested for being in possession of methamphetamine and was found to have a larger amount of methamphetamine concealed on her person when she arrived at the jail. A search of her telephone revealed that she had been in contact with co-defendant Salinas on 112 occasions between March 23 and April 6, 2016 and that some of the texts on her phone were to arrange for drug transactions with him. After waiving her Miranda rights, she admitted that she was a seller of meth supplied by Salinas and that she used her cell phone to communicate with him and arrange for drug transactions with him.
Salinas, Wilson, and Myers were indicted by a federal grand jury in June, 2016. Salinas pleaded guilty in August, 2016 and Wilson and Myers pleaded guilty in September, 2016.
“Methamphetamine is a highly addictive poison that destroys countless lives in communities throughout the United States. Through unprecedented partnerships with federal and local enforcement, we are making major progress in preventing methamphetamine trafficking from taking hold in our communities. This investigation is a compelling example of that success”, stated DEA Assistant Special Agent in Charge Matthew Barden.
This case was investigated by the Homeland Security Investigations, Drug Enforcement Administration, Rogers Police Department, Bentonville Police Department, Benton County Sheriff’s Office, and Madison County Sheriff’s Office. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Three San Antonio Men Sentenced to Prison for Sex Trafficking of MinorsRead the Press Release
In San Antonio today, a federal judge sentenced three men to lengthy prison terms for sex trafficking five identified minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
United States District Judge Fred Biery sentenced 20–year-old Melvin Lee Sullivan Deams; his father, 43-year-old Melvin Lee Sullivan (aka “Wink”); and, 22–year-old Michael Antoine McHenry to 60 years imprisonment, 25 years imprisonment and 20 years imprisonment, respectively. In addition to the prison terms, Judge Biery ordered each defendant to pay $5,000 restitution to each identified victim.
According to court documents, during a two-week period ending on October 8, 2015, the defendants were responsible for the prostitution of five juvenile females using Backpage.com. The defendants enticed their victims to engage in sexual activities for money in San Antonio, then confiscated all of the proceeds. In August 2016, McHenry and Sullivan each pleaded guilty to one count of sex trafficking of minors. The following month, Deams pleaded guilty to the same charge.
On October 6, 2016, a fourth defendant in this case, 20-year-old Rashawn Ledamion Gamble of San Antonio, was sentenced to five years probation after pleading guilty to misprision of felony.
This investigation was conducted by the FBI and the San Antonio Police Department with assistance from the Bexar County Juvenile Probation Office. Assistant United States Attorneys Bettina Richardson and Diana Cruz-Zapata prosecuted these defendants on behalf of the Government.
Tampa-Area Medical Device Salesman Guilty of Selling Expired Lap-Band DevicesRead the Press Release
A Tampa-area medical device salesman pleaded guilty on Friday, January 13, 2017, to conspiracy to commit wire fraud in connection with the sale of expired LAP-BAND Adjustable Gastric Banding Systems to physicians in South Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin D. Green, Special Agent in Charge, United States Food and Drug Administration (FDA), Office of Criminal Investigations (OCI), Miami Field Office, made the announcement.
Gregory Charles Grimm, 45, of Saint Petersburg, pleaded guilty to a single count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349. Grimm faces a statutory maximum sentence of twenty years in prison. Grimm is scheduled to be sentenced on March 24, 2017 at 1:15 p.m., by United States District Judge William P. Dimitrouleas in Fort Lauderdale.
According to court records, between June 2014 and October 15, 2015, defendant Grimm and a co-conspirator, Peter Lawrence Kafka, both Senior Account Executives for Apollo Endosurgery, Inc., engaged in a scheme to unlawfully enrich themselves by misbranding LAP-BAND Adjustable Gastric Banding Systems, changing the serial number and expiration date in order to sell expired medical devices for profit. Kafka would purchase expired or nearly expired LAP-BANDS through the internet. Kafka would then supply Grimm with these expired or nearly expired LAP-BANDs. Grimm created false labels with fraudulent serial numbers and expiration dates to hide the true expiration date of the LAP-BANDs. Grimm would then provide Kafka the misbranded LAP-BANDs, the labeling of which bore false expiration dates. Kafka then sold the misbranded LAP-BANDs to local physicians. At least seven of these misbranded LAP-BANDS were subsequently implanted into patients.
The investigation began as a result of a referral by Apollo Endosurgery to the FDA.
Mr. Ferrer commended the investigative efforts of the FDA-OCI in this matter. This case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seven Individuals Sentenced to Prison for Online Fraud ScamsRead the Press Release
Seven defendants were sentenced for their roles in online fraud schemes involving counterfeit checks, “mystery shopper” websites and work-from-home scams, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Gulfport, Mississippi, Office.
Funso Hassan, 27, of Ibadan, Nigeria, and Anthony Shane Jeffers, 44, of Maryville, Tennessee, each pleaded guilty on April 12, 2016, to one count of conspiracy to commit identity theft and theft of government property and one count of use of mail and an interstate facility to distribute proceeds of a racketeering activity. Hassan and Jeffers were each sentenced to 120 months in prison. Ann Louise Franzen, 70, of Kiln, Mississippi; Gary Melvin Barnard, 64, of Palestine, Texas; Michele Gayle Fee, 55, of Stockton, California; Tanya Lynn Thomas, 52, of Turlock, California; and Shawn Ann White, 44, of Manteca, California, previously pleaded guilty to conspiracy to commit identity theft and theft of government property. Franzen, Barnard, Fee, Thomas, and White were each sentenced to 60 months in prison. The defendants were sentenced yesterday by Chief U.S. District Judge Louis Guirola Jr. of the Southern District of Mississippi and restitution for all defendants will be determined at a later date.
According to admissions made in connection with their plea agreements, all seven defendants were members of a large-scale international financial fraud conspiracy that included romance scams through on-line dating sites, check fraud, secret shopper schemes, and personal assistant work-from-home schemes. Some of the defendants started as romance scam victims before later becoming knowing participants in the counterfeit check fraud. Victims were sent checks with mystery shopper and personal assistant instructions. The checks, which were counterfeit, would bounce after the victims transmited proceeds to various locations in the United States which were then laundered for transmission to Nigeria. Victims were then liable to their banks for the amount of checks and often hundreds of dollars in bank fees.
HSI investigated the case. Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi, Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, and Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Seven Individuals Plead Guilty to Involvement in Large-Scale International Online Fraud ConspiracyRead the Press Release
Seven individuals pleaded guilty to participating in a large-scale international online fraud conspiracy, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans.
Rhulane Fionah Hlungwane, 26, of South Africa; Gabriel Oludare Adeniran, 30, of Nigeria; Olusegun Seyi Shonekan, 34, of Nigeria; Taofeeq Olamilekan Oyelade, 32, of Nigeria; Olufemi Obaro Omoraka, 27, of Nigeria; Anuoluwapo Segun Adegbemigun, 40, of Nigeria; and Adekunle Adefila, 41, of Nigeria, each pleaded guilty this week to one count of conspiracy to commit mail and wire fraud. In addition, Hlungwane, Adeniran, Shonekan, Oyelade, Omoraka and Adegbemigun each pleaded guilty to one count of conspiracy to commit identity theft, access device fraud and theft of government funds.
According to the plea agreements, the defendants and their co-conspirators carried out numerous internet-based fraud schemes dating back at least to 2001. These schemes involved using unsuspecting victims to cash counterfeit checks and money orders, using stolen credit card numbers to purchase electronics and other merchandise and using stolen personal identification information to take over victims’ bank accounts. As a whole, the conspiracy involved tens of millions of dollars in intended losses.
The defendants admitted that, to accomplish their fraud schemes, they recruited the assistance of U.S. citizens via “romance scams,” in which the perpetrator would typically use a false identity on a dating website to establish a romantic relationship with an unsuspecting victim. Once the perpetrator gained the victim’s trust and affection, the perpetrator would convince the victim to either send money or to help carry out fraud schemes. For example, the defendants admitted that they used romance victims to launder money via Western Union and MoneyGram, to re-package and re-ship fraudulently obtained merchandise and to cash counterfeit checks.
This case is being prosecuted as part of the Justice Department’s mission to combat transnational organized crime. Any person who believes they may be a victim of online fraud should report suspected criminal activity using the HSI Tip Form: www.ice.gov/webform/hsi-tip-form.
HSI investigated the case. Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi are prosecuting the case.
San Francisco Resident Sentenced to Fifteen Years in Prison for Production and Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Duane Charles Ackerman was sentenced today to fifteen years in prison for production and possession of child pornography, announced United States Attorney Brian J. Stretch and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
Ackerman, 51, of San Francisco, pleaded guilty on September 27, 2016, to one count of production of pornography depicting minors in sexually explicit conduct, and one count of possessing child pornography. According to his guilty plea, between June and August of 2015, Ackerman produced six video files of prepubescent girls who were each less than 12 years old. The children were temporarily entrusted to his care at his home when he surreptitiously recorded their genitals using a hidden camera. In addition, Ackerman admitted that in October of 2015, he possessed a computer hard drive that contained no fewer than 15,000 digital images and 800 video files depicting child pornography. A federal grand jury issued a superseding indictment on February 25, 2016, charging Ackerman with six counts of production of child pornography, in violation of 18 U.S.C. § 2251(a); one count of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2); and one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). According to his plea agreement, Ackerman pleaded guilty to one count of production and one count of possessing child pornography.
The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge. In addition to the prison term, Judge Chhabria also ordered Ackerman to serve a ten-year period of supervised release. Additional proceedings have been scheduled to decide the issue of restitution.
Assistant U.S. Attorneys Brian R. Faerstein and Laurie Kloster Gray prosecuted the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by HSI.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
Rolls-Royce plc Agrees to Pay $170 Million Criminal Penalty to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
Company Agrees to $800 Million Global Resolution with authorities in the United States, the United Kingdom and Brazil
Rolls-Royce plc, the United Kingdom-based manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors, has agreed to pay the U.S. nearly $170 million as part of an $800 million global resolution to investigations by the department, U.K. and Brazilian authorities into a long-running scheme to bribe government officials in exchange for government contracts.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Chief Andrew Weissmann of the Fraud Section of the Justice Department’s Criminal Division, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Inspector in Charge Regina Faulkerson of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
“Bribery of government officials undermines the integrity of a free and fair market,” said U.S. Attorney Glassman. “This multinational resolution imposes significant criminal penalties on Rolls-Royce for its multinational corruption.”
“For more than a decade, Rolls-Royce repeatedly resorted to bribes to secure contracts and get a competitive edge in countries throughout the world,” said Chief Weissmann. “The global nature of this crime requires a global response, and this case is yet another example of the strong relationship between the United States and U.K. Serious Fraud Office and Brazilian Ministério Público Federal, and the collective efforts to ensure that ethical companies can compete on an even playing field anywhere in the world.”
“Rolls-Royce knowingly acted outside the law by conspiring to bribe foreign officials to gain an unfair advantage,” said Assistant Director Richardson. “No company is above the law. This resolution will stand as a warning to big and small companies all across the world that the FBI will not tolerate the foreign corruption that threatens our fair and competitive markets.”
“This successful parallel investigation is a tremendous example of the central importance of working cooperatively alongside our international partners to achieve a fair and meaningful resolution,” said Assistant Director in Charge Abbate. “This outcome is a reflection of the immense reach and capabilities of the FBI’s Washington Field Office international corruption squad and the global impact of the anti-corruption program.”
According to admissions made in court papers unsealed today, Rolls-Royce admitted that between 2000 and 2013, the company conspired to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $35 million in bribes through third parties to foreign officials in various countries in exchange for those officials’ assistance in providing confidential information and awarding contracts to Rolls-Royce, RRESI and affiliated entities (collectively, Rolls-Royce):
- In Thailand, Rolls-Royce admitted to using intermediaries to pay approximately $11 million in bribes to officials at Thai state-owned and state-controlled oil and gas companies that awarded approximately seven contracts to Rolls-Royce during the same time period.
- In Brazil, Rolls-Royce used intermediaries to pay approximately $9.3 million in bribes to bribe foreign officials at a state-owned petroleum corporation that awarded multiple contracts to Rolls-Royce during the same time period.
- In Kazakhstan, between approximately 2009 and 2012, Rolls-Royce paid commissions of approximately $5.4 million to multiple advisors, knowing that at least a portion of the commission payments would be used to bribe foreign officials with influence over a joint venture owned and controlled by the Kazakh and Chinese governments that was developing a gas pipeline between the countries. In 2012, the company also hired a local Kazakh distributor, knowing it was beneficially owned by a high-ranking Kazakh government official with decision-making authority over Rolls-Royce’s ability to continue operating in the Kazakh market. During this time, the state-owned joint venture awarded multiple contracts to Rolls-Royce.
- In Azerbaijan, between approximately 2000 and 2009, Rolls-Royce used intermediaries to pay approximately $7.8 million in bribes to foreign officials at the state-owned and state-controlled oil company, which awarded multiple contracts to Rolls-Royce during the same time period.
- In Angola, between approximately 2008 and 2012, Rolls-Royce used an intermediary to pay approximately $2.4 million in bribes to officials at a state-owned and state-controlled oil company, which awarded three contracts to Rolls-Royce during this time period.
- In Iraq, from approximately 2006 to 2009, Rolls-Royce supplied turbines to a state-owned and state-controlled oil company. Certain Iraqi foreign officials expressed concerns about the turbines and subsequently threatened to blacklist Rolls-Royce from doing future business in Iraq. In response, Rolls-Royce’s intermediary paid bribes to Iraqi officials to persuade them to accept the turbines and not blacklist the company.
Rolls-Royce entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed on Dec. 20, 2016, in the Southern District of Ohio and unsealed today, charging the company with conspiring to violate the anti-bribery provisions of the FCPA. Pursuant to the DPA, Rolls-Royce agreed to pay a criminal penalty of $195,496,880, subject to a credit discussed below. The company has also agreed to continue to cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
In related proceedings, Rolls-Royce also settled with the United Kingdom’s Serious Fraud Office (SFO) and the Brazilian Ministério Público Federal (MPF). As part of its resolution with the SFO, Rolls-Royce entered into a DPA and admitted to paying additional bribes or failing to prevent bribery payments in connection with Rolls-Royce’s business operations in China, India, Indonesia, Malaysia, Nigeria, Russia and Thailand between in or around 1989 and in or around 2013, and Rolls-Royce agreed to pay a total fine of £497,252,645 ($604,808,392). As part of its leniency agreement with the MPF, Rolls-Royce also agreed to pay a penalty of approximately $25,579,170 for the company’s role in a conspiracy to bribe foreign officials in Brazil between 2005 and 2008. Because the conduct underlying the MPF resolution overlaps with the conduct underlying part of the department’s resolution, the department credited the $25,579,170 that Rolls-Royce agreed to pay in Brazil against the total fine in the United States. Therefore, the total amount to be paid to the United States is $169,917,710, and the total amount of penalties that Rolls-Royce has agreed to pay is more than $800 million.
A number of factors contributed to the department’s criminal resolution with the company, including that Rolls-Royce did not disclose the criminal conduct to the department until after the media began reporting allegations of corruption and after the SFO had initiated an inquiry into the allegations and that the conduct was extensive and spanned 12 countries. However, the company did cooperate with the department’s investigation. Rolls-Royce has also taken significant remedial measures, including terminating business relationships with multiple employees and third-party intermediaries who were implicated in the corrupt scheme; enhancing compliance procedures to review and approve intermediaries; and implementing new and enhanced internal controls to address and mitigate corruption and compliance risks. Thus, the criminal penalty reflects a 25-percent reduction from the bottom of the U.S. Sentencing Guidelines fine range. In addition, the department considered the parallel resolutions reached by the SFO and MPF in determining the resolution.
The U.S. Postal Inspection Service and the FBI’s International Corruption Squad in Washington, D.C., investigated the case. Trial Attorneys Ephraim Wernick, Kevin Gingras and Dennis Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Michael J. Marous and Jessica Kim of the Southern District of Ohio are prosecuting the case.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The SFO and the MPF provided significant cooperation and assistance in this matter, as did law enforcement colleagues in Austria, Germany, the Netherlands, Singapore and Turkey.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Rolls-Royce DPA Rolls-Royce InformationRolls-Royce PLC Agrees to Pay $170 Million Criminal Penalty to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
WASHINGTON – Rolls-Royce plc, the United Kingdom-based manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors, has agreed to pay the U.S. nearly $170 million as part of an $800 million global resolution to investigations by the department, U.K. and Brazilian authorities into a long-running scheme to bribe government officials in exchange for government contracts.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Chief Andrew Weissmann of the Fraud Section of the Justice Department’s Criminal Division, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Inspector in Charge Regina Faulkerson of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
“Bribery of government officials undermines the integrity of a free and fair market,” said U.S. Attorney Glassman. “This multinational resolution imposes significant criminal penalties on Rolls-Royce for its multinational corruption.”
“For more than a decade, Rolls-Royce repeatedly resorted to bribes to secure contracts and get a competitive edge in countries throughout the world,” said Chief Weissmann. “The global nature of this crime requires a global response, and this case is yet another example of the strong relationship between the United States and U.K. Serious Fraud Office and Brazilian Ministério Público Federal, and the collective efforts to ensure that ethical companies can compete on an even playing field anywhere in the world.”
“Rolls-Royce knowingly acted outside the law by conspiring to bribe foreign officials to gain an unfair advantage,” said Assistant Director Richardson. “No company is above the law. This resolution will stand as a warning to big and small companies all across the world that the FBI will not tolerate the foreign corruption that threatens our fair and competitive markets.”
“This successful parallel investigation is a tremendous example of the central importance of working cooperatively alongside our international partners to achieve a fair and meaningful resolution,” said Assistant Director in Charge Abbate. “This outcome is a reflection of the immense reach and capabilities of the FBI’s Washington Field Office international corruption squad and the global impact of the anti-corruption program.”
According to admissions made in court papers unsealed today, Rolls-Royce admitted that between 2000 and 2013, the company conspired to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $35 million in bribes through third parties to foreign officials in various countries in exchange for those officials’ assistance in providing confidential information and awarding contracts to Rolls-Royce, RRESI and affiliated entites (collectively, Rolls-Royce):
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In Thailand, Rolls-Royce admitted to using intermediaries to pay approximately $11 million in bribes to officials at Thai state-owned and state-controlled oil and gas companies that awarded approximately seven contracts to Rolls-Royce during the same time period.
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-
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In Brazil, Rolls-Royce used intermediaries to pay approximately $9.3 million in bribes to bribe foreign officials at a state-owned petroleum corporation that awarded multiple contracts to Rolls-Royce during the same time period.
-
In Kazakhstan, between approximately 2009 and 2012, Rolls-Royce paid commissions of approximately $5.4 million to multiple advisors, knowing that at least a portion of the commission payments would be used to bribe foreign officials with influence over a joint venture owned and controlled by the Kazakh and Chinese governments that was developing a gas pipeline between the countries. In 2012, the company also hired a local Kazakh distributor, knowing it was beneficially owned by a high-ranking Kazakh government official with decision-making authority over Rolls-Royce’s ability to continue operating in the Kazakh market. During this time, the state-owned joint venture awarded multiple contracts to Rolls-Royce.
-
In Azerbaijan, between approximately 2000 and 2009, Rolls-Royce used intermediaries to pay approximately $7.8 million in bribes to foreign officials at the state-owned and state-controlled oil company, which awarded multiple contracts to Rolls-Royce during the same time period.
-
In Angola, between approximately 2008 and 2012, Rolls-Royce used an intermediary to pay approximately $2.4 million in bribes to officials at a state-owned and state-controlled oil company, which awarded three contracts to Rolls-Royce during this time period.
-
In Iraq, from approximately 2006 to 2009, Rolls-Royce supplied turbines to a state-owned and state-controlled oil company. Certain Iraqi foreign officials expressed concerns about the turbines and subsequently threatened to blacklist Rolls-Royce from doing future business in Iraq. In response, Rolls-Royce’s intermediary paid bribes to Iraqi officials to persuade them to accept the turbines and not blacklist the company.
-
Rolls-Royce entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed on Dec. 20, 2016, in the Southern District of Ohio and unsealed today, charging the company with conspiring to violate the anti-bribery provisions of the FCPA. Pursuant to the DPA, Rolls-Royce agreed to pay a criminal penalty of $195,496,880, subject to a credit discussed below. The company has also agreed to continue to cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
- related proceedings, Rolls-Royce also settled with the United Kingdom’s Serious Fraud Office (SFO) and the Brazilian Ministério Público Federal (MPF). As part of its resolution with the SFO, Rolls-Royce entered into a DPA and admitted to paying additional bribes or failing to prevent bribery payments in connection with Rolls-Royce’s business operations in China, India, Indonesia, Malaysia, Nigeria, Russia and Thailand between in or around 1989 and in or around 2013, and Rolls-Royce agreed to pay a total fine of £497,252,645 ($604,808,392). As part of its leniency agreement with the MPF, Rolls-Royce also agreed to pay a penalty of approximately $25,579,170 for the company’s role in a conspiracy to bribe foreign officials in Brazil between 2005 and 2008. Because the conduct underlying the MPF resolution overlaps with the conduct underlying part of the department’s resolution, the department credited the $25,579,170 that Rolls-Royce agreed to pay in Brazil against the total fine in the United States. Therefore, the total amount to be paid to the United States is $169,917,710, and the total amount of penalties that Rolls-Royce has agreed to pay is more than $800 million.
A number of factors contributed to the department’s criminal resolution with the company, including that Rolls-Royce did not disclose the criminal conduct to the department until after the media began reporting allegations of corruption and after the SFO had initiated an inquiry into the allegations and that the conduct was extensive and spanned 12 countries. However, the company did cooperate with the department’s investigation. Rolls-Royce has also taken significant remedial measures, including terminating business relationships with multiple employees and third-party intermediaries who were implicated in the corrupt scheme; enhancing compliance procedures to review and approve intermediaries; and implementing new and enhanced internal controls to address and mitigate corruption and compliance risks. Thus, the criminal penalty reflects a 25-percent reduction from the bottom of the U.S. Sentencing Guidelines fine range. In addition, the department considered the parallel resolutions reached by the SFO and MPF in determining the resolution.
Assistant United States Attorneys Michael J. Marous and Jessica Kim of the Southern District of Ohio and Trial Attorneys Ephraim Wernick, Kevin Gingras and Dennis Kihm of the Criminal Division’s Fraud Section are prosecuting the case. The U.S. Postal Inspection Service and the FBI’s International Corruption Squad in Washington, D.C., investigated the case.
- Criminal Division’s Office of International Affairs provided significant assistance in this matter. The SFO and the MPF provided significant cooperation and assistance in this matter, as did law enforcement colleagues in Austria, Germany, the Netherlands, Singapore and Turkey.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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Roane County man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Roane County man pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Chadrick Rogers, 39, entered his guilty plea to possession with intent to distribute methamphetamine.
Rogers admitted that on October 2, 2016, he was arrested by members of the United States Marshals Service and the Kanawha County Sheriff’s Department on a warrant for violation of his federal supervised release. At the time of his arrest, Rogers was found in possession of approximately 33 grams of methamphetamine and over $3,800 in cash. Rogers further admitted that it was his intent to distribute the methamphetamine in and around Kanawha County.
Rogers faces up to 20 years in federal prison when he is sentenced on April 13, 2017.
The case against Rogers was investigated by the United States Marshal Service and the Kanawha County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Puerto Rico Man Sentenced to 66 Months in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE TORRES SERRANO, 30, of Bayamon, Puerto Rico, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 66 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on November 19, 2015, the U.S. Department of Homeland Security (“HSI”) in San Juan, Puerto Rico, contacted HSI agents in Hartford and relayed information that two packages containing an approximate combined weight of 5.27 kilograms of cocaine were destined for locations in Waterbury and Middletown. The investigation revealed that SERRANO was responsible for the shipping of the packages from Puerto Rico and was the intended recipient of both packages. SERRANO, who had travelled from Puerto Rico to receive the packages and distribute the cocaine, was arrested at the Waterbury address on November 20, 2015.
SERRANO has been detained since his arrest. On September 16, 2016, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
This matter was investigated by Homeland Security Investigations, the Middletown Police Department and the Connecticut State Police, with the support and assistance of the Middlesex State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro, who was cross-designated as a Special Assistant U.S. Attorney in this matter.
Prior Felon from Las Cruces Sentenced to Federal Prison for Conviction on Firearms and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Michael Uribe, 40, of Las Cruces, N.M., was sentenced today in federal court to 63 months in prison followed by three years of supervised release for violating the federal firearms and drug trafficking laws.
Uribe was arrested on Nov. 20, 2015, on an indictment charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition on Sept. 17, 2015, in Dona Ana County, N.M. According to the indictment, Uribe was prohibited from possessing firearms or ammunition because he previously had been convicted twice on forgery charges.
On April 22, 2016, Uribe pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition. In entering the guilty plea, Uribe admitted that on Sept. 17, 2015, law enforcement officers found 45.5 grams of methamphetamine, a revolver and ammunition in his hotel room during a consensual search. Uribe further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Assistant U.S. Attorneys Dustin Segovia and Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Preston County man pleads guilty to unlawful purchase of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Cory Jean Gainey, 24, of Reedsville, West Virginia, was convicted of unlawfully purchasing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Gainey pled guilty to one count of “False Statement During the Purchase of a Firearm.” He admitted that in October 2015, he provided a false statement to a licensed firearms dealer stating that he was the actual purchaser of the firearm when in fact he was buying it for another individual. He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Monongalia County Sheriff’s Department, and the Morgantown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pensacola Man Sentenced to 135 Months in Prison for Assaulting a Law Enforcement OfficerRead the Press Release
PENSACOLA, FLORIDA – Thomas M. Jackson, 36, of Pensacola, Florida, has been sentenced to 135 months in prison for using a motor vehicle to assault a police officer with Naval Air Station Pensacola. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In March 2016, a police officer with the Naval Air Station Pensacola was on duty at the main gate when Jackson drove to the gate. The officer believed that Jackson was driving under the influence and tried to get Jackson to turn the vehicle off and surrender the keys. Jackson then accelerated the vehicle, striking the officer. The officer sustained several strained muscles and abrasions.
"Our law enforcement officers strive to keep us all safe, while putting themselves at risk," said United States Attorney Christopher P. Canova. Those who seek to harm our officers will be prosecuted to the fullest extent of the law."
The case was investigated by the Naval Criminal Investigative Service and the Naval Air Station Pensacola Police Department. This case was prosecuted by Assistant U.S. Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pensacola Man Pleads Guilty to Federal Indictment for Mailing Threats to Sheriff MorganRead the Press Release
PENSACOLA, FLORIDA – Regis L. Walker, 30, of Pensacola, pled guilty today to mailing threatening communications. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In June 2016, Walker mailed a threatening letter on notebook paper to Sheriff David Morgan at the Escambia County Sheriff’s Office. In the letter, Walker claimed several people who had joined ISIS would simultaneously attack military bases, beaches, and schools at a nonspecific time and could not be stopped by law enforcement. Walker made specific reference to the recent attack in Orlando, Florida, that killed approximately 50 people. Walker wrote that the attackers planned on “not giving up,” and that they “plan on dying.” He appeared to sign the note as “ISIS ALLAH.”
Walker faces a maximum of five years in federal prison. The sentencing hearing is scheduled for April 6, 2017 at 12:30p, at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Law Enforcement. Assistant United States Attorney David L. Goldberg is prosecuting the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer(850) 216-3854, [email protected]
Pennsylvania Man Pleads Guilty to Bank FraudRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Alexander Ortega, of Barnesville, Pennsylvania, has pleaded guilty to one count of bank fraud.
Ortega pleaded guilty before United States District Judge Landya McCafferty to an Indictment that had been returned by the Grand Jury on March 23, 2016.
According to court filings and statements in Court, between February 7, 2014, and March 13, 2014, Ortega opened a bank account with counterfeit checks and then, using certified bank checks from that account, and the ATM/Debit card associated with the account, he withdrew funds fraudulently, causing a total loss of approximately $34,163.93.
Ortega will be sentenced at 11:00 AM on May 2, 2017.
The case was investigated by the U.S. Postal Inspection Service and the Lebanon, and Enfield, New Hampshire Police Departments. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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Park Hill Man Pleads Guilty to Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEFFREY SCOTT HOFFMAN, age 46, of Park Hill, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by no more than 20 years imprisonment, and up to a$1,000,000.00 fine or both; and to POSSESSION OF UNREGISTERED FIREARM (SAWED-OFF SHOTGUN), in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871, punishable by no more than 10 years imprisonment, and up to a$250,000.00 fine or both.
The Indictment alleged that on or about November 5, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about November 5, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a shotgun having a barrel less than 18 inches in length, 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 Hulbert Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Dean Burris represented the United States.
Pakistani Man Convicted of Defrauding FedEx of Nearly $300,000Read the Press Release
HOUSTON ‐ A 32-year-old Pakistani national who resided in the local area has pleaded guilty to six counts of mail fraud, announced U.S. Attorney Kenneth Magidson. Babar Butt resided in multiple locations in Houston and Spring and operated an electronics export business, routinely shipping items to Dubai, United Arab Emirates.
Beginning in February 2015, Butt devised a scheme whereby he defrauded FedEx by opening various shipping accounts. He would ship one or more packages of cell phones and electronics to Dubai and elsewhere until the charges were declined and he could no longer ship on that account. He would then open new accounts to continue his scheme and would again not pay his shipping invoices, causing significant losses to FedEx.
U.S. District Judge Keith P. Ellison accepted the plea today and set sentencing for April 4, 2017. At that time, Butt faces up to 20 years in federal prison as well as a possible $250,000 maximum fine. He could also be ordered to pay restitution in the amount of $287,679. He will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
Ohio Man Charged with Interfering with Crew on Pittsburgh to Columbus FlightRead the Press Release
PITTSBURGH- A resident of University Heights, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of interfering with the duties of a flight crew, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Dwight D. Allen, 55, of University Heights, Ohio as the sole defendant. According to the indictment presented to the court, on December 17, 2016, a Delta flight out of Pittsburgh, Pennsylvania, was heading to Columbus, Ohio, and the defendant, Dwight D. Allen, interfered with the performance of duties of a flight crew member or flight attendant of the aircraft, and lessened the ability of the member or attendant to perform those duties, by assaulting and intimidating the flight attendant or flight crew member. The indictment alleges that the defendant disregarded instructions to remain in his seat, attempted to physically force his way to the front galley and cockpit area of the airplane, and had to be physically restrained by attendants and passengers as the plane was returned to the gate due to the defendant’s aggressive behavior.
Arraignment has been set for February 7, 2017, at 9:30 a.m. Magistrate Judge Cynthia Reed Eddy.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Allegheny County Police Department 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.
Ohio County man pleads guilty to illegal possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Mark A. Simmons, 46, of Wheeling Island, West Virginia, was convicted of illegally possessing firearms, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Simmons, who had previously been convicted of the felony offense of “Failure to Register or Provide Notice of Registration” in Marshall County, admitted to possessing a Beretta pistol in Ohio County in November 2016. Simmons faces up to ten years in prison and a fine of $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
North Carolina man pleads guilty for role in Huntington drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A North Carolina man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Steven Bailey, 53, of Charlotte, entered his guilty plea to conspiracy to distribute cocaine.
From October 2014 to late February 2016, Bailey, along with codefendants Jerrell Johnson and Roger Page, both of Huntington, and codefendants Trevor Bethel and Ashara Mayes, both of Atlanta, engaged in a conspiracy to distribute cocaine in the Huntington area. Bailey admitted that on at least two occasions, he brought cocaine from Charlotte to Johnson and Page in Huntington. Bailey further admitted to having a source of drug supply in the Atlanta area.
On February 20, 2016, Bailey admitted that he was in Huntington at Johnson’s residence, along with Bethel. Bailey was later stopped by agents with the Drug Enforcement Administration and was found with over $9,000 cash. Approximately $8,000 of that currency represented proceeds from cocaine provided to Johnson earlier that evening. A search of Johnson’s residence that evening resulted in a seizure by law enforcement of approximately nine ounces of cocaine, at least part of which had recently been provided by Bailey.
Bailey faces up to 20 years in federal prison when he is sentenced on April 3, 2017. Johnson previously pleaded guilty to possession with intent to distribute 28 grams or more of crack and was sentenced to five years in federal prison. Page pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and was sentenced to three years and a month in federal prison. The trial of Mayes is scheduled for March 14, 2017. Bethel is currently a fugitive. Mayes and Bethel are presumed innocent unless and until proven guilty in a court of law.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey is responsible for these prosecutions. Chief United States District Judge Robert C. Chambers is presiding over these cases.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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New Bern Physician Charged with Unlawful Distribution of Narcotics, Money Laundering, and Possession of FirearmsRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announces that the federal grand jury in Greenville returned a thirty-one count indictment charging physician SANJAY KUMAR, age 50, of New Bern, with Conspiracy to Unlawfully Dispense and Distribute Oxycodone, Oxymorphone, Hydromorphone, and Alprazolam; Distribution of Oxycodone and Alprazolam; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity; and Laundering of Monetary Instruments.
If convicted, the maximum penalties for each charged drug count are twenty years’ imprisonment; a $1 million fine; and a term of supervised release of not less than three years following any term of imprisonment.
The maximum penalties for Possessing a Firearm in Furtherance of a Drug Trafficking Crime are no less than five years, up to life imprisonment, consecutive to any other sentence; a $250,000 fine; and up to three years supervised release following any term of imprisonment. A second or subsequent conviction for a firearms charge of this type carries a mandatory minimum term of twenty-five years imprisonment, consecutive to any other sentence.
The maximum penalties for each count of Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity are ten years’ imprisonment; a $250,000 fine; and up to three years supervised release following any term of imprisonment.
The maximum penalties for each count of Money Laundering are twenty years’ imprisonment; a $500,000 fine or twice the value of the property involved; and up to three years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the New Bern Police Department (NBPD), the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS) Criminal Investigations, the State Bureau of Investigation (SBI), and the Craven County Sheriff’s Office.
NCR Corporation Agrees to End Litigation and Complete Massive Superfund Cleanup at Wisconsin’s Fox RiverRead the Press Release
The Department of Justice’s Environment and Natural Resources Division and the U.S. Environmental Protection Agency announced a major settlement today that requires NCR Corporation to complete one of the nation’s largest Superfund cleanup projects at Wisconsin’s Lower Fox River and Green Bay Site. An enormous amount of cleanup and natural resource restoration work has already been done in the area under a set of partial settlements, an EPA administrative cleanup order, and court orders in a federal lawsuit brought by the United States and the State of Wisconsin. The final phase of cleanup taken on by NCR will cost up to $200 million or more over the next few years. The total cleanup costs for the Fox River Site will exceed $1 billion. The cleanup work will reduce the risks to humans and wildlife posed by polychlorinated biphenyls (PCBs) in bottom sediment of the Fox River and Green Bay.
“After years of hard fought litigation, this settlement requires NCR to take full responsibility for completing this important cleanup effort,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “Lawsuits and settlements like this vindicate the principle that polluters should pay the cost of Superfund cleanups, rather than the taxpayers. And, we are pleased that our co-plaintiff, the state of Wisconsin, is also a key part of this settlement.”
“Fox River is a treasure – and it’s been polluted for too long. People should be able to swim, boat, and eat fish from all parts of the river,” said Acting EPA Region 5 Administrator Robert A. Kaplan. “This cleanup will ensure that PCB levels continue to reduce downstream as they have upstream.”
The cleanup remedy for the Fox River Site was jointly-selected by EPA and the Wisconsin Department of Natural Resources. The remedy will remove much of the PCB-containing sediment from the Fox River by dredging. In other portions of the River, contaminated sediment is being contained in place with specially-engineered caps. The dredging and capping will reduce PCB exposure and greatly diminish downstream migration of PCBs to Green Bay. The sediment cleanup began in the uppermost segment of the River in 2004. Under this settlement, NCR has committed to complete the final phase of remediation by the end of 2018.
In 2010, the United States and Wisconsin sued NCR and other parties in a Superfund lawsuit to require them to continue the ongoing cleanup at the Site. The defendants in the government’s lawsuit included paper companies that contaminated the sediment when they made and recycled a particular type of PCB-containing “carbonless” copy paper. NCR and its affiliates produced that paper with PCBs from the mid-1950s until 1971.
This settlement requires NCR to take on sole responsibility for completing all remaining sediment cleanup work at the Site. NCR has done much of the dredging and capping under protest during the last several years, with some funding and assistance from two other defendants, Georgia-Pacific Consumer Products LP and P.H. Glatfelter Company. Once NCR finishes its work, Georgia-Pacific and Glatfelter will have primary responsibility for long-term monitoring and cap maintenance activities under prior court orders from the litigation. The settlement with NCR also resolves the government’s potential claims against Appvion, Inc., which purchased NCR’s paper manufacturing facilities in the Fox River Valley in the late 1970s. Appvion will not be involved in the remaining cleanup work at the Site.
The United States and Wisconsin reached prior settlements with most of the other parties that contributed to the PCB contamination at the Site. The prior settlements included $105 million for natural resource damage assessment activities and natural resource restoration projects selected jointly by federal, state, and tribal government trustees.
The proposed settlement is in the form of a consent decree that must be approved by the federal judge overseeing the legal proceedings over the Fox River Site. If approved, this settlement would end the government’s litigation with NCR and Appvion. The United States and Wisconsin would continue pursuing unresolved claims against Glatfelter for reimbursement of government costs of planning and overseeing the cleanup. Unlike Glatfelter, Georgia-Pacific previously settled with the governments and paid a share of the government’s unreimbursed costs.
The government’s settlement with NCR and Appvion also would narrow the legal claims in a separate federal lawsuit that NCR and Appvion filed against other parties for an overall allocation of the costs associated with the Fox River Site. The claims against most of the original defendants in that case have been settled, but NCR and Appvion are still litigating with Georgia-Pacific and Glatfelter. Under their proposed settlement with the government, NCR and Appvion have agreed to give up most of their claims against Georgia-Pacific and Glatfelter, and NCR and Appvion would be protected against most of the counterclaims filed against them by Georgia-Pacific and Glatfelter.
Today’s settlement, lodged with the U.S. District Court for the Eastern District of Wisconsin, will be subject to a 30-day public comment period after notice of the settlement is published in the Federal Register. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information on cleanup activities at the Lower Fox River and Green Bay Superfund Site, go to the Environmental Protection Agency’s website: https://www3.epa.gov/region5/cleanup/foxriver/
Mitchell Rales to Pay $720,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Mitchell Rales for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when he acquired voting securities of Colfax Corporation in 2011, and of Danaher Corporation in 2008. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Rales has agreed to pay a $720,000 civil penalty to resolve the lawsuit.
The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department. The maximum civil penalty for an HSR violation increased from $16,000 per day to $40,000 per day effective Aug. 1, 2016.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Daniel P. Ducore, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Rales Complaint Rales CIS Rales Explanation Rales Final Judgment Rales StipulationMescalero Apache Man Sentenced to Prison for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Michael Bow Smith, 32, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 46 months in prison followed by five years of supervised release for sexually abusing a minor. Smith will also be required to register as a sex offender when he completes his prison sentence.
Smith was arrested on May 7, 2016, on a criminal complaint charging him with sexually abusing a minor in Otero County, N.M., on March 8, 2016.
On Aug. 29, 2016, Smith pled guilty to a felony information charging him with sexually abusing a minor. In entering the guilty plea, Smith admitted that he was 30 years old when he engaged in a sexual act with the victim who was 15 years old at the time. Smith further admitted that the abuse took place on the Mescalero Apache reservation in Otero County.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office 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/.
McKesson agrees to pay record $150 million settlement for failure to report suspicious orders of pharmaceutical drugsRead the Press Release
WHEELING, WEST VIRGINIA – McKesson Corporation (McKesson), one of the nation’s largest distributors of pharmaceutical drugs, agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA), Acting United States Attorney Betsy Steinfeld Jividen and Special Agent in Charge of the Drug Enforcement Administration Karl C. Colder announced today. The Drug Enforcement Administration and the United States Attorney’s Office describe the settlement of the civil penalty claims historic and unprecedented.
Acting U.S. Attorney Betsy Steinfeld Jividen stated, "The settlement with McKesson announced today illustrates the coordinated response we are taking in addressing the prescription narcotics crisis in West Virginia and puts those who play a significant role in supplying narcotic medications in our district on clear notice that they must comply with the law and regulatory requirements or be held accountable."
The settlement resolves allegations that beginning in 2008 and continuing into 2012, McKesson’s former Landover, Maryland distribution facility routinely failed to report, and fulfilled, suspicious orders for Schedule II and III controlled substances placed by retail pharmacies, including numerous pharmacies in the Northern District of West Virginia. Acting U.S. Attorney Jividen stated, "in many instances, the suspicious orders placed by West Virginia pharmacies resulted in prescription narcotics being diverted for illegal use and abuse.” One such pharmacy was Judy’s Drug Store, located in Grant County, West Virginia. The U.S. Attorney’s Office for the Northern District of West Virginia entered into a $2 million civil penalty settlement with Judy’s Drug Store in 2014. According to Acting U.S. Attorney Jividen “the Judy’s Drug Store probe led to the investigation of McKesson and the settlement announced today.”
“The abuse of prescription drugs has rampantly spread throughout our communities," stated DEA Special Agent in Charge Karl C. Colder. "This abuse has directly resulted in the escalation of heroin addiction and related overdoses. Today's settlement sends a clear message to all distributors of pharmaceutical drugs that it is essential to dispense controlled substances in compliance with DEA's record keeping requirements. DEA is dedicated to combat the prescription drug abuse problem in West Virginia and throughout the country and to hold all DEA registrants accountable," said Colder.
The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers– i.e. orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.
The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer.
In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance – the first independent monitor of its kind in a CSA civil penalty settlement.
This was a multi-district investigation initiated by Diversion Investigator Lindsey Malocu of the Washington Division of the Drug Enforcement Administration and involving the following DEA Field Divisions: Boston, Chicago, Denver, Detroit, Miami, Newark, San Francisco, St. Louis, and also the Washington District Office. The following U.S. Attorney’s Offices participated in the case: Northern District of West Virginia, Central District of California, Eastern District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, District of Massachusetts, Eastern District of Michigan, District of Nebraska, District of New Jersey, and Western District of Wisconsin.
U.S. Attorneys’ Offices for the Northern District of West Virginia and the District of Colorado, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement. Assistant United States Attorneys Alan McGonigal (NDWV) and Amanda Rocque (Colorado) represented the United States in the civil penalty investigations and negotiations. Associate Chief Counsel Lee Reeves and Senior Attorneys Dedra Curteman, Dana Hill and Krista Tongring represented DEA in the investigations and negotiations. Trial Attorneys Harry Matz and Kirtland Marsh were involved for NDDS.
McKesson Argrees to Pay Record $150 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical DrugsRead the Press Release
DENVER – McKesson Corporation (McKesson), one of the nation’s largest distributors of pharmaceutical drugs, agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA), Acting U.S. Attorney Bob Troyer and DEA Denver Division Special Agent in Charge Barbra Roach announced.
“When drug distributors like McKesson fail to alert the DEA of suspicious orders of prescription drugs by pharmacies, the end result can be fatal,” said Acting U.S. Attorney Bob Troyer. “This settlement requires McKesson to comply with the law and holds the company accountable for its past conduct. Avoiding that legal obligation increases the narcotics street trade.”
“This agreement demonstrates that DEA will continue to hold all those accountable – corporations and individuals – who would disregard the public’s safety for their own profit,” said DEA Denver Division Special Agent in Charge Barbra Roach.
The nationwide settlement, led by attorneys from the U.S. Attorney’s Offices in Colorado and the Northern District of West Virginia, with substantial support from the DEA in those districts and nationally, requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers– i.e., orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.
The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer.
According to the United States, McKesson’s distribution center in Aurora, Colorado, circumvented its own compliance system in order to avoid reporting suspicious orders to the DEA. Although the company was supposed to set thresholds on the amount of certain kinds of prescription drugs that each pharmacy could purchase every month and report any sales over that threshold to the DEA, the United States alleges that McKesson-Aurora repeatedly raised thresholds to avoid having to report orders to the DEA. Sometimes these threshold increases were done at the request of a pharmacy customer; other times, the United States claims that McKesson-Aurora would preemptively raise the threshold when it saw that a pharmacy customer was approaching the maximum amount of drugs it could purchase that month. The United States also alleges that McKesson set some thresholds so high at the outset that the pharmacy customer would never exceed it, and thus, would never trigger any internal review as to whether an order was indeed suspicious. As a result of these practices, the United States contends that orders of unusual size, orders of unusual frequency, and orders deviating from the normal pattern of the pharmacy customer’s orders did not get reported to the DEA.
In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance – the first independent monitor of its kind in a CSA civil penalty settlement.
This was a multi-district investigation that involved the following DEA Field Divisions: Boston Field Division, Chicago Field Division, Denver Field Division, Detroit Field Division, Miami Field Division, Newark Field Division, San Francisco Field Division, St. Louis Field Division, and Washington District Office. The following U.S. Attorney’s Offices participated in the case: Central District of California, Eastern District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, District of Massachusetts, Eastern District of Michigan, District of Nebraska, District of New Jersey, Northern District of West Virginia, and Western District of Wisconsin.
U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office, led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement. Assistant United States Attorneys Amanda Rocque (Colorado) and Alan McGonigal (NDWV) represented the United States in the civil penalty investigations and negotiations. Associate Chief Counsel Lee Reeves and Senior Attorneys Dedra Curteman, Dana Hill and Krista Tongring represented DEA in the investigations and negotiations. Trial Attorneys Harry Matz and Kirtland Marsh were involved for NDDS.
McKesson Agrees to Pay Record $150 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical DrugsRead the Press Release
LOS ANGELES – McKesson Corporation, one of the nation’s largest distributors of pharmaceutical drugs, has agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA), the Justice Department announced today.
The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA-registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.
McKesson operates a distribution center in Santa Fe Springs.
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In the new case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” – orders that were unusual in their frequency, size or other patterns – for controlled substances distributed to its independent and small-chain pharmacy customers. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone, which are frequently misused products that are part of the current opioid epidemic.
The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, and all of those were connected to one instance related to a recently terminated customer.
In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance – the first independent monitor of its kind in a CSA civil penalty settlement.
“The company’s practices resulted in dangerous drugs being diverted from legitimate uses into the black market and helped fuel the opioid epidemic that is causing so much damage across the nation,” said United States Attorney Eileen M. Decker. “This nationwide investigation will result in a landmark penalty, significant changes in the way that pharmaceutical drugs are distributed by the company, and the ability of the Department of Justice to monitor McKesson’s future conduct.”
This case against McKesson is the product of a multi-district investigation that involved the DEA Field Divisions in Boston, Chicago, Denver, Detroit, Miami, Newark, San Francisco, St. Louis and Washington.
The U.S. Attorney’s Office for the Central District of California participated in the case, along with U.S. Attorney’s Offices for the Eastern District of California, Colorado, the Middle District of Florida, the Eastern District of Kentucky, the Northern District of Illinois, Massachusetts, the Eastern District of Michigan, Nebraska, New Jersey, the Northern District of West Virginia, and the Western District of Wisconsin.
U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement. Assistant United States Attorneys Amanda Rocque (Colorado) and Alan McGonigal (NDWV) represented the United States in the civil penalty investigations and negotiations. Associate Chief Counsel Lee Reeves and Senior Attorneys Dedra Curteman, Dana Hill and Krista Tongring represented DEA in the investigations and negotiations. Trial Attorneys Harry Matz and Kirtland Marsh were involved for NDDS.
McKesson Agrees to Pay Record $150 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical DrugsRead the Press Release
McKesson Corporation (McKesson), one of the nation’s largest distributors of pharmaceutical drugs, agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA), the Justice Department announced today.
The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a Drug Enforcement Administration (DEA) registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers – i.e., orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.
The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer.
In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance – the first independent monitor of its kind in a CSA civil penalty settlement.
This was a multi-district investigation that involved the following DEA Field Divisions: Boston Field Division, Chicago Field Division, Denver Field Division, Detroit Field Division, Miami Field Division, Newark Field Division, San Francisco Field Division, St. Louis Field Division, and Washington District Office. The following U.S. Attorney’s Offices participated in the case: Central District of California, Eastern District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, District of Massachusetts, Eastern District of Michigan, District of Nebraska, District of New Jersey, Northern District of West Virginia, and Western District of Wisconsin.
U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office, led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement. Assistant United States Attorneys Amanda Rocque (Colorado) and Alan McGonigal (NDWV) represented the United States in the civil penalty investigations and negotiations. Associate Chief Counsel Lee Reeves and Senior Attorneys Dedra Curteman, Dana Hill and Krista Tongring represented DEA in the investigations and negotiations. Trial Attorneys Harry Matz and Kirtland Marsh were involved for NDDS.
Civil Penalty Settlement Agreement Memorandum of Agreement Compliance AddendumMcKesson Agrees to Pay Record $150 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical DrugsRead the Press Release
SACRAMENTO, Calif. — McKesson Corporation, one of the nation’s largest distributors of pharmaceutical drugs, agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA). The settlement resolves allegations that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers.
The nationwide settlement was announced today by U.S. Attorney Phillip A. Talbert, Drug Enforcement Administration Special Agent in Charge John J. Martin and the U.S. Attorneys for 11 other federal districts.
“The abuse of prescription painkillers has become an epidemic,” said United States Attorney Talbert. “The Controlled Substances Act is a tool to assist the DEA with monitoring the movement of prescription drugs and prevent the diversion of powerful drugs to unintended users who may be injured by them. Our office will continue to work with our law enforcement partners to investigate these cases and enforce federal law.”
“Accountability is key for all DEA registrants who distribute controlled substances; detecting and reporting suspicious orders is part of the equation,” said DEA Special Agent in Charge John J. Martin. “DEA is committed to utilizing a variety of tools, which include implementing new methods for accountability, to combat the prescription drug epidemic.”
The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers — i.e., orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.
The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer.
In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance — the first independent monitor of its kind in a CSA civil penalty settlement.
This was a multidistrict investigation that involved the following DEA Field Divisions: Boston Field Division, Chicago Field Division, Denver Field Division, Detroit Field Division, Miami Field Division, Newark Field Division, San Francisco Field Division, St. Louis Field Division, and Washington District Office. In addition to the Eastern District of California, the following U.S. Attorney’s Offices participated in the case: Central District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, District of Massachusetts, Eastern District of Michigan, District of Nebraska, District of New Jersey, Northern District of West Virginia, and Western District of Wisconsin.
U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement. Assistant United States Attorneys Amanda Rocque (Colorado) and Alan McGonigal (NDWV) represented the United States in the civil penalty investigations and negotiations. Associate Chief Counsel Lee Reeves and Senior Attorneys Dedra Curteman, Dana Hill and Krista Tongring represented DEA in the investigations and negotiations. Trial Attorneys Harry Matz and Kirtland Marsh were involved for NDDS. McKesson has a branch in Sacramento. Assistant U.S. Attorneys Kelli L. Taylor and Kurt Didier handled the matter for the Eastern District of California.
McKesson Agrees to Pay Record $150 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical DrugsRead the Press Release
BOSTON – McKesson Corporation, one of the nation’s largest distributors of pharmaceutical drugs to pharmacies and other health care providers, agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA). The government alleges that, from 2009 forward, McKesson failed to maintain effective controls to prevent diversion of controlled substances, including opioids such as oxycodone, and that McKesson failed to fulfill its legal obligation to report suspicious orders of controlled substances to the Drug Enforcement Administration (DEA).
“The government has launched a multi-pronged attack on the opioid epidemic that is affecting people across the country, including in Massachusetts,” said Acting U.S. Attorney William D. Weinreb. “This settlement penalizes McKesson, which distributes millions of opioid pills every year, for lax oversight and imposes tough compliance measures to ensure that opioids are dispensed only for legitimate medical purposes.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act (CSA),” said Special Agent in Charge Michael J. Ferguson. “In response to the ongoing opioid epidemic in Massachusetts and throughout this Nation, DEA’s obligation is to improve public safety and health. Today’s settlement demonstrates DEA’s pledge to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report suspicious orders from independent and small chain pharmacy customers – i.e., orders that were unusual in their frequency, size, or other patterns. The government’s investigation developed evidence that, even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. At its distribution center in Methuen, Mass., for example, McKesson processed thousands of oxycodone and hydrocodone orders that were more than 10 times the average size of a pharmacy order from May 2008 through April 2013, but McKesson never reported to the DEA that any of these orders was suspicious.
In addition to the $150 million fine, the nationwide settlement requires McKesson to suspend sales of controlled substances at certain distribution centers and imposes new and enhanced compliance obligations on McKesson’s distribution system. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance – the first independent monitor of its kind in a CSA civil penalty settlement. Also, as part of the acceptance of responsibility provisions of the settlement, McKesson acknowledged that, at various times, it did not identify or report to the DEA orders placed by certain pharmacies that McKesson should have detected as suspicious.
In addition to the District of Massachusetts, the following U.S. Attorney’s Offices participated in the case: Central District of California, Eastern District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, Eastern District of Michigan, District of Nebraska, District of New Jersey, Northern District of West Virginia and Western District of Wisconsin. This matter was investigated by the following DEA Field Divisions: Boston, Chicago, Denver, Detroit, Miami, Newark, San Francisco, and St. Louis Field Division and the Washington District Office.
U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. In Massachusetts, this matter was handled by Assistant U.S. Attorney Gregg Shapiro.
McKesson Agrees to Pay Record $150 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical DrugsRead the Press Release
Tampa, FL – McKesson Corporation (McKesson), one of the nation’s largest distributors of pharmaceutical drugs, agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA), U.S. Attorney A. Lee Bentley, III and Special Agent in Charge Adolphus P. Wright, DEA Miami Field Division announced today.
“This landmark $150 million settlement is the latest example of our ongoing efforts to fight prescription opioid abuse in the Middle District of Florida,” said United States Attorney Bentley. “Together with the $22 million civil settlement with CVS in 2015, and the $44 million civil settlement with Cardinal Health last year, this settlement demonstrates our willingness to use all remedies at our disposal to encourage corporations and individuals involved in the prescription opioid trade to act responsibly and to punish them when they fail to do so."
“Prescription drug abuse is a public health epidemic and every day, preventable overdoses of prescription pain pills needlessly claim the lives of Floridians,” stated Special Agent in Charge Wright. “The DEA is committed to keeping our community safe from those who facilitate and enable the abuse of prescription drugs. This action is an important step toward ensuring accountability of those who supply these pills and operate without regard for the public health and safety. National drug distributors are not above the law and cannot turn a blind eye to profit from this national public health crisis.”
The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers– i.e. orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.
The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer. DEA investigators in the Middle District of Florida determined that McKesson had failed to report pharmacy orders at its Lakeland, Florida distribution center for hydromorphone that dramatically exceeded historical sales levels by the ordering pharmacies.
In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance – the first independent monitor of its kind in a CSA civil penalty settlement.
This was a multi-district investigation that involved the following DEA Field Divisions: Boston Field Division, Chicago Field Division, Denver Field Division, Detroit Field Division, Miami Field Division, Newark Field Division, San Francisco Field Division, St. Louis Field Division, and Washington District Office. The following U.S. Attorney’s Offices participated in the case: Central District of California, Eastern District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, District of Massachusetts, Eastern District of Michigan, District of Nebraska, District of New Jersey, Northern District of West Virginia, and Western District of Wisconsin.
U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement. Assistant United States Attorneys Amanda Rocque (Colorado) and Alan McGonigal (NDWV) represented the United States in the civil penalty investigations and negotiations. Assistant United States Attorney Randy Harwell represented the Middle District of Florida in the case as it pertained to the Lakeland, Florida investigation and penalty negotiations. Associate Chief Counsel Lee Reeves and Senior Attorneys Dedra Curteman, Dana Hill and Krista Tongring represented DEA in the investigations and negotiations. Trial Attorneys Harry Matz and Kirtland Marsh were involved for NDDS.
McKesson Agrees to Pay Record $150 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical DrugsRead the Press Release
WASHINGTON – McKesson Corp. (McKesson), one of the nation’s largest distributors of pharmaceutical drugs, has agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA), U.S. Attorney Paul J. Fishman and DEA Special Agent in Charge Carl J. Kotowski announced today.
“The epidemic of opioid abuse is carving an increasingly destructive path through our country,” U.S. Attorney Fishman said. “But nearly a decade ago, McKesson was sanctioned for violations that were contributing to the misuse of these prescription painkillers. Given a chance to implement a more robust system for monitoring the distribution of these products, the company instead chose to ignore its own compliance regime in favor of a bigger bottom-line. The consequences of McKesson's decision to circumvent its obligations are too devastating to ignore and warrant today's punishment.”
“Pharmaceutical companies are our first line of defense in the fight against prescription opioid abuse,” SAC Kotowski said. “If they turn a blind eye to suspicious orders of pharmaceutical controlled substances they are contributing to this epidemic. This settlement sends a clear message that even corporations need to do their part to fight this devastating opioid epidemic.”
The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers – orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.
The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer.
In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance – the first independent monitor of its kind in a CSA civil penalty settlement.
This was a multi-district investigation that involved DEA Field Divisions in the following locations: Boston, Chicago, Denver, Detroit, Miami, Newark, San Francisco, St. Louis, and the Washington District Office. The following U.S. Attorney’s Offices participated in the case: Central District of California, Eastern District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, District of Massachusetts, Eastern District of Michigan, District of Nebraska, District of New Jersey, Northern District of West Virginia, and Western District of Wisconsin.
In the District of New Jersey, the government was represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division of the U.S. Attorney’s Office.
U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement.
Marlboro Resident Arrested on Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Thomas Albright, age 71, of Marlboro, New York, was arrested January 12 on charges of distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew W. Vale of the Albany Division of the Federal Bureau of Investigation.
Albright appeared on January 13 in Albany before United States Magistrate Judge Daniel J. Stewart and was detained pending further proceedings.
The charges in the complaint filed against Albright are merely accusations. He is presumed innocent until proven guilty.
If convicted on all charges, Albright faces at least 5 years and up to 20 years in prison, at least 5 years and up to a life term of post-imprisonment supervised release, and a maximum $250,000 fine. Albright would also have to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Sahar Amandolare.
Leader of Camden, New Jersey, Drug Trafficking Organization Pleads Guilty to Distribution Conspiracy and Firearm OffensesRead the Press Release
CAMDEN, N.J. - A Camden man today admitted his role in a crack cocaine distribution conspiracy operating in Camden, U.S. Attorney Paul J. Fishman announced.
Jason Boyd, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” 36, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
Boyd admitted that he sold, and directed others to sell, crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden. Boyd also admitted that he provided crack cocaine to other members of the conspiracy and collected proceeds from the sales.
Boyd, who was one of the leaders of the conspiracy, was charged along with seven others in September 2016 following an investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. During the investigation, law enforcement recovered a .40 caliber handgun that was kept by the conspirators in connection with their drug trafficking activities.
The distribution conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. The firearms charge carries a mandatory minimum sentence of five years in prison to be served consecutively to the conspiracy charge. Sentencing is scheduled for April 28, 2017.
Codefendant Derek Stallworth, a/k/a “AK” and a/k/a “A,” 20, of Camden, pleaded guilty to his role in the conspiracy on Dec. 8, 2016 and is scheduled to be sentenced on March 24, 2017.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Jose Ongay Esq., Mount Ephraim, New Jersey
Lancaster Man Charged with Possesion and Distribution of Child PornographyRead the Press Release
Irvin Randall Newswanger, 48, of Lancaster, PA, was charged January 12, 2017, by Indictment1 with possession and distribution of child pornography announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment, with a mandatory minimum of 5 years imprisonment, lifetime supervised release, a $500,000 fine and a $200 special assessment.
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.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Knoxville Resident Sentenced to over 15 Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Jan. 17, 2017, Andrew Scott Conard, 30, of Knoxville, Tenn., was sentenced by the Honorable Thomas Varlan, Chief U.S. District Judge, to serve 188 months in federal prison. Additionally, upon his release from prison, he will be supervised by the U.S. Probation office for 15 years.
In June 2016, Conard pleaded guilty to one count of possessing child pornography and one count of distribution of child pornography, which were charges contained in a federal indictment. In the plea agreement on file with the U.S. District Court, Conard admitted that he maintained a collection of child pornography on his computer, which he downloaded over the internet, and knowingly made available to other persons through a peer-to-peer file-sharing network, with the anticipation of being able to obtain additional child pornography on the same file-sharing network.
In March 2014, an investigator with the Knoxville Internet Crimes Against Children Task Force (ICAC) downloaded a child pornography video from Conard’s computer over the internet, though the file sharing network set up by Conard. Federal investigators executed a warrant at Conard’s residence in May 2016 and seized his computer. A subsequent forensic examination of the computer revealed 91 images and 164 videos of child pornography, some of which contained known child victims.
This case was investigated by the Knoxville ICAC. Assistant U.S. Attorney Frank Dale represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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