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Monday 17 October 2016
Justice Department Reaches Agreement with University of New Mexico to Protect Students from Sexual Assault and HarassmentRead the Press Release
ALBUQUERQUE – The Justice Department reached an agreement today with the University of New Mexico (UNM) to ensure that UNM responds swiftly and effectively to allegations of sexual harassment, including sexual assault, involving students. The agreement resolves the department’s findings of UNM’s non-compliance with Title IX of the Education Amendments of 1972 and Title IV of the Civil Rights Act of 1964.
The department issued a letter of findings on April 22, 2016, after a 16-month investigation into complaints from students alleging that UNM did not respond adequately to their reports of sexual assault. The agreement announced today details specific steps UNM will take to strengthen its procedures, training and practices for investigating and resolving allegations of sexual assault and harassment; to help students, faculty and staff understand their reporting options, duties and obligations with respect to sexual harassment; and to ensure that members of the campus community know where to turn for help. Under the agreement, UNM will:
- provide comprehensive and effective training to all students, faculty and staff that gives notice of UNM’s prohibition on sexual harassment, including sexual assault;
- ensure that the training includes information about reporting duties, details on where to go for assistance and information on grievance procedures and potential outcomes;
- revise UNM’s policies, procedures and investigative practices to provide a grievance procedure that ensures prompt, reliable, impartial and equitable resolution of sexual harassment and sexual assault allegations;
- adequately investigate or respond to all allegations of sexual harassment, including allegations of retaliation for reporting sexual harassment;
- take prompt and effective steps to eliminate any hostile environment that may arise, prevent its recurrence and address its effects; and
- ensure that the individuals designated to coordinate Title IX efforts receive adequate training and coordinate these efforts effectively.
“No student should ever feel afraid or unsafe at school because his or her campus fails to effectively respond to sexual assault and harassment,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend UNM for taking proactive steps to ensure that the entire community of students, staff and faculty fully understand the university’s obligation to respond fairly, promptly and reliably to all incidents of sexual assault and harassment.”
“We are deeply committed to civil rights enforcement, and sexual assault and sexual harassment are civil rights issues,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “Students have the right to live and learn in a safe educational environment, and this agreement provides the foundation that UNM will build on to ensure that this right is both recognized and respected.”
UNM fully cooperated with the department’s investigation and in crafting an agreement that will provide for accountability to the public and for prompt and effective implementation of remedial measures.
The investigation was conducted jointly by the Civil Rights Division’s Educational Opportunities Section and the U.S. Attorney’s Office of the District of New Mexico. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office of the District of New Mexico is available on its website at www.justice.gov/usao/nm.
The enforcement of Title IV and Title IX, both of which bar sex discrimination by public institutions of higher learning, is a top priority of the Civil Rights Division. For more information about the administration’s efforts on prevention and response to sexual assault and sexual harassment on college and university campuses, please visit www.notalone.gov.
DOJ UNM AgreementJustice Department Reaches Agreement with University of New Mexico to Protect Students from Sexual Assault and HarassmentRead the Press Release
The Justice Department reached an agreement today with the University of New Mexico (UNM) to ensure that UNM responds swiftly and effectively to allegations of sexual harassment, including sexual assault, involving students. The agreement resolves the department’s findings of UNM’s non-compliance with Title IX of the Education Amendments of 1972 and Title IV of the Civil Rights Act of 1964.
The department issued a letter of findings on April 22, 2016, after a 16-month investigation into complaints from students alleging that UNM did not respond adequately to their reports of sexual assault. The agreement announced today details specific steps UNM will take to strengthen its procedures, training and practices for investigating and resolving allegations of sexual assault and harassment; to help students, faculty and staff understand their reporting options, duties and obligations with respect to sexual harassment; and to ensure that members of the campus community know where to turn for help. Under the agreement, UNM will:
- provide comprehensive and effective training to all students, faculty and staff that gives notice of UNM’s prohibition on sexual harassment, including sexual assault;
- ensure that the training includes information about reporting duties, details on where to go for assistance and information on grievance procedures and potential outcomes;
- revise UNM’s policies, procedures and investigative practices to provide a grievance procedure that ensures prompt, reliable, impartial and equitable resolution of sexual harassment and sexual assault allegations;
- adequately investigate or respond to all allegations of sexual harassment, including allegations of retaliation for reporting sexual harassment;
- take prompt and effective steps to eliminate any hostile environment that may arise, prevent its recurrence and address its effects; and
- ensure that the individuals designated to coordinate Title IX efforts receive adequate training and coordinate these efforts effectively.
“No student should ever feel afraid or unsafe at school because his or her campus fails to effectively respond to sexual assault and harassment,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend UNM for taking proactive steps to ensure that the entire community of students, staff and faculty fully understand the university’s obligation to respond fairly, promptly and reliably to all incidents of sexual assault and harassment.”
“We are deeply committed to civil rights enforcement, and sexual assault and sexual harassment are civil rights issues,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “Students have the right to live and learn in a safe educational environment, and this agreement provides the foundation that UNM will build on to ensure that this right is both recognized and respected.”
UNM fully cooperated with the department’s investigation and in crafting an agreement that will provide for accountability to the public and for prompt and effective implementation of remedial measures.
The investigation was conducted jointly by the Civil Rights Division’s Educational Opportunities Section and the U.S. Attorney’s Office of the District of New Mexico. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office of the District of New Mexico is available on its website at www.justice.gov/usao/nm.
The enforcement of Title IV and Title IX, both of which bar sex discrimination by public institutions of higher learning, is a top priority of the Civil Rights Division. For more information about the administration’s efforts on prevention and response to sexual assault and sexual harassment on college and university campuses, please visit www.notalone.gov.
UNM AgreementJury Convicts New York Man for Selling Oxycodone in Vermont over A Six-Year PeriodRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on October 13, 2016, a Burlington jury convicted Michael J. Foreste, aka “Beast,” of Valley Stream, New York of 10 charges related to his oxycodone trafficking in Vermont over a six-year period. Specifically, the jury convicted Foreste, age 36, of (1) conspiring to distribute oxycodone in Vermont from about 2008 through June 2014; (2) seven counts charging distribution of oxycodone; and (3) two counts charging money laundering. The jury returned a not guilty verdict relating to an additional count charging oxycodone distribution. The verdict was returned following a trial spanning two weeks. Senior United States District Judge William K. Sessions III presided over the trial.
The Fourth Superseding Indictment charged Foreste with working with others to sell oxycodone from 2008 through June 2014, including Andre Clarke, Carol Clarke and Dannis Hackney. During that period, Andre Clarke served as a New York City police officer. Earlier this year, Clarke pled guilty to his role in the conspiracy and resigned from the NYPD. His sentencing is scheduled for November 7. In September 2016, Hackney pled guilty to several charges relating to his involvement in the oxycodone scheme. He is also awaiting sentencing. Carol Clarke is under federal indictment for conspiring to distribute oxycodone and awaiting trial.
According to prosecutors, Carol Clarke, who lived in Brooklyn, received a monthly prescription for hundreds of oxycodone to treat her sickle cell disease. She diverted the pills to her brother, Andre Clarke, of Long Island, who supplied them to Foreste. In the early part of the conspiracy, Foreste brought the pills to Vermont himself and sold them with the help of certain local addicts. In April 2012, however, Vermont State Police stopped Foreste in a vehicle on Interstate 91 North and seized 659 oxycodone pills from his person. Based on this event, Foreste sustained a federal conviction in 2013 for possession with intent to distribute oxycodone. He remained on pretrial release throughout that earlier case. After April 2012, Foreste began working with Hackney, of Chittenden County, who sold Foreste’s pills to Burlington area addicts. Foreste eventually began mailing the pills to Hackney via the U.S. Mail Express Mail system. The Clarkes, Foreste, and Hackney transferred drug proceeds using various bank accounts, resulting in Foreste’s two convictions for money laundering. The evidence presented at trial demonstrated that Foreste’s drug distribution in Vermont yielded him illicit profits in excess of $500,000 over the course of the conspiracy. Foreste and Hackney have been in custody since their arrests in June 2014.
Foreste’s sentencing is expected to occur in approximately four months, but is not yet scheduled. He faces a maximum term of imprisonment of twenty years on each count.
The conviction of Foreste was the culmination of a multi-agency investigation and prosecution that began in mid-2014. The collaborative effort was spearheaded by Homeland Security Investigations, with assistance from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Vermont State Police, the Burlington Police Department, and the NYPD. Foreste is represented by Mark Kaplan, of Burlington, and Natasha Sen, of Brandon. The case was prosecuted by Assistant United States Attorneys Christina E. Nolan and Kevin J. Doyle.
Jacksonville Felon Convicted of Possessing A FirearmRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Lamar Ivory (25, Jacksonville), also known as “Thug Life,” guilty of possessing a firearm after having been convicted of a felony. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for January 12, 2017.
According to evidence presented at trial, in early 2015, Ivory was a crack cocaine dealer in the north Phillips Highway area of Jacksonville. On April 30, 2015, a Jacksonville Sheriff’s Office patrol officer conducted a traffic stop on a vehicle that had been reported stolen. Ivory was a passenger in the vehicle and was apprehended, along with the driver. During a search of the vehicle, a Sig Sauer P226 9mm pistol was located in the glove compartment directly in front of the passenger seat where Ivory had been sitting.
A trace on the firearm determined that the owner was a Jacksonville criminal defense attorney and firearms collector. The attorney, who subsequently was prosecuted for being in possession of firearms while an unlawful user of crack cocaine, informed agents that Ivory had taken the pistol from him after he had retrieved it from a pawn shop on April 17, 2015. The attorney testified that he knew Ivory by the street name “Thug Life” and that Ivory had been his dealer.
At the time of his arrest, Ivory had multiple prior felony convictions, including armed robbery and drug sales, and was therefore prohibited from possessing a firearm or ammunition under federal law.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in our communities.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Mac D. Heavener and Laura Cofer Taylor.
Iraqi Refugee Convicted of Attempting to Provide Material Support to ISILRead the Press Release
Omar Faraj Saeed Al Hardan, the 24-year-old Houston resident charged with attempting to provide material support or resources to a designated foreign terrorist organization, has pleaded guilty.
U.S. Attorney Kenneth Magidson, Acting Assistant Attorney General for National Security Mary B. McCord, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations in Houston made the announcement.
Al Hardan, a refugee born in Iraq, pleaded guilty today to one count of attempting to provide material support – specifically himself – to the Islamic State of Iraq and the Levant (ISIL). Al Hardan entered the U.S. as a refugee on or about Nov. 2, 2009. Prior to entering the country, Al Hardan was in at least two refugee camps in Jordan and Iraq. After being admitted into the U.S. as an Iraqi refugee, he was granted legal permanent residence status on or about Aug. 22, 2011, and had resided in Houston.
In April 2014, federal agents began investigating Al Hardan who had been communicating with a California man whom he understood was associated with Al-Nusrah front. In those communications, the individual had told Al Hardan that he had previously traveled to Syria to fight for Al-Nusrah and discussed plans to return to Syria with Al Hardan to fight for Al-Nusrah.
Beginning in June 2014 and continuing through 2015, Al Hardan also developed a relationship with a Confidential Human Source (CHS). During that time, they discussed traveling overseas to support ISIL in fighting jihad and various ways to assist ISIL. Al Hardan also said he wanted to be trained in building remote transmitter/receiver detonators for improvised explosive devices, wanted to learn to use cell phones as the remote detonators and wanted to build remote detonators for ISIL. Al Hardan indicated he taught himself how to make remote detonators by accessing online training videos and other resources he found online and showed the CHS a circuit board he built to be used as a transmitter for a detonator.
On Nov. 5, 2014, Al Hardan took an oath of loyalty to ISIL, according to the plea agreement. Two days later, Al Hardan and the CHS participated in approximately one hour of tactical weapons training with an AK-47 that Al Hardan indicated he wanted.
During the investigation, Al Hardan had also posted many statements on social media in support of ISIL. One of those included a photo of a Humvee with an ISIL flag. Above the photo, Al Hardan posted, “ISIS yesterday in Iraq, today in Syria and Allah willing, tomorrow in Jerusalem.” He also made numerous statements about his plans to travel to Syria and fight alongside ISIL and become a martyr. In one instance he said “I want to blow myself up. I want to travel with the Mujahidin. I want to travel to be with those who are against America. I am against America.”
Upon his arrest in January 2016, investigators discovered training CDs on how to build remote detonators, electronic circuitry components, tools used to build circuitry, multiple cell phones (that had not been activated), a prayer list for committing Jihad and becoming a martyr and the ISIL flag.
Al Hardan has been and will remain in custody pending his sentencing hearing, set for Jan. 17, 2017. At that time, he faces up to 20 years in federal prison and a possible $250,000 fine.
The FBI’s Joint Terrorism Task Force and HSI conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorneys S. Mark McIntyre and Ralph Imperato are prosecuting the case with assistance of the National Security Division’s Counterterrorism Section.
Iraqi Refugee Convicted of Attempting to Provide Material Support to ISILRead the Press Release
HOUSTON – Omar Faraj Saeed Al Hardan, the 24-year-old Houston resident charged with attempting to provide material support or resources to a designated foreign terrorist organization, has pleaded guilty.
U.S. Attorney Kenneth Magidson, Acting Assistant Attorney General for National Security Mary B. McCord, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Al Hardan, a refugee born in Iraq, pleaded guilty today to one count of attempting to provide material support – specifically himself – to the Islamic State of Iraq and the Levant (ISIL). Al Hardan entered the United States as a refugee on or about Nov. 2, 2009. Prior to entering the country, Al Hardan was in at least two refugee camps in Jordan and Iraq. After being admitted into the U.S. as an Iraqi refugee, he was granted legal permanent residence status on or about Aug. 22, 2011, and had resided in Houston.
In April 2014, federal agents began investigating Al Hardan who had been communicating with a California man whom he understood was associated with Al-Nusrah front. In those communications, the individual had told Al Hardan that he had previously traveled to Syria to fight for Al-Nusrah and discussed plans to return to Syria with Al Hardan to fight for Al-Nusrah.
Beginning in June 2014 and continuing through 2015, Al Hardan also developed a relationship with a Confidential Human Source (CHS). During that time, they discussed traveling overseas to support ISIL in fighting jihad and various ways to assist ISIL. Al Hardan also said he wanted to be trained in building remote transmitter/receiver detonators for improvised explosive devices, wanted to learn to use cell phones as the remote detonators and wanted to build remote detonators for ISIL. Al Hardan indicated he taught himself how to make remote detonators by accessing online training videos and other resources he found online and showed the CHS a circuit board he built to be used as a transmitter for a detonator.
On Nov. 5, 2014, Al Hardan took an oath of loyalty to ISIL, according to the plea agreement. Two days later, Al Hardan and the CHS participated in approximately one hour of tactical weapons training with an AK-47 that Al Hardan indicated he wanted.
During the investigation, Al Hardan had also posted many statements on social media in support of ISIL. One of those included a photo of a Humvee with an ISIL flag. Above the photo, Al Hardan posted, “ISIS yesterday in Iraq, today in Syria and Allah willing, tomorrow in Jerusalem.” He also made numerous statements about his plans to travel to Syria and fight alongside ISIL and become a martyr. In one instance he said “I want to blow myself up. I want to travel with the Mujahidin. I want to travel to be with those who are against America. I am against America.”
Upon his arrest in January 2016, investigators discovered training CDs on how to build remote detonators, electronic circuitry components, tools used to build circuitry, multiple cell phones (that had not been activated), a prayer list for committing Jihad and becoming a martyr and the ISIL flag.
Al Hardan has been and will remain in custody pending his sentencing hearing, set for Jan. 17, 2017. At that time, he faces up to 20 years in federal prison and a possible $250,000 fine.
The FBI’s Joint Terrorism Task Force and HSI conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorneys S. Mark McIntyre and Ralph Imperato are prosecuting the case with assistance of the National Security Division’s Counterterrorism Section.
Hudson Man Pleads Guilty to Stealing Deceased Mother's Social Security BenefitsRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Robert Duquette, 74, of Hudson, pleaded guilty today in the United States District Court for the District of New Hampshire to one count of Theft of Public Money.
According to court records and statements in Court, Duquette’s mother was receiving widow’s benefits from the Social Security Administration at the time of her death in October 2006. After her death, Social Security continued to deposit these monthly benefits into a bank account Duquette held jointly with his mother. Duquette failed to advise Social Security that it was making payments erroneously to his deceased mother. Instead, he withdrew the monies from the account and used them for his own personal expenses for over seven years. Because his mother’s death was not reported to Social Security, Duquette was able to convert approximately $101,250 in Social Security benefits to his own use.
Duquette is scheduled to be sentenced on January 24, 2017.
The case was investigated by the Social Security Administration’s Office of the Inspector General and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Hershey Woman Sentenced to 9 Years for Distributing Child PornographyRead the Press Release
Rayanne Paulman, 35, of Hershey, Nebraska, was sentenced in federal court in Lincoln for conspiring to distribute child pornography. The Honorable Richard G. Kopf, Senior United States District Court Judge, sentenced Paulman to 9 years of imprisonment. There is no parole in the federal system. After her release from prison, Paulman will begin a ten-year term of supervised release.
Paulman sent a number of sexually explicit images of prepubescent children over Facebook Messenger. A search warrant was executed at her residence on December 11, 2015. Forensic analysis of her digital devices revealed 6 videos of child pornography. Paulman distributed some of these images with her boyfriend. In addition to the images, text messages were recovered. Those messages involved discussions about the child pornography exchanged between Paulman and her boyfriend. Other messages discussed certain children known to the two of them that they could sexually abuse.
This case was investigated by the North Platte Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Glenmont Woman Pleads Guilty to Social Security FraudRead the Press Release
ALBANY, NEW YORK – Tammy A. Grumme, age 41, of Glenmont, New York, pled guilty today to stealing nearly $80,000 from the Social Security Administration (SSA), including $40,629 in benefits intended for her son.
The announcement was made by U.S. Attorney Richard S. Hartunian and John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office.
As part of her plea, Grumme admitted that in 2011, 2012, and 2013, she submitted forms to the SSA claiming that she cared for her son and that her son resided with her when her son was no longer in her custody and did not live with her. Grumme also admitted that she reported that her son resided with her because she knew she would not be entitled to benefits if he resided elsewhere. As a result of her misrepresentations, she received $37,629 in benefits she was not entitled to receive and an additional $40,629 in benefits that should have been paid to her son.
Grumme faces up to 10 years in prison, a $250,000 fine, and post-imprisonment supervised release of up to 3 years when she is sentenced on February 14, 2017 by Senior United States District Judge Frederick J. Scullin, 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 is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Former Vice Chairman of the Joint Chiefs of Staff Pleads Guilty to Federal Felony in Leak InvestigationRead the Press Release
Washington, D.C. – Retired General James E. Cartwright, age 67, of Gainesville, Virginia, pleaded guilty today to making false statements in connection with the unauthorized disclosure of classified information.
The announcement was made by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for National Security Mary B. McCord; and Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office
“People who gain access to classified information after promising not to disclose it must be held accountable when they willfully violate that trust,” said U.S. Attorney Rod J. Rosenstein. “We conducted a thorough and independent investigation that included collecting tens of thousands of documents through subpoenas, search warrants and document requests, and interviewing scores of current and former government employees. The evidence showed that General Cartwright disclosed classified information without authorization to two reporters and lied to federal investigators. As a result, he stands convicted of a federal felony crime and faces a potential prison sentence.”
“General Cartwright violated the trust that was placed in him by willfully providing information that could endanger national security to individuals not authorized to receive it and then lying to the FBI about his actions,” said Acting Assistant Attorney General McCord. “With this plea, he will be held accountable.”
“Today, General Cartwright admitted to making false statements to the FBI concerning multiple unauthorized disclosures of classified information that he made to reporters,” said Assistant Director in Charge Abbate. “This was a careful, rigorous, and thorough multi-year investigation by special agents who, together with federal prosecutors, conducted numerous interviews to include Cartwright. The FBI will continue to take all necessary and appropriate steps to thoroughly investigate individuals, no matter their position, who undermine the integrity of our justice system by lying to federal investigators.”
According to his plea agreement, Cartwright is a retired U.S. Marine Corps four-star general who served as the Vice Chairman of the Joint Chiefs of Staff from August 31, 2007, to August 3, 2011, and as Commander of the U.S. Strategic Command from 2004 to 2007. During that time, Cartwright held a top secret security clearance with access to sensitive compartmented information (SCI).
Cartwright signed more than 36 non-disclosure agreements related to Department of Defense programs. The forms explain that the recipient is obligated by law and regulation not to disclose classified information without authorization. The forms also contain warnings that any breach of the agreement may violate federal criminal law. In addition, Cartwright received annual training about handling classified information.
On September 1, 2011, Cartwright retired from the U.S. Marine Corps. Upon his retirement, Cartwright maintained his top secret clearance. The clearance enabled him to engage in consulting and private employment, including sitting on a special committee of the board of directors of a defense contractor, which oversaw the company’s classified U.S. government contracts.
At the time of his retirement, Cartwright again signed a “Classified Information Non-Disclosure Agreement,” which included warnings “that unauthorized disclosure…by me could cause damage or irreparable injury to the United States or could be used to advantage by a foreign nation.”
Between January and June 2012, Cartwright disclosed classified information to two reporters without authorization. Some of the information disclosed to the reporters was classified at the top secret level. Each reporter included the classified information in published articles. In addition, classified information that Cartwright communicated to one reporter was included in a book.
FBI agents interviewed Cartwright on November 2, 2012. During the interview, Cartwright gave false information to the interviewing agents, including falsely stating that he did not provide or confirm classified information to the first reporter and was not the source of any of the quotes and statements in that reporter’s book. In addition, Cartwright falsely stated that he had never discussed a particular country with the second reporter, when in fact, Cartwright had confirmed classified information about that country in an email to the reporter.
Cartwright faces a maximum sentence of five years in prison for making false statements to federal investigators. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court. U.S. District Judge Richard J. Leon has scheduled sentencing for January 17, 2017.
U.S. Attorney Rod J. Rosenstein and Acting Assistant Attorney General McCord commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Leo J. Wise and Deborah A. Johnston, Justice Department National Security Division Counterintelligence and Export Control Section Trial Attorney Elizabeth Cannon, and U.S. Attorney’s Office National Security Chief Harvey Eisenberg, who are handling the prosecution.
Former Vice Chairman of the Joint Chiefs of Staff Pleads Guilty to Federal Felony in Leak InvestigationRead the Press Release
Retired General James E. Cartwright, 67, of Gainesville, Virginia, pleaded guilty to making false statements in connection with the unauthorized disclosure of classified information. The guilty plea was entered in the District of Columbia.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
“General Cartwright violated the trust that was placed in him by willfully providing information that could endanger national security to individuals not authorized to receive it and then lying to the FBI about his actions,” said Acting Assistant Attorney General McCord. “With this plea, he will be held accountable.”
“People who gain access to classified information after promising not to disclose it must be held accountable when they willfully violate that promise,” said U.S. Attorney Rosenstein. “We conducted a thorough and independent investigation included collecting tens of thousands of documents through subpoenas, search warrants and document requests, and interviewing scores of current and former government employees. The evidence showed that General Cartwright disclosed classified information without authorization to two reporters and lied to federal investigators. As a result, he stands convicted of a federal felony offense and faces a potential prison sentence.”
“Today, General Cartwright admitted to making false statements to the FBI concerning multiple unauthorized disclosures of classified information that he made to reporters,” said Assistant Director in Charge Abbate. “This was a careful, rigorous, and thorough multi-year investigation by special agents who, together with federal prosecutors, conducted numerous interviews, to including Cartwright. The FBI will continue to take all necessary and appropriate steps to thoroughly investigate individuals, no matter their position, who undermine the integrity of our justice system by lying to federal investigators.”
According to his plea agreement, Cartwright is a retired U.S. Marine Corps four-star general who served as the Vice Chairman of the Joint Chiefs of Staff from Aug. 31, 2007, to Aug. 3, 2011, and as Commander of the U.S. Strategic Command from 2004 to 2007. During that time, Cartwright held a top secret security clearance with access to sensitive compartmented information (SCI).
Cartwright signed more than 36 non-disclosure agreements related to Department of Defense programs. The forms explain that the recipient is obligated by law and regulation not to disclose classified information without authorization. The forms also contain warnings that any breach of the agreement may violate federal criminal law. In addition, Cartwright received annual training about handling classified information.
On Sept. 1, 2011, Cartwright retired from the U.S. Marine Corps. Upon his retirement, Cartwright maintained his top secret clearance. The clearance enabled him to engage in consulting and private employment, including sitting on a special committee of the board of directors of a defense contractor, which oversaw the company’s classified U.S. government contracts.
At the time of his retirement, Cartwright again signed a “Classified Information Non-Disclosure Agreement,” which included warnings “that unauthorized disclosure…by me could cause damage or irreparable injury to the United States or could be used to advantage by a foreign nation.”
Between January and June 2012, Cartwright disclosed classified information to two reporters without authorization. Some of the information disclosed to the reporters was classified at the top secret level. Each reporter included the classified information in published articles. In addition, the classified information that Cartwright communicated to one reporter was included in a book.
FBI agents interviewed Cartwright on Nov. 2, 2012. During the interview, Cartwright gave false information to the interviewing agents, including falsely stating that he did not provide or confirm classified information to the first reporter and was not the source of any of the quotes and statements in that reporter’s book. In addition, Cartwright falsely stated that he had never discussed a particular country with the second reporter, when in fact, Cartwright had confirmed classified information about that country in an email to the reporter.
Cartwright faces a maximum sentence of five years in prison for making false statements to federal investigators. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court. U.S. District Judge Richard J. Leon has scheduled sentencing for January 17, 2017.
Acting Assistant Attorney General McCord and U.S. Attorney Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Leo J. Wise and Deborah A. Johnston of the District of Maryland, Trial Attorney Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Section and National Security Chief Harvey Eisenberg of the U.S. Attorney’s Office, who are handling the prosecution.
Former Leavenworth Prison Guard Sentenced for Taking BribesRead the Press Release
KANSAS CITY, KAN. - A former guard at the U.S. Penitentiary in Leavenworth was sentenced to two years on probation Monday for taking bribes, Acting U.S. Attorney Tom Beall said. In addition, he was ordered to serve six months home confinement and pay $4,800 in fines.
Michael Harston, 53, Kansas City, Mo., pleaded guilty to one count of conspiracy to accept bribes and one count of accepting bribes. In his plea, he admitted accepting bribes to provide inmates with tobacco, which is contraband. Inmates coordinated with their families and friends outside prison to pay Harston. They paid Harston as much as $1,000 for one six-ounce can of Bugler loose tobacco.
Beall commended the FBI, the Justice Department’s Office of Inspector General Special, USP Leavenworth SIS and Assistant U.S. Attorney Leena Ramana for their work on the case.
Former Hancock County, West Virginia, Sheriff’s Deputy convicted of using excessive forceRead the Press Release
WHEELING, WEST VIRGINIA – Former Sheriff’s Deputy Mark A. Cowden, 51, of Weirton, West Virginia, was convicted by jury today of using excessive force against an arrestee, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and United States Attorney William J. Ihlenfeld, II, of the Northern District of West Virginia.
Following a five-day trial, a jury found Cowden guilty of “Deprivation of Rights.” Evidence presented at trial established that Cowden, who was then serving as a Lieutenant with the Hancock County Sheriff’s Office, used excessive force upon an arrestee in handcuffs in the lobby of the Hancock County Sheriff’s Office in January of 2015. Jurors were shown evidence that Cowden forced the arrestee face-first into a brick wall, slammed the arrestee’s head into the wall, and then punched the arrestee in the back of the head with a closed-fist. The entire incident was captured by video surveillance.
“When law enforcement officials flout the law they take an oath to uphold, their actions erode trust in our public institutions,” said Principal Deputy Assistant Attorney General Gupta. “Like all communities, the people of Hancock County expect and deserve a justice system anchored in accountability. The Justice Department will continue to prosecute criminal misconduct that offends the core purpose and mission of law enforcement.”
“When Mark Cowden became a deputy sheriff he promised to serve and protect all citizens,” said U.S. Attorney Ihlenfeld. “He broke that promise when he physically assaulted a handcuffed man. His actions should not reflect upon the vast majority of officers who bravely perform their jobs each day with professionalism and integrity.”
The Federal Bureau of Investigation began investigating the matter in March 2016 when the case was referred to it by the U.S. Attorney’s Office. Assistant U.S. Attorney Jarod J. Douglas of the Northern District of West Virginia and Trial Attorney Nicholas Murphy from the Civil Rights Division’s Criminal Section prosecuted the case.
Cowden faces up to ten years in prison and a fine of up to $250,000 as a result of his conviction. Under the Federal Sentencing Guidelines, the actual sentence imposed for each charge will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Cowden was found not guilty of “Obstruction of Justice - Falsification of Documents.”
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Former Hancock County, West Virginia, Sheriff’s Deputy Convicted of Using Excessive ForceRead the Press Release
Former Hancock County, West Virginia, Sheriff’s Deputy Mark A. Cowden, 51, of Weirton, West Virginia, was convicted by jury today of using excessive force against an arrestee, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney William J. Ihlenfeld II of the Northern District of West Virginia.
Following a five-day trial, a jury found Cowden guilty of one count of deprivation of rights. Evidence presented at trial established that Cowden, who was then serving as a lieutenant with the Hancock County Sheriff’s Office, escorted a handcuffed arrestee into a Hancock County building in order to process his arrest. Once Cowden and five other officers entered the building with the arrestee, Cowden slammed the handcuffed arrestee face-first into a brick wall and punched him in the head.
“When law enforcement officials flout the law they take an oath to uphold, their actions erode trust in our public institutions,” said Principal Deputy Assistant Attorney General Gupta. “Like all communities, the people of Hancock County expect and deserve a justice system anchored in accountability. The Justice Department will continue to prosecute criminal misconduct that offends the core purpose and mission of law enforcement.”
“When Mark Cowden first became a deputy sheriff, he promised to serve and protect all citizens,” said U.S. Attorney Ihlenfeld. “He broke that promise when he physically assaulted a handcuffed man. His actions should not reflect upon the vast majority of officers who bravely perform their jobs everyday with professionalism and integrity.”
Cowden faces up to 10 years in prison and a fine of up to $250,000.
The case was investigated by the FBI. Assistant U.S. Attorney Jarod J. Douglas of the Northern District of West Virginia and Trial Attorney Nicholas Murphy from the Civil Rights Division’s Criminal Section prosecuted the case.
Former Bullitt County, Kentucky, Deputy Sheriff Sentenced to 27 Months in Prison for Civil Rights ViolationsRead the Press Release
Former Bullitt County, Kentucky, Sheriff’s Deputy Matthew Corder, of Louisville, Kentucky, was sentenced today to 27 months in prison for willfully depriving a county resident of his constitutional rights, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky.
The evidence presented at trial established that Corder abused his authority as a sworn law enforcement officer by retaliating against a Bullitt County resident who insulted him. Corder went after the man, unlawfully entered the man’s home, tased him in the back, arrested him without probable cause and charged him with crimes that he did not commit, causing the man to sit in jail for weeks and lose his job. The charges that Corder falsely levied against the victim – disorderly conduct, fleeing and evading and resisting arrest – were eventually dismissed.
“By violating the law and abusing the public’s trust, Corder undermined the integrity of the justice system in Bullitt County,” said Principal Deputy Assistant Attorney General Gupta. “Every day, the vast majority of law enforcement officials work tirelessly and honorably to keep communities safe yet those who flout the law do a disservice to their colleagues and their profession. The Justice Department will continue its steadfast efforts to ensure that when officers violate civil rights, we hold them accountable for their misconduct.”
“As they serve and protect, police are entrusted with immense power and authority,” said U.S. Attorney Kuhn. “And it is absolutely critical that their power and authority be used lawfully and responsibly. Matthew Corder abused that authority, and today he is held to account. His actions are not representative of the good and honorable work that distinguishes our law enforcement agencies in the Western District of Kentucky.”
Corder was sentenced today by U.S. District Judge David J. Hale of the Western District of Kentucky.
This case was investigated by the FBI’s Louisville Division, and was prosecuted by Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
Former Bullitt County, Kentucky, Deputy Sheriff Matthew Corder Sentenced to 27 Months in Prison for Civil Rights ViolationsRead the Press Release
LOUISVILLE, Ky. – A former deputy with the Bullitt County, Kentucky, Sheriff’s Office was sentenced today to 27 months in federal prison and one year of supervised release, by United States District Judge David J. Hale, for willfully depriving a county resident of his constitutional rights, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and United States Attorney John E. Kuhn Jr. of the Western District of Kentucky. There is no parole in the federal prison system.
The evidence presented at trial established that Matthew Corder, of Louisville, Kentucky, abused his authority as a sworn law enforcement officer by retaliating against a Bullitt County resident who insulted him. Corder went after the man, unlawfully entered the man’s home, tased him in the back, arrested him without probable cause and charged him with crimes that he did not commit, causing the man sit in jail for weeks and to lose his job. The charges that Corder falsely levied against the victim – disorderly conduct, fleeing and evading and resisting arrest –were eventually dismissed.
“As they serve and protect, police are entrusted with immense power and authority,” stated U.S. Attorney John Kuhn, “and it is absolutely critical that their power and authority be used lawfully and responsibly. Matthew Corder abused that authority, and today he is held to account. His actions are not representative of the good and honorable work that distinguishes our law enforcement agencies in the Western District of Kentucky.”
“By violating the law and abusing the public’s trust, Corder undermined the integrity of the justice system in Bullitt County,” said Principal Deputy Assistant Attorney General Gupta. “Every day, the vast majority of law enforcement officials work tirelessly and honorably to keep communities safe yet those who flout the law do a disservice to their colleagues and their profession. The Justice Department will continue its steadfast efforts to ensure that when officers violate civil rights, we hold them accountable for their misconduct.”
Corder was convicted of two counts of willfully depriving a Bullitt County man of his constitutional rights under color of law, by a federal jury, in Louisville, on July 22, 2016. The four-day trial included testimony from the victim, the victim’s sister and the other officer on scene, which corroborated the victim’s account. The instructors from the police academy who trained Corder also testified to the fact that he knew what the law permits and knew that his conduct violated the victim’s constitutional rights. Evidence included Corder’s false arrest report as well as body-camera footage of the arrest.
Corder was further ordered by the court to pay restitution to the victim in an amount to be determined within 90 days.
This case was investigated by the FBI’s Louisville Division, and was prosecuted by Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
Former Arkansas State Judge Charged with Fraudulently Dismissing Cases and Tampering with WitnessesRead the Press Release
A former Arkansas State Judge was charged in an indictment unsealed today for perpetrating a fraud and bribery scheme in which he dismissed cases on his docket in exchange for personal benefits, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
O. Joseph Boeckmann, 70, of Wynne, Arkansas, was charged with eight counts of wire fraud and honest services wire fraud, 11 counts related to bribery and two counts of witness tampering in an indictment filed on Oct. 4, 2016, in the Eastern District of Arkansas. Boeckmann was arrested today and made his initial appearance this afternoon.
As alleged in the indictment, from 2010 to 2015, Boeckmann served as a district judge for the First Judicial District of Arkansas. In his capacity as a district judge, Boeckmann dismissed traffic citations and misdemeanor criminal charges for young men in exchange for acts that he claimed were “community service,” but which actually benefited Boeckmann himself. The indictment alleges that on some occasions, Boeckmann used his access to these individuals during their purported “community service” in order to take photographs of the men in compromising positions. On other occasions, he allegedly dismissed cases in exchange for photographing the men while they were naked, among other things.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated this case with assistance of the Arkansas State Police and the Arkansas Judicial Discipline and Disability Commission. Trial Attorneys Jonathan Kravis and Peter Halpern of the Criminal Division’s Public Integrity Section and Special Prosecutor Jack McQuary of the Arkansas Prosecuting Attorney’s Association are prosecuting the case.
Federal Jury Convicts El Paso Man in Connection with Murder-For-Hire PlotRead the Press Release
In El Paso, 41-year-old Samuel Velasco Gurrola faces mandatory life in federal prison after a jury convicted him this afternoon of his role in a murder-for-hire plot announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
Jurors convicted Gurrola of three counts of conspiracy to commit murder in a foreign country and four counts of conspiracy to cause foreign travel for murder for hire. According to evidence presented in during trial, in 2008, Velasco Gurrola was married to Ruth Sagredo Escobedo. At the time, Velasco Gurrola was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child.
Evidence further revealed that from September 2008 until November 2008, the defendant conspired with his brother, 30-year-old Emmanuel Velasco Gurrola and his sister, 44-year-old Dalia Valencia, and others to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.
Testimony revealed that Samuel Velasco Gurrola arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villareal, Gurrola’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo was ambushed and murdered.
Prior to jury selection, Emmanuel Velasco Gurrola pleaded guilty to three counts of conspiracy to kill in a foreign country and one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; Dalia Valencia pleaded guilty to one count of conspiracy to violate the RICO statute. Emmanuel Velasco Gurrola and Dalia Valencia both face up to life in federal prison. Sentencings are scheduled as follows: Emmanuel Velasco Gurrola – December 6, 2016; Dalia Valencia – December 15, 2016; and, Sammy Velasco Gurrola -- January 25, 2017. All three remain in federal custody pending sentencing.
This investigation was conducted by the Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation with assistance from the United States Marshals Service and the El Paso Police Department. Assistant United States Attorneys Daphne Newaz and John Gibson are prosecuting this case on behalf of the Government.
Federal Grand Jury Returns Indictment Charging Maryland Man with Attempting to Provide Material Support to ISILRead the Press Release
Greenbelt, Maryland – A federal grand jury charged Nelash Mohamed Das, age 24, a citizen of Bangladesh residing in Landover Hills, Maryland, today with attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for National Security Mary B. McCord; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
The indictment alleges that from October 2015 to September 30, 2016, Das knowingly attempted to provide material support and resources to a foreign terrorist organization, namely ISIL. Further, the indictment alleges that Das knew that ISIL is a designated foreign terrorist organization and engages in terrorist activity.
According to court documents ISIL members and supporters have posted identifying information about United States military personnel in hopes that those inspired by ISIL would carry out attacks against them. Das allegedly planned to kill a U.S. military member in support of ISIL.
If convicted, Das faces a maximum sentence of 20 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI’s Joint Terrorism Task Force for its work in the investigation Mr. Rosenstein thanked his office’s national security prosecutors that are handling the matter, and recognized the Justice Department’s National Security Division, Counterterrorism Section, for its support.
District Man Pleads Guilty to Murder Charge for Killing Man After Home InvasionRead the Press Release
WASHINGTON – Joseph Jennings, Jr., 35, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed for killing a man this year after breaking into his condominium in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Jennings pled guilty in the Superior Court of the District of Columbia. He is to be sentenced Dec. 16, 2016, by the Honorable Michael Ryan.
According to the government’s evidence, Jennings spent the early morning of Jan. 22, 2016 getting high at his residence in Southeast Washington. Later that morning, according to the government’s evidence, Jennings joined with two other men in a plan to break into a condominium in the 400 block of M Street NW and steal marijuana. At about 9:48 a.m., Jennings used an object to forcibly pry open the locked front door to the building. One of his accomplices waited nearby, while Jennings and the other man continued inside. As they attempted to gain entry to the unit through a sliding glass balcony door, the victim, Matthew Shevlin, fled out of the front door and began screaming for help.
Jennings chased Mr. Shevlin, and a struggle ensued before Mr. Shevlin got away. The other man, meanwhile, took a mason jar of marijuana from the apartment. Mr. Shevlin threw a flower pot at the man’s head and got into a second struggle with Jennings. During this struggle, Jennings shot Mr. Shevlin, 37, who later died of multiple gunshot wounds.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate James Brennan and Supervisory Paralegal Specialist Sharon Newman. Finally, he expressed appreciation for the work of Assistant U.S. Attorney David Misler, who is investigating and prosecuting the matter.
Crips Gang Member Sentenced to 11 Years in Federal Prison for Armed Robbery and Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Donte Powell, a/k/a “Rain,” age 29, of Washington, D.C. and Columbia, Maryland, on October 14, 2016, to 11 years in prison followed by three years of supervised release for robbery, and being a felon in possession of a firearm. Powell is currently serving a 20-year state sentence for an unrelated armed robbery and Judge Russell ordered that the federal sentence was to be served consecutive that sentence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; Howard County State’s Attorney Dario Broccolino; and Chief Richard McLaughlin of the Laurel Police Department.
According to his plea agreement, Powell is a member of the Crips gang and is affiliated with the set called “Dogghouse Crips.” Powell admitted that on January 21, 2014, he and co-defendant Avery Terry robbed the CVS Pharmacy in Elkridge, Maryland at gun point. A store video camera recorded the robbery, including the distinctive clothing worn by the robbers. Powell was armed with a black handgun. Powell had a previous felony conviction and was prohibited from possessing a gun or ammunition.
On January 26, 2014, Howard County Police arrested Desmick Lewis in connection with a January 23, 2014 robbery and homicide. At the time of his arrest, Lewis was in a car driven by Avery Terry. Police recovered a black .38 caliber revolver, different from the gun used in the CVS robbery, from under the driver’s seat where Terry was sitting.
A Howard County detective who was investigating the CVS robbery was also participating in the execution of the arrest warrant that day. The detective noticed clothing in Terry’s car that matched the distinctive clothing worn by the Powell and Terry during the CVS robbery on January 21. Law enforcement executed a search warrant at Terry’s home and recovered a mask and other clothing matching that worn by one of the CVS robbers.
Powell was arrested on February 3, 2014 in Laurel. According to Laurel Police, an officer spotted a car without its lights on just after 1 a.m., traveling the wrong way on a one-way street. When officers began pursuing the driver, they saw a naked man jump out of the passenger side of the car. The driver crashed shortly thereafter, flipping the car. The naked man told police he was the victim of an armed robbery. After Powell’s arrest, a loaded .40 caliber pistol was recovered from the car. That gun was subsequently identified as the gun used in the CVS robbery. Powell pleaded guilty to the armed robbery and was sentenced to 20 years in prison. While serving his sentence, Powell continued to state his allegiance to the Crips gang in recorded jail calls and in letters.
Subsequent investigation revealed Powell and Terry had additional knowledge of the January 23, 2014, robbery/homicide. Evidence presented at the sentencing reflected that Powell, Terry, Lewis, and others involved in the robbery/homicide met after the murder and discussed what had happened. Call records show that between January 21 and January 26, 2014, there were also frequent telephone communications between Powell, Terry, Lewis, and others involved in the robbery/homicide.
Avery Terry, age 23, of Laurel, Maryland, pleaded guilty in U.S. District Court to the robbery of the CVS Pharmacy on January 21, 2014, in Elkridge, Maryland, and to using and brandishing a firearm during that robbery. In addition, Terry pleaded guilty to being an accessory after the fact to the January 23, 2014 robbery and murder. Terry was sentenced to 181 months in prison.
Desmick Lewis, age 24, of Columbia, pleaded guilty in Howard County Circuit Court to his role in the January 23, 2014 robbery and murder and was sentenced to life in prison
United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department, Laurel Police Department, and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Lauren E. Perry, who prosecuted the case.
Casey County, Kentucky, Convicted Felon Guilty of Multiple Charges Including Sale and Distribution of A Controlled Substance and Being an Armed Career CriminalRead the Press Release
BOWLING GREEN, Ky. – A Casey County, Kentucky felon recently pleaded guilty in United States District Court before District Judge Greg N. Stivers, to multiple charges including being an armed career criminal, possession and distribution of a controlled substance, and possession of firearms by a convicted felon, announced United States Attorney John E. Kuhn, Jr.
Jerry Wayne Threatt II, age 39, of Liberty, Kentucky pleaded guilty to all charges in a ten count indictment and agreed to a sentence of 180 months in prison on October 11, 2016. Threatt remains in the custody of the United States Marshals Service and is scheduled for sentencing hearing in Bowling Green, before Judge Stivers on January 5, 2017, at 10am CST.
According to the plea agreement, Threatt sold a firearm and crystal methamphetamine, from his Liberty, Kentucky, home to a confidential informant on September 8, 2015, and on September 30, 2015. Further, on October 23, 2015, Threatt was observed and recorded selling a firearm and crystal meth to an informant in a grocery store parking lot located in Liberty.
In addition to the prison sentence, Threatt will forfeit a vehicle; U.S. currency totaling $3,290; a Jimenez Arms 9millimeter semi-automatic handgun; a KELTEC 9millimeter semi-automatic pistol; a Para-Ordinance, Model P16, 40 caliber pistol; a Hi-Point, Model JH 45 caliber pistol; a Ruger, 9 millimeter semi-automatic pistol; and Remington, Model 110012 gauge shotgun.
This case is being prosecuted by Assistant United States Attorney Randy Ream and is being investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kentucky State Police (DESI West), and Casey County (Kentucky) Sheriff’s Department.
Cahokia men sentenced to federal prison for armed robberyRead the Press Release
On October 13, 2016, Undray Webb, 27, and Durand Harper, 27, both of Cahokia, Illinois, received federal prison terms for armed robbery, Donald S. Boyce, United States Attorney for the Southern District of Illinois announced today.
Webb was sentenced to 21 years in prison. On November 5, 2015, Webb had pled guilty to all six counts of an indictment, which charged him with two counts of Conspiracy to Interfere with Commerce by Robbery and Interference with Commerce by Robbery, which are violations of the Hobbs Act, and with two counts of Use and Carry of a Firearm During a Crime of Violence in connection with the armed robbery of the Alps Grocery Store that occurred in Cahokia on December 11, 2014 and the armed robbery of Shop n’ Save that occurred in Cahokia on January 11, 2015. In addition to the prison sentence, Webb was also ordered to pay $8,700 in restitution to the victims and a $600 special assessment. Webb will be on federal supervised release for 5 years once he is released from prison.
Harper was sentenced to four years in prison. On January 14, 2016, Harper had pled guilty to all three counts of an indictment, which charged him with Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery, and Use of a Firearm During a Crime of Violence, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. The Armed Robbery counts arise from the federal Hobbs Act, which makes it a crime to obstruct, delay or affect interstate commerce by robbery, and is used by United States Attorney Boyce as a way to combat armed robbery in
the Southern District of Illinois. Following his prison sentence, Harper will be on federal supervised release for 3 years. Harper was also ordered to pay restitution in the amount of $7,000.
Documents filed in the U.S. District Court establish that on December 11, 2014, Webb, Lamarcus Jackson and Byron Holton entered the Alps Grocery Store, located at 800 Upper Cahokia Road, in Cahokia, Illinois, masked and armed with three firearms. Webb, Jackson and Holton pointed the firearms at the store employees and took approximately $1,700 from the registers and a safe and fled the store.
The documents further establish that one month later, on January 11, 2015, Webb, Jackson, Holton, and a fourth conspirator, Devante Hodges entered the Shop n’ Save, located at 1028 Camp Jackson Road in Cahokia, Illinois, masked, gloved and armed with firearms. Webb, Jackson, Holton and Hodges pointed the firearms at employees and customers within the store. Holton jumped the service counter and demanded the employees place money from the safe into a black book bag while Webb, Jackson and Hodges stood guard at the door with their firearms. Webb, Jackson, Holton and Hodges then left the store and fled the area in a getaway vehicle being driven by Harper. Approximately $7,000 was stolen during the robbery.
During an interview by law enforcement, Webb admitted to being one of the three gunmen who robbed the Alps Grocery Store and identified Holton and Jackson as the other two gunmen. Webb also admitted to being one of the four gunmen who robbed the Shop n’ Save a month later and identified Holton, Jackson and Hodges as the other three gunmen and Harper as the getaway driver. Webb admitted that he received approximately $1,000 in proceeds from the Shop n’ Save robbery.
Harper was also interviewed by law enforcement. During the interview Harper identified Holton, Webb, Jackson and Hodges as the four men who robbed the Shop n’ Save at gunpoint. Harper admitted that he was aware of their plan to rob the grocery store at gunpoint and that he drove the four gunmen away from the area of the Shop n’ Save after the robbery. Harper received approximately $300 in proceeds for his participation in the robbery.
In February of 2016, Jackson pled guilty to a six-count indictment, and in June of 2016, was sentenced to 44 ½ years in prison. In July of 2015, Hodges pled guilty to a three count indictment, and in November of 2015 was sentenced to 9 ½ years in prison. On October 3, 2016, Holton was tried and found
guilty by a jury of one count of Conspiracy to Interfere with Commerce by Robbery. He is scheduled to be sentenced on February 9, 2017.
The case was investigated by the Cahokia Police Department, the Sauget Police Department and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Brookline Man Convicted by Federal Jury of Million Dollar Insider Trading SchemeRead the Press Release
BOSTON – A Brookline man was convicted today by a federal jury in Boston of conspiracy and securities fraud after tipping off two friends in connection with an insider trading scheme that netted more than $1 million in illegal profits.
Amit Kanodia, 49, was convicted following a six-day jury trial of one count of conspiracy and 10 counts of securities fraud, with each count representing the purchase of Cooper Tire securities by co-conspirators Iftikar Ahmed and Steven Watson. Kanodia was acquitted of eight additional counts of securities fraud related to other purchases made by Ahmed and Watson. U.S. District Court Judge Nathaniel G. Gorton scheduled sentencing for Jan. 18, 2017 at 3pm. Ahmed remains a fugitive from justice. Watson has pleaded guilty and is set to be sentenced in November.
In the spring of 2013, Kanodia tipped off his two friends, Ahmed and Watson, about the contemplated acquisition of Cooper Tire & Rubber Company by India-based Apollo Tyre. Kanodia learned about the possible acquisition from his wife who was the General Counsel of Apollo at the time. In the months leading up to the public announcement of the acquisition, both Ahmed and Watson purchased shares and options in Cooper Tire which trades on the New York Stock Exchange. On the day of the announcement, Cooper Tire’s share price increased 41% and Ahmed and Watson began selling their interests in the company for a combined profit of more than $1 million. Both Ahmed and Watson paid Kanodia a portion of their illegal profits.
The conspiracy statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain/loss, whichever is greater. The securities fraud statute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $5 million. 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.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorneys Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit, and Brian Perez-Daple, also of Ortiz’s Economic Crimes Unit are prosecuting the case.
Border Brothers Gang Member Sentenced to 12 Years’ Imprisonment Following Convictions for Forced Labor, Robbery, and Firearms-Related OffenseRead the Press Release
SAN FRANCISCO – Michael “Guantes” Acosta was sentenced this morning to twelve years’ imprisonment for his role in a 2013 jewelry robbery, a high-speed chase and crash that ended in Oakland, Calif., and a scheme to prostitute an underage female victim against her will for 30 days, announced United States Attorney Brian J. Stretch and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by Honorable Jon S. Tigar, U.S. District Judge.
The sentence follows a guilty plea entered June 10, 2016. According to the plea agreement, Acosta, 23, of Oakland, admitted that in January of 2013, he conspired with three other people to rob a jewelry store owner at gunpoint. The owner was transporting a briefcase full of jewelry from his home to the store when Acosta, with the help of other Border Brothers members and associates, robbed him in the driveway of the storeowner’s home. Acosta further admitted that after the stolen jewelry was sold, he obtained $15,000 for his share of the robbery proceeds and used the funds to purchase a black Mercedes. In late March of 2013, Acosta used the Mercedes to transport an underage victim to a residence of another Border Brothers member where Acosta and others forced the underage female to stay at the co-conspirator’s residence for over 30 days. Acosta also assisted others with prostituting the victim and keeping her against her will at the residence. In addition, in August of 2013, Acosta led police on a high speed chase through residential streets in Oakland. Acosta crashed the black Mercedes into the front yard of a home and his car landed on top of another vehicle. At the time of his arrest, Acosta was in possession of a loaded semi-automatic pistol and several balloons containing heroin. Acosta was charged with conspiracy to commit robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a); carrying a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c); possession of a controlled substance, in violation of 21 U.S.C. § 844; and forced labor, in violation of 18 U.S.C. §§ 1589(a) and 2. Pursuant to his plea agreement, Acosta pleaded guilty to all the charges except carrying a firearm during and in relation to a crime of violence, which was dismissed.
In addition to the prison term, Judge Tigar sentenced Acosta to three years of supervised release and ordered him to pay $86,570 in restitution. Acosta has been in custody since his arrest in 2013 and will begin serving his sentence immediately.
Assistant U.S. Attorney Cynthia Frey is prosecuting the case with the assistance of Daniel Charlier-Smith and Elise Etter. The prosecution is the result of an investigation by HSI and the Oakland Police Department.
Boone County heroin dealer pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Boone County drug dealer pleaded guilty today to a federal heroin crime, announced United States Attorney Carol Casto. Christopher Priestley, 38, of Bloomingrose, entered his guilty plea to distribution of heroin.
Priestley admitted that he sold heroin to a confidential informant working with law enforcement on four occasions from July to December 2015. The drug deals took place in Bloomingrose and Seth in Boone County.
Priestley faces up to 20 years in federal prison when he is sentenced on January 12, 2017.
The U.S. Route 119 Drug Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Atlantic County, New Jersey, Man Sentenced to 33 Months in Prison for Possessing Child Pornography, Sending Lewd Image to A MinorRead the Press Release
CAMDEN, N.J. - An Egg Harbor Township, New Jersey, man was sentenced today to 33 months in prison for using online messaging applications to solicit nude photos from minors and transmit a lewd photo to a girl, U.S. Attorney Paul J. Fishman announced.
Zackary McFerren, 24, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of possession of child pornography and one count of transferring obscene matter to a minor. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
McFerren admitted that between March 2015 and May 2015, he possessed multiple images of child pornography on his home computer. He also admitted that in April 2015, he used the “Kik” messaging application under the screen name “Emily” to communicate with a minor girl in the Philadelphia area. McFerren admitted that during the conversations, he asked the minor girl and her friend to take nude photographs of themselves and their genitalia. The girl then sent McFerren at least 14 such photographs.
In addition, McFerren admitted that in September 2015, he used Snapchat to send a picture of his penis to a Florida girl who was under the age of 16.
In addition to the prison term, Judge Simandle sentenced McFerren to five years of supervised release and fined him $2,000.
U.S. Attorney Fishman credited the FBI’s Child Exploitation Task Force, including special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and detectives of the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain, with the investigation leading to today’s sentencing. He also thanked the FBI’s Philadelphia Division, the Egg Harbor Township Police Department and the Bay County, Florida, Sheriff’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Edward Crisonino, Esq., Collingswood, New Jersey
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Houston James David Green, 24, of Chunchula, Alabama, was sentenced to 10 years in federal prison this morning. Green had entered a guilty plea to two charges, conspiracy to possess with intent to distribute methamphetamine and carrying a firearm in furtherance of a drug trafficking felony, in April of this year. Court documents reveal that Green was arrested three times in four months, and each time law enforcement officers found him in possession of methamphetamine ice, cash and guns.
United States District Court Judge Kristi K. Dubose imposed the 10-year sentence after observing at the sentencing hearing that the likelihood of recidivism was high, based on her review of the facts of his case. The sentence consisted of five years on the drug count and five years on the gun count, to be served consecutively. She also ordered that Green will commence a five-year term of supervised release when he is discharged from incarceration. As conditions of his supervision, Green will be subject to testing and treatment for drug abuse. Judge Dubose also ordered that Green pay $200 in special mandatory assessments. The judge entered a separate forfeiture order for each of the guns seized from Green during the investigation.
The case was investigated by the Mobile County Sheriff’s Office, the Saraland Police Department, the Citronelle Police Department and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Americans with Disabilities Act Settlement Removes Architectural Barriers at A Reading YMCA FacilityRead the Press Release
PHILADELPHIA – The YMCA of Reading & Berks County has entered into a settlement agreement with the United States to resolve an allegation that a YMCA facility located at 631 Washington Street in Reading, Pennsylvania, contains architectural barriers in violation of the Americans with Disabilities Act.
The settlement arises out of a complaint that the United States received alleging that the YMCA’s facility on Washington Street is not accessible to individuals who have mobility impairments. After conducting an investigation, the United States identified architectural barriers to access relating to a parking area, entrance signs, swimming pool lift, and a restroom facility.
To resolve the matter, the YMCA of Reading & Berks County has agreed to modify the facility’s family-friendly restroom in a manner that complies with the applicable standards for accessible design under the Americans with Disabilities Act. The YMCA of Reading & Berks County has also agreed provide a van accessible parking space located on the shortest accessible route to the facility’s entrance ramp and to install a directional sign indicating the location of an accessible entrance at all inaccessible entrances at the facility. In addition, the YMCA of Reading & Berks County has agreed to install a vertical sign identifying the accessible parking spaces, and a directional sign indicating the location of the facility’s accessible toilet/bathing room at all inaccessible toilet/bathing rooms. The YMCA of Reading & Berks County has further agreed to install a new swimming pool lift that complies with the standards for accessible design.
The YMCA of Reading & Berks County agreed to take these actions on a timetable, and the United States reserved its right to review the facility’s compliance at any time.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.
The case was handled by Assistant U.S. Attorneys Paul W. Kaufman and Michael S. Macko.
Albuquerque Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Darrel Salazar, 48, of Albuquerque, N.M., pled guilty today in federal court to brandishing a firearm during an attempted armed bank robbery. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
Salazar was arrested on Jan. 12, 2016, by the FBI on a criminal complaint charging him with attempted bank robbery. According to the complaint, on Jan. 11, 2016, Salazar attempted unsuccessfully to rob the branch of the Bank of America located at 3101 Carlisle Blvd. NE in Albuquerque. The criminal complaint alleged that, Salazar entered the bank where he allegedly passed a note demanding cash to a bank teller and brandished a firearm at the teller in an effort to rob the bank. Salazar left the bank without obtaining any cash and was apprehended shortly thereafter in the vicinity of a nearby convenience store by APD officers.
Salazar was subsequently indicted on Feb. 9, 2016, and charged with robbing the Wells Fargo Bank located at 5555 Montgomery Blvd., on Jan. 11, 2016; the attempted bank robbery of the Bank of America located at 3101 Carlisle Blvd. on Jan. 11, 2016, and brandishing a firearm during the attempted bank robbery of the Bank of America on Jan. 11, 2016. According to the indictment, Salazar committed the crimes in Bernalillo County, N.M.
During today’s proceedings, Salazar pled guilty to brandishing a firearm during a crime of violence. In entering the guilty plea, Salazar admitted that on Jan. 11, 2016, he entered the Bank of America on 3101 Carlisle Blvd. in Albuquerque, armed with a firearm. Salazar further admitted that he approached the bank teller, passed a handwritten note demanding money and brandished a firearm at the teller when the teller failed to comply with his demand.
At sentencing, Salazar faces a mandatory minimum penalty of seven years and a maximum of life in prison. Salazar remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and APD. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
Accountant Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A Granby, Mass. accountant was sentenced today in U.S. District Court in Worcester in connection with filing false tax returns.
James Lowe, 53, was sentenced by U.S. District Court Judge Timothy S. Hillman to four months in prison and one year of supervised release, with the first three months to be served in home detention. In June 2016, he pleaded guilty to three counts of filing false corporate tax returns for his accounting business and three counts of filing false personal income tax returns from 2011 to 2013.
Lowe was the owner of an accounting and tax return preparation business in Chicopee. From 2011 to 2013, Lowe under-reported his income on both his corporate and personal income tax returns by not disclosing certain checks generated from his accounting business. Rather than depositing the checks into his business bank account, Lowe cashed some of these checks and deposited some of them into his personal bank account. The false tax returns resulted in more than $118,000 in tax loss.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Alex Grant prosecuted the case.
6.5-Year Prison Sentence for California to Connecticut Marijuana Distribution and Money Laundering ConspiracyRead the Press Release
FRESNO, Calif. — Thanousone Volarat, 36, of Fresno, was sentenced Monday by United States District Judge Dale A. Drozd to six years and six months in prison for conspiring to manufacture and distribute marijuana, money laundering, and escaping from the Fresno County Jail, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2009, Volarat and his co-conspirators began purchasing marijuana from sources in California and Oregon. In 2010, Volarat moved to California in order to grow and distribute marijuana for profit under the guise of medicinal marijuana. He was involved in distributing the marijuana both inside and outside of California. Between October 2010 and July 2011, Volarat and his co-conspirators shipped 11 packages of marijuana grown in Fresno and Madera counties primarily to addresses in Connecticut. The marijuana packages were seized by agents.
To finance the distribution conspiracy, proceeds from the marijuana sales were sent from Connecticut to Fresno and other places on the West Coast through structured wires or money transfers. In order to avoid currency transaction reports that banks file for any deposit or withdrawal above $10,000, the defendants kept the deposits and withdrawal below $10,000, a process known as structuring. Structured deposits were made at banks in Connecticut, which were immediately followed by structured withdrawals at bank branches on the West Coast. Human couriers also carried large amounts of the marijuana proceeds on airline flights between the East and West Coasts. Between October 2009 and September 2011, Volarat and his co-conspirators transferred approximately $3 million in marijuana proceeds from the East Coast to the West Coast.
After Volarat was arrested, he was held at the Fresno County Jail pending trial. He was taken to a Fresno medical facility to receive out-patient treatment. While there, he was permitted to use a restroom, where he slipped off his handcuffs, unlocked a back door, and fled. He remained out of custody for nearly a month until he was recaptured by the United States Marshals Service in Los Angeles County. In sentencing Volarat, Judge Drozd noted that his criminal activities were extremely large in scale and also noted that Volarat faces severe ongoing medical issues.
This case was the product of an investigation by the Organized Crime Drug Enforcement Task Force, a program that focuses on large-scale drug trafficking organizations and enables cooperative work between local, state, and federal law enforcement. Drug Enforcement Administration offices in Connecticut and Fresno, East Central Narcotics Task Force in Connecticut, United States Postal Inspector, Internal Revenue Service-Criminal Investigation, the United States Marshals Service, and the Fresno and Madera County Sheriff’s Offices participated in the investigation. Eastern District of California Assistant United States Attorneys Laurel J. Montoya and Kevin Rooney, and District of Connecticut Assistant United States Attorney Geoffrey Stone prosecuted the case.
Volarat’s co-defendants, Phonephitack Volarat and Adam Khamvongsay, have been previously sentenced to federal prison for their involvement in the conspiracy.
Friday 14 October 2016
Wilkes-Barre Man Sentenced to 93 Months for Heroin Trafficking and Firearms OffensesRead the Press Release
SCRANTON. The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Malachy Mannion sentenced Thomas Abreu, Jr., age 35, to 93 months in federal prison for possessing with the intent to distribute heroin, and for possessing three stolen firearms in the course of his narcotics trafficking activities.
According to United States Attorney Bruce Brandler, Abreu, of Wilkes-Barre, Pennsylvania, was found on July 26, 2015 in a Wilkes-Barre motel with heroin and three stolen firearms. Some of the heroin was packaged for distribution, and law enforcement officials also recovered drug packaging paraphernalia, a firearm holster, and $8,449 in cash. Abreu admitted to possessing with the intent to distribute between 60 and 80 grams of heroin, which is equivalent to 2,400 to 3,200 bags of heroin.
Abreu was indicted by a grand jury on January 9, 2016, and pleaded guilty pursuant to a plea agreement on June 21, 2016. He has been in custody since July 26, 2015.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and by the Wilkes-Barre Police Department. The case was prosecuted by Assistant United States Attorney Phillip J. Caraballo.
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.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic of 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.
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West Warwick Resident Pleads Guilty to Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Mathew E. Pasetti, 35, of West Warwick, pleaded guilty in federal court in Providence today to possession and distribution of child pornography. A court authorized law enforcement search of Pasetti’s residence in December 2015, resulted in the seizure of approximately 600 videos and 175,000 images depicting child pornography, primarily involving prepubescent children.
Pasetti’s guilty plea before U.S. District Court Judge John J. McConnell, Jr., to possession of child pornography and distribution of child pornography is announced by United States Attorney Peter F. Neronha; Lieutenant Colonel Kevin M. Barry, Acting Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to information presented to the court, in October 2015, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force identified an Internet Protocol (IP) address that was sharing child pornography. An ICAC and HSI investigation determined that the IP address was registered to Pasetti at his West Warwick residence. A court authorized search of Pasetti’s residence on December 2, 2015, by ICAC Task Force members and HSI agents resulted in the seizure a laptop computer and several digital storage devices. A forensic examination of the electronic equipment by the ICAC Task Force resulted in the discovery of videos and images depicting child pornography.
Pasetti, who is detained in federal custody, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell on January 17, 2017.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Union Official Pleads Guilty to Stealing over $1 Million from ILA Local 970Read the Press Release
NORFOLK, Va. – Robert Smith, III, 48, of Virginia Beach, pleaded guilty today to charges of mail fraud for a decade-long scheme to defraud the International Longshoremen’s Association (ILA), Local 970 of over $1 million.
“Over 600 people are victims of Mr. Smith’s selfish crime,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Mr. Smith was entrusted with ensuring the financial health and stability of Local 970, and instead chose to steal over $1 million for his personal benefit. This office remains committed to aggressively pursuing those who abuse their positions of trust and steal from innocent victims.”
“Members of Local 970 trusted Robert Smith III, to uphold his fiduciary responsibility to their union,” said Robin Blake, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General. “Smith betrayed members by committing mail fraud to embezzle more than $1 million from the union, hid his crime for 10 years by failing to meet the annual reporting requirements to the Department of Labor, and eventually lied to officials from the Department. We will continue to work with our law enforcement partners to safeguard the assets of union members and all American workers.”
According to the statement of facts filed with the plea agreement, Smith served as the Business Agent and the Financial Secretary for ILA, Local 970. Local 970 is a union whose members provide qualified labor to the Port of Virginia. From March 2006 through April 2016, Smith devised a scheme to embezzle funds from the Local 970 bank accounts. Specifically, Smith deposited new member initiation fees and member dues received from local employers into an ILA Bank account, and then used those funds for his own personal purposes. Over a period of ten years, Smith stole approximately $1,072,668.30 of union funds. Smith withdrew over $700,000 in cash, paid his personal credit card bills, and used the funds to purchase gas, food, clothing, shoes, toys, entertainment, and home improvement supplies.
Smith faces a maximum penalty of 20 years in prison sentenced on Feb. 7, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Jonathan F. Trimble, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; Robin Blake, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Mark Wheeler, Director of the Washington District Office of the Department of Labor, Office of Labor-Management Standards, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert Krask. Assistant U.S. Attorney Melissa E. O’Boyle is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16cr134.
Two Wisconsin Men Charged with Attempting to Provide Material Support to ISILRead the Press Release
Jason Michael Ludke, 35, of Milwaukee, Wisconsin has been charged in a criminal complaint with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Yosvany Padylla-Conde, 30, also of Milwaukee, Wisconsin, was charged in the same complaint with aiding and abetting Ludke’s attempt to provide material support to ISIL.
The announcement was made by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Gregory J. Haanstad of the Eastern District of Wisconsin.
Ludke and Padylla-Conde were arrested near San Angelo, Texas. The complaint alleges that the two were traveling from Wisconsin to Mexico where they intended to acquire travel documents necessary to travel overseas to join ISIL.
“The United States is committed to identifying and arresting persons intent on providing material support to foreign terrorist organizations. Those organizations pose a threat to United States' interests at home and abroad.” said U.S. Attorney Haanstad.
Special Agent in Charge Justin Tolomeo of the FBI’s Milwaukee Division stated “Terrorism remains the FBI’s top priority in keeping Americans safe. The arrest of these two individuals from Wisconsin, underscores how the real threat of terrorism can occur anywhere, at anytime. I would like to commend the efforts of the JTTF which includes a wide range of our law enforcement partners who work tirelessly for the safety of our citizens. We encourage all citizens to remain vigilant in reporting suspicious activity to law enforcement.”
If convicted of these offenses both men face up to 20 years in prison and a fine of up to $250,000.00.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
U.S Attorney Haanstad commends the investigation carried out by the FBI Joint Terrorism Task Force. The case will be prosecuted by Assistant U.S Attorney Paul L. Kanter of the Eastern District of Wisconsin, with assistance from Counterterrorism Section Trial Attorney Jolie Zimmerman.
Two Milwaukee Men Charged in Federal Court with Attempting to Provide Material Support to a Foreign Terrorist Organization / ISISRead the Press Release
United Sates Attorney Gregory J. Haanstad announced today that JASON MICHAEL LUDKE (age: 35) of Milwaukee, has been charged in a criminal complaint with attempting to provide material support or resources to a foreign terrorist organization, ISIL, in violation of Title 18, United States Code, Section 2339B(a)(1). YOSVANY PADILLA-CONDE (age: 30), also of Milwaukee, was charged in the same complaint with aiding and abetting LUDKE's attempt to provide material support or resources to a foreign terrorist organization, ISIL, in violation of Title 18, United States Code, Sections 2339B(a)(1) and 2. If convicted of these offenses both men face up to 20 years in prison and a fine of up to $250,000.00.
LUDKE and PADYLLA-CONDE were arrested by the FBI and local law enforcement near San Angelo, Texas. It is alleged in the complaint that the two were traveling from Wisconsin to Mexico where they intended to acquire aid and documents necessary to travel to Syria and/or Iraq.
United States Attorney Haanstad said the United States is committed to identifying and arresting persons intent on providing material support of any kind to foreign terrorist organizations. Those organizations pose a threat to United States' interests abroad, including threats to our military personnel, and pose a threat to the homeland upon the possible return of terrorist supporters to the United States. Haanstad commended the work of the FBI and the Joint Terrorism Task Force.
Special Agent in Charge of the FBI, Justin Tolomeo stated “Terrorism remains the FBI’s top priority in keeping Americans safe. The arrest of these two individuals from Wisconsin, underscores how the real threat of terrorism can occur anywhere, at anytime. I would like to commend the efforts of the JTTF which includes a wide range of our law enforcement partners who work tirelessly for the safety of our citizens. We encourage all citizens to remain vigilant in reporting suspicious activity to law enforcement.”
This case was investigated by the Federal Bureau of Investigation and the Joint Terrorism Task Force. The case will be prosecuted by Assistant United States Attorney Paul L. Kanter.
A copy of the criminal complaint is attached. The public is reminded that the complaint contains only allegations of criminal conduct, and the defendants are presumed innocent until proven guilty in a court of law.
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Two Men Indicted for Distributing Carfentanil that Caused Overdoses in Rowan CountyRead the Press Release
COVINGTON, Ky. — A federal grand jury has charged a Cincinnati man and a Morehead, Ky., man with distributing carfentanil that resulted in multiple overdoses in Rowan County, Ky.
On Thursday, Travis Clark, 28, of Cincinnati, and Matthew Bowman, 27, of Morehead, were indicted for one count each of conspiring to distribute carfentanil, which is a fentanyl analogue, and distribution of carfentanil, resulting in serious bodily injury.
Carfentanil is an extremely powerful synthetic opioid that is 10,000 times more potent than morphine and 100 times more potent than fentanyl – which is itself 50 times more potent than heroin. Carfentanil is a controlled substance typically used as a tranquilizing agent for elephants and other large mammals. Recently, the Drug Enforcement Administration issued a warning to the general public and to law enforcement personnel nationwide about the health and safety risks associated with carfentanil.
According to the indictment, on September 7th and 8th of this year, Clark and Bowman illegally distributed carfentanil that resulted in seven drug overdoses.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, DEA; and Derrick Blevins, Chief of the Morehead Police Department, jointly announced the indictment.
The investigation was conducted by the DEA and the Morehead Police Department.
The overdose charge carries a minimum of 20 years and up to Life in prison, upon conviction; the conspiracy charge carries a minimum of five years and up to 40 years. Any sentence following a conviction, however, would be imposed after the Court considers the U.S. Sentencing Guidelines and the applicable law.
An indictment is an allegation only. All defendants are presumed innocent and are entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
Two Leaders of El Monte Street Gang Receive 15-Year Prison Terms for Federal Racketeering, Narcotics and Money Laundering OffensesRead the Press Release
LOS ANGELES – A Mexican Mafia member who was the primary “shotcaller” of the El Monte Flores street gang, and another man who was a key leader of the gang, have each received 15-year prison terms after pleading guilty to federal racketeering offenses. A third man who was a member of the gang has received a sentence of nearly 11 years in prison.
The three gang members were sentenced yesterday as part of a 2014 racketeering case that targeted the El Monte Flores gang, an organization that takes direction from the Mexican Mafia prison gang and controls criminal activity in the cities of El Monte and South El Monte.
James “Chemo” Gutierrez, 53, of El Monte, who is the Mexican Mafia member and the lead defendant in the indictment, and Kenneth Cofer, 37, also of El Monte, were sentenced to 180 months in prison by United States District Judge John A. Kronstadt.
Gutierrez and Coffer pleaded guilty in April to conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. They also each pleaded guilty to conspiring to distribute controlled substances, including methamphetamine and heroin, and conspiring to launder money. Additionally, Cofer pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime.
The third gang member sentenced yesterday – John Rivera, 54, of El Monte – pleaded guilty in December 2015 to conspiring to violate the RICO Act and conspiring to distribute narcotics Judge Kronstadt ordered Rivera to serve 130 months in prison.
The RICO indictment alleged that members of the El Monte Flores gang committed crimes that included acts of violence (ranging from battery to murder), drug trafficking, robbery, burglary, carjacking, witness intimidation, kidnapping, weapons trafficking, credit card fraud, identity theft and money laundering.
“We now have secured lengthy prison terms for key members of one of the oldest street gangs in Los Angeles County after using the federal racketeering statute to dismantle the organization’s leadership structure,” said United States Attorney Eileen M. Decker. “Even with significant gains made by law enforcement, street gangs remain one of the most dangerous criminal elements in the region and a significant contributor to violent crime. We are committed, however, to restoring order in neighborhoods affected by the violence and drug trafficking perpetrated by street gangs like the El Monte Flores gang.”
In a plea agreement filed with the court, Gutierrez admitted that he “regularly received extortionate ‘tax’ payments from individuals trafficking narcotics in the neighborhoods controlled by the El Monte Flores gang.” Gutierrez “knew that the narcotics traffickers would be subject to violent attacks if they failed to pay the extortionate taxes to the El Monte Flores gang.” Gutierrez acknowledged in his plea agreement that he authorized an attack on a rival gang member.
Prosecutors said in a sentencing memorandum that Gutierrez deserved a lengthy prison term due to his “pivotal role in the gang’s drug distribution, extortion, and violent activity.” The court filing notes that Gutierrez has a long criminal record, including a racketeering-related murder that resulted in a 20-year federal prison term.
Cofer admitted in his plea agreement that he “managed and supervised the extortion and drug trafficking activities…[and] directed the use of violence on behalf” of the criminal enterprise. Cofer specifically admitted that he authorized the shooting of a person who had a dispute with another member of the gang.
Gutierrez and Cofer admitted their roles in threats to use violence to extort “taxes” from drug dealers and fraudulent document vendors at “Crawford’s Plaza,” a shopping center at Valley Boulevard and Garvey Avenue.
When Rivera pleaded guilty, he admitted collecting “taxes” from gang members and transferring that money to Gutierrez. He also acknowledged distributing large quantities of methamphetamine. “[D]espite spending the majority of the last 31 years in custody, [Rivera] has not learned his lesson and continues to commit new crimes,” prosecutors wrote in a court filing.
In addition to Gutierrez, Cofer and Rivera, 31 other defendants named in the RICO indictment have pleaded guilty.
The investigation into the El Monte Flores gang was conducted by a task force that included the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS Criminal Investigation; and the El Monte Police Department.
This case is being prosecuted by Assistant United States Attorneys Jeff Mitchell and Aron Ketchel of the Violent and Organized Crime Section.
Three Southwest Kansas Men Charged with Plotting to Bomb Somali ImmigrantsRead the Press Release
WICHITA, KAN. -Three men from southwest Kansas were charged in federal court here today with conspiring to detonate a bomb at an apartment complex in Garden City where Muslim immigrants from Somalia live and worship, Acting U.S. Attorney Tom Beall said.
A criminal complaint unsealed today alleged the men conducted surveillance to size up potential targets, stockpiled firearms, ammunition and explosive components, and prepared a manifesto to be published after the bombing. The attack, the defendants said, would “wake people up.”
“These charges are based on eight months of investigation by the FBI that is alleged to have taken the investigators deep into a hidden culture of hatred and violence,” Beall said. “Many Kansans may find it as startling as I do that such things could happen here.”
Charged with one count of conspiring to use a weapon of mass destruction were:
Curtis Allen, 49, Liberal, Kan.
Gavin Wright, 49, Liberal, Kan., owner of G & H Mobile Home Center at 1250 E. Tucker Road in Liberal.
Patrick Eugene Stein, 47, Wright, Kan.
The complaint alleges that since February 2016 the FBI has been investigating the defendants’ activities planning a violent attack against Muslims in southwestern Kansas. A confidential source attended meetings of a militia group called the Kansas Security Force, providing the FBI with information about the groups’ activities.
The defendants were members of a small group they called the Crusaders. After considering possible targets including pro-Somali churches and public officials, the defendants decided to target an apartment complex in Garden City, Kan., where Somalis lived and maintain an apartment that served as a mosque. They discussed obtaining four vehicles, filling them with explosives and parking them at the four corners of the apartment complex to create a big explosion.
On Oct. 12, defendant Stein met with the confidential FBI source in rural Finney County to examine automatic weapons the source had brought from an FBI lab in Quantico, Va. After trying out two of the weapons, Stein took the source to see the apartment building the defendants were targeting in Garden City. Stein said he would provide ammonium nitrate for the bomb and contribute $200 to $300 for other materials.
Stein also talked with the source about defendant Allen’s arrest in a domestic violence case in Liberal the previous day, Oct. 11. Stein said he was concerned that Allen’s girlfriend would give Liberal police information about the defendants’ plans.
If convicted, the defendants face up to life in federal prison. Investigating agencies included the FBI, the Liberal Police Department, the Seward County Sheriff’s Office, the Ford County Sheriff’s Office, the Garden City Police Department, the Dodge City Police Department, the Finney County Sheriff’s Office, and Kansas Highway Patrol, and the Kansas Bureau of Investigation. Assistant U.S. Attorney Tony Mattivi is prosecuting
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal conduct.
Three Kansas Men Charged with Plotting a Bombing Attack Targeting the Local Somali Immigrant CommunityRead the Press Release
Curtis Allen and Gavin Wright, both 49, and of Liberal, Kansas, and Patrick Eugene Stein, 47, of Wright, Kansas, appeared in federal court to face a charge of conspiring to use a weapon of mass destruction (explosives), in connection with their plot to detonate bombs at an apartment complex in Garden City, Kansas where Somali immigrants live and worship.
The announcement was made by Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Tom Beall of the District of Kansas.
“According to the complaint, these three defendants conspired to conduct a bombing attack against an apartment complex occupied by men, women and children in the Garden City, Kansas community,” said Assistant Attorney General Carlin. “Protecting our nation from such attacks, whether they are rooted in domestic or international terrorism, is our highest priority.”
“These charges are based on eight months of investigation by the FBI that is alleged to have taken the investigators deep into a hidden culture of hatred and violence,” said Acting U.S. Attorney Beall. “Many Kansans may find it as startling as I do that such things could happen here.”
The complaint alleges that since February the FBI has been investigating the defendants’ activities, including their plans to carry out a violent attack against Muslims in southwestern Kansas. The defendants were key members of a militia group that referred to itself as the Crusaders. A confidential source attended meetings of the group and provided the FBI with information about the defendants’ activities.
The criminal complaint alleges that the men conducted surveillance to identify potential targets, stockpiled firearms, ammunition and explosive components, and planned to issue a manifesto in conjunction with the planned bombing. The attack, the defendants said, would be intended to “wake people up.”
After considering possible targets, the defendants decided to conduct the attack on a Garden City, Kansas apartment complex that houses a mosque and a large number of members of the Somali community. They discussed obtaining four vehicles, filling them with explosives and parking them at the four corners of the apartment complex to create a large explosion.
On Oct.12, Stein met with an undercover FBI employee in rural Finney County, Kansas. After examining and test firing automatic weapons, Stein took the source to see the apartment building that the defendants were targeting in Garden City, Kansas. Stein said he would provide ammonium nitrate for the bomb and contribute $200 to $300 for other materials.
Stein also talked with the undercover employee about defendant Allen’s arrest in a domestic violence case in Liberal, Kansas the previous day, Oct. 11. Stein said he was concerned that Allen’s girlfriend would give the Liberal Police Department in Kansas information about the defendants’ plans.
If convicted, the defendants face a maximum sentence of life in federal prison.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Investigating agencies included the FBI, the Liberal Police Department, the Seward County Sheriff’s Office, the Ford County Sheriff’s Office, the Garden City Police Department, the Dodge City Police Department, the Finney County Sheriff’s Office, and Kansas Highway Patrol, and the Kansas Bureau of Investigation. Assistant U.S. Attorney Tony Mattivi for the District of Kansas and Counterterrorism Section Trial Attorney David Cora are prosecuting this case.
Three Indicted for Drug Trafficking on Mole Lake Indian ReservationRead the Press Release
United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin, announced that on October 12, 2016, a federal grand jury returned a five-count indictment against three individuals involved in drug trafficking on the Mole Lake Indian Reservation in Forest County. The indictment named Anthony Quintana (age: 43) and Karen Quintana (age: 39) of Weston, and Diana Alvarado (age: 39) from the Town of Nashville in Forest County, Wisconsin.
All three defendants are charged in Count One with Conspiracy to Distribute Greater Than 50 Grams of Methamphetamine in violation of 21 United States Code Section 846, and in Count Two with Distribution of Greater Than 50 Grams of Methamphetamine in violation of 21 United States Code Section 841(a)(1). Counts Three, Four and Five charge Anthony Quintana and Diana Alvarado with Distribution of Methamphetamine in violation of 21 United States Code Sections 841(a)(1). As to Counts One and Two, each defendant faces a sentence of a minimum of 5 years’ and up to 40 years’ imprisonment, up to a $1,000,000 fine, and between 5 years and a lifetime of Supervised Release. As to Counts Three, Four and Five each defendant faces a maximum of 20 years’ imprisonment, up to a $1,000,000 and between 5 years and a lifetime of Supervised Release.
According to the indictment, the three defendants conspired amongst themselves and with others to distribute more than 150 grams of methamphetamine and oxycodone in the Mole Lake area. On four separate occasions Anthony Quintana and Diana Alvarado distributed at least an ounce of methamphetamine, with one delivery in excess of 50 grams.
The case was investigated by the Forest County Sheriff’s Department, the Wisconsin Department of Justice - Division of Criminal Investigation (Native American Drug and Gang Initiative) and the United States Bureau of Indian Affairs. The case is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Ten Additional Defendants Charged in $100 Million TRICARE Fraud SchemeRead the Press Release
DALLAS — Special agents with the Federal Bureau of Investigation and the Defense Criminal Investigative Service (DCIS) arrested nine defendants this week in connection with their roles in a $100 million health care fraud conspiracy perpetrated against TRICARE, the health insurance program for members of the military and their families. A tenth defendant surrendered to the FBI. The defendants, including doctors, pharmacy owners, and marketers were charged in a 35-count superseding indictment returned last week in Dallas and unsealed this afternoon, announced U.S. Attorney John Parker of the Northern District of Texas.
“Exhaustive investigative work by FBI and DCIS special agents and investigators not only led to today’s arrests, but to the identification and seizure of millions in assets that these defendants derived from their participation in this massive scheme that caused the TRICARE health insurance program—designed for our military personnel, veterans and their families—to suffer more than $100 million in actual losses,” said U.S. Attorney Parker.
“Today’s arrests helped to alleviate the burden on the American taxpayers from an organized group determined to commit fraud within the healthcare industry, principally, the TRICARE system,” said Acting SAC Michael A. Costanzi of FBI Dallas. “This joint effort by the Dallas FBI and DCIS is one of many successful law enforcement partnerships forged to dismantle healthcare fraud groups.
“The indictments and arrests in this investigation highlight another step forward by DCIS and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program known as TRICARE,” said Special Agent in Charge Janice M. Flores, of the DCIS Southwest Field Office. “Fraud and abuse by pharmacies and medical providers that bill for compounded prescriptions and/or medications is a significant threat to the DoD health care system. With DoD’s limited resources and budgets, DCIS must continue to aggressively investigate fraud, waste and abuse to preserve and recover precious taxpayer dollars for our most vulnerable programs.”
The superseding indictment names the following defendants:Dr. Walter Neil Simmons, 47, of Mesa, Arizona
Dr. William F. Elder-Quintana, 50, of El Paso, Texas
Jeffrey Eugene Fuller, 51, of Dallas, Texas
Andrew Joseph Baumiller, 37, of Dallas, Texas
Jeffry Dobbs Cockerell, 61, of Houston, Texas
Steven Bernard Kuper, 43, of Burleson, Texas
Ravi Morisetty, 42, of Irving, Texas
Joe Larry Straw, 46, of Frisco, Texas
Luis Rafael Rios, 50, of Killeen, Texas
Michael John Kiselak, 49, of Southlake, TexasDefendants Fuller and Baumiller, the owner and President, respectively, of Trilogy Pharmacy, were detained pending pre-trial detention hearings set for this Thursday, October 20, 2016, at 2:00 p.m. before U.S. Magistrate Irma Carrillo Ramirez. The remainder of the defendants were released on bond.
Two additional defendants charged in the conspiracy, Richard Robert Cesario, 49, of Plano, Texas, and John Paul Cooper, 47, of Southlake, Texas, remain in federal custody on related charges outlined in a federal indictment returned in February 2016, following a finding by Judge Horan that “The evidence shows that witnesses told investigators that [Cooper] and his co-defendant Richard Robert Cesario stated an intent to do possible harm to any associates or employees who turned on them and flee to Costa Rica if prosecuted.”
The superseding indictment alleges that from approximately May 2014 to mid-February 2016, the 12 defendants conspired to run a scheme to defraud TRICARE in connection with the prescription of compounded pain and scar creams. The scheme involved the payment of kickbacks to TRICARE beneficiaries, payment of kickbacks to prescribing physicians, and the payment of kickbacks to marketers by the owners of compounding pharmacies.
Cesario and Cooper co-owned and co-operated CCMGRX, LLC, (CMGRX), a Texas limited liability company formed in September 2014 that had its principal place of business at 5050 Quorum Drive in Dallas. The ‘CMG’ in CMGRX stands for Compound Marketing Group. CMGRX primarily marketed compounded pain and scar creams to current and former U.S. military members and their families on behalf of various compounding pharmacies. CMGRX’s principle marketing tool was a sham medical study through which individuals were paid monetary compensation in exchange for obtaining compounded drugs with their TRICARE prescription benefits. Cesario served as CMGRX’s CEO and Treasurer and Cooper served as its President and Secretary. Neither had any medical, nursing or pharmaceutical licensing or education. CMGRX ceased operations in mid-2015, shortly after TRICARE announced changes to its coverage of compounded drugs. From October 2014 through June 2015, TRICARE paid more than $102 million for compounded drug prescriptions generated by CMGRX.
Defendants Straw and Kiselak led marketing groups for CMGRX that recruited military members and their families and offered them monetary compensation in exchange for obtaining compounded drugs with their TRICARE prescription benefits as part of CMGRX’s study. Defendant Rios, a marketer and patient recruiter in Straw’s marketing group, recruited hundreds of beneficiaries on and around Fort Hood in Killeen, Texas.
According to the superseding indictment, as part of their scheme to defraud, Cesario, Cooper, Straw, Rios, Kiselak and their coconspirators offered to pay, and did pay, TRICARE beneficiaries for obtaining and filling prescriptions for compounded drugs, principally compounded pain creams, scar creams, migraine creams, and vitamins. They disguised these payments to TRICARE beneficiaries as “grants” for participating in a medical study they referred to as a TRICARE-approved “Patient Safety Initiative” or “PSI Study” to evaluate the safety and efficacy of compounded drugs. In reality, the PSI Study was not approved by TRICARE, was not overseen by a qualified physician or medical professional, had no control group, and was not designed to gather any useful scientific data relating to the safety and efficacy of any drug. Its true purpose was to compile a list of TRICARE beneficiaries who had filled prescriptions so that Cesario, Cooper and their coconspirators could calculate how much to pay the beneficiaries.
To further disguise the source of those kickbacks to TRICARE beneficiaries, according to the superseding indictment, Cesario and Cooper directed the creation of a charity and funneled the payments to the beneficiaries through the charity. Kiselak introduced Cesario and Cooper to an individual who helped them create the “Freedom From Pain Foundation” and registered it as a tax-exempt charitable foundation. The foundation, however, was funded entirely by payments from Cesario and Cooper, or business accounts they controlled, and from November 2014 to June 2015, they paid approximately $2.8 million to the foundation, the majority of which was used to pay TRICARE beneficiaries and doctors.
Defendant Simmons served as the Chief Medical Officer for CMGRX and helped Cesario and Cooper create the PSI Study. Defendant Elder-Quintana worked as a contract physician with CMGRX., and Cesario and Cooper paid him to prescribe compounded drugs to TRICARE beneficiaries. Some of the payments were made directly to Elder, while others were made to Aztec Medicus, PLLC, a company he owned and controlled. Elder wrote thousands of prescriptions for compounded drugs to TRICARE beneficiaries who he never met in person and for whom he conducted only a cursory consultation via telephone. In an effort to disguise physician kickbacks, Cesario, Cooper and their coconspirators funneled some payments through the Freedom From Pain Foundation, under the false premise that the physicians were providing consulting services in connection with the PSI Study.
Trilogy Pharmacy, a compounding pharmacy in the TRICARE network, paid Cesario, Cooper, Straw, Rios, Kiselak and other CMGRX employees kickbacks in exchange for sending prescriptions for compounded drugs to Trilogy. Baumiller worked closely with Fuller, Cesario and Cooper to disguise these kickbacks as employee wages. Defendant Cockerell owned and operated 360 Pharmacy Services, a compounding pharmacy in the TRICARE network that was located in Webster, Texas. 360 Pharmacy paid kickbacks to Cesario and Cooper in exchange for sending prescriptions to them. Defendant Kuper owned and operated FW Medical Supplies LLC, a compounding pharmacy in the TRICARE network that was located in Burleson, Texas, that did business under the name Dandy Drug. Dandy Drug paid kickbacks to Cesario and Cooper in exchange for referring prescriptions to them. Defendant Morisetty owned and operated Dena Group, LLC, a compounding pharmacy in the TRICARE network that was located in Irving, Texas, and which did business under the name Alpha Pharmacy. Alpha Pharmacy paid kickbacks to Cesario and Cooper in exchange for referring prescriptions to them.
Each defendant is charged with one count of conspiracy to commit health care fraud, which, upon conviction, carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Cesario and Cooper are also each charged with 14 counts of payment and/or receipt of illegal remuneration. Each of the remaining defendants, with the exception of Simmons, is charged with at least one count of payment and/or receipt of illegal remuneration. The maximum statutory penalty, upon conviction for each of those counts is five years in federal prison and a $250,000 fine. Restitution may also be ordered.
The superseding indictment also includes a detailed forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property traceable to the offense, including real estate in Plano, Frisco, Southlake, Dallas, and New Braunfels, Texas, and Jacksonville, Florida, s; funds in bank accounts and investment accounts; numerous vehicles; boats and recreational vehicles; numerous firearms; jewelry and artwork; and other various investments.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
The Federal Bureau of Investigation and Defense Criminal Investigative Service are investigating the case. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
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Tax Preparation Business Owner Sentenced to Prison for Defrauding the IRSRead the Press Release
LAS VEGAS, Nev. – A man who operated tax preparation businesses in Nevada and Utah from 2004 to 2010, has been sentenced to 18 months in prison, three years of supervised release, and ordered to pay approximately $182,000 in restitution, for aiding and assisting in the preparation of multiple fraudulent individual income tax returns, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Unfortunately, there are persons with expertise in accounting and tax preparation who take advantage of less skilled or less educated persons who are trying to follow the law,” said U.S. Attorney Bogden. “We are continually working with the IRS to identify, investigate and prosecute these persons and to ensure that their businesses are shut down or cleaned up.”
Roger Linares, 43, was sentenced by U.S. District Judge James C. Mahan. Linares pleaded guilty in July to one count of conspiracy to defraud the United States. Linares must report to federal prison by Jan. 13, 2017.
Another defendant charged in the scheme, Sergio Acosta, also pleaded guilty to one count of conspiracy to defraud the United States and was sentenced on Sept. 13 to five years of probation, six months of home confinement, and ordered to pay approximately $182,000 in restitution.
According to the guilty plea agreement, in October 2004, Linares and his wife opened a tax preparation business named America Services. By 2010, the business had 11 locations, including seven in Las Vegas, one in Mesquite, two in Salt Lake City, and one in St. George. They registered the business in Linares’ wife’s name because Linares did not become a U.S. citizen until approximately 2009. Linares actively participated in running the day-to-day operations of the business from 2004 to early 2010. The business established a large clientele consisting mostly of Hispanic individuals who spoke little or no English and possessed little tax knowledge. Those clients entrusted Linares and other employees at the business to accurately prepare their federal income tax returns. Linares aided and assisted in the preparation of at least 18 false individual income tax returns, but without the clients’ knowledge that the returns included false information that generated large refunds for the clients. Linares benefited from the large volume of customers because he was part-owner of the business and received a substantial portion of the proceeds. Other employees were paid commissions and the more returns they prepared, the more money they earned. The business was identified as having a 98 percent refund rate and substantial unreimbursed employee business expenses and questionable dependents. The total tax loss to the government for the 2008 and 2009 tax returns prepared by the defendants was $181,818.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Lisa Cartier-Giroux.
Stoughton Man Pleads Guilty to Serial Bomb ThreatsRead the Press Release
BOSTON – A Stoughton man pleaded guilty today in U.S. District Court in Boston to emailing bomb threats to multiple schools and universities in three different states.
Anthony Rae, 25, pleaded guilty before U.S. District Court Judge Indira Talwani to five counts of sending bomb threats. A sentencing date has not been scheduled.
Over the course of nine months, Rae used several different email accounts to send bomb threats to educational institutions in three different states. Rae began in October 2014 when he sent two emails from a Gmail account he created threatening to bomb an elementary school in Chicago, Ill., and several public schools in Norwood, Mass. Subsequently, Rae hacked his mother’s Hotmail account and used it to send two separate bomb threats to his own school – ITT Technical Institute in Norwood.
In June 2015, law enforcement officers obtained a search warrant for Rae’s residence and seized numerous electronic devices. The following day, Rae used a computer available to tenants of his apartment complex to continue his bomb threat spree – sending a bomb threat to Rhode Island College in Providence. On June 19, 2015, he was arrested and charged in state court for the Massachusetts’ threats. In October 2015, Rae was charged federally by criminal complaint.
The charging statute provides for a sentence of no greater than 10 years in prison, three years 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.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. This case was also investigated by the Chicago Police Department’s Arson Section, Norwood and Stoughton Police Departments, Rhode Island State Police Computer Crimes Unit, and the Rhode Island College and North Carolina State University Campus Police Departments. Significant assistance was also provided from the Massachusetts MetroLEC Cyber Crimes Unit and the Norfolk District Attorney’s Office. Assistant United States Attorney Jordi de Llano of Ortiz’s Criminal Division is prosecuting the case.
Shreveport man sentenced to more than 10 years in prison for sex trafficking of a minorRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced Thursday to 121 months in prison for sex trafficking of a minor.
In addition to the term of incarceration, Zayne Ghandi Anderson, 41, of Shreveport, was also sentenced by U.S. District Judge Elizabeth E. Foote to five years of supervised release and must register as a sex offender. According to the June 13, 2016 guilty plea, undercover law enforcement agents responded to an online advertisement Anderson posted for the prostitution of minors. Upon further investigation, agents met a 16-year-old female. Agents discovered that Anderson had posted several advertisements online soliciting money in exchange for sex with the minor.
“This sentence reflects our commitment to halt the sex trafficking of young girls in this district,” Finley stated. “My office will continue to work with our partners in law enforcement to ensure that individuals who commit these crimes are found and convicted.”
The FBI Violent Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorneys Earl M. Campbell and Jonathan S. Drucker prosecuted the case.
San Juan County Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Kirk Castor, 36, of Kirtland, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
Castor was one of eight San Juan County residents charged with federal narcotics trafficking offenses as the result of a multi-agency investigation led by Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force into methamphetamine trafficking on the Navajo Indian Reservation in northwestern New Mexico. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The investigation leading to the federal charges was initiated in response to an increase in methamphetamine trafficking on the Navajo Indian Reservation in the Shiprock area. The investigation identified eight defendants, who are charged in five indictments, through a series of methamphetamine purchases by undercover law enforcement officers. Law enforcement authorities seized more than two and a half pounds of methamphetamine, ten firearms, approximately $1,600 in cash and a vehicle during an arrest operation on May 11, 2016.
Castor was arrested on an indictment charging him with distributing methamphetamine on April 1, 2015 and April 3, 2015, in San Juan County, N.M. During today’s proceedings, Castor pled guilty to the indictment and admitted that on April 1, 2015, he sold .7 grams of methamphetamine to an undercover officer, and on April 3, 2015, he sold 42 grams of methamphetamine to an undercover officer.
At sentencing, Castor faces a maximum penalty of 20 years in federal prison. Castor remains in custody pending his sentencing hearing, which has yet to be scheduled.
Five of the other seven defendants have entered guilty pleas and are awaiting sentencing hearings. The remaining two defendants have entered not guilty pleas and are awaiting trial. Charges in indictments and complaints are merely accusations and defendants are presumed innocent unless convicted in a court of law.
These cases were investigated by HSI’s Albuquerque office and the HIDTA Region II Narcotics Task Force with assistance from the Farmington office of the FBI, U.S. Marshals Service, and BIA’s Division of Drug Enforcement, Shiprock office of the Navajo Nation Division of Public Safety, New Mexico State Police, San Juan County Sheriff’s Office, Farmington Police Department, and New Mexico National Guard. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the cases.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Rochester Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Gregory Stonoha, 24, of Rochester, NY, who was convicted of possession of child pornography, was sentenced to 48 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Stonoha was found to possess more than 1,000 images of child pornography involving prepubescent minors. Stonoha used an application known as Kik to trade child pornography with other users, and to engage in sexually explicit “chats” with other users.
The sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation, acting under the direction of Adam S. Cohen.
Roanoke Rapids Man Sentenced for Dog Fighting, Marijuana Grow & Firearms ChargesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced three members of a Roanoke Rapids, North Carolina family relating to dog fighting, drug, and firearm conviction.
ELTON GARY, 47, was sentenced to 72 months imprisonment followed by 10 years of supervised released for the exhibit and sponsor of an animal for the purpose and participation in a fighting venture and aiding and abetting; attending an animal fighting venture and aiding and abetting in the same; possession of an animal for the purpose of participation in a fighting venture and aiding and abetting in the same; possession of a firearm and ammunition by a felon; possession with intent to distribute more than 50 but less than 100 marijuana plants and aiding and abetting; and maintaining drug involved premises and aiding and abetting. His wife, ERICA POWELL GARY, 44, was sentenced to four months of imprisonment followed by 5 years of supervised release for felony dog fighting and possession of a firearm by a convicted felon charges. ZHAQWAUN JEVONTAE GARY, 22, was sentenced to six months imprisonment followed by 3 years of supervised release, for a felony dog fighting charge.
On April 7, 2013, the Halifax County Sheriff’s Office received a complaint that a dog fight was taking place at the Gary’s residence in Halifax County. When deputies arrived at the home, blood samples were obtained from an area that appeared to have had recent dog fighting and multiple animals were seized. In the shed, deputies located a steel bucket with bloody water, and what appeared to be a ring or pit for dog fighting. A carpet with blood was found and there were blood splatters on the walls. The American Pit Bull Terriers were located in a wooden fenced in area and there was blood at the bottom of the fence.
Several pit bulls were chained up within the fence. Deputies located approximately 17 dogs (pit bulls). Each had wounds and scars consistent with dog fighting. While looking for evidence of dog fighting, deputies located marijuana plants growing in a shed on the property. Deputies obtained a search warrant based on the discovery. There were approximately 68 plants, a grow light, seeds, timers, heaters, etc. in support of the growing operation. A search warrant was also executed at the Gary’s home. Two firearms, one loaded, were located in the closet of the bedroom shared by ERICA and ELTON GARY.
The criminal investigation of this case was conducted by Halifax County Sheriff’s Office, Halifax County Animal Control, the North Carolina State Crime Laboratory, Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) and the U.S. Department of Agriculture – Office of Inspector General. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Ringleader of Counterfeiting Conspiracy Sentenced to PrisonRead the Press Release
RICHMOND, Va. – Reginald Jake Farrow, 31, of Richmond, was sentenced today to five years in prison for conspiracy to make, forge, counterfeit and pass federal reserve notes. Farrow was also sentenced to three years of supervised release and ordered to pay full restitution.
Farrow pleaded guilty on July 11. According to court documents, from May 2015, continuing through February 2016, Farrow conspired with 11 other individuals to make and pass counterfeit $50 and $100 Federal Reserve Notes. The counterfeiting operation took place primarily at a residence in Henrico, and the defendants would pass the counterfeit bills at local merchants obtaining merchandise and genuine currency as change.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney S. David Schiller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-CR-56.