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Thursday 1 December 2016
Lajuan Fitzpatrick Wanted FugitiveRead the Press Release
HAMMOND – United States Attorney David Capp announced today the unsealing of an Indictment against Lajuan Fitzpatrick, 25, of Danville, IL for drug conspiracy and using a firearm in relation to a drug trafficking crime in which an individual was murdered.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation are seeking the public’s assistance in locating the subject. Fitzpatrick has ties to Gary and Lake Station, Indiana along with the South Side of Chicago and Danville, IL.
Anyone with information related to the whereabouts of Lajuan Fitzpatrick are encouraged to call the ATF at 800-ATF-Guns or FBI at 219-942-4900. The subject should be considered armed and dangerous. If seen do not try to apprehend, call 911.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, East Chicago Police Department, Federal Bureau of Investigation, Gary Police Department, Hammond Police Department, Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter.
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LRGP Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shirley Covington, 32, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute crack cocaine, was sentenced to 18 months in prison by U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that the defendant was a girlfriend of LRGP Gang leader Dewayne Gray. The LRGP Gang operates primarily in the area of Lombard, Rother, Playter, and Gibson Streets in the City of Buffalo. LRGP was an organization engaged in violent criminal activity, including the distribution of cocaine and crack cocaine and the use of firearms.
Covington stored illegal narcotics at her West Side residence for Dewayne Gray. The defendant would deliver the drugs to Gray on the East Side at his request. The drugs would then be distributed throughout the LRGP territory.
Covington is one of 19 LRGP Gang members and associates charged and convicted in this case.The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Kentucky Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
ABINGDON, VIRGINIA – A Kentucky man, who was part of a multi-defendant conspiracy to traffic a potent form of methamphetamine from Texas into Virginia and Eastern Kentucky, pled guilty today to a federal drug charge, United States Attorney John P. Fishwick Jr. announced.
George Allen Bowling, 46, of Manchester, Kentucky, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to one count of conspiracy to possess with the intent to distribute Ice methamphetamine.
“The United States Attorney’s Office is proud to work with our partners on the local and state levels to continue to fight the scourge of methamphetamine trafficking throughout our region,” United States Attorney Fishwick said today. “This drug is a highly addictive and often deadly substance that we are working every day to address in our communities.”
To date, the investigation of this conspiracy has resulted in more than a dozen federal convictions in U.S. District Court in Abingdon, including three methamphetamine suppliers from Texas, who pled guilty earlier this year.
According to evidence presented at previous hearings, during the course of the conspiracy, various persons from Eastern Kentucky and Southwest Virginia traveled to Texas to purchase methamphetamine and subsequently transport it back via interstate highways, to avoid law enforcement detection along the way. Once the methamphetamine arrived in Kentucky and Virginia, it would be distributed by others, including Bowling.
The investigation of the case was conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Drug Enforcement Administration; Virginia State Police; Kentucky State Police; Harris County, Texas Sherriff’s Office, and Russell County, Virginia Commonwealth’s Attorney’s Office. Special Assistant United States Attorney and Russell County Commonwealth Attorney Brian Patton, Special Assistant United States Attorney Kevin Jayne and Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Jury Convicts New York Man of Drug TraffickingRead the Press Release
RICHMOND, Va. – Michael Pankey, 29, of Brooklyn, New York, was convicted late yesterday by a federal jury on charges of possession with intent to distribute cocaine hydrochloride and heroin.
According to court records and evidence presented at trial, Pankey was stopped for speeding in Mecklenburg County by the Virginia State Police. Pankey was the sole occupant in a car that was rented 12 days earlier in North Carolina. A probable cause search of the car revealed 598 grams of cocaine hydrochloride and 54 grams of heroin in Pankey’s bag. Pankey admitted he was delivering the drugs from New York to an individual in South Carolina.
Pankey faces a maximum penalty of 20 years in prison when sentenced on Feb. 9, 2017. 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.
This case was investigated by the Virginia State Police with assistance from Homeland Security Investigations and the Drug Enforcement Administration.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel W. Steven Flaherty, Superintendent of Virginia State Police; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the verdict was accepted by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Olivia L. Norman 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-179.
Judge Issues Civil Penalty Against Colorado Company That Sold Recalled MagnetsRead the Press Release
A federal judge yesterday issued a $5.5 million civil penalty against Zen Magnets LLC, a Colorado company, which illegally sold powerful small magnets that already had been recalled by another company, the Justice Department announced. Because of the company’s inability to pay the penalty, most of it was suspended.
U.S. District Court Judge Christine M. Arguello of the District of Colorado had previously ruled that Zen Magnets LLC and its owner, Shihan Qu, had violated the Consumer Product Safety Act by selling hundreds of thousands of magnets that another company had recalled. In the earlier ruling, the court found that Zen Magnets had purchased large amounts of the magnets – estimated to be in quantities of hundreds of thousands -- at a substantial discount from another company. That other company agreed, one week later, to recall the magnets as part of an agreement with the U.S. Consumer Product Safety Commission (CPSC).
“Selling potentially dangerous products that another company had recalled put consumers at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The civil penalty imposed by the district court indicates that violations like this will not be taken lightly. The Department of Justice will continue to work with the CPSC to protect consumers by keeping recalled products out of the stream of commerce.”
In recognition that Zen Magnets is a small company and has a limited ability to pay, all but $10,000 of the civil penalty was suspended.
“Protecting consumers, especially children, from a product that can cause harm and even death is what the Colorado U.S. Attorney’s Office, and the Department of Justice as a whole is all about,” said Acting U.S. Attorney Bob Troyer for the District of Colorado. “The civil penalty leveled by Judge Arguello provides a more than appropriate deterrence to companies to ensure their products are safe.”
The magnets at issue are typically sold in sets of hundreds and are commonly marketed and sold as “sculptural” desk toys. According to the CPSC, when a person ingests more than one of the powerful small magnets, the magnets are attracted to each other in the digestive system, creating the potential for serious damage to the intestinal tissue trapped in between or even death.
The hundreds of thousands of recalled magnets that Zen Magnets unlawfully sold were obtained prior to and thus were not covered by a rule issued by the CPSC that went into effect in April 2015. In a separate legal proceeding, Zen Magnets challenged that rule, which prohibited the sale of magnets or magnet sets that are small enough to be swallowed and that have a high degree of magnetic attraction. On Nov. 22, the U.S. Court of Appeals for the Tenth Circuit issued an opinion holding that the rule should be vacated and remanded to the CPSC for further proceedings.
The case in which the district court issued the civil penalty was handled by Senior Litigation Counsel Patrick Jasperse of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Jacob Licht-Steenfat and Jamie Mendelson of the District of Colorado.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Colorado, visit its website at https://www.justice.gov/usao-co.
Zen Magnets OrderJoint Statement on Dismantling of International Cyber Criminal Infrastructure Known as AvalancheRead the Press Release
WASHINGTON – Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Special Agent in Charge of the Federal Bureau of Investigation’s Pittsburgh Division Robert Johnson issued the following statement today:
“November 30 began the start of a multi-national operation to dismantle a complex, criminal network of worldwide computer servers known as Avalanche. This network hosted more than two dozen of the world’s most pernicious types of malware and several money laundering campaigns.
“The operation is being conducted by the United States Attorney’s Office for the Western District of Pennsylvania, the FBI – Pittsburgh Division, and the Computer Crime and Intellectual Property Section of the United States Department of Justice, in close cooperation with the Public Prosecutor’s Office Verden and the Luneburg Police of Germany, Europol and Eurojust, located in The Hague, Netherlands, and investigators and prosecutors from more than 40 countries.
“The operation involves an unprecedented and ongoing effort to seize, block and sinkhole more than 800,000 malicious domains associated with the Avalanche network.
“The operation involves arrests and searches in five countries. More than 50 Avalanche servers worldwide were taken offline.
“The Avalanche network, which has been operating since at least 2010, is estimated to involve hundreds of thousands of infected computers worldwide. The monetary losses associated with malware attacks conducted over the Avalanche network are estimated to be in the hundreds of millions of dollars worldwide, although exact calculations are difficult due to the high number of malware families present on the network.
“Additional information on the dismantling of Avalanche and several Western Pennsylvania victims of Avalanche-based malware attacks will be provided early next week.”
Joint Statement on Dismantling of International Cyber Criminal Infrastructure Known as AvalancheRead the Press Release
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Special Agent in Charge of the Federal Bureau of Investigation’s Pittsburgh Division Robert Johnson issued the following statement today:
“November 30 began the start of a multi-national operation to dismantle a complex, criminal network of worldwide computer servers known as Avalanche. This network hosted more than two dozen of the world’s most pernicious types of malware and several money laundering campaigns.
“The operation is being conducted by the United States Attorney’s Office for the Western District of Pennsylvania, the FBI – Pittsburgh Division, and the Computer Crime and Intellectual Property Section of the United States Department of Justice, in close cooperation with the Public Prosecutor’s Office Verden and the Luneburg Police of Germany, Europol and Eurojust, located in The Hague, Netherlands, and investigators and prosecutors from more than 40 countries.
“The operation involves an unprecedented and ongoing effort to seize, block and sinkhole more than 800,000 malicious domains associated with the Avalanche network.
“The operation involves arrests and searches in five countries. More than 50 Avalanche servers worldwide were taken offline.
“The Avalanche network, which has been operating since at least 2010, is estimated to involve hundreds of thousands of infected computers worldwide. The monetary losses associated with malware attacks conducted over the Avalanche network are estimated to be in the hundreds of millions of dollars worldwide, although exact calculations are difficult due to the high number of malware families present on the network.
“Additional information on the dismantling of Avalanche and several Western Pennsylvania victims of Avalanche-based malware attacks will be provided early next week.”
ICYEAGLE, a Dark Web Vendor of Stolen Information, Sentenced to Federal PrisonRead the Press Release
ATLANTA - Aaron James Glende a.k.a. IcyEagle has been sentenced to four years and two months’ imprisonment for access device fraud and aggravated identity theft. Glende sold stolen personally identifying information and login credentials on AlphaBay Market, a website operating in the so-called “Dark Web,” where anonymity software is used to hide the identities of website visitors.
“Glende sold stolen bank account information and other login credentials on AlphaBay, a ‘Dark Web’ website devoted to the anonymous sale of criminal goods and services, including weapons, stolen credit cards, and illegal narcotics,” said U.S. Attorney John Horn. “In the process, he didn’t care who he hurt, or the effects on the victims’ lives. The United States Attorney’s Office recently established our Cybercrime Unit to identify, investigate and, ultimately, prosecute cybercrimes just like this one.”
“The sentencing of Glende to federal prison reflects the commitment of the FBI, along with its various law enforcement partners, to aggressively pursue those criminal elements lurking in the Dark Web and attempting to hide behind TOR devices or sites,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “This case generated numerous victims with varied degrees of financial losses but, with today’s sentencing, the FBI hopes that these victims can have some solace that Glende, a.k.a. IcyEagle, is being held fully accountable for his criminal actions.”
According to U.S. Attorney Horn, the charges, and other information presented in court: From about November 5, 2015, until May 4, 2016, Aaron Glende, a.k.a. IcyEagle, advertised and sold stolen personally identifying information on a hidden services website.
The website contained numerous features to assist prospective buyers who wished to purchase criminal services and goods. For example, the website contained search categories corresponding to various criminal services; those categories included “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.” Much like Amazon or eBay, website users could rate sellers and search for certain items or sellers by name. Unlike Amazon and eBay, however, transactions on the website were typically executed through Bitcoin, a cryptocurrency that helps hide the identities of buyers and sellers.
A review of the website revealed that Glende, using the online nickname IcyEagle, had approximately 300 listings advertising login credentials or personally identifying information for sale, including bank account credentials. For example, one listing by Glende described accounts for sale as “High Balance SunTrust Logins 30K-150K Available.” Glende wrote in the sales listing: “I bring you freshly hacked Sun Trust Bank Account Logins.”
On multiple dates in March and April 2016, an FBI agent, acting in an undercover capacity, accessed the AlphaBay website. While on the website, the agent purchased bank account information from Glende. A review of the information purchased from Glende confirmed that it contained usernames, passwords, physical addresses, email addresses, telephone numbers, and bank account numbers that belonged to bank customers. A search of Glende’s computer after his arrest revealed that he possessed over 2,800 unauthorized access devices, including 944 usernames and passwords for bank accounts, 1,243 usernames and passwords for other electronic accounts, 123 Social Security numbers, 386 credit card numbers, and 123 bank account numbers.
On November 30, 2016, Aaron James Glende, 35 of Winona, Minnesota, was sentenced to four years and two months’ imprisonment, followed by three years of supervised release. He pleaded guilty to access device fraud and aggravated identity theft on September 21, 2016.
This case was investigated by the Federal Bureau of Investigation. Assistance was provided by Homeland Security Investigations, the U.S. Postal Inspection Service, and the Winona, Minnesota Police Department.
Assistant United States Attorneys Samir Kaushal and Kamal Ghali prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGEL GUZMAN-RODRIGUEZ, age 27, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, GUZMAN-RODRIGUEZ reentered the United States after having been previously deported on March 9, 2012.
If convicted, GUZMAN-RODRIGUEZ faces a maximum term of imprisonment of twenty years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
High-Ranking Member of Two Mexican Drug Cartels Sentenced to 27 Years in U.S. Prison for Shipping Narcotics to ChicagoRead the Press Release
CHICAGO — A high-ranking associate of two Mexican drug trafficking organizations has been sentenced to 27 years in U.S. prison for his role in transporting large amounts of cocaine to the Chicago area.
MANUEL FERNANDEZ-VALENCIA, also known as Manuel Fernandez-Navarro, used the shared resources of the Sinaloa Cartel and the Beltran-Leyva Organization to smuggle large quantities of narcotics into the United States from Mexico. The cartels covertly transported the drugs via private aircraft, submarines, container ships, fishing vessels, buses, tractor-trailers and automobiles. The narcotics were initially stashed in safe houses in southern California before being shipped to various parts of the United States, including the Chicago area. The drug trade was protected by guards armed with handguns and assault rifles.
Fernandez-Valencia, 48, pleaded guilty last year to one count of conspiracy to possess with the intent to distribute controlled substances. U.S. District Judge Ronald A. Guzman on Wednesday imposed the 324-month sentence in federal court in Chicago.
“The defendant was operating at the very highest levels of large and violent international drug trafficking organizations,” Assistant U.S. Attorney Erika Csicsila argued in the government’s sentencing memorandum. “The damage that those drugs, and the violence resulting from the drug trade, have caused to communities in Chicago and elsewhere is immeasurable.”
Fernandez-Valencia’s sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Chicago Police Superintendent Eddie Johnson.
The U.S. Attorney’s Office in Chicago has worked closely with federal and local law enforcement agencies to target senior leadership of the Sinaloa Cartel and the Beltran-Leyva Organization. Fernandez-Valencia is one of more than 20 alleged members of the cartels to be indicted in federal court in Chicago, including the Sinaloa Cartel’s leader, JOAQUIN “CHAPO” GUZMAN, and the former head of the Beltran-Leyva Organization, the late ARTURO BELTRAN-LEYVA. The Chicago-based investigations have resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamine and 78 kilograms of heroin.
Fernandez-Valencia has been in custody since his arrest in his native Mexico in 2010. In his plea declaration, he admitted conspiring with twin brothers from Chicago to distribute cocaine in the fall of 2008. The twins, PEDRO FLORES and MARGARITO FLORES, operated a Chicago-based wholesale distribution network for both the Sinaloa Cartel and the Beltran-Leyva Organization. The cocaine was purchased in South America and delivered to Fernandez-Valencia in Mexicali, a city in northwest Mexico, before being smuggled into the U.S., according to his plea declaration. In three separate raids in November 2008 federal agents seized from Fernandez-Valencia more than a ton of cocaine and more than 93 kilograms of methamphetamine.
The Flores brothers pleaded guilty to federal drug charges in 2012 and were each sentenced to 14 years in prison.
The government is represented by Ms. Csicsila and Assistant U.S. Attorneys Michael Ferrara, Kathryn Malizia, Georgia Alexakis, Sean Franzblau, and James Durkin.
Harrisburg Woman Sentenced to 20 Months in Prison for Filing Numerous Fraudulent Income Tax ReturnsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aida Crespo, age 44, of Harrisburg, Pennsylvania, was sentenced today by Chief United States District Court Judge Christopher C. Conner, to 20 months’ imprisonment for submitting approximately 27 fraudulent tax returns to the Internal Revenue Service.
According to United States Attorney Bruce D. Brandler, between the years 2007 and 2011, Crespo made numerous false representations in the preparation of income tax returns for herself and for others in order to maximize refund amounts. The fraudulent tax returns included misrepresenting Schedule C income, listing fictitious dependents and manipulating filing status. As a result, the United States Treasury issued approximately $75,000 in refunds to individuals which exceeded the amount that they were entitled to receive.
The case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Chelsea Schinnour prosecuted the case.
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Grants Man Sentenced to Federal Prison for Illegally Possessing a GrenadeRead the Press Release
ALBUQUERQUE – Richard Valdez, 51, of Grants, N.M., was sentenced today in federal court in Albuquerque, N.M., to 24 months in prison followed by three years of supervised release for unlawfully possessing a destructive device.
Valdez was arrested on Jan. 7, 2016, on a criminal complaint charging him with being a felon in possession of an explosive on Dec. 13, 2015, in Cibola County, N.M. According to the complaint, law enforcement officers found a M116A1 U.S. Military hand grenade simulator in Valdez’s vehicle during a traffic stop.
Valdez was subsequently indicted on the same charge on Jan. 26, 2016. According to court documents, Valdez was prohibited from possessing firearms, ammunition or explosive materials due to his prior felony convictions, which include convictions for attempted distribution of a controlled substance, receiving stolen property, burglary, breaking and entering, receiving and transferring a stolen vehicle, aggravated fleeing a law enforcement officer, and trafficking a controlled substance.
On Aug. 18, 2016, Valdez pled guilty to the indictment and admitted that on Dec. 13, 2015, law enforcement officers found a M116A1 U.S. Military grenade simulator in his vehicle.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cibola County Sheriff’s Office. Assistant U.S. Attorney Jacob Wishard prosecuted the case.
Gloucester County, New Jersey, Woman Sentenced to 33 Months in Prison for $600,000 Embezzlement/Money Laundering SchemeRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, woman was sentenced today to 33 months in prison for embezzling more than $600,000 from dormant TD Bank customer accounts, U.S. Attorney Paul J. Fishman announced.
Telisha Trent, 43, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging her with one count of bank fraud and one count of money laundering. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From Aug. 9, 2014, through Sept. 11, 2015, Trent used her position as a financial services representative and bank teller at a TD Bank branch in Sewell, New Jersey, to identify dormant checking and savings accounts, primarily held by elderly TD Bank customers. Trent would research the account holder in order to assess the risk of whether the account holder would notice that the funds in the account were removed. She would steal the money in the dormant account by transferring the funds to accounts she controlled or have a cashier’s check issued in her name.
Trent then transferred the funds through a series of accounts that she controlled in order to hide her fraud. To avoid detection, Trent closed the dormant accounts. Trent admitted obtaining $608,000 in cash from eight TD Bank customers in New Jersey, Connecticut, and Ohio. She admitted to spending the money on home renovations, lavish trips, two BMW sedans, items for her children, and other items.
After the fraud was discovered, TD Bank reimbursed the victims for the money and funds stolen by Trent.
In addition to the prison term, Judge Bumb sentenced Trent to five years of supervised release and ordered to pay $608,483 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation leading to today’s sentencing.
The government is represented by R. Stephen Stigall, U.S. Attorney in Charge of the Camden Office.
Defense counsel: James Conley Esq., Haddon Heights, New Jersey
Germantown Woman Pleads Guilty to Defrauding Her Employer of More Than $1 MillionRead the Press Release
Greenbelt, Maryland – Sobeida Maria Laboy, age 46, of Germantown, Maryland, pleaded guilty on November 30, 2016, to bank fraud arising from a scheme to defraud the financial institution for which she worked of more than $1 million.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, Laboy worked in the Chevy Chase branch office of a financial institution that offered online banking services to its customers and had affiliates that offered homes loans and other financial services. Laboy admitted that from December 2007 through June 19, 2014, she created fraudulent invoices, which she submitted, along with check requests, for payment by her employer. The invoices purported to be for services provided by a specific vendor. Laboy submitted the fraudulent invoices along with a check request form, stating that the check should be sent to her at her office in Chevy Chase. Laboy forged the signature of another employee in the “approval” section of the form. Instead of sending the checks for payment to the vendor, Laboy endorsed the checks with her own signature and deposited them into her personal bank accounts.
Over the course of the scheme, Laboy deposited at least 60 checks issued by her employer and made payable to the vendor. Laboy deposited at least six additional checks either issued by her employer and made payable to other vendors, or issued by other vendors and made payable to her employer. As a result of the scheme, Laboy fraudulently obtained at least $1,020,576.28
Laboy faces a maximum sentence of 30 years in prison for bank fraud. U.S. District Judge Peter J. Messitte scheduled her sentencing for March 15, 2017, at 9:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lindsay Eyler Kaplan and Nicolas A. Mitchell, who are prosecuting the case.
Georgia Man Sentenced to Months in Prison for Attempting to Smuggle 8.5 Kilograms of Marijuana to the Virgin IslandsRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced Bert Donadelle, Jr., 26, of Georgia, to three months’ imprisonment and three years of supervised release for possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Donadelle to perform 300 hours of community service and pay a $100 special assessment.
On June 15, 2016, Donadelle pleaded guilty to possession with intent to distribute 8.5 kilograms of marijuana. According to the plea agreement filed with the court, on April 3, 2016, at the Cyril E. King Airport, St. Thomas, Virgin Islands, a U.S. Customs and Border Protection (CBP) K-9 detected narcotics in a checked bag belonging to Donadelle, who had arrived on a Delta Airlines flight from Atlanta. CBP officers examined the contents of the bag, resealed it, and placed it on the carousel for retrieval. Donadelle retrieved the bag, and a second checked bag bearing his name, from the baggage claim area. CBP officers seized and field-tested a total of approximately 8.5 kilograms or more of marijuana from Donadelle’s bags.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Kim L. Chisholm.
Fourth Defendant Sentenced on Methamphetamine ChargeRead the Press Release
ABINGDON, VIRGINIA – A Southwest Virginia woman, who previously pled guilty along with three others to conspiring to manufacture methamphetamine, was sentenced today in the United States District Court for the Western District of Virginia, United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced.
April Darlene Fields, 37, of Glade Springs, Virginia, previously pled guilty to one count of conspiring to attempt to manufacture methamphetamine and one count of aiding and abetting the manufacture and attempted manufacture of methamphetamine. Today in District Court, Fields was sentenced to 60 months in federal prison, three years of supervised release and was ordered to pay a $200 mandatory assessment and $599.47 in restitution to the Drug Enforcement Administration for hazardous waste clean-up.
“Methamphetamine continues to destroy lives and be an obstacle for success for so many in Virginia,” United States Attorney Fishwick said today. “When individuals manufacture this dangerous substance and put the lives of others in danger, law enforcement will act swiftly and responsibly, as we did in this case.”
“The manufacturing and abuse of methamphetamine remains a significant challenge for too many communities and too many families in the Commonwealth,” said Attorney General Herring. “The cooperation and collaboration between my team and U.S. Attorney Fishwick’s team continues to produce results that make Southwest Virginia families safer.”
Others previously convicted and sentenced as part of this conspiracy include: John Steven Fields, Shauna Danielle Davie, and Dana Lynn Vanmeter. Fields was sentenced to 12 months in federal prison, a mandatory assessment of $100, and was also held jointly and severally responsible for $599 restitution to the Drug Enforcement Administration. Davie was sentenced to 2 years of probation, a mandatory assessment of $100 and was also held jointly and severally responsible for $599 restitution to the DEA. Vanmeter was sentenced to 60 months’ imprisonment and a mandatory assessment of $300 and $599 restitution to the Drug Enforcement Administration for the clean-up of a methamphetamine laboratory discovered at her residence.
Agencies involved in this investigation included the Washington County Sheriff’s Office, Town of Abingdon Police Department, Town of Damascus Police Department, and the Drug Enforcement Administration. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, is prosecuting the case for the United States.
Former UB Student Sentenced on Drug and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zhe Wang, 20, of Queens, NY, who was convicted of conspiracy to possess with intent to distribute, and distribution of, controlled substances and money laundering conspiracy, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that Wang distributed Xanax. The proceeds of the Xanax sales were used to buy or attempt to buy approximately $74,000 in bitcoins. The defendant then used the bitcoins to buy more drugs for distribution. Wang was an engineering student at the University at Buffalo during a part of the conspiracy between March 2015 and March 2016. In March 2016, law enforcement agents intercepted two packages mailed from Canada and addressed to one of Wang’s co-defendants in Amherst, NY. Each package contained nearly 3,000 Xanax bars.
Wang was charged along with co-defendants Kevin Szura and Adam Brzozowski. Szura has been convicted and is awaiting sentencing. Charges are pending against Brzozowski. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Wang’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski.
Former Town Administrator for Nahant and Saugus Pleads Guilty to Filing False Tax ReturnsRead the Press Release
BOSTON – A Nahant man pleaded guilty today in U.S. District Court in Boston in connection with failing to report over $375,000 of his income on his federal tax returns from 2010 to 2013.
Andrew R. Bisignani, 70, pleaded guilty to four counts of filing false tax returns. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Feb. 14, 2017.
Bisignani, the former town administrator of Nahant and Saugus, admitted that from 2010 to 2013, he collected rental income from three real properties in Revere, Mass. During the same years, Bisignani collected interest and loan income by making multiple, private, short-term loans that were secured by Massachusetts real estate. Bisignani underreported his total rental real estate income when submitting his individual tax returns to the IRS in 2010, 2011, 2012 and 2013. He also underreported the interest income he received in connection with his private loans for 2010, 2011 and 2012.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption Unit is prosecuting the case.
Former Rockford Physician Sentenced for Bankruptcy FraudRead the Press Release
ROCKFORD — A former Rockford physician was sentenced today by U.S. District Judge Frederick J. Kapala for making false statements in a bankruptcy case.
LYNN Y. ZOIOPOULOS, also known as Lynn Shelton-Zoiopoulos, 60, now of Chicago, was sentenced to 30 months in federal prison, to be followed by six months of supervised release, and was also ordered to pay restitution of $858,765.68. Zoiopoulos pleaded guilty to the charge on Feb. 8, 2016.
According to the written plea agreement, Zoiopoulos filed a Chapter Seven Bankruptcy Petition on Aug. 11, 2009, signing a declaration under penalty of perjury that the schedules she filed in the bankruptcy case were true and correct to the best of her knowledge, information, and belief. However, as Zoiopoulos admitted in the plea agreement, she had an interest in the estate of her deceased grandmother that she had intentionally concealed in order to deceive the bankruptcy trustee.
In the plea agreement, Zoiopoulos also admitted to defrauding her grandmother’s estate. According to the plea agreement, Zoiopoulos was appointed Executor of her deceased grandmother’s estate in 2001. As Executor, Zoiopoulos opened a bank account for the estate with the balance reaching $855,178 in May 2006. In October 2008, Zoiopoulos used $550,000 of the estate’s money in that account to purchase an annuity contract. She later embezzled all of the funds in the annuity. Between June 2008 and November 2012, with the intent to deceive and defraud the estate, Zoiopoulos embezzled assets of the estate by converting them to her own use, knowing she had a fiduciary duty not to use the assets of the estate for her personal benefit. Zoiopoulos further admitted she tried to conceal her embezzlements by not filing the required inventory, accounting, tax returns, and status reports for the estate.
Zoiopoulos also admitted she intended to conceal her embezzlements by sending $35,000 to her sister for the purpose of lulling her sister into believing the estate was being properly administered. Along with the payment, Zoiopoulos sent a letter indicating she had invested the rest of the estate money. Zoiopoulos admitted in the plea agreement that she had not reinvested the money, but had embezzled it, and had sent the letter to her sister for the purpose of preventing her sister from making further inquiries into the status of the estate.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
Zoiopoulos must surrender to the authorities on Jan. 27, 2017.
The government was represented by Assistant U.S. Attorneys Michael D. Love and Margaret J. Schneider.
Former Executive with Non-Profit that Provides Head Start Services in Dallas Admits to Embezzlement SchemeRead the Press Release
DALLAS — Evetta Galloway Griffin, 49, of Grand Prairie appeared this morning before U.S. District Judge Jane J. Boyle and pleaded guilty to theft or bribery concerning programs receiving Federal funds. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Griffin faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. According to the plea agreement, Griffin agrees to restitution arising from her conduct to victims or the community. Sentencing is set for March 16, 2017.
According to documents filed in the case, Griffin, a/k/a Evette Griffin, was the Director of Facilities and Administration for the Child Care Group (CCG) until late March 2015. The CCG is a non-profit corporation that receives federal grant funding to provide, among other things, Head Start services to promote the school readiness of young children from low-income families in the Dallas area. Together, Head Start and Early Head Start programs support the comprehensive development of children from birth to age five, in centers, child care partner locations and in their own homes.
Griffin had many duties at CCG that were related to the operation of their child care centers, as well as other responsibilities related to the administration of the corporate office and the procurement process related to federal grants.
As part of the scheme, Griffin created and executed an embezzlement, theft and fraud scheme in which she fraudulently billed CCG for fictitious printing services allegedly provided by A-1 Express Co or A-1 Express Inc. In fact, between April 25, 2011 and January 30, 2015, Griffin submitted approximately 100 fraudulent invoices to CCG that they paid. Griffin usually converted the checks that were made payable to A-1 Express Co or A-1 Express Inc. to cash, ultimately receiving approximately $115,000 from her embezzlement scheme.
The case was investigated by the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG). First Assistant U.S. Attorney Chad Meacham is in charge of the prosecution.
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Former Engineer for Wyandotte Unified Government Indicted on Federal Bribery ChargeRead the Press Release
KANSAS CITY, KAN. – A federal indictment was unsealed today charging a former staff engineer for the Unified Government of Wyandotte County and Kansas City, Kan., with taking bribes, U.S. Attorney Tom Beall said.
Willie D. Jones, 58, Kansas City, Kan., is charged with three counts of accepting bribes and five counts of money laundering.
The indictment alleged Jones accepted three bribes -- $6,740, $5,530 and $5,100 – from an individual who owned a company that obtained contracts to do street repairs for the Unified Government. It is alleged Jones routed the bribe money through his bank account and an account belonging to Paradise Missionary Baptist Church of Kansas City, where Jones was a minister.
If convicted, he faces up to 10 years in prison and a fine up to $250,000 on each bribery count, and up to 20 years and a fine up to$250,000 on each money laundering count. The FBI investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former Buffalo Police Lieutenant Pleads Guilty to Federal Civil Rights ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Gregory Kwiatkowski, 52, of Buffalo, NY, pleaded guilty to deprivation of rights under color of law, before U.S. Magistrate Judge Jeremiah J. McCarthy. The charge carries a maximum sentence of one year in prison and a fine of $100,000.
Assistant U.S. Attorneys Mary Catherine Baumgarten and Aaron J. Mango, who are handling the case, stated that the conviction stems from a series on incidents which occurred while defendant Kwiatkowski was working the overnight shift as a Lieutenant with the City of Buffalo Police Department (BPD) on May 30-31, 2009. That night, Lt. Kwiatkowski arrived at 52 Treehaven Road in Buffalo to respond to a vehicle that had been stopped by the Cheektowaga Police Department (CPD) and that was believed to be involved in a BB gun shooting earlier that night. Lt. Kwiatkowski was the first BPD officer to arrive at the scene. Other CPD officers were present at the scene when Lt. Kwiatkowski arrived and had already removed the vehicle’s four occupants, who were all between 16 and 18 years old. At the time of Lt. Kwiatkowski’s arrival, all of the occupants were compliant and completely under the control of the CPD officers.
Upon arriving at the scene, Lt. Kwiatkowski used unlawful and unreasonable force on each of the four occupants. Specifically, Lt. Kwiatkowski admitted to forcibly pushing each of the suspects heads and upper torsos into the vehicle around which they were being detained. As set forth in his plea agreement with the government, Lt. Kwiatkowski agreed that his use of force against the four suspects was unreasonable and excessive and that his use of such use of force deprived the suspects of their Constitutional rights to be free from unreasonable seizure and to due process of law, by one acting under color of law.
Following the defendant’s use of force on the four occupants, the defendant recovered a BB gun from the vehicle in which the suspects had been riding and handed the BB gun to one of the other two BPD Officers, co-defendants Raymond Krug and Joseph Wendel, who had arrived on scene shortly after the defendant.
Krug and Wendel are accused of shooting one of the individuals with a BB gun while the individual was seated in the police car, handcuffed next to another of the arrested individuals. Trial of the charges against co-defendants Krug and Wendel is scheduled to commence on December 6, 2016, before Senior U.S. District Judge William M. Skretny.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-In-Charge, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing will be scheduled before Judge Skretny.Florida Man Sentenced to Prison for Federal False Statements and Aggravated Identity Theft Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Clinton William Yetter, 51, of Gainesville, Fla., was sentenced today in Albuquerque, N.M, federal court to 48 months in prison followed by two years of supervised release for his conviction on false statements and aggravated identity theft charges.
Yetter was charged in a four-count indictment filed on May 29, 2013, with two counts of making false statements and two counts of identity fraud. The indictment alleged that Yetter made the false statements on Oct. 4, 2011 and May 2, 2012, in Bernalillo County, N.M., when applying for U.S. passports. It also alleged that Yetter used the name of another person in making the applications.
On May 2, 2016, Yetter pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the U.S. Department of State, Diplomatic Security Service and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Five Defendants Charged in White Plains Federal Court with A $33 Million Mortgage Fraud ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Christina Scaringi, the Special Agent-in-Charge of the Northeast Region of the U.S. Department of Housing and Urban Development (“HUD”), today announced the unsealing of an Indictment charging five defendants with conspiracy to commit bank fraud, wire fraud, and mail fraud in connection with a debt-elimination scheme to defraud homeowners and banks.
Manhattan U.S. Attorney Preet Bharara stated: “The defendants allegedly preyed on vulnerable homeowners struggling with their mortgage payments and, with their greed, victimized them further. When the defendants were done with the victims, after falsely promising to reduce or even eliminate their mortgage debt for fees, these homeowners were left much worse off, in even greater debt. With the charges today, and thanks to the investigative work of the FBI and HUD, the defendants now face federal fraud charges.”
FBI Assistant Director-in-Charge William F. Sweeney stated: “As charged, the defendants exploited a program designed to help cost-burdened individuals enjoy the privilege of affordable housing. Crimes of this nature not only hurt their victims financially, but often force upon them other forms of anguish while harming the financial integrity of the very programs established to help them. We urge everyone to protect themselves against this type of fraud and abuse. If something doesn’t sound right, trust your instincts and do some checking. If you think you may be or have been a victim of mortgage fraud, we urge you to contact your nearest FBI office.”
HUD-OIG Special Agent-in-Charge Christina Scaringi stated: “HUD’s reverse mortgage program was created to help our senior citizens find greater financial security through FHA-insured loans. The defendants’ alleged scheme to unjustly enrich themselves through the victimization of our senior citizens is a shameful act that will not be tolerated by the HUD OIG. We will continue to aggressively pursue those who would prey on America’s senior citizens and encourage anyone having knowledge of such schemes to contact our HUD hotline.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
In at least 2011 and 2012, BRUCE LEWIS, 65, JACQUELINE GRAHAM, 47, and an unindicted co-conspirator were partners in a business that they called the Pillow Foundation or the Terra Foundation (collectively, “Terra”). Terra held itself out as a business that would investigate and eliminate mortgage debt in exchange for a fee. Terra solicited clients who were having difficulties making their mortgage payments.
ANTHONY VIGNA, 59, was a lawyer who worked in-house at Terra and provided legal services to it and its clients. ROCCO CERMELE, 54, was Terra’s director of operations who recruited clients, among other duties. PAULA GUADAGNO, 58, was a real estate title professional who performed real estate title work for Terra.
LEWIS, GRAHAM, VIGNA, CERMELE, GUADAGNO, and others at Terra told potential clients that Terra could eliminate their mortgage debt in exchange for a fee. In reality, Terra filed fraudulent discharges of mortgages at local county clerk’s offices in Westchester and Putnam Counties and in Connecticut. These fraudulent documents made it appear as if Terra’s clients’ mortgages had been discharged, when in fact they had not.
To profit from their scheme, Terra and the defendants charged monthly fees that they said covered, among other things, audits of the clients’ properties that they often failed to perform. Terra and the defendants also encouraged their clients to take out second or reverse mortgages on the properties for which Terra had claimed to have discharged the first mortgages. Once the clients had taken out these second or reverse mortgages, Terra and the defendants retained substantial portions of the proceeds. Some of these second or reverse mortgages were made under HUD’s Home Equity Conversion Mortgage Program.
In total, Terra and the defendants filed nearly 60 fraudulent discharges in Westchester and Putnam Counties in New York and in Connecticut. The fraudulent discharges claimed to discharge mortgages with a total loan principal of over $33 million. In reality, the Terra clients for whom the fraudulent discharges were filed were often left with both a second or reverse mortgage and their original mortgage that had not actually been discharged.
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VIGNA, CERMELE, and GUADAGNO were taken into federal custody this morning and were presented in White Plains federal court this afternoon before U.S. Magistrate Judge Judith C. McCarthy. LEWIS and GRAHAM remain at large.
Each defendant is charged with one count of conspiracy to commit wire fraud, bank fraud, and mail fraud, which carries a maximum penalty of 30 years in prison and a $1 million fine. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and HUD-OIG. Mr. Bharara also thanked the Westchester and Putnam County District Attorney’s Offices and the Cheshire Police Department in Cheshire, Connecticut, for their ongoing assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jennifer Beidel, Michael Maimin, and James McMahon are in charge of the prosecutions.
US v. Bruce Lewis et al. Indictment.pdf US v. Bruce Lewis et al. Indictment.pdf The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Federal jury finds Angolan national guilty of resisting deportation ordersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a federal jury found an Angolan national guilty Monday of refusing to leave the country twice after being ordered to depart.
Faustino Ngay, 46, of Cazengo, Angola, was found guilty of two counts of failure to depart. United States District Judge Dee D. Drell presided over the trial, which took place Monday. The jury returned a guilty verdict after deliberating for 15 minutes. Evidence admitted at trial revealed that on two occasions U.S. Immigration Enforcement Agents attempted to remove Ngay from the country via the Alexandria International Airport by putting him on a commercial flight. The defendant hampered agents’ ability to remove him by verbally and physically resisting on November 17, 2015. The defendant also hampered attempts to put him on a commercial flight at the Alexandria airport on December 14, 2015. His outbursts prevented him from boarding the flights because of airline and Transportation Security Administration safety policies.
Ngay faces four years in prison, three years of supervised release and a $250,000 fine for each count. Sentencing has been set for March 16 2017.
The U.S. Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Dominic A. Rossetti is prosecuting the case.
Executives, Surgeons, Physicians, and Others Affiliated with Forest Park Medical Center (FPMC) in Dallas Indicted in Massive ConspiracyRead the Press Release
DALLAS — Founders and investors of the physician-owned Forest Park Medical Center (FPMC) in Dallas, other executives at the hospital, and physicians, surgeons, and others affiliated with the hospital, have been charged in a federal indictment, returned by a grand jury in Dallas last month and unsealed today, with various felony offenses stemming from their payment and/or receipt of approximately $40 million in bribes and kickbacks for referring certain patients to FPMC. The announcement was made this afternoon by U.S. Attorney John Parker of the Northern District of Texas.
FPMC was an out-of-network hospital. According to the indictment, the referred patients were primarily ones with high reimbursing out-of-network private insurance benefits or benefits under certain federally-funded programs. FPMC’s owners, managers, and employees also attempted to sell patients with lower reimbursing insurance coverage, namely unwitting Medicare and Medicaid beneficiaries, to other facilities in exchange for cash. As a result of the bribes, kickbacks, and other inducements, from 2009 to 2013, FPMC billed such patients’ insurance plans and programs well over half of a billion dollars and collected over $200 million in paid claims.
The below-listed defendants are charged in the indictment:
Alan Andrew Beauchamp, 64, of Dallas
Richard Ferdinand Toussaint, Jr., 58, of Dallas
Wade Neal Barker, 51, of Dallas
Wilton McPherson Burt, 61, of Costa Rica
Andrea Kay Smith, 37, of Rockwall, Texas
Carli Adele Hempel, 40, of Plano, Texas
Kelly Wade Loter, 48, of Dallas
Jackson Jacob, 53, of Murphy, Texas
Douglas Sung Won, 45, of Dallas
Michael Bassem Rimlawi, 45, of Dallas
David Daesung Kim, 54, of Southlake, Texas
William Daniel Nicholson IV, 46, of Dallas
Shawn Mark Henry, 46, of Fort Worth, Texas
Mrugeshkumar Kumar Shah, 42, of Garland, Texas
Gerald Peter Foox, 69, of Tyler, Texas
Frank Gonzales Jr., 41, of Midland, Texas
Israel Ortiz, 49, of Dallas
Iris Kathleen Forrest, 56, of Dallas
Andrew Jonathan Hillman, 40, of Dallas
Semyon Narosov, 51, of Dallas
Royce Vaughn Bicklein, 44, of San Antonio, Texas
“Medical providers who enrich themselves through bribes and kickbacks are not only perverting our critical health care system, but they are committing a serious crime,” said U.S. Attorney John Parker. “Massive, multi-faceted schemes such as this one, built on illegal financial relationships, drive up the cost of healthcare for everyone and must be stopped.”“The charges announced today show that the government will not tolerate corrupt practices by medical providers motivated by greed,” said Dallas FBI Special Agent in Charge Thomas M. Class, Sr. “The FBI will continue to work with our law enforcement partners to identify those who manipulate and defraud our healthcare system and to seek their prosecution.”
“The Defense Criminal Investigative Service (DCIS), in partnership with our federal law enforcement partners, will continue to aggressively investigate those who defraud the federal government, and ultimately the American taxpayers, in order to protect the integrity of federal health care programs,” said Special Agent in Charge Janice M. Flores of the DCIS Southwest Field Office. “Fraud and abuse by healthcare providers poses a significant threat to the viability of government health care programs, and today’s arrests demonstrate the commitment of DCIS and it partners in rooting out health care fraud and to hold those accountable for their actions.”
“I would like to acknowledge and thank our OIG criminal investigators, and their law enforcement partners, for their tireless efforts in pursuing this case,” said OPM Deputy Inspector General Norbert E. Vint. “Their fine work protects the Federal Employees Health Benefits Program from those who would manipulate the health care system in order to steal taxpayer dollars.”
"An important mission of the Office of Inspector General is to investigate allegations relating to fraud involving the Federal Employees' Compensation Act. We will continue to work with out law enforcement partners to investigate these types of allegations," stated Steven Grell, Special Agent-in-Charge of the Dallas Regional Office of the United States Department of labor, Office of Inspector General.
"The allegations against the defendants in this indictment indicate that patient trust was broken by the payments of kickbacks and bribes used to induce surgeons to use their hospital to perform services," said Special Agent in Charge Tamera Cantu. "IRS Criminal Investigation, along with our law enforcement partners, will vigorously pursue corporate owners and managers that use their company to violate laws, including healthcare regulations."
FPMC was founded by Beauchamp, Toussaint, Barker, Burt, and others as an out-of-network hospital; as such, it was free to set its own prices for services and was generally reimbursed at substantially higher rates than in-network providers. FPMC’s strategy was to maximize profit for physician investors by refusing to join the networks of insurance plans for a period of time after its formation, allowing its owners and managers to enrich themselves through out-of-network billing and reimbursement.
Toussaint and Barker co-owned FPMC; Beauchamp and Burt managed it. Beauchamp was FPMC’s Chief Operating Officer and was an investor in FPMC. Toussaint, an anesthesiologist, was the President of FPMC’s board of directors. Barker, a bariatric surgeon, was on FPMC’s board of directors. Burt was a Managing Partner of FPMC and was also an investor in FPMC.
FPMC’s referral coordinator, Smith, owned a shell entity known as Unique Healthcare that the coconspirators created to funnel bribe and kickback payments to surgeons in exchange for those individuals referring patients to FPMC. Smith tracked surgeries and referrals so surgeons and referral sources could receive “credit.” Another FPMC employee, Hempel, was FPMC’s Director of Bariatric Services; she led efforts to sell Medicare and Medicaid referrals from certain coconspirators to a non-FPMC facility.
Jacob owned a shell entity known as Adelaide Business Solutions that he and others used to funnel bribe and kickback payments to surgeons, primary care physicians, chiropractors, lawyers, worker’s compensation preauthorization specialists, and others in exchange for those individuals referring patients to FPMC or to surgeons who used the hospital’s facilities to perform certain medical procedures, including surgeries. Another company, Entity A, co-owned by Toussaint and Barker, was a commercial real estate group that provided commercial real estate services to FPMC and was used by the coconspirators as a conduit for bribe and kickback payments. Loter owned an advertising agency that received bribe and kickback payments on behalf of physicians.
According to the indictment, two bariatric surgeons, Kim and Nicholson, investors in FPMC, received $4,595,000 and $3,400,000, respectively, in bribe and kickback payments in exchange for referring their patients to FPMC. Three spinal surgeons, Won, Rimlawi, and Henry, also received bribe and kickback payments in exchange for referring their patients to FPMC. The indictment alleges that Won received $7,000,000 and Rimlawi received $3,800,000 in bribe and kickback payments. Henry was also an investor in FPMC. The surgeons spent the vast majority of the bribe payments marketing their personal medical practices, which benefitted them financially, or on personal expenses, such as cars, diamonds, and payments to family members.
Other physicians who received bribe and kickback payments in exchange for referring patients to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital include Shah, a pain management doctor; Gonzales, a chiropractor who received approximately $385,000 in bribes and kickbacks; and Foox, who owned an orthopedic clinic in Tyler, Texas, and received approximately $500,000 in bribes and kickbacks.
Forrest, a worker’s compensation preauthorization specialist, received approximately $450,000 in bribe and kickback payments in exchange for referring patients, including those she was preauthorizing, to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital. Bicklein was a worker’s compensation lawyer who received approximately $100,000 in bribe and kickback payments in exchange for referring patients, including his clients, to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital.
Ortiz owned a clinic that received approximately $1,100,000 in bribe and kickback payments for referring its patients to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital,
Collectively, Hillman and Narosov controlled a hospital consulting company, and they received approximately $190,000 in bribe and kickback payments in exchange for referring patient to FPMC or to surgeons who performed medical procedures, including surgeries, at the hospital.
According to the indictment, as part of the conspiracy, certain coconspirators also paid bribes and kickbacks of $500 per month to approximately 40 primary care physicians and practices to refer patients to the hospital or to surgeons associated with the hospital. In addition to paying surgeons and primary care physicians, certain coconspirators also paid a host of others, including FECA beneficiaries, workers’ compensation preauthorization specialists, lawyers, businesses, runners, and chiropractors. Certain coconspirators also “rented” space in doctors’ and chiropractors’ offices in outlying cities, including Foox’s clinic in Tyler, and clinics in Midland and Odessa, Texas, in exchange for patients being referred to FPMC or to surgeons who performed medical procedures at the hospital.
The bribes and kickbacks resulted in victim plans and programs being billed well over half of a billion dollars, including more than $10 million to the Department of Defense healthcare program TRICARE, more than $25 million to the Department of Labor FECA healthcare program, and more than $60 million to the federal employees’ and retirees’ OPM FEHBP healthcare program, and FPMC collecting more than $200 million in tainted and unlawful claims.
Each of the 21 defendants is charged with one count of conspiracy to pay and receive health care bribes and kickbacks; the maximum statutory penalty upon conviction is five years in federal prison and a $250,000 fine.
Beauchamp is charged with 10 counts of offering or paying and soliciting or receiving illegal remuneration, in violation of the federal Anti-Kickback Statute, and aiding and abetting. Toussaint, Barker, and Burt are each charged with five counts of this offense. Jacob is charged with eight, Shah with three, Rimlawi with two, and Won, Kim, Nicholson, Gonzales, and Forrest each with one count of this offense. The maximum statutory penalty upon conviction is five years in federal prison and a $25,000 fine.
Beauchamp is also charged with seven counts of violating the federal Travel Act and aiding and abetting. Jacob is also charged with six counts of this offense; Toussaint, Barker, Burt, and Jacob are also each charged with four counts of this offense; Foox is also charged with two counts of this offense; and Won, Kim, Nicholson, Henry, and Gonzales are also each charged with one count. The maximum statutory penalty upon conviction is five years in federal prison and a $250,000 fine.
Beauchamp, Toussaint, Barker, and Burt are also each charged with two counts of conspiracy to commit money laundering. Jacob and Henry are also each charged with one count of this offense. The maximum statutory penalty upon conviction is 20 years in federal prison and a $250,000 fine.
The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property, real or personal, which constitutes or is derived from proceeds traceable to the offenses. Restitution could also be ordered.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
The case was investigated by the FBI, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, the U.S. Office of Personnel Management Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle and Mark Tindall are prosecuting the case.
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Elkton Man Sentenced on Methamphetamine ChargeRead the Press Release
HARRISONBURG, VIRGINIA – A pair of men who were pulled over in Shenandoah County and found to be in possession of methamphetamine were in United States District Court in Harrisonburg today, one for a sentencing hearing and one to plead guilty, United States Attorney John P. Fishwick Jr. announced.
Ernest Wayne Good, 35, of Elkton, Virginia, who previously pled guilty to one count of conspiring to distribute more than 50 grams of methamphetamine, was sentenced today in District Court to 68 months in federal prison.
In a separate hearing based on related conduct, Blake Morgan Stroop, of Elkton, Virginia, pled guilty to one count of conspiring to distribute more than 50 grams of methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime.
“We will continue to be vigilant in our enforcement of our drug laws,” United States Attorney Fishwick said today. “This case is a prime example of a law enforcement officers performing their jobs at the highest levels.”
According to evidence presented at previous hearings by Assistant United States Attorney Jeb Terrien, on October 12, 2015, officers in Shenandoah County stopped a rental vehicle drive by Good, in which Stroop was the passenger. After smelling marijuana and Good admitting to smoking “a little while ago,” officers searched Good and Stroop and found various items, including methamphetamine and firearms, among other items.
Later, on November 13, 2005, in Elkton, Virginia Stroop and Good were again apprehended by law enforcement. On this occasion Stroop was found in possession of a large amount of methamphetamine, approximately $11,070, and a loaded .380 caliber pistol with an obliterated serial number. Good was also found in possession of methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the RUSH Drug Task Force, Elkton Police Department, and Strasburg Police Department. Assistant United States Attorney Jeb Terrien prosecuted the case for the United States.
El Paso Man Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Johnathon Jacob Rios, 48, of El Paso, Texas, pled guilty today in federal court in Albuquerque, N.M., to a federal heroin trafficking charge.
Rios was arrested in June 2016, and was charged in a criminal complaint with a heroin trafficking offense after the DEA seized approximately 788.10 grams of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was contained in a bundle that was concealed under Rios’ clothes.
Rios was subsequently indicted on July 12, 2016, and charged with possession of heroin with intent to distribute on June 17, 2016, in Bernalillo County, N.M.
During today’s proceedings, Rios pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Rios admitted transporting 788.1 grams of heroin from Phoenix, Ariz., to Albuquerque on a Greyhound bus by concealing the heroin under his clothes.
At sentencing, Rios faces a maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Presiliano Torrez is prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
East St. Louis Township Supervisor Pleads Guilty to Wire Fraud for Embezzling Public FundsRead the Press Release
Oliver W. Hamilton, 62, of East St. Louis, Illinois, entered a plea of guilty to an Information charging wire fraud in a scheme to defraud the citizens of the East St. Louis Township, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Hamilton faces a statutory maximum prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years supervised release. Sentencing is scheduled for March 1, 2017.
Hamilton was the elected East St. Louis Township Supervisor. As part of the plea, Hamilton admitted engaging in a scheme to defraud from March of 2011 continuing through June of 2016 where he charged personal purchases on the Township’s credit card and misrepresented that the use of public funds was for legitimate public purposes. As part of the plea, Hamilton admitted that the loss is more than $40,000 but not more than $95,000 and that he abused a position of public trust. The specific wire transmission charged was the use of the East St. louis Township credit card to purchase airline tickets to Las Vegas for personal purposes. Hamilton is on bond pending sentencing but was required, effective immediately, to remove himself from the finances of the Township, until the effective date of his resignation from office. Hamilton is also to promptly resign from his other public positions as a board member of St. Clair County and as a board member of the East Side Health District. Under the anticipated advisory Sentencing Guidelines, the sentencing range would be six months to eighteen months in prison. Under the terms of the plea, Hamilton is agreeing to recommend to the Court that the appropriate sentence is a year and a day in prison.
United States Attorney Boyce said: "Public corruption takes a heavy toll on our communities. Beyond the financial consequences, corruption causes the general public to lose faith in their government. We must not tolerate corruption at any level of government, and we will continue to investigate and prosecute corrupt public officials."
The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations as part of the Metro East Public Corruption Task Force. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
East Liverpool man sentenced to six years in prison for child pornographyRead the Press Release
An East Liverpool man was sentenced to six years in prison for child pornography violations, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Donald Guthrie, Jr., 56, of East Liverpool, was found guilty earlier this year of receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct.
Guthrie received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between June and August 2014, according to court documents.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Cleveland Office.
Dona Ana County Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Salvador Ortega, 36, Las Cruces, N.M., was sentenced today in federal court to 24 months in federal prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Salvador Ortega and co-defendants Guillermo Ortega, 43, and Steven Roman, 28, both of Las Cruces, were charged with methamphetamine trafficking offenses in a four-count indictment filed on June 18, 2014. The indictment charged Salvador Ortega and Guillermo Ortega with distributing methamphetamine on April 2, 2014; Guillermo Ortega and Roman with distributing methamphetamine on April 2, 2014; and Guillermo Ortega with distributing methamphetamine on April 2, 2014. It also charged Guillermo Ortega with being a felon in possession of a firearm and ammunition on April 14, 2014. The indictment alleged that the three men committed these crimes in Doña Ana County, N.M.
On Jan. 21, 2016, Salvador Ortega entered a guilty plea to Count 1 of the indictment without the benefit of a plea agreement.
Roman pled guilty to Count 2 of the indictment on Sept. 23, 2015, and admitted that on April 2, 2014, he distributed 57 grams of methamphetamine to a person working with law enforcement. Roman admitted that on that day, he was contacted by an individual who wanted to purchase methamphetamine, and he in turn contacted Guillermo Ortega and arranged the deal. Roman was sentenced on May 9, 2016, to 77 months in prison followed by four years of supervised release.
Guillermo Ortega pled guilty on Sept. 3, 2015, and admitted that on April 2, 2014, he and his co-defendants distributed 95 grams of methamphetamine to a person working with law enforcement. Guillermo further admitted that on April 14, 2014, he was prohibited from being in possession of firearms or ammunition because of his previous felony conviction of felony theft. At sentencing Guillermo Ortega faces a mandatory minimum of five years and a maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
District Man Sentenced to More Than 12 Years in Prison on Felony Drug Trafficking and Gun Possession ChargesRead the Press Release
WASHINGTON - Marlon Haight, 37, of Washington, D.C., was sentenced today to 12 years and eight months in prison on drug trafficking and gun possession charges relating to the maintenance of a drug house in Northeast Washington, announced U.S. Attorney Channing D. Phillips, Michael Boxler, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Following a jury trial in July 2016 in the U.S. District Court for the District of Columbia, Haight was found guilty of conspiracy to distribute narcotics, possession with intent to distribute cocaine, cocaine base in excess of 28 grams, and marijuana, unlawful possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking offense. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, Haight will be placed on three years of supervised release.
According to the government’s evidence, in November 2014, Haight, along with his co-conspirators, controlled an apartment in the Lincoln Heights area of Northeast Washington. At the residence, Haight would process, package, and sell cocaine, crack, and marijuana. During a Nov. 20, 2014, search warrant, law enforcement recovered distribution quantities of narcotics from the residence, with a loaded firearm and a safe in which packaged narcotics, additional ammunition, and cash were stored. At the time of his arrest, Haight was on supervision for a prior assault with a dangerous weapon conviction.
In announcing the sentence, U.S. Attorney Phillips, Special Agent in Charge Boxler, and Interim Chief Newsham commended the work of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Special Investigations Unit of the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle, Mary Downing, and Teesha Tobias; former Paralegal Specialist Sentamu Kiremerwa; Legal Assistants Peter Gaboton, Brendan Coyne, Diane Brashears, and Latoya Wade; Victim/Witness Security Specialists Michael Hailey and Wanda Queen, Victim/Witness Coordinators Tonya Jones and David Foster; Information Technology Specialist Kimberly Smith; Budget Analyst Donna Proctor, and Administrative Services Specialist, Sallie Rynas. Finally, they commended the efforts of Assistant U.S. Attorneys Nihar Mohanty and Christopher Macchiaroli, who prosecuted the case.
District Man Sentenced to 19 Years in Prison for Series of Robberies and Home InvasionsRead the Press Release
WASHINGTON - Robert Williams, 23, of Washington, D.C., has been sentenced to a 19-year prison term on charges stemming from a series of robberies and home invasions that he carried out in Northeast Washington, U.S. Attorney Channing D. Phillips announced today.
Williams was sentenced on Nov. 30, 2016, in the Superior Court of the District of Columbia, by the Honorable Zoe Bush. Upon completion of his prison term, he will be placed on 13 years of supervised release.
According to the government’s evidence, on Dec. 19, 2014, at approximately 5:45 p.m., Williams and a second individual carried out a home invasion in the 1500 block of Oates Street NE. The victim, a 70-year-old man, was home alone at the time. During the ordeal, the victim was gagged, bound and placed in a closet. Williams and his accomplice took over $700, the victim’s car, and two flat-screen televisions. Williams pled guilty in October 2016 to a charge of second-degree burglary in this incident. No one else has been charged in this case.
The second incident took place on April 28, 2015, at approximately 12:50 p.m. According to the government’s evidence, Williams entered an apartment in the 1700 block of Benning Road NE as the two victims were in the process of moving out. Masked, he approached the first victim and, when he learned that she did not have any money, struck her in the face with his handgun, causing a significant wound to her forehead. He then robbed the second victim of approximately $150. Surveillance video captured Williams entering and running out of the apartment building. When apprehended hours later, Williams was wearing the same clothing that he wore when he committed the crime and on video. Williams was found guilty by a jury in July 2016 of armed robbery, first-degree burglary, assault with intent to rob, and various firearms offenses for the crimes committed that day.
The third incident occurred on Nov. 25, 2015, at approximately 9 a.m. Williams robbed a restaurant manager at gunpoint outside the establishment in the 1500 block of Maryland Avenue NE. He took about $200 in cash and the victim’s cellphone. Williams pled guilty in October 2016 to a charge of armed robbery for this attack.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Damien Diggs, who secured the indictment, and Litigation Technology Assistant Aneela Bhatia. Finally, he commended the efforts of Assistant U.S. Attorney Kamil E. Shields, who prosecuted the case at trial and obtained the guilty pleas.
Dent County Woman Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – Demea Loyd, Salem, MO, was sentenced to three months in prison, plus six months of home confinement, on wire fraud charges involving her embezzlement from Sears. Additionally, she was ordered to pay restitution of $358,805.
According to court documents, Loyd owned two stores in Washington and Rolla, Missouri. She entered into a contract with Sears Authorized Hometown Stores, LLC to exclusively distribute Sears merchandise from these two stores. The contract called for Loyd to distribute Sears merchandise on a consignment basis. In exchange, Loyd was paid a commission based on the amount of sales. Loyd was to deposit all proceeds from the sale of the merchandise at each store into a “holding” account until they could be transferred to Sears. From April 2013 to December 2014, Loyd embezzled $358,805 from Sears, by making unauthorized withdrawals from the holding account and falsifying the monthly statements to hide the missing funds.
Loyd pled guilty in May to one count of wire fraud and appeared today for sentencing before United States District Judge John Ross.
This case was investigated by the Federal Bureau of Investigation and the Rolla and Washington, Missouri, Police Departments. Assistant United States Attorney John Ware handled the case for the U.S. Attorney’s Office.
Daly City Resident Sentenced to 35 Months of Prison for Starting A Fire at the Chinese ConsulateRead the Press Release
SAN FRANCISCO– Yan Feng was sentenced to 35 months of prison and three years of supervised release, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and U.S. Department of State Diplomatic Security Service Special Agent in Charge David Zebley. The sentence, handed down yesterday by the Honorable Maxine Chesney, United States District Judge, follows a guilty plea entered earlier this year.
Feng, 42, of Daly City, was charged in an Information with a single count of what is commonly known as “offering violence to a foreign official,” in violation of 18 U.S.C. § 112(a). Feng pleaded guilty to this felony charge on September 14, 2016.
According to the plea agreement and court records, Feng admitted that on New Year’s Day 2014, he started a fire at the Chinese Consulate located on Geary Boulevard in San Francisco, Calif. Feng was arrested by FBI and DSS Special Agents within 48 hours of starting the fire, on January 3, 2014, and has remained in federal custody ever since.
The prosecution is the result of an investigation by the FBI’s Joint Terrorism Task Force, the U.S. Department of State’s Diplomatic Security Service, and the San Francisco Police and Fire Departments.
Convicted Felon Pleads Guilty to Possession of FirearmRead the Press Release
Gulfport, Miss – Damon Derrall Pittman, 36, of Poplarville, entered a guilty plea today, before Chief District Judge Louis Guirola, to possession of a firearm by a convicted felon, announced U. S. Attorney Gregory K. Davis.
Pittman will be sentenced on March 1, 2017 and faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case involved the sale of a sawed off rifle to an ATF informant. It was investigated by the Bureau of ATF and is being prosecuted by Assistant United States Attorney Annette Williams.
Convicted Felon Caught Hunting on National Park Service Land is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHAEL A. PETRO, 44, of Watertown, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to approximately 11 months of imprisonment, time served, and two years of supervised release, for illegally possessing a firearm and ammunition.
According to court documents and statements made in court, on the morning of December 10, 2015, a law enforcement officer was patrolling part of the Appalachian Trail in Kent, Conn. Posted signs in the area state that the land is National Parks Service property and is closed to hunting. The officer observed PETRO in camouflage gear holding a Savage Arms/Stevens Model 311, 12 gauge shotgun, which was breached open and unloaded. After the officer asked PETRO where the shotgun shells were and PETRO denied having any, the officer and her canine located two 12 gauge shotgun shells under fallen leaves approximately 20 yards away from where PETRO was standing. A subsequent search of PETRO’s jacket revealed two additional shotgun shells.
PETRO’s criminal history includes a felony conviction for assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PETRO has been detained in state custody since December 15, 2015. He has multiple unrelated state charges pending.
On June 13, 2016, he pleaded guilty to one count of unlawful possession of a firearm and ammunition by a convicted felon.
Judge Bryant ordered that PETRO must perform 200 hours of community service during his term of supervised release.
This matter was investigated by the U.S. Fish and Wildlife Service and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Company President Embezzled Money from Employee Pension FundRead the Press Release
NORFOLK, Va. – Harry Paul, Jr., 65, of Grandy, North Carolina, pleaded guilty today to charges of embezzling funds from an employee pension fund.
According to the statement of facts filed with the plea agreement, Paul is the owner and president of Freedom Mechanical, Inc., located in Virginia Beach. The company maintained an employee benefit retirement account plan known as the Freedom Mechanical Simple IRA Plan. The Plan was funded by employees who elected to contribute to the plan, as well as mandated matching contributions made by the employer. Between approximately April 2013 and June 2016, Paul, assisted by the company’s vice-president who acted at the Paul’s direction, embezzled and unlawfully converted the monetary contributions to the Plan made by nine employees, in the amount of $47,056. During that period, W-3 Wage and Tax Statements transmitted by the company to the IRS included an amount for “deferred compensation” that falsely represented that employee contributions to the company had been made. Also during that period, the defendant failed to make the employer contributions owed to the Plan. The contributions embezzled and unlawfully converted were used to cover the company’s operating costs during a period when the company experienced severe economic difficulties.
Paul waived indictment by a federal grand jury and pleaded guilty to a criminal information. Paul faces a maximum penalty of five years in prison when sentenced on March 7, 2017. 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 Robin Blake, Special Agent in Charge of the Washington, D.C. Regional Office, U.S. Department of Labor, Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Alan M. Salsbury 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-150.
Cincinnati Man Sentenced to 300 Months for Distributing Fentanyl Resulting in Serious Bodily InjuryRead the Press Release
COVINGTON, Ky. — A Cincinnati, Ohio man has been sentenced to 300 months in federal prison for selling fentanyl that resulted in a near-fatal overdose.
Today, U.S. District Judge Amul Thapar sentenced Antoine Dudley, 32, for distribution of fentanyl causing serious bodily injury. Dudley must serve at least 85 percent of his prison sentence and will be on supervised release for fifteen years after he completes his prison sentence.
Dudley pleaded guilty on October 27, 2016 in the middle of his trial. According to testimony at trial, Dudley regularly sold both heroin and fentanyl to multiple customers throughout Northern Kentucky, between September 1, 2014 and his arrest on May 8, 2015. Evidence also showed that he distributed fentanyl, on November 21, 2014 in Covington, that caused the user to overdose and stop breathing.
Paramedics of the Covington Fire Department responded to the call and were able to revive the victim of the overdose through repeated administration of naloxone (Narcan®). The victim has made a full recovery, but evidence showed that she would have died if not for the actions of the responding paramedics.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence.
The investigation was conducted by the FBI Safe Streets Task Force. Assistant U.S. Attorney Tony Bracke prosecuted this case on behalf of the federal government.
Cincinnati Man Sentenced to 26 Years for Distributing Fentanyl Resulting in Overdose DeathRead the Press Release
COVINGTON, Ky. — A Cincinnati, Ohio man has been sentenced to 26 years in federal prison for providing drugs to someone who died of an overdose in the Kenton County jail.
Today, U.S. District Judge Amul Thapar sentenced Michael Howard, 42, for conspiracy to distribute fentanyl and morphine that resulted in an overdose death. Three of Howard’s co-defendants, Kimberly Mullins, Lisa Lattimore and Lynette Ball, received sentences of 244, 160, and 144 months, respectively, for their roles in the drug conspiracy. All four defendants must serve at least 85 percent of their sentences.
Howard pleaded guilty in June 2016 and admitted that he had been supplying heroin to Jamie Green for several months while Green was in custody in Campbell and Kenton Counties. Mullins arranged for the substances to be delivered to her daughter, Jamie Green, through other inmates on work release. Howard admitted supplying a substance that contained fentanyl and morphine to Mullins on September 4, 2014 for delivery to Green. Mullins delivered the substance to Green in the Kenton County Jail through the assistance of co-defendants Ball and Lattimore. Green used the substance and died of an overdose shortly thereafter on September 5, 2014.
A federal grand jury in Covington returned an indictment on November 12, 2015 charging Howard, Mullins, Lattimore, and Ball with conspiracy to distribute controlled substances resulting in death. Mullins, Lattimore, and Ball pleaded guilty on March 29, 2016 to this offense.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly announced the sentence. The investigation was conducted by the Drug Enforcement Administration and the Kenton County Police Department. Assistant U.S. Attorney Tony Bracke represented the federal government in this matter.
Cibola County Man Sentenced to Prison for Federal Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Daniel Albert Chavez, 53, of Acoma, N.M., was sentenced today in federal court in Albuquerque, N.M., to 33 months in prison for robbing a Wells Fargo Bank branch in Grants, N.M. Chavez will be on supervised release for two years following his prison sentence.
Chavez was arrested on March 29, 2016, on an indictment charging him with robbing two banks in Cibola County, N.M. According to the indictment, Chavez robbed the Bank of New Mexico branch located at 824 West Santa Fe Ave. in Grants on Feb. 20, 2015, and the Wells Fargo Bank branch located at 201 North First St. in Grants on Oct. 20, 2015.
On Aug. 2, 2016, Chavez pled guilty to one bank robbery charge, and admitted robbing the Wells Fargo Bank located at 201 North First St. in Grants, on Oct. 20, 2015.
This case was investigated by the Gallup office of the FBI and the Grants Police Department. Assistant U.S. Attorney Edward Han prosecuted the case.
Charleston woman pleads guilty to obtaining pain pills by fraudRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pleaded guilty today to obtaining oxycodone and Xanax by fraud, announced United States Attorney Carol Casto. Greer Elizabeth Ramsey, 32, entered her guilty plea to obtaining controlled substances by misrepresentation, fraud, forgery, deception, and subterfuge.
Ramsey admitted that on April 14, 2015, she obtained oxycodone and Xanax by presenting a prescription that she knew to be fraudulent to the Kroger pharmacy in Dunbar. Ramsey further admitted that she knew the prescription was not valid because she had never been a patient of the doctor whose name was on the preprinted prescription pad.
Ramsey faces up to four years in federal prison when she is sentenced on March 9, 2017.
The Dunbar Police Department, the South Charleston Police Department, and the Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was 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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Cedar Rapids Man Sentenced to 11 Years for Enticement of MinorsRead the Press Release
A former school bus attendant who enticed three minors was sentenced today to 11 years in federal prison.
Tyler Konigsmark, age 20, of Cedar Rapids, Iowa, received the sentence after a September 1, 2016 guilty plea to one count of enticement of minors. At the plea hearing and in a plea agreement, Konigsmark admitted that, between April and May of this year, he used Snapchat and his iPhone to request sexually explicit images from three girls, ages 12, 13, and 14, who rode on school buses where he was an attendant. He also admitted that he had sexual intercourse with the 12-year-old girl on two occasions after he used Snapchat and his cell phone to arrange meetings with her.
Konigsmark was sentenced in Cedar Rapids by United States District Court Judge Mark W. Bennett. Konigsmark was sentenced to 132 months’ imprisonment. A special assessment of $5,100 was imposed, and he must also serve a 10-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Hiawatha Police Department, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-57.
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Carlsbad Felon Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eddie Leo Wyatt, 55, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Wyatt, whose criminal history includes four prior felony convictions for drug related offenses, was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Wyatt was arrested on Oct. 22, 2014, on a criminal complaint charging him with distributing methamphetamine in Chaves County, N.M. According to the complaint, Wyatt sold an aggregate of 213 grams of pure methamphetamine to undercover law enforcement agents during five transactions taking place between March 20, 2013 and June 13, 2013.
Wyatt was subsequently charged in a five-count indictment on Jan. 14, 2015, with distributing methamphetamine on March 26, 2013, April 2, 2013, April 9, 2013, April 23, 2013, and June 13, 2013. According to the indictment, Wyatt committed the five crimes in Chaves County.
On Sept. 11, 2015, Wyatt pled guilty to one count of distribution of methamphetamine. In entering the guilty plea, Wyatt admitted selling 58.9 grams of methamphetamine on April 9, 2013.
This case was investigated by the Las Cruces office of the FBI and the New Mexico State Police. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Derrick Bernard Farmer (41, Tampa) to 15 years in federal prison for possessing with the intent to distribute crack cocaine and possessing a firearm as a convicted felon. He pleaded guilty on July 6, 2016.
According to court documents, during January 2016, Farmer served as the crack cocaine source for two individuals who then sold the drugs to an undercover detective. On February 3, 2016, law enforcement officers executed a search warrant at Farmer’s apartment in Tampa and found crack cocaine, drug paraphernalia, and three firearms. Farmer had multiple prior felony drug convictions and therefore was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also part of the PSN Comprehensive Anti-Gang Initiative (CAGI). CAGI’s objective is to reduce criminal gangs, violent crime, and illegal drugs and guns through swift, thorough enforcement and prosecution, along with prevention and re-entry efforts.
Cape Man Pleads Guilty to Killing Protected Red Tailed HawkRead the Press Release
BOSTON – A Brewster man pleaded guilty and was sentenced yesterday in U.S. District Court in Boston in connection with killing a red tailed hawk, a protected migratory bird.
Richard Warburton, 75, pleaded guilty to one count of killing a red tailed hawk and was sentenced by U.S. District Court Magistrate Judge Marianne B. Bowler to pay a fine of $200 and restitution of $266.
Warburton admitted that on Feb.17, 2016, he shot a red tailed hawk near Airline Road in Brewster, Mass. The bird, a protected species under the Migratory Bird Treaty Act, had to be euthanized following the shooting. Warburton also admitted that the shooting was not an isolated incident.
“One of our many responsibilities is to enforce laws that protect New England’s unique wildlife,” said United States Attorney Carmen M. Ortiz. “We will continue to collaborate with our law enforcement partners to safeguard the precious wildlife and ecosystems of our state for future generations.”
“This case is yet another example of the cooperative investigative efforts of the Massachusetts Environmental Police and the U.S. Fish & Wildlife Service,” said David Sykes, New England Resident Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “These majestic birds of prey are an important link in our ecosystem and today’s plea is a success in our collective efforts to conserve and protect them.”
United States Attorney Carmen M. Ortiz and David Sykes, Resident Agent in Charge of U.S. Fish and Wildlife Service, Office of Law Enforcement, New England Field Office, made the announcement. Assistant U.S. Attorney Lori J. Holik, Chief of Ortiz’s Major Crimes Unit, prosecuted the case.
Buffalo Woman Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Johanna Sanchez Rodriquez, 40, of Buffalo, NY, pleaded guilty to conspiracy to distribute and obtain through fraud controlled substances, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between December 2013 and April 2015, co-defendant Brandon Coburn, a licensed nurse practitioner who is legally authorized to prescribe controlled substances, provided fraudulent Fentanyl prescriptions to Sanchez Rodriquez and nine other co-defendants. Those prescriptions, however, were not used for a legitimate medical purposes and instead were filled by Sanchez Rodriquez and others and sold on the street in the Buffalo area. Sanchez Rodriquez filled a total of 31 prescriptions including oxycodone and fentanyl.
Sanchez Rodriquez is the first of the 11 defendants charged in this investigation to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Sentencing is scheduled for March 23, 2017, at 1:00 p.m. before Judge Arcara.
Bronx Man Pleads Guilty to Sex Trafficking of Minors, Possession of Child Pornography, and Gun PossessionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DAVID HOPE, a/k/a “Capo,” pled guilty before U.S. District Judge Sidney H. Stein to his involvement in the sex trafficking of minor girls, possession of child pornography, and possession of a firearm as a convicted felon.
U.S. Attorney Preet Bharara said: “For years, David Hope manipulated and exploited vulnerable minor girls in the cruelest of ways, selling them for sex for his own profit. With David Hope’s guilty plea today, we seek to deliver justice to the victims, as well as a measure of real hope. Protecting girls and young women from sex traffickers like Hope remains a top law enforcement priority for us and the FBI.”
According to the Indictment, Complaint, and other documents filed in the case, as well as statements made during HOPE’s plea proceedings:
Since at least 2013, HOPE directed and conducted a criminal sex trafficking and prostitution enterprise (the “Enterprise”) that recruited and exploited minor girls and young women, and then prostituted them using an online classified ad website for his own profit. HOPE, who was wheelchair-bound, operated the Enterprise at his apartment in the Bronx, New York (the “Hope Apartment”), Connecticut, and elsewhere.
HOPE recruited minors who looked up to him to participate in the Enterprise and other criminal activity. HOPE, who was known to carry a firearm, employed myriad tactics – including manipulation, intimidation, coercion, threats, and violence – to recruit and maintain the girls and young women he sold for sex. At least four minor victims were involved in the Enterprise.
In or about November 2015, when he was arrested, HOPE also possessed on his cellphone a sexually explicit video of one of the minor girls he trafficked.
In or about January 2015, HOPE possessed a defaced firearm (the “Firearm”) after he had been previously convicted of a felony crime. Specifically, on January 16, 2015, when New York City Police Department (“NYPD”) officers were executing a search warrant at the Hope apartment, HOPE instructed a minor female to throw the loaded Firearm out of the rear window of the Hope Apartment. Before it was thrown out the window, the Firearm was in the bed where Hope was sleeping.
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HOPE, 29, of the Bronx, New York, was arrested on November 19, 2015, in the Bronx, New York, and has been in federal custody since. HOPE pled guilty today to one count of sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of conspiracy to commit sex trafficking, which carries a maximum sentence of life in prison; one count of possession of child pornography, which carries a maximum sentence of 10 years in prison; and one count of being a felon in possession of a firearm and ammunition, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by the judge. HOPE is scheduled to be sentenced by Judge Stein on March 1st, 2017, at 2:30 p.m.
Mr. Bharara praised the extraordinary investigative work of the FBI. He thanked the NYPD for its assistance throughout the investigation, and the United States Attorney’s Office for the District of Connecticut and the Connecticut Child Exploitation Task Force for its assistance with investigating HOPE’s operations in Connecticut. Mr. Bharara also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the ATF/NYPD Joint Robbery Task Force (SPARTA) for its assistance in the early stages of the investigation.
Any individuals who believe they have information concerning the exploitation of children may contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sagar K. Ravi and Christopher J. DiMase are in charge of the prosecution.
Bridgeport Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose Death in TrumbullRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEVAUGHN WATSON, 23, of Bridgeport, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of possession with intent to distribute, and distribution of, heroin. This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on August 18, 2016, Trumbull Police and emergency medical personnel responded to a residence in Trumbull and found an unresponsive 25-year-old female on the floor of a bedroom. The victim was pronounced deceased shortly thereafter. Investigators searched the victim’s pocketbook and found several empty wax folds and some wax folds that contained suspected heroin. Analysis of text messages contained on the victim’s cellphone revealed that the victim had ordered heroin from WATSON several times over the course of approximately two months prior to the victim’s death.
WATSON has been detained since his arrest on September 7, 2016.
The charge of possession with intent to distribute, and distribution of heroin, carries a maximum term of imprisonment of 20 years. WATSON is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on February 23, 2017.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Tactical Diversion Squad and the Trumbull and Monroe Police Departments, with the assistance of the Bridgeport Police Department.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bailey Boys Gang Members Sentenced in Connection with ShootingsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Quintin Thompson, 26, and Montell Jones, 28, both of Buffalo, NY, were sentenced in connection with two shootings by Senior U.S. District Judge William M. Skretny.
According to Assistant U.S. Attorneys Michael P. Felicetta and Meghan A. Tokash, who are handling the prosecution of this case, Thompson and Jones were members of the Bailey Boys Gang, a violent criminal gang which operates in an area of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road, and Main Street.Thompson was sentenced to 42 months in prison for his role in the October 24, 2011, shooting outside of a rental car business located at 2655 Main Street. Thompson spotted a group of rival gang members and opened fire on the group. Although he missed all of the targets, Thompson shot an 18-year-old female in the leg who was an innocent bystander. Thompson is currently serving a New York state sentence for a 2008 armed robbery and assault of a 14-year-old boy.
Jones was sentenced to time served (52 months) for his role as the driver in a drive-by shooting at 211 Shirley in Buffalo on June 28, 2011. Jones drove the vehicle that was occupied by two shooters who fired upon rival gang members at the Shirley Avenue residence. One person, an 18-year-old male, was shot in the back during that crime and the victim spent approximately three months in the hospital recovering from his injuries.
Jones was also sentenced to time served for his role in the February 6, 2015, assault of a guard at the Steuben Correctional Facility where he was being detained. Jones struck the guard in his face while being transported to his cell.
The sentencing is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of Acting District Attorney Michael Flaherty, the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent-in-Charge Adam S. Cohen, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.