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8 December 2016
Ten People Charged for Their Roles in Violent Heroin Trafficking Conspiracy Operating in Trenton, New JerseyRead the Press Release
TRENTON, N.J. – Federal and local law enforcement authorities today arrested multiple members and suppliers of a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, U.S. Attorney Paul J. Fishman announced.
The alleged leader of the conspiracy, Ishmael Abdullah, a/k/a “Ish,” a/k/a “Gangsta,” a/k/a “Papi,” 26, of Trenton, was among 10 defendants charged in a complaint unsealed today, six of whom were arrested this morning as part of a coordinated takedown by federal and local law enforcement authorities. Of the remaining four defendants, two are currently incarcerated on pending state charges and parole violations and two remain at large.
Each defendant (see attached chart) is charged with one count of conspiracy to distribute 100 grams or more of heroin. Ishmael Abdullah and Christopher Proctor, a/k/a “Bris,” a/k/a “Bris Broctor,” 22, of Trenton, are also charged with unlawful possession of a firearm by a convicted felon. Those arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
“According to the charges, the defendants sold large quantities of heroin out of a residential neighborhood in Trenton, all while keeping firearms on hand to further their drug-trafficking activities,” U.S. Attorney Fishman said. “Today’s arrests, which include the group’s alleged leader, are part of a coordinated effort by federal and local law enforcement to curb the proliferation of heroin in our communities and the senseless violence that it brings.”
“Today, FBI Newark and our law enforcement partners executed ten federal arrest warrants and conducted several searches in the greater Trenton area. These arrests highlight our commitment to combating the opiate and heroin epidemic that affects each and every one of our communities,” stated Timothy Gallagher, Special Agent in Charge of the Newark FBI Field Office.
According to the complaint:
From June 2015 through December 2016, Ishmael Abdullah, Hunter, and other members of their drug trafficking organization (the “Abdullah DTO”) engaged in a heroin distribution conspiracy that operated in the area of Spring and Passaic Streets in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the conspiracy and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Torres-Mezquita and Sanchez. Ishmael Abdullah and Hunter coordinated the organization’s distribution of heroin to the other conspirators, who sold and stored the drugs.
Members of the Abdullah DTO spoke in code and used stash houses, cars, and temporary prepaid phones to avoid detection by law enforcement. In connection with their narcotics distribution, members of the Abdullah DTO also maintained joint access to firearms.
Members of the Abdullah DTO sold prepackaged “bricks” of heroin, which contained approximately one gram, and “bundles” of heroin, which contained approximately one-fifth of a gram, to various other distributors, sub-dealers, and end users in Trenton and surrounding areas. Discussions about drug quality, consumer satisfaction, pricing, quantity, and the nature of the organization’s drug distribution business, including the storage and accessibility of firearms, were captured on calls and text messages intercepted during the investigation.
“Today's arrests affirm ATF's commitment to protect the public by reducing violent crime in our neighborhoods,” said Special Agent in Charge George P. Belsky, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Field Division. “Investigating, arresting, and prosecuting armed narcotics traffickers remains a top priority for ATF. We will continue to work diligently with our local, state and federal partners to focus our efforts on targeting violent offenders wreaking havoc in our streets.”
Trenton Police Director Ernest Parrey, Jr. stated, “On behalf of the City of Trenton and the Trenton Police Department, I would like to thank all of our law enforcement partners who dedicated their resources in an effort to improve the quality of life for the citizens of our city. This joint investigation and the arrests of these individuals, who plagued city neighborhoods to further their drug trafficking network, is not only a win for law enforcement but a victory for the citizens of this city who have had to live under those brutal conditions.”
The conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The firearms charges with which Ishmael Abdullah and Christopher Proctor are charged carry a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, under the direction of Special Agent in Charge Gallagher; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Belsky; officers of the Trenton Police Department, under the direction of Director Ernest Parrey, Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Residence
Ishmael Abdullah, a/k/a “Ish,” a/k/a “Gangsta,” a/k/a “Papi”
26
Trenton
**Keith Hunter, a/k/a “Meech”
24
Trenton
Jose Joaquin Torres-Mezquita, a/k/a “Alex Torres,” a/k/a “Papi,” a/k/a “Pa,” a/k/a “Pop”
30
Philadelphia
Bernadino Guervil, a/k/a “BG”
28
Trenton
**Elijah Abdullah, a/k/a “Uncle E,” a/k/a “E”
21
Trenton
Prince Sarnoe
29
Trenton
*Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod’
22
Trenton
*Christopher Proctor, a/k/a “Bris,” a/k/a “Bris Broctor”
22
Trenton
Ileana Sanchez, a/k/a “Lilly”
32
Trenton
India Daniels
23
Morrisville, Pennsylvania
* currently incarcerated
** still at large
Ten Defendants Arrested in Jamaica; Anti-Lottery Scam Operation ‘Hard Copy’ Continues to Yield Results at Home and AbroadRead the Press Release
BISMARCK - United States Attorney Chris Myers announced that another man accused of participating in a transnational organized crime advance fee "lottery scam" fraud, which bilked at least 80 mostly elderly U.S. residents out of millions of dollars, has been arrested in Jamaica.
Federal fugitive Tristan Fisher was arrested on December 2, 2016, in Trelawney Parish, Jamaica. Fisher, a Jamaican national, is one of 15 defendants charged federally in an international wire/mail fraud and money laundering conspiracy investigation, dubbed "Operation Hard Copy." Ongoing international investigation has resulted in several federal indictments throughout the United States, and more than 32 charged or convicted defendants. The Operation Hard Copy investigation began in 2012 and is based in the District of North Dakota.
Fisher’s arrest follows on the heels of nine others who have been arrested in Jamaica: Dario Palmer, Jason Jahalal, O’Neil Brown, Kazrae Gray, Alrick McLeod, Dahlia Hunter, and Kimberly Hudson, all of whom were arrested on March 30, 2016; Xanu-Ann Morgan was arrested on March 31, 2016; and Lavrick Willocks was arrested on November 5, 2016. Willocks, age 27, was taken into custody after being located hiding in a garden at a hotel in Kingston, Jamaica. Arrests of Fisher and Willocks are the result of months of continuing investigation by U.S. and Jamaican authorities, including the United States Marshal’s Service working in partnership with the Jamaica Counter-Terrorism and Organised Crime Fugitive Apprehension Team.
Fisher, Willocks, and others in custody in Jamaica face numerous charges in U.S. federal court, including Conspiracy, Wire Fraud, and Money Laundering. "Fisher is one of 10 defendants who are in custody in Jamaica and are awaiting extradition proceedings following 14 extradition warrants which were issued in Jamaica on February 29, 2016," said Clare Hochhalter, the federal prosecutor who leads the prosecution team in North Dakota.
"We’re grateful for the continuing efforts of the United States Marshals Service, the High Plains Fugitive Task Force, the Jamaican Fugitive Apprehension Team, the Jamaican Operations Linked to Telemarketing Fraud Task Force, as well as all of our other U.S and Jamaican law enforcement partners," added U.S. Attorney Myers. "We look forward to bringing these 10 defendants, and others, to justice in the United States."
United States Marshal Paul Ward echoed Myers’ sentiment, "The United States Marshals Service is proud to work with the United States Attorney’s Office here in North Dakota and elsewhere. Finding federal fugitives and bringing them to justice is a big part of what we do. We’ll continue to do it, no matter how long it takes and no matter where fugitives may be found."
The process to extradite Willocks, Fisher, and the others began three years ago after the investigation identified hundreds of victims, many of them elderly or otherwise vulnerable, throughout the United States. One of Willocks’ former co-defendants, Sanjay Williams, was convicted after trial in North Dakota in 2015. Sanjay Ashani Williams, age 26, was the first Jamaican national tried and convicted in the United States for selling lead lists for use in international cyber-fraud.
Evidence presented at the trial of Williams demonstrated that victims of the scam were targeted by the use of lead lists, which are the names, telephone numbers, and personal information of potential victims. The lists are often assembled in the United States and are sold to lottery scammers. Some lead lists are created by list wholesalers who send out bogus mass mailings purporting to be sweepstakes entries. Consumers, thinking the mailings are legitimate, pay to enter the non-existent sweepstakes. The wholesalers in turn pocket the entry fee then sell the consumer contact information to scammers for as much as $5.50 per potential victim.
United States District Court Chief Judge Daniel Hovland sentenced Williams to 20 years in federal prison, without parole, on November 24, 2015. At the trial victims from South Dakota, Minnesota, Florida, Ohio, West Virginia, Utah, South Carolina, Alabama, and California testified. The United States Court of Appeals for the Eighth Circuit upheld Williams’ verdict and sentence on November 4, 2016.
The Operation Hard Copy investigation is being led by the FBI’s North Dakota office and the U.S. Postal Inspection Service in Florida, with assistance from many federal and state law enforcement agencies, as well as Jamaican law enforcement.
Williams, Willocks, Fisher, and others have been prosecuted by Assistant U.S. Attorneys Clare Hochhalter, Nick Chase, and James Patrick Thomas, along with Trial Attorney Lorinda Laryea of the Department of Justice’s Criminal Division.
An indictment is merely an accusation and individuals charged are presumed innocent until proven guilty.
Southland Sex Offender Who Traveled to Cambodia to Sexually Abuse Young Boys Sentenced to 22 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Los Angeles-area man who traveled to Cambodia to engage in sexual activity with at least five boys has been sentenced to 264 months in federal prison after the court heard from four of the victims.
Erik Leonardus Peeters, 48, of Norwalk, was sentenced yesterday afternoon by United States District Judge Christina A. Snyder. In addition to the prison term of nearly 22 years, Judge Snyder ordered Peeters to pay $15,000 in restitution to his victims. Upon completion of his prison term, Peeters will also be subject to supervised release for the rest of his life.
Peeters pleaded guilty in March 2012 to two counts of engaging in illicit sexual contact with a minor in a foreign place. According to court documents filed in the case, Peeters traveled to Cambodia in April 2008 and within two months began seeking out youths for sex, targeting victims who were destitute and often disabled.
During yesterday’s sentencing hearing, four of Peeters’ victims, who are now young adults, described their feelings of fear and shame stemming from their encounters with Peeters, as well as the shame and social stigma their families also suffered. “I’m fearful, and I’m still ashamed,” one man said.
“The seriousness of this offense and the devastating impact the sexual assaults had on the victims cannot be overstated,” said United States Attorney Eileen M. Decker. “This defendant is a sexual predator who repeatedly victimized young boys, several of whom have physical disabilities, and all of whom come from deeply impoverished communities in the developing world. This lengthy sentence sends a message to all pedophiles in the United States that they cannot escape prosecution by traveling to other countries to engage in illegal and horrific sexual acts against children.”
Peeters was arrested by the Cambodian National Police (CNP) in February 2009 for violating Cambodian laws that prohibit sexual contact with children. Peeters was subsequently charged by federal prosecutors in Los Angeles with engaging in illicit sexual conduct with minors in a foreign country. Peeters was returned to Los Angeles from Cambodia in August 2009.
Years before he traveled to Cambodia, Peeters was convicted in Los Angeles County of lewd and lascivious conduct with boys under the age of 14.
The charges against Peeters resulted from an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Los Angeles and HSI Attaché Offices in Bangkok, Phnom Penh and Ho Chi Minh. The United States Embassy in Phnom Penh provided substantial assistance.
“This sentencing is a testament to the tenacity and tireless dedication of every law enforcement agency involved in this case, and further strengthens HSI’s resolve to investigate pedophiles who harm innocent children,” said Joseph Macias, special agent in charge of HSI Los Angeles. “Americans tempted to commit sex crimes overseas should understand that tough U.S. laws will ensure they pay a high price for their criminal actions. We owe it to the young victims, many of whom will bear the emotional scars for the rest of their lives.”
The case against Peeters was prosecuted by Assistant United States Attorney Lana Morton Owens of the Violent and Organized Crime Section and Special Litigation Counsel Patricia Donahue.
Peeters is the third and final defendant sentenced as part of Operation Twisted Traveler, a joint initiative by HSI and the Department of Justice to identify and prosecute American men who traveled to Cambodia and engaged in sexual conduct with children there. The defendants were charged under the PROTECT Act, which took effect in 2003 and substantially strengthened the federal laws related to predatory crimes involving children outside the U.S. by adding new crimes and increasing prison sentences.
The other two defendants prosecuted as part of Operation Twisted Traveler, Ronald Gerard Boyajian and Jack Louis Sporich, who received prison sentences of 70 years and 10 years, respectively.
South African Man Pleads Guilty to Sexually Exploiting a Minor and Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Denver Carolissen, 42, of Kuilsrivier, South Africa, pled guilty today in U.S. District Court to sexually exploiting a minor and transporting child pornography. He was indicted on November 4, 2014.
According to court records, in 2010, Carolissen, who was in South Africa, took several sexually explicit photographs of a minor girl. In September 2014, Carolissen sent the photographs and other child pornography images to undercover federal agents in Maine investigating the online exchange of child pornography. After he was indicted, the U.S. Department of Justice asked South African authorities to arrest him and extradite him to the United States. On November 25, 2014, South African law enforcement officers arrested the defendant at his residence. Following his arrest, he admitted that he had engaged in sexual activity with the minor girl, taken photos and video footage of the activity and sent images to other individuals using the internet.
He faces between 15 and 30 years in prison for sexually exploiting a minor and between five and 20 years in prison for transporting child pornography. He also faces a fine of up to $250,000 and up to life on supervised release for each offense. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Family Violence, Child Protection and Sexual Offenses Unit of the South African Police Service.
Smithfield Man Sentenced for Drug Trafficking and Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Louise W. Flanagan sentenced KENNETH EUGENE MCCOY, 44, of a Smithfield to 183 months of imprisonment followed by 5 years of supervised release.
MCCOY pled guilty on August 18, 2016 to Possession with the Intent to Distribute 28 Grams or More of Cocaine Base (Crack) and
a Quantity of Marijuana and to Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
An investigation was initiated by the Smithfield Police Department following the receipt of information about the drug trafficking activities of MCCOY from a residence in Smithfield. Officers learned that MCCOY had been selling unspecified amounts of cocaine base from the residence. Officers were able to make a purchase of an unspecified amount of cocaine base prior to obtaining a search warrant for MCCOY’s residence.
On October 16, 2015, MCCOY’s house was searched and officers found over 28 grams of cocaine base, a quantity of marijuana, and a stolen, Hi Point handgun, a RG .22 caliber handgun with ammunition, other assorted drug paraphernalia, and $428.88 in U.S. currency was found in the bedroom. The front and rear entrances to the residence were reinforced with devices to make unwanted entry difficult.
The criminal investigation of this case was conducted by the Smithfield Police Department, the Johnston County Sheriff’s Office, and the North Carolina State Crime Laboratory. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Serial Armed Robber Sentenced to 25 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Kevin Howard, who admitted that he and his accomplice, Jerry Ware, committed the armed robberies of five 7-Eleven/RaceTrac stores in Dallas in October 2014, was sentenced yesterday by U.S. District Judge Ed Kinkeade to serve 300 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Howard, 24, pleaded guilty in April 2016 to one count of using, carrying, brandishing and discharging a firearm during or in relation to a crime of violence. Co-defendant Ware, 28, also of Dallas, pleaded guilty in July 2015 to two counts of the same offense.
According to documents filed in the case, the two committed five armed robberies in Dallas on October 24, 2014, and into the early morning hours of October 25, 2014, at the following locations:
October 24, 2014, 11:51 p.m. 7-Eleven store 2223 S. Beckley
October 25, 2014, 12:10 a.m. RaceTrac store 8124 Forest Lane
October 25, 2014, 12:35 a.m. 7-Eleven store 9320 Skillman
October 25, 2014, 12:50 a.m. 7-Eleven store 10340 Forest Lane
October 25, 2014, 1:20 a.m. 7-Eleven store 14801 Coit Road
All of these five robberies were committed in essentially the same manner, including Ware’s use and brandishing of the silver loaded firearm to threaten and force the store clerks to comply with his demands, while Howard stayed in the car as the getaway driver.
Howard also admitted that after this robbery spree, on October 28, 2014, he, on his own, committed the armed robbery of a 7-Eleven store at 10340 Forest Lane – the same store he and Ware robbed on October 25, 2014. Howard entered the store, brandished a loaded firearm, and demanded the cash-register money from the clerk. Minutes after the robbery, officers with the Dallas Police Department identified and arrested him. Inside the car, pursuant to a search warrant, law enforcement found the clothing Howard used in the robbery and the firearm, a loaded, chrome-colored Jimenez Arms, Model JA Nine, 9mm pistol.
The case was investigated by the Federal Bureau of Investigation and the Dallas Police Department. Criminal Chief Assistant U.S. Attorney Lisa J. Dunn prosecuted the case.
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Sentencings for December 1 - December 8, 2016Read the Press Release
Douglass Gurney Wood, Jr., 53, of Fort Collins, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on December 8, 2016, for conspiracy to distribute methamphetamine and for being a felon in possession of a firearm. Wood was arrested in Cheyenne, Wyoming. He received 180 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and $2,000.00 in restitution. This case was investigated by the Cheyenne Police Department.
Eric Neal Jones, 52, was sentenced by Federal District Court Judge Alan B. Johnson on December 7, 2016, for conspiracy to distribute methamphetamine. Jones was arrested in Cheyenne, Wyoming. He received 57 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
Kyle Stephen Spaulding, 30, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 1, 2016, for possession of child pornography. Spaulding was arrested in Casper, Wyoming. He received 36 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Salem Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today that a local man has pled guilty to a federal drug conspiracy charge in the United States District Court for the Western District of Virginia in Roanoke.
Marvis Maurice Johnson, 31, of Salem, Va., pled guilty yesterday in U.S. District Court to one count of conspiracy to distribute more than 280 grams of cocaine and one count of illegally possessing a firearm by a previously convicted felon.
“The first step in making our communities safer is getting illegally drugs and guns off the streets,” United States Attorney Fishwick said today. “We will continue to be vigilant in enforcing our drug laws while also providing support and treatment for those who need it.”
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke County Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Rocklin Man Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
SACRAMENTO, Calif. — Kevin Lee Co, 45, of Rocklin, pleaded guilty today to wire fraud and money laundering for embezzling approximately $4.8 million from his employer, United States Attorney Phillip A. Talbert announced.
According to court documents, Co was employed by Holt of California, where he served as the controller and managed the company’s accounting department. During his tenure at Holt, from May 2008 until March 2015, Co embezzled approximately $4.8 million from the company. Co used the money he embezzled to purchase, among other things, luxury cars, home furniture, and NFL football and NBA basketball season tickets. In addition, Co spent approximately $1 million on player fees for an online video game. Co also engaged in a money laundering scheme involving a portion of the embezzled funds, which was designed to conceal the origin of the money he embezzled.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Brian A. Fogerty and Kevin C. Khasigian are prosecuting the case.
Co is scheduled to be sentenced by United States District Judge Troy L. Nunley on May 26, 2017. Co faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the wire fraud charge. For the money laundering charge, Co also faces a maximum statutory penalty of 20 years in prison and a fine of up to $500,000, or twice the value of the property involved in the money laundering transactions. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rochester Man Pleads Guilty to Threatening to Kill a Federal ProsecutorRead the Press Release
SYRACUSE, NEW YORK – Tony Ivey, 53, of Rochester, New York, pled guilty in United States District Court for the Western District of New York to threatening to kill a Rochester based Assistant United States Attorney. The announcement was made by United States Attorney for the Northern District of New York Richard S. Hartunian, whose office prosecuted the case.
On June 14, 2016, Ivey twice called the United States Attorney’s Office for the Western District of New York in Rochester, New York and threatened to kill an Assistant United States Attorney with an assault rifle. The threats were made when Mr. Ivey was advised by the Assistant United States Attorney he could not directly assist him with a complaint and referred Ivey to another agency to address the problem.
Ivey faces up to 10 years in prison, a fine of up to $250,000, a term of post-imprisonment supervised release of up to 3 years, and a special assessment of $100, when he is sentenced on March 7, 2017, in Rochester by Chief United States District Judge Frank, P. Geraci, Jr. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Marshals Service for the Western District of New York and is being prosecuted by Assistant U.S. Attorney Geoffrey Brown of the United States Attorney’s Office for the Northern District of New York.
Prison Laundry Employee Sentenced to Prison for Role in Drug Distribution SchemeRead the Press Release
MISSOULA—Erin Marie Bernhardt, 47, of Deer Lodge Montana, was sentenced to 14 months’ imprisonment, three years’ supervised release, and a $200 special assessment by Chief United States District Court Judge Dana L. Christensen on Thursday, December 8, 2016 for conspiring to distribute controlled substances—methamphetamine and Suboxone—into the Montana State Prison and accepting bribes for her role in the scheme. The charges were part of a scheme where Bernhardt, an employee in the prison laundry, smuggled the controlled substances into inmates at the prison in exchange for bribes. The crimes occurred between April and August 2015.
The court previously sentenced another member of the conspiracy, Cordero Robert Metzker, to three years’ imprisonment for his role in the scheme. Three other defendants—Rachel Ross, Lauren Hoskins, and Ian Barclay—have pleaded guilty to drug trafficking or bribery charges and will be sentenced in the near future.
The charges against Bernhardt are the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.
United States Attorney Michael Cotter stated, “This is an important case aimed at an ongoing effort to root out public corruption and exclude unlawful controlled substances from the Montana State Prison. The sentence issued by the court sends a powerful message that those who introduce drugs into the prison will be investigated, prosecuted, and imprisoned.” Cotter also praised the cooperation of the various agencies that worked in unison to conduct the investigation and prosecution.
Previously Convicted Felon Pleads Guilty to Possession of FirearmRead the Press Release
DAYTON, Ohio – Donald May, 32, of Springfield, Ohio pleaded guilty in U.S. District Court to one count of unlawful possession of a firearm by a previously convicted felon.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Springfield Police Chief Stephen P. Moody announced the plea entered into before U.S. District Judge Thomas M. Rose.
According to the Statement of Facts filed with the plea agreement, which May agreed were true and accurate, he was found by Springfield police officers in the driver’s seat of a vehicle that had been reported stolen in August 2016. When ordered to exit the vehicle, May fled by foot to a nearby yard but was eventually caught and arrested. Officers discovered he had a firearm in the vehicle.
May had previously been convicted of several felonies, including aggravated burglary and burglary, both in Clark County.
As part of the plea agreement, the parties agreed to recommend a sentence of 72 months in prison to the district court for the judge’s approval.
U.S. Attorney Glassman commended the investigation of this case by the Springfield Police Department and ATF, and Assistant United States Attorney Alex R. Sistla who is representing the United States in this case.
Pharmaceutical Executives Charged in Racketeering SchemeRead the Press Release
BOSTON – Several pharmaceutical executives and managers, formerly employed by Insys Therapeutics, Inc., were arrested today on charges that they led a nationwide conspiracy to bribe medical practitioners to unnecessarily prescribe a fentanyl-based pain medication and defraud healthcare insurers.
The indictment alleges that Michael L. Babich, 40, of Scottsdale, Ariz., the former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors, Sunrise Lee, 36, of Bryant City, Mich. and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense episodes of breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that the now former corporate executives charged in the case conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the “reimbursement unit” which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
“Patient safety is paramount and prescriptions for these highly addictive drugs, especially Fentanyl, which is among the most potent and addictive opioids, should be prescribed without the influence of corporate money,” said United States Attorney Carmen M. Ortiz. “I hope that today’s charges send a clear message that we will continue to attack the opioid epidemic from all angles, whether it is corporate greed or street level dealing.”
“As alleged, top executives of Insys Therapeutics, Inc. paid kickbacks and committed fraud to sell a highly potent and addictive opioid that can lead to abuse and life threatening respiratory depression,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “In doing so, they contributed to the growing opioid epidemic and placed profit before patient safety. These indictments reflect the steadfast commitment of the FBI and our law enforcement partners to confront the opioid epidemic impacting our communities, while bringing to justice those who seek to profit from fraud or other criminal acts.”
“We take allegations of paying kickbacks to physicians in exchange for prescribing medically unnecessary painkillers extremely seriously,” said Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, we will continue to protect the health of Medicare beneficiaries and the integrity of the nation’s healthcare system.”
The defendants were arrested this morning in their respective states and will appear in U.S. District Court in Boston at a later date. Babich is charged with conspiracy to commit racketeering, conspiracy to commit wire and mail fraud and conspiracy to violate the Anti-Kickback Law; Burlakoff, Simon, Lee and Rowan are charged with RICO conspiracy, mail fraud conspiracy and conspiracy to violate the Anti-Kickback Law; Gurry is charged with RICO conspiracy and wire fraud conspiracy.
The indictment also alleges that the conspiracy to bribe practitioners and to defraud insurers generated substantial profits for the defendants, their company, and for the co-conspirator practitioners.
“Causing the unnecessary use of opioids by current and retired U.S. military service members shows disregard for their health and disrespect for their service to our country,” said Special Agent in Charge Craig Rupert of the Defense Criminal Investigative Service (DCIS), Northeast Field Office. “DCIS will continue to partner with the DOJ and our fellow law enforcement agencies to address conduct such as this and protect America's Warfighters.”
“EBSA is very pleased to had the opportunity work collaboratively with our law enforcement partners in this important investigation,” said Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“I commend the exceptional work performed by our criminal investigators and their law enforcement partners,” said Scott Rezendes, Special Agent in Charge of the U.S. Office of Personnel Management, Office of Inspector General, Office of Investigations. “It is utterly unacceptable to risk the safety and well-being of patients in order to increase profits. This office will continue to vigorously pursue any and all cases that may jeopardize the health of Federal employees, annuitants, and their families.”
“U.S. Postal Inspection Service is committed to protecting the nation’s mail system from criminal misuse,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “This investigation is an excellent example of a partnership between government agencies working together to dismantle prescription drug practices that directly contribute to the ongoing opioid abuse epidemic.”
“The United States Postal Service, Office of Inspector General will continue to vigorously investigate companies that engage in improper relationships with medical providers for the purpose of increasing market share as alleged in this case,” said Eileen Neff, Special Agent in Charge of the U.S. Postal Service Office of Inspector General. “We thank our law enforcement partners for their help in preventing this type of fraud against the healthcare programs of the American public and the Postal Service.”
“Misrepresenting a patient's diagnoses and using kickbacks to prescribing doctors to inflate drug sales is fraudulent activity,” said Donna L. Neves, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office. “Targeting veterans’ dependents using CHAMPVA with these type techniques is unacceptable. We are pleased to have contributed to this outstanding multi-agency criminal investigation and will continue to pursue allegations of health care fraud that put our veterans and their families at risk.”
On the charges of conspiracy to commit RICO and conspiracy to commit mail and wire fraud, the charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. On the counts of conspiracy to violate the Anti-Kickback Law, the charging statute provides a sentence of up to five years in prison, three years of supervised release and a $25,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by a team that included the FBI; HHS-OIG; FDA Office of Criminal Investigations; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Department of Labor, Employee Benefits Security Administration; the Office of Personnel Management; the U.S. Postal Inspection Service; the U.S. Postal Service Office of Inspector General; and the Department of Veterans Affairs. The U.S. Attorney would like to acknowledge the outstanding cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut; the Eastern District of Michigan; the Southern District of New York; and the Southern District of Alabama. The efforts of the Central District of California and the Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Ortiz’s Health Care Fraud Unit, and Susan M. Poswistilo, of Ortiz’ Civil Division, are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Oklahoma City Man Sentenced to 272 Months, $37,000 Restitution for Drug Distribution, Robbery Involving Controlled Substances, and CarjackingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEREMY DWAYNE LAVORCHEK, age 28, of Oklahoma City, Oklahoma, was sentenced to 272 months imprisonment and ordered to pay $37,958.33 in restitution for POSSESSION WITH INTENT TO DISTRIBUTE SCHEDULE II CONTROLLED SUBSTANCES, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); ROBBERY INVOLVING CONTROLLED SUBSTANCES, in violation of Title 18, United States Code, Section 2118(a); and CARJACKING, in violation of Title 18, United States Code, Section 2119(1).
The Indictment alleged that On or about December 9, 2015, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute the Schedule II Controlled Substances of: OxyContin, Oxycodone, Hydrocodone, Morphine, and Fentanyl.
The Indictment further alleged that on or about December 9, 2015, within the Eastern District of Oklahoma, the defendant, by force and violence and by intimidation, did take from the person or presence of another a material or compound containing any quantity of a controlled substance with a replacement cost of not less than $500 belonging to or in the care, custody, control and possession of a person registered with the Drug Enforcement Administration under Section 302 of the Controlled Substances Act by robbing Ernie’s Pharmacy, located in Muskogee, Oklahoma.
The Indictment further alleged that on or about December 9, 2015, within the Eastern District of Oklahoma, the defendant, took a motor vehicle that had been transported, shipped, and received in interstate and foreign commerce, by force, violence, and intimidation, with the intent to cause death or serious bodily harm.
The charges arose from an investigation by the Muskogee Police Department.
The Honorable Judge Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
First Assistant United States Attorney Doug Horn represented the United States.
Niagara Falls Woman Pleads Guilty to Fraud 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 LaTanya McCain, 21, of Niagara Falls, NY, pleaded guilty to conspiracy to defraud the Government, before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that McCain filed false tax returns with the Internal Revenue Service (IRS) for the years 2014 and 2015 using false and fraudulent W-2 forms. The forms stated that the defendant worked for employers for whom she never worked and falsely indicated that McCain had earnings and withholdings. Furthermore, in 2015, the defendant provided others with false W-2 forms which they, in turn, used to file false tax returns with the IRS. As a result, the IRS was defrauded out of $32,187.00
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas E. Bishop, Acting Special Agent in Charge, New York Field Office.
Sentencing is scheduled for May 11, 2017, at 10:00 a.m. before Judge Geraci.
Muskogee Man Sentenced to 60 Months Probation, $39,000 Restitution for Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that ENRIQUE GONZALEZ, a/k/a Henry Gonzalez, age 44, of Muskogee, Oklahoma, was sentenced to 5 years probation, to be supervised by the United States Probation Office, and ordered to pay restitution to the Department of Veterans Affairs in the amount of $39,606.76 for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Section 641.
The Indictment alleged that on or about August 13, 2015, and continuing until on or about November 21, 2015, within the Eastern District of Oklahoma, the defendant, did knowingly and willfully embezzle, steal, and purloin money of the Department of Veterans Affairs, a department or agency of the United States, namely, Department of Veterans Affairs Educational Benefits payments to which he knew he was not entitled, having a value in excess of $1,000.00.
The charge arose from an investigation by the Department of Veteran Affairs’ Office of Inspector General.
The Honorable Judge Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
First Assistant United States Attorney Doug Horn represented the United States.
Multiple Arrests Follow from Indictment of 37 on Drug ChargesRead the Press Release
HONOLULU -- The Federal Bureau of Investigation, Homeland Security Investigations, and the Honolulu Police Department today arrested 22 defendants named in six indictments returned by a federal grand jury on November 30, 2016, and December 7, 2016, which remained sealed until today’s arrests. The six indictments charge 37 defendants with a variety of drug trafficking offenses and three of those defendants are charged with firearm offenses. Defendants arrested in Hawaii today will have an initial appearance and arraignment before U.S. Magistrate Judge Richard L. Puglisi either today or on December 9.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the indictment alleges 105 drug trafficking offenses ranging from July 2014 to November 2016, as well as five firearm offenses. Arrested today in Hawaii were:
Eliu Afoa, age 29, a resident of Honolulu, Hawaii;
Laauli Amani, age 43, a resident of Honolulu, Hawaii;
Gilbert Enos, age 65, a resident of Honolulu, Hawaii;
Aukisitino Falaniko, age 38, a resident of Honolulu, Hawaii;
Daryl Kuresa, age 36, a resident of Aiea, Hawaii;
Duane Liupaono, age 35, a resident of Aiea, Hawaii;
Lee Lopez, age 44, a resident of Kaneohe, Hawaii;
Dorani Luavai, age 22, a resident of Honolulu, Hawaii;
Dorothy Lupe, age 38, a resident of Mililani, Hawaii;
Robert Paga, age 41, a resident of Honolulu, Hawaii.
Faaalo Salavea, age 42, a resident of Ewa Beach, Hawaii;
Piliopo Salavea, age 45, a resident of Ewa Beach, Hawaii;
Eldean Tacuban, age 46, a resident of Kaneohe, Hawaii;
Kilisi Toliniu, age 35, a resident of Honolulu, Hawaii;
Papa Tupua, age 58, a resident of Honolulu, Hawaii;
Alesana Vaimasanuu, age 38, a resident of Honolulu, Hawaii;
Roger Whitmarsh, age 39, a resident of Honolulu, Hawaii; and
Rodney Wong, age 49, a resident of Honolulu, Hawaii.
Arrested today in California were:
Kpel Hollins, age 34, a resident of Waipahu, Hawaii;
Jeremiah Ieremia, age 26, a resident of San Francisco, California;
Jeremiah Matau, age 34, a resident of Antioch, California; and
Faanimo Paopao, age 25, a resident of San Francisco, California.
The following individuals were previously arrested in connection with the overarching investigation in this case and are currently in federal custody:
James Abalos, age 38, a resident of Honolulu;
Jessie Momosea, age 31, a resident of Honolulu;
Theresa Tuua-Montgomery, age 45, a resident of Honolulu;
Victor Daniels, age 48, a resident of Honolulu; and
Villiami Tapuketau Naufahu, age 26, a resident of San Mateo, California.
The following individuals were charged but are currently in State of Hawaii custody:
Lelauti Sakaria, age 35, a resident of Honolulu, Hawaii; and
June Gibson, age 43, a resident of Honolulu, Hawaii
If convicted of the most serious drug charges in the indictment (violations of 21 USC 841(b)(1)(A)), defendants face up to a maximum of life in prison, with mandatory minimum prison terms of ten years. Other charges (violations of 21 USC 841(b)(1)(B)) have maximum terms of 40 years in prison, with mandatory minimum prison terms of five years, while the least serious drug offenses (violations of 21 USC 841(b)(1)(C)) have maximum prison terms of 20 years. The three firearm offenses alleging possession of firearms and/or ammunition during and in relation to a drug trafficking crime carry a mandatory five-year prison term consecutive to the sentence for the drug trafficking crime. The two firearm offenses alleging the defendant to be a felon in possession of firearms and/or ammunition carry a maximum term of imprisonment of ten years. The charges in the indictment are merely accusations, and the defendants are presumed innocent until proven guilty.
The arrest and charges resulted from a joint investigation conducted by the Federal Bureau of Investigation, Homeland Security Investigations, and the Honolulu Police Department. The case is being prosecuted by Assistant U.S. Attorneys Tony R. Roberts and Marion Percell.
Middlesex County, New Jersey, Man Sentenced to 63 Months in Prison for Trying to Import More Than 500 Grams of HeroinRead the Press Release
NEWARK, N.J. – A Sayreville, New Jersey, man was sentenced today to 63 months in prison for his role in a conspiracy to import heroin from India into the United States, U.S. Attorney Paul J. Fishman announced.
Adolphus Nwokedi, 48, was previously convicted on an indictment charging him with one count of conspiring with others to import 100 grams or more of heroin. He was convicted following a three-day trial before U.S. District Judge Esther Salas, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
From Oct. 2013 through Dec. 2013, Nwokedi conspired with an individual in India to ship a parcel containing heroin into the United States. In return for $3,000, Nwokedi agreed to accept the package at his business address in Newark and then deliver it to another conspirator living in Bronx, New York. On Dec. 11, 2013, customs officers at the John F. Kennedy International Airport mail facility intercepted the parcel and found 524 grams of heroin. On Jan. 2, 2014, agents with Homeland Security Investigations conducted a controlled delivery of the parcel. Nwokedi personally accepted the parcel in Newark and was subsequently arrested.
In addition to the prison term, Judge Salas sentenced Nwokedi to four years of supervised release.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin F. Carlucci Esq., Assistant Federal Public Defender, Newark
Mexican citizen sentenced to 10 months in prison for producing fake identificationRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican citizen was sentenced Tuesday to 10 months in prison for manufacturing fake identification, immigration and Social Security documents.
Marco Antonio Damian-Presno, 32, of Puebla, Mexico, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of fraud and related activity in connection with identification documents. He was also sentenced to three years of supervised release and must forfeit items seized during the investigation.
According to the July 12, 2016 guilty plea, Shreveport police arrested two undocumented aliens attempting to use fake driver’s licenses, resident alien cards and Social Security cards in April 2015. The aliens told police their source was Damian-Presno. During their investigation, agents bought a number of fake documents from Damian-Presno including identification cards, driver’s licenses, resident alien cards and Social Security cards, which he made in his Bossier City, La., home. On September 9, 2015, agents arrested Damian-Presno. He told agents that he sold three or four cards a week. Agents searched his home and seized cash, a computer, electronic storage devices, paper cutting devices and laminating devices.
Homeland Security Investigations, Shreveport Police Department and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Mexican National Sentenced to Ten Years in Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Martin Segoviano-Fierro, 35, a Mexican national, was sentenced today in federal court in Albuquerque, N.M., to 120 months in prison for his heroin trafficking conviction. Segoviano-Fierro will be deported following his prison sentence.
Segoviano-Fierro was arrested in Sept. 2015, and charged by criminal complaint with possession of heroin with intent to distribute in Bernalillo County, N.M., on Sept. 9, 2015. According to the complaint, law enforcement officers discovered approximately one kilogram of heroin in the trunk of the vehicle in which Segoviano-Fierro was a passenger during a routine traffic stop.
Segoviano-Fierro was subsequently indicted on Oct. 7, 2015, on the same charge. On March 23, 2016, Segoviano-Fierro pled guilty to the indictment and admitted that on Sept. 9, 2015, he transported more than 100 grams of heroin into Albuquerque and was to be paid $5,000 for the delivery.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney David M. Walsh is prosecuting the 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.
Mescalero Apache Man Sentenced for Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Dabert Wayne Comanche, 35, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 15 months in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Comanche will be required to register as a sex offender after he completes his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Comanche was charged in a criminal complaint on Feb. 23, 2016, with violating SORNA by failing to update his sex offender registration. On March 23, 2016, Comanche was indicted on that same charge. According to the indictment, Comanche failed to update his registration between April 7, 2014 and Feb. 20, 2016, San Juan County, N.M.
According to the criminal complaint, Comanche was convicted of sexual abuse of a minor in Indian Country in April 2003 and was sentenced to a 78-month prison term. On June 1, 2011, Comanche registered as a sex offender in Mescalero, and agreed to notify the jurisdiction to which he moved if he relocated outside of the jurisdiction. On July 6, 2016, Comanche pled guilty to the indictment and admitted that he was convicted of aggravated sexual abuse of a child in April 2003, and was required to register as a sex offender as a result of that conviction. Comanche further admitted that he last reported to the Mescalero Apache Nation on Jan. 7, 2014 and should have reported in April 2014, but failed to comply.
This case was investigated by the U.S. Marshals Service and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Nicholas Marshall prosecuted the case.
Medical Director at a “Pill Mill” Sentenced to Federal Prison for Distributing Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Daniel Alexander, age 53, of Pikesville, Maryland today to 18 months in prison, followed by three years of supervised release, for conspiring to distribute oxycodone and alprazolam. Chief Judge Blake also ordered Alexander to forfeit $30,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“Physician Daniel Alexander prescribed opioid drugs to people who had no medical need for the drugs,” said U.S. Attorney Rod J. Rosenstein. “In doing so, he violated his medical oath and distributed misery instead of medicine. Pharmaceutical pills can be just as harmful as illegal drugs when they are prescribed without a legitimate medical purpose.”
According to his plea agreement and court documents, in March 2011, co-defendants Michael Resnick, Alina Margulis and Gerald Wiseberg opened Healthy Life in Owings Mills, Maryland as a purported pain management clinic. Healthy Life later moved to a larger space in Timonium, Maryland, until it closed on May 15, 2012. Both Healthy Life locations attracted large and unruly crowds. Customers caused disturbances outside the locations, used narcotics inside the clinic itself, and engaged in narcotics transactions in the parking lot. Over 80% of the customers of Healthy Life were from out of state.
Wiseberg hired physician William Crittenden to serve as the medical director at Healthy Life because Wiseberg believed that Crittenden would write prescriptions for narcotics to customers without a legitimate medical need. Crittenden resigned as the medical director in August 2011, when the Maryland Board of Physicians—the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees—initiated an investigation into his prescribing practices. This investigation ultimately led the Maryland Board of Physicians to suspend Crittenden’s medical license.
In September 2011, Resnick, Margulis and Wiseberg hired Alexander because they believed that Alexander would likewise write drug prescriptions to customers without a legitimate medical need. Specifically, Margulis told Alexander that Healthy Life only prescribed pills and did not offer any alternative therapies.
In order to increase profits, Alexander spent a limited amount of time with each patient so that he could see a very large number of patients each day. Indeed, the owners nicknamed Alexander “Speedy Gonzalez” because of the rapidity with which he processed patients seeking narcotics. From September 2011 to March 2012, Alexander issued prescriptions to 627 patients on 946 separate office visits. Of those 946 visits, the customer received a prescription for oxycodone 97% of the time, and a prescription for alprazolam 23% of the time, despite Alexander’s knowledge that many of the customers did not have a legitimate medical need for the drugs. In a few instances, Alexander prescribed oxycodone to customers who he simultaneously discharged from Healthy Life, based on indications they were abusing illicit drugs. Alexander was paid $150 per hour, and received a total of $30,000 for his activities in the scheme.
Resnick, Margulis and Wiseberg, who were not doctors, established the standard operating procedures for Healthy Life, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs. Healthy Life accepted cash payments in exchange for providing prescriptions for large amounts of oxycodone, alprazolam and other drugs, to customers who did not have a legitimate medical need for the drugs.
To maximize profits, they also encouraged the prescribing physicians to prescribe the maximum amount of oxycodone to each customer; and established that prescriptions would be written for 28-day cycles as opposed to 30-day cycles. Additionally, Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted. In those instances, Margulis and Resnick would intervene and ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted.
Michael Resnick, a/k/a Michael Reznikov, age 55, and his wife, Alina Margulis, age 49, both of Brooklyn, New York, previously pleaded guilty to conspiracy to distribute oxycodone and alprazolam. Margulis also pleaded guilty to money laundering, and Resnick also pleaded guilty to structuring currency deposits. Chief Judge Blake sentenced Resnick to three years in federal prison and sentenced Margulis to a year and a day in prison and ordered that Resnick and Margulis forfeit $280,000, the amount of illicit profits they received from the scheme. Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida, also pleaded guilty to his participation in the conspiracy and was sentenced to three years in prison. Chief Judge Blake also entered an order that Wiseberg forfeit $273,000.
Physician William Crittenden III, age 52, of Kensington, Maryland, who served as a medical director at Healthy Life before Alexander, was convicted at trial of conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone and was sentenced to three years in prison.
United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Mandeville Man Sentenced for Theft of Veterans’ BenefitsRead the Press Release
U.S. Attorney Kenneth A. Politc announced that RICKY P. TEMPLET, age 54, of Mandeville, was sentenced today for Theft of Government Funds.
According to court records, this investigation was initiated by the United States Department of Veterans Affairs (“VA”), Office of Inspector General (“VA-OIG”) after the VA determined TEMPLET was fraudulently obtaining VA benefits. The VA-OIG determined that TEMPLET had become his mother’s VA Fiduciary the day before his mother passed away in 2013. As a VA Fiduciary, TEMPLET was obligated to notify the VA when his mother passed away. After his mother’s death, TEMPLET received and deposited fifteen U.S. Treasury checks totaling approximately $16,673. TEMPLET was arrested by special agents with the VA-OIG at the St. Tammany Parish Jail.
U.S. District Judge Eldon E. Fallon sentenced TEMPLET to nine months incarceration and was ordered to report to Northlake Behavioral Hospital for drug treatment within 24 hours of release from prison. Additionally, TEMPLET was ordered to pay $16,760 in restitution to the U.S. Department of Veterans Affairs.
U.S. Attorney Polite praised the work of the United States Department of Veterans Affairs, Office of Inspector General. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba was in charge of the prosecution.
Louisville Men Guilty of Possession and Attempted Distribution of A Large Quantity of Heroin and MethamphetamineRead the Press Release
Drugs were packaged for distribution, more than $100,000 seized
LOUISVILLE, Ky. – Two Louisville residents recently pleaded guilty in United States District Court before Magistrate Judge Colin H. Lindsay to multiple charges including aiding and abetting and conspiring to possess with the intent to distribute heroin and methamphetamine announced United States Attorney John E. Kuhn, Jr.
Oscar Portillo, age 39, and Jose Luis Madrigal II, age 24, pleaded guilty to the charges and remain in the custody of the United States Marshal Service. Charges were dismissed against a third defendants.
They were arrested and charged separately by criminal complaint on October 30, 2015. According to the complaint, on October 30, 2015, in Jefferson County, Kentucky, the defendants knowingly and intentionally possessed with intent to distribute heroin, a Schedule I controlled substance.
Further, on October 30, 2015, federal officers and others executed a state search warrant at 3921 Bishop Lane in Louisville. During the execution of the warrant, officers seized 3230 grams (more than one kilogram) of heroin, 5288 grams of methamphetamine, $109,774 in United States Currency, a .38 caliber loaded Rossi pistol, a 7.62 mm century arms rifle, and a bullet-proof vest. The large quantity of heroin was packaged for distribution. The defendants lived at the residence, a tire warehouse, giving them direct access to and control over the contraband.
If convicted at trial, the defendants faced a mandatory minimum sentence of ten years in prison for each charge, a possible fine of up to $10,000,000 and a ten year period of supervised release. Sentencing is scheduled before Chief Judge Joseph H. McKinley Jr. on March 6, 2017, in Louisville.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police.
portillo_plea_11-29-16.pdf portillo-madrigal_plea.pdfLongtime fugitive sentenced to more than four years in prison for $3 million food stamp fraudRead the Press Release
A longtime fugitive was sentenced to more than four years in prison for stealing $3.2 million through food stamp fraud more than two decades ago, U.S. Attorney Carole S. Rendon said.
Najeh Ottallah, 54, formerly of Lakewood, was sentenced to 54 months in prison. U.S. District Court Judge Donald Nugent also ordered Ottallah to pay $3.2 million in restitution to the Department of Agriculture, which administers the food stamp program, and $35,576 to the Internal Revenue Service.
Ottallah pleaded guilty in 1994 to food stamp fraud and tax charges. He did not appear for his sentencing and was a fugitive until this year, when he was arrested in Jerusalem.
"This defendant ripped off taxpayers by abusing a program designed to help our most destitute," Rendon said. "He fled the country for more than two decades and the sentence he receivfed today reflects those actions."
"More than 20 years passed since Mr. Ottallah pleaded guilty for his role in what was, at the time, one of the first investigations of a massive food stamp fraud scheme in Northern Ohio," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "Today's sentence is a direct result of the collaborative efforts of the IRS, U.S. Department of Agriculture, Office of Inspector General, U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the U.S. Attorney's Office has in combating violations of federal law."
This case was prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the IRS and U.S. Department of Agriculture, with assistance from the U.S. Marshal Service.
Jury convicts Warrensville Heights man of straw purchase of firearmRead the Press Release
A Warrensville Heights man was convicted of engaging in the straw purchase of a firearm, said Carole Rendon, U.S. Attorney for the Northern District of Ohio.
Malcolm Roberson, 26, was found guilty by a jury of engaging in a straw purchase of a Jimenez Arms 9 mm pistol on Feb. 20 at Taylor Firearms LLC in Vermillion when Chimere Turner said she was the buyer of the firearms when Roberson was the actual buyer of the firearm. The jury also convicted Roberson of being a felon in possession of a firearm, for having the 9 mm pistol despite a 2011 conviction for assault.
Turner, 32, of Cleveland, previously pleaded guilty to making a false statement during the purchase of a firearm.
This case is being prosecuted by Assistant U.S. Attorney Benedict Gullo following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Final Defendant in Racketeering, Murder CaseRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted the final defendant in the current federal Short North Posse racketeering and murder case today.
Johnathan Holt, 24, of Columbus, was convicted on all counts and now faces up to life in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the verdict reached today.
Holt is the final of 20 individuals who were indicted in October 2014 in a racketeering case, with charges that include murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery.
Of the 20 total defendants, five others were convicted, 13 pleaded guilty and one has died.
Holt’s specific charges include murder in aid of racketeering and murder through the use of a firearm during and in relation to a drug trafficking crime.
“Today’s verdict completes an unprecedented investigation and series of prosecutions, thanks to which central Ohio is a safer and more just place,” U.S. Attorney Glassman said. “This success only strengthens our resolve to reduce violence and bring to justice violent offenders.”
U.S. Attorney Glassman commended the two-year investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are representing the United States in this and the related cases.
Jury Convicts Columbia Man of Threatening a Lawyer in Drug-trafficking CaseRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the father of a man convicted of leading a large-scale drug-trafficking conspiracy in Columbia, Mo., was found guilty by a federal trial jury of threatening the attorney who represented one of his son’s co-defendants.
Bruce Wayne Stephens, 70, of Columbia, was found guilty on Wednesday, Dec. 7, 2016, of obstructing justice by threatening to retaliate against another person because of his participation in an official proceeding.
Stephens is the father of Malcolm Desean Redmon, who was sentenced on Sept. 29, 2016, to 24 years and four months in federal prison without parole. Redmon pleaded guilty to leading a conspiracy to distribute five kilograms or more of powder cocaine and crack cocaine in Boone County from November 2011 to August 2014. Court documents also cite Redmon’s involvement in numerous shooting incidents and his history of criminal activity, including violent crimes and drug use. To date, 18 defendants in that case have been sentenced; eight more defendants have pleaded guilty and await sentencing.
Evidence introduced during the trial indicated that Stephens made a series of threats intended to retaliate against those involved in the prosecution of Redmon. The primary person Stephens threatened was Brian Risley, the attorney who represented one of Redmon’s co-defendants, Vershawn Edwards.
While the case against him was pending, Redmon was involved in threatening witnesses and cooperators, as documented by recorded phone conversations between Redmon and his mother, as well as postings on various social media sites and documents obtained via search warrant that contained the names of individuals next to witness statements of persons Redmon believed were responsible for cooperating against him.
When Risley arrived at the federal courthouse for Edwards’s sentencing hearing on Sept. 29, 2016 (the same afternoon as Redmon’s sentencing hearing), he was met by several persons outside the courtroom who asked him who he represented. When he replied that he represented Edwards, Stephens repeatedly stated, “snitches, snitches belong in ditches.”
Inside the courtroom, Stephens again repeatedly stated the phrase, “snitches, snitches belong in ditches,” and this time appeared to direct the comments toward Edwards’s family members in the courtroom. After the Edwards sentencing hearing concluded, Stephens moved toward Edwards’s family in the courtroom. Risley, fearing that Stephens would attempt to confront family members, attempted to physically block Stephens’s access by placing himself between Stephens and the family. The family left the courtroom and Risley kept himself positioned between Stephens and the family as the family moved toward the elevator. During this time, Stephens was again repeating the phrase “snitches, snitches belong in ditches.”
Risley raised his arm at one point to prevent Stephens from passing him and Stephens then began to curse loudly and accused Risley of pushing him. Two court security officers then escorted Stephens out of the courthouse. One of the officers heard Stephens threaten Risley and the officers.
A few minutes later, Risley left the courthouse and walked to his car parked on the street across from the courthouse. Stephens then accosted Risley as Risley got to his car and opened the car door. Stephens stated to Risley, “snitches, you a … snitch … I will kill you, kill your wife, kill your family.” Risley did not respond, finished getting into his car, shut the car door and drove off.
While there is no direct evidence that Stephens participated in his son’s drug-trafficking conspiracy, according to court documents, there is ample evidence that Stephens supported Redmon’s drug-dealing lifestyle as well as the culture associated with drug dealing, one part of which is to threaten harm to those who testify against drug dealers. For example, in his post-arrest statement, Stephens reaffirmed his belief that physical harm should be inflicted on “snitches.”
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for four and a half hours before returning the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Dec. 5, 2016.
Under federal statutes, Stephens is subject to a sentence of up to 20 years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Deputy U.S. Attorney Gene Porter and Assistant U.S. Attorney Emily Orsinger. It was investigated by the FBI.
Joplin Man Sentenced to 100 Years for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for the sexual exploitation of two child victims.
James Hajny, 51, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 100 years in federal prison without parole. The court also sentenced Hajny to spend the rest of his life on supervised release following incarceration.
Hajny entered a plea of no contest during the second day of his trial on July 19, 2016, to two counts of using minors to produce child pornography, one count of receiving and distributing child pornography over the Internet and one count of possessing child pornography.
His wife, Gina Hajny, 41, of Joplin, pleaded guilty to possessing child pornography and was sentenced on March 1, 2016, to five years in federal prison without parole. Gina Hajny admitted that she occasionally used her husband’s laptop and saw images of child pornography. Gina Hajny admitted that even though she knew the laptop contained images of child pornography, she did not report the matter to law enforcement.
On Jan. 17, 2014, federal law enforcement agents received a CyberTip from the National Center for Missing and Exploited Children regarding an e-mail that contained child pornography. The e-mail included a pornographic image of a 7-year-old victim, identified in the indictment as Jane Doe #2.
On May 14, 2014, federal law enforcement agents received a referral from the Queensland, Australia, Police Service regarding a user – later identified as James Hajny – uploading child pornography to a Russian-hosted Web site that allows users to store and share images. Among the images of child pornography were seven photos of a 9-year-old victim, identified in the indictment as Jane Doe #1. Hajny’s user information for the Web site stated, “I am into younger girls and boys ages 8-13 also into taboo.”
Agents executed a search warrant at Hajny’s residence on May 16, 2014. Gina and James Hajny refused to allow officers to enter, attempting to slam the door shut. Officers were able to push the door open and enter the home. James Hajny was patted down for officer safety and a marijuana pipe was located in his front left pocket. James Hajny was placed under arrest for possession of drug paraphernalia.
Investigators examined a laptop computer seized from the residence and located 124 video files containing child pornography and 2,110 images of child pornography. Investigators also discovered numerous images of child pornography on James Hajny’s cell phone, as well as messages regarding the sexual abuse of children. Investigators also located numerous images containing child pornography of Jane Doe #1, Jane Doe #2, and an 11-year-old child victim identified in court documents as John Doe on James Hajny’s laptop and cell phone.
This case was prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and James J. Kelleher. It was investigated by the FBI, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force and the Joplin, Mo., Police Department.
Project Safe Childhood
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."
Hotevilla Man Sentenced to 37 Months for Illegally Possessing FirearmsRead the Press Release
PHOENIX – This week, Nicholas Cooper, 32, of Hotevilla, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 37 months’ imprisonment, to be followed by three years of supervised release. Cooper, an enrolled member of the Hopi Tribe, had previously pleaded guilty to being a felon in possession of firearms.
Because he had previously been convicted of a felony, Cooper was prohibited from possessing firearms. In December 2014 and January 2015, Cooper possessed two firearms in violation of this prohibition. One of the firearms he possessed had been stolen from another enrolled member of the Hopi Tribe.
The investigation in this case was conducted by the Federal Bureau of Investigation and Bureau of Indian Affairs-Office of Justice Services (Hopi Agency). The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8004-PCT-JJT
RELEASE NUMBER: 2016-100_Cooper
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Harrisburg Man Indicted on Federal Firearm and Drug Trafficking ChargesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Depugh-King, age 20, of Harrisburg, Pennsylvania, was indicted on December 7, 2016, by a federal grand jury in Harrisburg, on drug trafficking and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Depugh-King distributed synthetic marijuana on August 30, 2016, in Harrisburg. The indictment also alleges that Depugh-King possessed a loaded Kel-Tec .9mm semi-automatic handgun during and in relation to his drug trafficking activities.
The case was investigated by the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE) and the Harrisburg Police Department and is being prosecuted by Assistant U.S. Attorney William A. Behe
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug trafficking offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for the firearm offense is life imprisonment including a mandatory 5-year term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted for Distributing Heroin Resulting in DeathRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Erik Palmer, age 29, of Harrisburg, Pennsylvania, was indicted on December 7, 2016, by a federal grand jury in Harrisburg, for distributing heroin that led to the death of another person, heroin distribution and criminal conspiracy.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Palmer unlawfully distributed heroin on January 13, 2016, that led to the death of another person whose body was found in her home on January 14, 2016. The cause of death was determined to be acute morphine toxicity. The indictment also alleged that Palmer distributed heroin in March and April 2016 and conspired with individuals known to the grand jury to distribute heroin on those occasions.
The investigation was conducted by the Drug Enforcement Administration, the Dauphin County Drug Task Force, and the Lower Paxton Township Police Department. The case is being prosecuted by Assistant United States Attorney William A. Behe.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.]
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is a mandatory minimum of 20 year’s imprisonment up to a maximum of life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenville Drug Trafficker Sentenced for Cocaine and Marijuana ConspiracyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Chief United States District Judge James C. Dever III sentenced JARRKU NATU BENNETT, 32, from Greenville, N.C., to 70 months in prison and 8 years of supervised release for conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine, a quantity of heroin and a quantity of marijuana. BENNETT pled guilty to this charge on August 17, 2015.
On March 3, 2015, the Greenville Regional Drug Task Force arrested BENNETT after a traffic stop during which detectives found 62 grams of cocaine and 111 grams of marijuana in BENNETT’S car. Further investigation revealed that BENNETT was responsible for the distribution of 1.5 kilograms of cocaine, 49 grams of crack cocaine, 1.8 kilograms of marijuana and an indeterminate amount of heroin between August 2014 and March 3, 2015.
The case was investigated by the Greenville Regional Drug Task Force, the North Carolina State Bureau of Investigation, the Pasquotank County Sheriff’s Office and the Federal Bureau of Investigation. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Grayson County Convicted Felon Sentenced for Federal Firearms ViolationRead the Press Release
SHERMAN, Texas - A 24-year-old Denison, Texas man has been sentenced to federal prison for federal violations related to the murder of a man in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jordan Tyrel Ballard pleaded guilty on Jan. 27, 2016, to being a felon in possession of a firearm and four counts of being a felon in possession of ammunition. Ballard was sentenced to a total of 30 years in federal prison by U.S. District Judge Amos L. Mazzant on Dec. 7, 2016.
According to information presented in court, on Apr. 21, 2015, family members of Ballard’s pregnant girlfriend received information that Ballard was threatening her at her residence in Denison. Two of the girlfriend’s male cousins, Justyn Simmons and Victor Simmons, traveled from their home in Celina to Denison to check on her welfare. After arriving to West Monterey Street in Denison, the Simmons brothers were confronted by Ballard at gunpoint. Despite the fact that neither man was armed and they put their hands up and repeatedly indicated they were just there to talk, Ballard shot Justyn Simmons in the chest. Ballard continued to shoot at Victor as he fled on foot and Justyn was pronounced dead at the scene. An investigation revealed Ballard was a convicted felon having been previously found guilty of aggravated assault with a deadly weapon in 2012 in Grayson County, Texas. Convicted felons are prohibited by federal law from owning or possessing firearms or ammunition. Ballard was indicted by a federal grand jury on May 14, 2015.
During the sentencing hearing, Judge Mazzant ruled that Ballard did not act in self-defense, and further found that Ballard committed first degree murder. Based on his history of violence and lack of remorse, Ballard was sentenced to a total of 30 years in federal prison for federal firearms violations. He has also been indicted by a Grayson County Grand Jury for murder. That case is pending.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Denison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Lesley D. Brooks and Maureen Smith.
Georgia Bank Teller Sentenced to Prison for Cashing Fraudulently Obtained Income Tax Refund ChecksRead the Press Release
A Columbus, Georgia resident was sentenced to 37 months in prison today for her role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney G.F. Peterman III for the Middle District of Georgia.
Between June 2012 and December 2013, Tonya Alexander worked as a bank teller at SunTrust Bank in Columbus. Alexander received and cashed fraudulently obtained income tax refund checks in exchange for a fee. Alexander’s co-conspirators, including Tracy Mitchell, Keisha Lanier and others, filed fraudulent income tax returns using stolen identities and directed other co-conspirators to bring the fraudulently obtained refund checks to Alexander to cash. Alexander received and cashed approximately 330 fraudulently obtained tax refund checks that totaled more than $600,000. Alexander also recruited another bank teller, co-conspirator Vicky Wheeler, to assist in cashing the tax refund checks.
On Aug. 5, Alexander pleaded guilty to one count of conspiracy to commit theft of public money. In addition to the term of prison imposed, Alexander was also ordered to serve three years of supervised release and to pay $606,008.38 in restitution to the Internal Revenue Service (IRS). Keisha Lanier was previously sentenced to 15 years in prison on Sept. 25, 2015. Tracy Mitchell was sentenced to 13 years and 3 months in prison on Aug. 7, 2015.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Peterman commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who conducted the investigation, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Four Boston-Area Men Detained on Firearm OffensesRead the Press Release
BOSTON – Four Boston-area men appeared in U.S. District Court in Boston on Tuesday, Dec. 6, 2016, in connection with gun trafficking in Boston’s Charlestown neighborhood.
“Every illegal firearm on the street poses a danger to the community,” said United States Attorney Carmen M. Ortiz. “We will continue to pursue those who circumvent the legal process to sell firearms on our streets thereby endangering the children and families who call these neighborhoods home.”
“This investigation targeted the intersection of illegal guns and illicit drugs,” said Suffolk County District Attorney Daniel F. Conley. “The violence and despair associated with the drug trade have claimed too many lives. In Charlestown and across Suffolk County, we will continue to work with our local and federal partners to protect the rights of good and decent people to live, work, and go to school free of fear and intimidation from drug dealers and armed offenders.”
“Thursday’s arrests demonstrate the effective law enforcement partnerships ATF has with the Boston Police Department Violent Youth Strike Force and the Boston Housing Authority Police, in identifying and investigating armed narcotic trafficking criminal street gangs in the City of Boston” said Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. “We will continue our efforts to dismantle these violent criminal street gangs and their illegal possession, use and trafficking of firearms.”
Samuel Jean, 22, of Everett, and Deon Young, 32, of Hyde Park, were charged with conspiracy and dealing in firearms without a federal license. Jeffrey Joseph, 31, of Boston, was charged with dealing in firearms and ammunition without a federal license and being a prohibited person in possession of firearms. Troy Armstrong, 27, of Boston, was charged with being a felon in possession of firearms. The defendants were arrested on Thursday, Dec. 1, 2016.
In a series of probable cause and detention hearings held on Dec. 5 and 6, 2016, before U.S. District Court Magistrate Judge Donald L. Cabell, the Court found probable cause that Jean, Young and Armstrong committed the offenses as charged in their respective criminal complaints. All three men have been ordered detained pending trial. The probable cause and detention hearing for Joseph is scheduled for December 12 at 2:00pm.
According to court documents and testimony at the hearings, in April 2016, law enforcement officers commenced an investigation of drug and firearm trafficking in the Bunker Hill Housing Authority neighborhood of Charlestown with the use of a cooperating witness (CW) who made controlled buys of guns and drugs at the direction of law enforcement. During the controlled purchases, which were recorded on video, Jean and Joseph sold seven firearms to the CW over a one-month period, including at least one stolen firearm. Young and Armstrong sold two firearms to the CW during approximately the same period, including one firearm with an obliterated serial number. Joseph and Armstrong are both also charged with being prohibited persons in possession of a firearm as a result of their criminal histories, and Joseph is the subject of an outstanding civil restraining order.
The charges of conspiracy and dealing in firearms without a federal license each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz; Suffolk County DA Conley; ATF SAC Leadingham; and Boston Police Commissioner William Evans, made the announcement today. Assistant U.S. Attorney Lori Holik, Chief of Ortiz’s Major Crimes Unit, is prosecuting the cases.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former Sacramento Resident Charged with Murdering British Couple in 1978Read the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Silas Duane Boston, 75, charging him with two counts of first degree maritime murder, U.S. Attorney Phillip A. Talbert announced.
Boston was arrested last week in Paradise, California. He was arraigned today before U.S. Magistrate Judge Carolyn K. Delaney and entered a plea of not guilty.
According to court documents, between June and July 1978, Boston, a U.S. citizen, owned a sailboat named the Justin B., which he sailed throughout the western Caribbean Sea, sometimes taking tourists on various excursions in the area. The indictment alleges that Boston killed a 25-year-old man and a 25-year-old woman, both originally from Manchester, England, who had chartered his boat. Boston allegedly bound them, covered their heads with plastic bags, attached weights to their bindings, and pushed them overboard, drowning them. The bodies were found on about July 8, 1978, off the coast of Punta de Manabique, Guatemala. The investigation into their deaths stalled and eventually the case went cold.
U.S. Attorney Talbert stated: “This case is the product of diligent work by the Sacramento Police Department’s Cold Case Unit, the FBI, and the Greater Manchester Police Department. Kudos are especially due to the Sacramento Police Department’s Cold Case Unit, whose persistent investigative efforts made this prosecution possible. Nothing would have happened if the Sacramento Police Department had not thought to consult with this office about what could be done with a 38-year-old homicide in the Caribbean Sea. We look forward to working with them as the case continues.”
This case is the product of an investigation by the FBI and the Sacramento Police Department. Assistant U.S. Attorneys Matthew D. Segal, Heiko P. Coppola, and Jeremy J. Kelley are prosecuting the case.
If convicted, Boston faces a maximum statutory penalty of death or life in prison, but the United States is not seeking the death penalty in this case. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Chicago Police Sergeant Sentenced to Six Months in Prison for Passing Government Information to Store Clerk in Exchange for CashRead the Press Release
CHICAGO — A former sergeant in the Chicago Police Department was sentenced today to six months in federal prison for taking cash payments from a liquor store clerk in exchange for disclosing government information.
RAY M. RAMIREZ served as a sergeant in the 12th Police District on the city’s Near West Side. Ramirez admitted in a plea agreement that he obtained information from law enforcement databases and passed it to the store clerk in exchange for cash payments of $150 to $200. The information included a criminal background check on a prospective store employee, a vehicle registration check, and a review of police incidents occurring in and around the store.
Ramirez also admitted that he shook down the clerk and other store employees for cash payments ranging from $70 to $200. Ramirez often wore his police uniform and was on duty when he demanded the payments.
Ramirez, 53, of Chicago, pleaded guilty last year to one misdemeanor count of exceeding his authorized use a police department computer. U.S. District Judge Ronald A. Guzman imposed the six-month sentence in federal court in Chicago.
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 the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Megan Cunniff Church.
Foreign National Sentenced to 24 Years in Prison for Kidnapping U.S. Citizen in MexicoRead the Press Release
A Mexican national was sentenced yesterday to 24 years in federal prison for kidnapping a U.S. citizen in Mexico.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Felix Becerra Herrera, 35, of Mexico, was sentenced by United States District Judge Darrin P. Gayles to 288 months’ imprisonment. On September 20, 2016, Becerra Herrera pled guilty to one count of hostage taking and one count of use of a firearm in the commission of a violent felony.
“International borders do not shield foreign based kidnappers and violent offenders from U.S. prosecution,” stated U.S. Attorney Wifredo Ferrer. “The U.S. Attorney’s Office and our law enforcement partners will utilize the long-arm of our American legal system to seek justice on our soil for these egregious offenses.”
“The FBI arrested Felix Becerra Herrera at his place of work in Odessa, TX, in May 2016 after receiving a tip as to his whereabouts,” said Xanthie C. Mangum, Assistant Special Agent in Charge of FBI Miami. “He participated in a gruesome shooting and kidnapping involving two naturalized U.S. Citizens in Mexico in December, 2012, and now faces a 288 month sentence for his crimes.”
According to the court record, Becerra Herrera was involved in the December 2012 armed assault of two nationals of the United States, in Veracruz, Mexico. During the assault, Becerra Herrera and others used handguns to shoot at the truck containing the nationals, seriously wounding the driver. Becerra Herrera and others then kidnapped one of the passengers and held her for ransom before finally releasing her, nearly a week later. Becerra Herrera was ultimately apprehended in Texas, several years after he had illegally entered the United States following the violent kidnapping.
Mr. Ferrer commended the outstanding investigative efforts of the FBI. The case was prosecuted by Assistant United States Attorney Adam Fels.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Financial Advisor Pleads Guilty in $1.1 Million Investment Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Mark F. Speakman, 60, of Grove City, Ohio, pleaded guilty in U.S. District Court today to one count each of wire fraud, money laundering and filing a false federal income tax return with the Internal Revenue Service (IRS). As part of his offered guilty plea, he agreed to pay nearly $1.2 million in restitution to the victims of his investment fraud scheme.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, and Grove City Police Chief Jeff Pearson announced the guilty plea offered today before U.S. Magistrate Judge Norah McCann King.
According to court documents, between 2000 and 2015, Speakman was a financial advisor at Ameriprise Financial, and between 2002 and 2015 Speakman defrauded his clients by misappropriating their funds.
Speakman persuaded his clients to remove their funds from their Ameriprise Financial accounts and invest them in Centrax, a fraudulent real estate investment trust. Rather than investing the funds in real estate, he stole the money. He took $870,000 from seven victims for the real estate scheme and used the money to pay his own expenses.
As part of this same scheme to defraud, Speakman stole from others to avoid detection by a client he had previously defrauded. In 2014, one of his clients who had previously agreed to invest in Centrax told Speakman that he wanted to cash out his investment. Speakman had already misappropriated those funds and had no way to pay back his client.
Speakman convinced another client and three of their family members to invest in gold coins so he could divert the money in order to pay back the previous victim.
In total, Speakman received $1,192,450 from others in furtherance of his fraudulent scheme.
In addition, Speakman filed a false federal income tax return with the IRS for the 2014 income tax year on which he omitted $275,000 in income generated by his fraudulent conduct. The total tax loss to the IRS for 2002 through 2014 was approximately $300,000.
"This investigation uncovered a complicated investment fraud scheme laced with a web of financial lies that generated more than a million dollars through false promises and deceit,” said Kathy A. Enstrom, Special Agent in Charge, Criminal Investigation, Cincinnati Field Office. “Investment fraud schemes are often described as a house of cards. The underlying structure can fall apart at any time and expose the individuals responsible."
Wire fraud is a crime punishable by up to 20 years of imprisonment; money laundering is a crime punishable by up to 10 years in prison and filing a false income tax return is a crime punishable by up to three years of prison time.
U.S. Attorney Glassman commended the investigation of this case by the IRS and the Grove City Police Department, and Assistant U.S. Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
Felon in Possession of A Firearm SentencedRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Marcus Champion was sentenced for his conviction for Possession of a Firearm by a Convicted Felon in violation of 18 U.S.C. Section 922(g)(1).
In court documents, Marcus Champion admitted that he was a convicted felon and that on April 29, 2016, he entered the home of his 88-year old grandfather and forced him to sign checks made out to the defendant. He also stole collector coins and firearms belonging to the victim. When police arrived, they found Champion outside the home with a loaded and cocked pistol in his pocket that had been stolen from the victim.Senior District Court Judge Callie V.S. Granade sentenced the defendant to serve 63 months in prison followed by three years of supervised release. The defendant has additional related charges pending in Clarke County.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarke County Sheriff’s Office. The case was prosecuted by the United States Attorney's office for the Southern District of Alabama by AUSA Maria Murphy.Federal Jury Convicts Chicago Man of Illegally Possessing FirearmsRead the Press Release
CHICAGO — A convicted felon who sold guns out of his garage in the Auburn Gresham neighborhood of Chicago has been found guilty of illegally possessing firearms.
On July 23, 2014, JAMEL DAVIS participated in a gun transaction involving two .38-caliber revolvers in the garage of his home in the 7600 block of South Seeley Avenue in Chicago. Davis was previously convicted of a felony and was not legally authorized to possess the firearms.
The case against Davis arose during the course of a larger federal investigation that has removed more than 100 guns from the streets of Chicago. The probe involved controlled firearm sales to cooperating individuals.
The jury on Wednesday convicted Davis, 28, of illegal possession of a firearm by a felon. The conviction carries a maximum sentence of ten years in prison. U.S. District Judge Sara L. Ellis scheduled a sentencing hearing for March 14, 2017.
The verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and George Lauder, Acting Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.
Evidence at trial revealed that Davis provided one of the firearms to an individual in the garage of Davis’ home. Unbeknownst to Davis, the individual was cooperating with law enforcement and had surreptitiously recorded the transaction.
The government is represented by Assistant U.S. Attorneys Nicole Kim and Carol Bell.
Fayetteville Black Market Purchaser Sentenced for Receiving Stolen Military Property from Fort Bragg, NcRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in Federal court, Chief United States District Judge James C. Dever III sentenced JOSEPH W. HORNER, JR., 73, of Fayetteville, North Carolina to 24 months imprisonment and three years of supervised release. HORNER was further ordered to pay restitution to the Department of Defense/United States Army in the amount of $277,901, which HORNER paid in full at his sentencing. On August 17, 2016, HORNER pleaded guilty to a one-count Criminal Information which charged him with receiving stolen government property between July 2011 and February 2013.
According to the charges on file, the government’s factual proffer at the plea hearing, and other public information, HORNER was a civilian black market purchaser in Fayetteville who engaged in a scheme to buy stolen military property from Christopher A. Mann, a former sergeant assigned to the United States Army Special Operations Command at Fort Bragg. During the offense period, Mann worked as a unit supply specialist in the 98th Civil Affairs Battalion, with responsibility for ordering and military supplies and equipment that was the property of the United States Department of Defense.
Mann used his position and privileges as a supply sergeant to coordinate the theft of bulk quantities of Meals-Ready-to-Eat or “MREs,” as well as assorted military equipment, including sunglasses and knives. Mann transported many of the stolen items off the base to HORNER, who would buy them for a fraction of their cost to the government. According to the investigation, between July 2011 and February 2013, HORNER purchased stolen military property from Mann valued at over $270,000. Notably, in 2006, HORNER entered into and completed a pretrial diversion agreement with the United States Attorney’s Office for receiving stolen property that originated from Fort Bragg.
On May 4, 2016, Mann pleaded guilty to theft of government property and aiding and abetting in United States District Court for the Eastern District of North Carolina. The charges related, in part, to Mann’s unlawful sales of stolen military property to HORNER. On October 26, 2016, Mann was sentenced to 20 months of imprisonment, among other terms of the judgment.
Investigation of this case was conducted by the United States Army Criminal Investigation Command, Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case on behalf of the government.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Father, Mother and Sons Plead Guilty in Case Involving Food Stamp Fraud and Door-to-Door Meat, Drugs DeliveryRead the Press Release
DAYTON, Ohio – A father, mother and two sons pleaded guilty today in U.S. District Court for their roles in a food stamp fraud case related to retail meat home delivery services and that involved the exchange of Oxycodone, heroin and marijuana for food stamps in the Dayton area.
Scott Andrew Traum, 46; Joey Lightcap Traum, 44; Brandon Scott Traum, 22; and Dalton Andrew Traum, 21; all of Fairfield, Ohio, pleaded guilty today. The parents, Scott and Joey Traum, as well as son Dalton Traum each pleaded guilty to one count of engaging in a conspiracy to commit an offense against the United States to include: illegally acquiring, possessing and using U.S. Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefits. Brandon Traum pleaded guilty to unauthorized use of SNAP benefits.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and other members of the District’s electronic and financial crimes task force, announced the pleas entered into today before U.S. District Judge Thomas M. Rose.
The Southern District of Ohio Task Force is made up of approximately 60 federal, state, and local law enforcement agencies in Ohio. This task force, along with an additional 80 electronic and financial networks across the United States, has been established to prevent, detect and investigate various forms of criminal activity that have large community impact.
According to court documents, since 2011, individuals associated with U.S. Beef Cincinnati LLC in Fairfield, Ohio actively engaged in illegal/fraudulent SNAP EBT (Food Stamp) transactions in exchange for cash. The owners, managers and other employees of the door-to-door meat retailers repeatedly, continually and illegally acquired and redeemed SNAP benefits in exchange for ineligible items including money, Oxycodone, heroin and marijuana.
Scott and Joey Traum owned and operated U.S. Beef Cincinnati LLC. USDA records show that between December 2011 and May 2015, approximately 8,145 suspected fraudulent SNAP EBT transactions were completed via voucher for their employees for a total amount of approximately $1.1 million.
The other three defendants in this case have already been sentenced. They include:
- Keith Blankenship, 37, of Loveland, Ohio, who was sentenced to 30 months in prison and ordered to pay nearly $764,000 in restitution;
- Gregory M. Brown, 37, of Cincinnati, who was sentenced to 15 months in prison and ordered to pay more than $9,000 in restitution; and
- William N. King, 24, of Fairfield, Ohio, who was sentenced to 6 months in prison and ordered to pay nearly $373,000 in restitution.
U.S. Attorney Glassman commended the investigation of this case by the Southern District of Ohio Task Force and Assistant United States Attorney Dwight K. Keller, who is representing the United States in this case.
Farmington Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Rupesh Bhakta, 38, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Bhakta will be sentenced within the range of 24 to 60 months in prison.
Bhakta was arrested on March 4, 2016, on a criminal complaint charging him with trafficking methamphetamine in San Juan County, N.M. According to the complaint, Bhakta sold approximately 57 grams of methamphetamine to an undercover law enforcement agent on Feb. 16, 2016.
Bhakta and his co-defendant David Kingsbeck, 43, also of Farmington, were subsequently indicted on March 23, 2016. Kingsbeck was charged individually with being a felon in possession of a firearm on July 1, 2015 and Dec. 30, 2015, and distribution of heroin on Dec. 30, 2015. Bhakta and Kingsbeck were charged jointly with conspiracy and distribution of methamphetamine on Feb. 16, 2016. According to the indictment, the offenses took place in San Juan County. Kingsbeck was prohibited from possessing firearms and ammunition because of his prior felony convictions for criminal conspiracy theft and escape attempt from felony.
During today’s proceedings, Bhakta pled guilty to an information charging him with distribution of methamphetamine. In entering the guilty plea, Bhakta admitted that on Feb. 16, 2016, he distributed methamphetamine to an undercover law enforcement agent. Bhakta remains in custody pending a sentencing hearing which has yet to be scheduled.
Kingsbeck has entered a plea of not guilty. He remains in custody pending trial which is currently scheduled for Jan. 2017. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
Extradited Drug Smuggler Gets Nearly 30 Years in Federal PrisonRead the Press Release
LAREDO, Texas – A 32-year-old man extradited to the U.S. and later convicted of conspiracy to possess with intent to distribute methamphetamine cocaine and heroin has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Fernando Arturo Flores-Fang, 32, of Torreon, Coahuila, Mexico, pleaded guilty May 1, 2015.
Today, U.S. District Judge Diana Saldaña sentenced him to 340 months in federal prison. He is expected to face deportation proceedings following his release from prison.
Between August 2009 and March 13, 2012, Flores-Fang participated in a conspiracy to smuggle methamphetamine, cocaine and heroin into Laredo. During the investigation, authorities seized more than 35 kilograms of cocaine on April 8, 2011; more than 43 kilograms of methamphetamine and more than one kilogram of heroin on May 3, 2011; and 894 grams of methamphetamine on July 31, 2011. Flores-Fang was also held accountable for 47 kilograms of methamphetamine shipped to Dallas on April 16, 2011.
An arrest warrant was issued for Flores-Fang on March 13, 2012. He was later taken into custody by Mexican authorities and then extradited to the United States on Oct. 24, 2014.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Nine others have been convicted as part of the Organized Crime Drug Enforcement Task Force investigation dubbed Operation Nemesis”. Each of those defendants received sentences ranging from 108 to 327 months in federal prison.
The Drug Enforcement Administration led the two-year investigation. Assistant U.S. Attorneys, James Hepburn and José Angel Moreno prosecuted the case.
Essex Man Convicted by Federal Jury for Receiving and Possessing Child PornographyRead the Press Release
Baltimore, Maryland – A federal jury convicted Carl Javan Ross, age 30, of Essex, Maryland, for receipt and possession of child pornography. The verdict was returned on December 7, 2016, after 30 minutes of deliberation.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the evidence presented at his three-day trial, on July 2, 2015, an undercover Baltimore County detective was conducting an online investigation looking for offenders sharing child pornography on certain file sharing networks. The detective downloaded two video files documenting the sexual abuse of prepubescent children from an IP address later identified as being used by Ross.
Trial testimony showed that a search warrant was executed at Ross’ residence on July 28, 2015, and law enforcement recovered his laptop computer. A preview of the computer showed that it contained a user hash, which is a unique value assigned by the file sharing program, that was identical to that of the computer that shared the two videos of child pornography downloaded by the detective. In addition, investigators found search terms indicative of child pornography and digital images of child pornography.
As a result of his conviction, Ross will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Ross faces a mandatory minimum of five years and a maximum of 20 years in prison for each of the two counts of receipt of child pornography, and a maximum sentence of 20 years in prison for possession of child pornography, followed by up to a lifetime of supervised release. U.S. District Judge J. Frederick Motz has not set a date for sentencing. Ross was previously convicted in Baltimore County Circuit Court on related sex offense charges. He is scheduled to be sentenced in that case on January 4, 2017. Ross remains detained pending sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Paul Riley, who are prosecuting the federal case.
Doctor Found Guilty of Drug Distribution and Causing the Death of A PatientRead the Press Release
.PHILADELPHIA – Following a three-month jury trial, Jeffrey Bado, formerly a physician with two practices in the Philadelphia area, was convicted today in federal court of 308 felony counts, including two counts of maintaining a drug-involved premises, one count of drug distribution resulting in death, 269 counts of drug distribution, 33 counts of health care fraud, and two counts of making false statements to federal agents, announced United States Attorney Zane David Memeger. Bado faces a twenty-year mandatory minimum sentence for the charge of drug distribution resulting in death, and up to twenty years in prison for each of the other drug distribution counts.
“We are tremendously gratified with the jury’s verdict in this important prosecution,” said United States Attorney Zane David Memeger. “This verdict represents the culmination of an outstanding effort from our prosecutors and law enforcement partners to hold accountable those individuals, particularly those in the medical profession, whose illegal conduct fuels the epidemic of prescription drug abuse that is wreaking havoc on our society. We will continue to investigate and prosecute these dangerous drug dealers, whether they are doctors, pharmacists, or otherwise, as well work with the community to help reverse the trend of serious drug abuse.”
Bado maintained medical offices in Roxborough, in 2010 and 2011, and in Bryn Mawr, from 2011 to 2013. Evidence at trial showed that Bado had prescribed large amounts of oxycodone and methadone to clients of his practice outside the usual course of professional practice and without medical necessity. In one instance, Bado’s illegal drug distribution caused the death of a drug addicted patient. By the time Bado’s practice closed in 2013, Bado was charging new patients $800 cash per visit, returning patients $400 cash, and refusing to accept medical insurance. Bado’s patients received at most a cursory physical examination and little other medical care or treatment. However, they did receive what government expert Stephen Thomas, M.D., testified were prescriptions for staggering amounts of opioids.
Bado issued prescriptions tailored to the needs of drug addicts and dealers; he complied with patients’ requests for specific concentrations of oxycodone and, without medical justification, switched patients’ prescriptions to pill concentrations commanding a higher street value. Even when Bado knew patients were addicted to oxycodone, were using illegal drugs, or were not taking the oxycodone prescribed, he continued to provide prescriptions for large amounts of oxycodone. Multiple former patients testified to becoming addicted to oxycodone prescribed by him. There was no evidence at trial suggesting Bado had referred patients to opioid addiction treatment.
Bado was also convicted of health care fraud, having fraudulently billed Medicare and private insurers for patient visits that occurred when Bado was out of the country. Bado directed his staff to see patients, provide them with pre-signed prescriptions, and submit fraudulent insurance claims as if he had seen the patients himself. Bado was convicted of making false statements to federal agents concerning these billings.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service. It was prosecuted by Assistant U.S. Attorneys Maureen McCartney, Jason P. Bologna, Andrew J. Schell, and Nancy Beam Winter.
Denver Man, Michael Yellowhorse, Sentenced to Federal Prison for Production of Child PornographyRead the Press Release
DENVER – Michael Yellowhorse, age 29, of Denver, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 252 months (21 years) in federal prison for the production of child pornography using a minor in his care, Acting U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert announced. Following his prison sentence, Judge Jackson ordered the defendant to serve 10 years on supervised release. He is also required to register as a sex offender. The defendant, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Yellowhorse was charged by Criminal Complaint on December 23, 2014. He was indicted by a federal grand jury in Denver on January 7, 2015. He pled guilty before Judge Jackson on March 3, 2016. He was sentenced on December 7, 2016. The day Yellowhorse was originally scheduled to be sentenced he cut off his court-ordered ankle monitor and fled. He was ultimately caught and arrested in Texas following a high speed pursuit after he crashed into a civilian vehicle. Judge Jackson then ordered him held without bond pending a new sentencing date.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, due to investigative work of international law enforcement, including Queensland Police Service (QPS) in Australia, and HSI’s Cyber Crimes Center (C3), Child Exploitation Investigations Unit (CEIU), Victim Identification Program (VIP), sophisticated investigators identified a photo sharing website that was being used to facilitate the exchange of child pornography. After observing a user profile offering to exchange child pornography, a QPS investigator operating in an undercover capacity contacted Yellowhorse by email. After exchanging emails, Yellowhorse sent the investigator an image of child pornography. Information from the website obtained by a foreign law enforcement agency was able to be used to identify Yellowhorse. A search warrant executed at the home where Yellowhorse resided resulted in the seizure of laptops, cellphones, and an item that was observed in the background of the child pornography picture.
Yellowhorse’s laptop contained images of child pornography, as did the cellphone found on his person. During the course of the investigation, it was determined that the defendant had produced the image of child pornography that was sent to the QPS investigator. A forensic review of the child pornography images included images with an adult male hand, later determined to be Yellowhorse’s. Yellowhorse had access to the minor child depicted in the images, who was in his care when the child pornography was created. Forensic examination showed that Yellowhorse produced child pornography depicting the minor child on two separate dates. The minor child depicted in the images was eight years old and appeared to be sleeping while the pictures were taken. Examination of the defendant’s cellphone and laptop also reflected the fact that he was in possession of more than 250 child pornography images depicting children other than the minor child under his care. Forensic evidence also showed that he visited the website in question that started this investigation thousands of times.
“Thanks to the outstanding cooperation between international law enforcement and HSI, and their extraordinarily complex computer forensics work, HSI was able to identify this child pornographer who made numerous efforts to remain anonymous,” said Acting U.S. Attorney Bob Troyer. “Where ever you are, if you’re involved in exploiting children, we will find you, you will be prosecuted, and you will face the same consequence as Yellowhorse.”
HSI’s active Operation Predator program has removed another predator from the streets for a long time,” said John Eisert, acting special agent in charge of HSI Denver. “Just as importantly, we rescued at least one innocent victim from this predator’s clutches — and an untold number of potential future victims if he were not caught.”
This case was investigated HSI. The defendant was prosecuted by Assistant U.S. Attorney Alecia L. Riewerts.
Del Rio Man Sentenced to Sixty Months in Federal Prison for Retaliating Against a Federal JudgeRead the Press Release
In San Antonio today, a federal judge sentenced 59–year-old Leandro Cardenas Luna, to five years in federal prison for retaliating against a federal judge by filing false documents in bankruptcy court announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Senior United States District Judge Nancy F. Atlas ordered that Luna be placed on supervised release for a period of two years after completing his prison term.
On July 18, 2016, Luna plead nolo contendre to one count of mail fraud. Prior to his conviction for mail fraud, Luna was sentenced to two consecutive terms of federal imprisonment of 120 months and 12 months by a United States District Judge sitting in the Del Rio Division of the Western District of Texas. On or about July 30, 2014, Luna for the purpose of executing a scheme to defraud, caused a false document to be filed in the Western District of Texas Bankruptcy Court in the name of the United States District Judge who sentenced him in 2007, claiming the Judge was indebted to him for $5,781,600. During sentencing the court found that Luna committed the mail fraud in order to retaliate against the Judge for sentencing him to prison in the two federal cases.
This case was investigated by the FBI together with the United States Marshals Service. Assistant U.S. Attorneys Mark Roomberg and Christina Playton prosecuted this case on behalf of the Government.
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