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29 November 2016
Two New York Men Charged with Conspiracy to Commit Human Trafficking and Other Crimes for Roles in New Jersey Chicken Slaughterhouse BusinessRead the Press Release
NEWARK, N.J. – Two New York men were arrested today for allegedly forcing employees to work for them at a Halal chicken slaughterhouse in Middlesex County, U.S. Attorney Paul J. Fishman announced.
Mohammad Abdul Wahid, 54, of Queens, New York, and Mohammed Iqbal Kabir, 42, of Bronx, New York, are charged by complaint with one count each of conspiracy to commit forced labor (human trafficking); conspiracy to harbor undocumented persons for financial gain; and violating the Fair Labor Standards Act. The defendants appeared before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and both were released on $75,000 unsecured bond each, with home confinement and electronic monitoring.
“The Department of Justice is committed to working with our law enforcement partners to seek justice on behalf of vulnerable victims of human trafficking,” Vanita Gupta, head of the Civil Rights Division, said. “The Civil Rights Division commends the District of New Jersey, as one of our six Phase II Anti-Trafficking Coordination Teams (ACTeam), for its leadership on the front lines of shared efforts to hold human traffickers accountable.”
“This is precisely the kind of case the ACTeams were designed to investigate and prosecute,” U.S. Attorney Fishman said. “The criminal complaint against these defendants describes conduct that is as inhumane as it is illegal. By bringing to bear the resources of multiple law enforcement agencies with expertise on human trafficking, we can work more effectively to combat these kinds of crimes.”
According to documents filed in this case and statements made in court:
From July 2011 through January 2016, Wahid owned and operated a Halal chicken slaughterhouse business in Perth Amboy, New Jersey. The business operated pursuant to Halal practices, which meant that the live poultry was slaughtered by Muslim individuals. The poultry would then be cleaned and prepared for sale by other employees. During the time that the facility was operational, Wahid and Kabir allegedly employed undocumented persons. The employees were paid approximately $290 a week in cash and would typically work 70 to 100 hours a week, working six or seven days a week. The employees were not paid more if they worked more hours, nor were they given overtime pay. The employees lived in a boarding house in front of the business, for which Wahid allegedly deducted $40 a week from the employees’ pay checks. The boarding house did not have heat or hot water and was infested with insects.
The defendants also employed two Muslim individuals to slaughter the chickens and forced them to continue working at the slaughterhouse. When these two victims complained about the hours they were working and the conditions of the facility (no gloves, masks or proper soap), the defendants allegedly threatened to call the police. The victims were afraid of being arrested and deported and they continued to work until health inspectors closed the business.
The human trafficking charge with which the defendants are charged carries a maximum penalty of 20 years in prison and a $250,000 fine. The harboring undocumented persons for financial gain carries a maximum penalty of 10 years in prison and a fine of $250,000. The violations of the Fair Labor Standards Act carry a maximum of six months in jail and a fine of $10,000.
This case was developed through the efforts of the New Jersey Anti-Trafficking Coordination Team (ACTeam). The District of New Jersey is one of six federal districts designated through a competitive, nationwide selection process as a Phase II ACTeam, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. This case was developed through the collaborative interagency efforts of the U.S. Attorney’s Office, Department of Labor, Department of Homeland Security, FBI, IRS, and Department of Agriculture, with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark. AUSA Williams also serves as the U.S. Attorney’s Human Trafficking coordinator for the District of New Jersey.
U.S. Attorney Fishman credited the Department of Homeland Security, New Jersey Division, under the direction of Special Agent in Charge Terence S. Opiola; the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael Mikulka; the FBI, New Jersey Division, under the direction of Special Agent in Timothy Gallagher; the Department of Labor, Wage and Hour, New Jersey division, under the direction of Special Agent in Charge Charlene Rachor; the U.S. Department of Labor - Wage and Hour Division, Northern New Jersey, under the direction of Director John Warner; IRS-Criminal Investigation, New Jersey Division, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Agriculture, under the direction of Special Agent in Charge William Squires Jr., with the investigation leading to today’s charges.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Wahid: Mohammed Gangat Esq., New York
Kabir: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Two Men Charged with Conspiracy to Distribute CocaineRead the Press Release
NEWARK, N.J. – Two men appeared in federal court today to face distribution conspiracy and possession charges after law enforcement found over two kilograms of cocaine and heroin in their possession, U.S. Attorney Paul J. Fishman announced.
Hasan J. Johnson, 37, of Chester, Pennsylvania, and Jose D. Martinez, 50, of Palisades Park, New Jersey, are each charged by complaint with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. Martinez is also charged with one count of possession with intent to distribute 500 grams or more of cocaine and 100 grams or more of heroin. Both defendants were arrested last night and appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
On Nov. 28, 2016, Johnson – who was observed by law enforcement officers leaving a residence in Palisades Park with a bag – was pulled over after committing several traffic violations. During the ensuing stop, Johnson gave consent to search the vehicle. Afterwards, law enforcement officers allegedly found approximately one kilogram of cocaine in the bag.
Later that night, law enforcement obtained a search warrant for the Palisades Park residence. When they entered the New Jersey Residence they found Martinez in possession a package containing another kilogram of cocaine, as well as 694 grams of heroin.
Both the conspiracy and possession charges carry a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark.
U.S. Attorney Fishman credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to the charges.
Topeka Woman Pleads Guilty to Health Care Fraud Involving Developmentally Disabled AdultsRead the Press Release
TOPEKA, KAN. – A Topeka woman has pleaded guilty to billing Medicaid for services she did not provide to developmentally disabled adult patients, U.S. Attorney Tom Beall and Kansas Attorney General Derek Schmidt said Tuesday.
Kristina Hansel, 45, Topeka, Kan., pleaded guilty Nov. 28 in federal court in Topeka to one count of conspiracy to commit health care fraud. The crimes occurred while Hansel owned and operated Achieve Services, LLC, which was licensed to provide day and residential services to developmentally disabled adults.
In her plea, Hansel admitted the following:
- Billing Medicaid for services not provided.
- Providing false and fraudulent documentation, or no documentation at all.
- Making false and fraudulent statements to obtain and renew her license.
- Failing to hire a Registered Nurse or a License Practical Nurse to provide medical services, including medication administration.
Hansel also admitted that in one case she withheld medical treatment from a patient and directed others to help her cover up medication overdoses so licensing authorities would not learn of the problem.
Sentencing is set for April 17, 2017. The parties have agreed to recommend 30 months in prison and restitution of more than $480,000.
The case was jointly investigated by federal and state authorities and prosecuted by the Kansas Attorney General’s Medicaid Fraud and Abuse Division. Assistant Attorney General Stefani Hepford of Schmidt’s office prosecuted the case against Hansel.
Three Sentenced to Federal Prison for Palo Bank RobberyRead the Press Release
Two men and one woman, who robbed a bank in Palo, Iowa, in May 2016, have each been sentenced to terms of federal imprisonment.
Lance Monden, age 33 from Cedar Rapids, Stanley Mosley, age 36 from Coralville, and Katherine Pihl, age 39 from Tiffin, each received a term of imprisonment after pleading guilty to one count of bank robbery.
Evidence at sentencing and prior court hearings established that the three robbed the Palo Savings Bank on May 20, 2016. At approximately 2:35 p.m. on that day, Monden and Mosley entered the Palo Savings Bank. Both were wearing black masks and hooded sweatshirts. The two yelled at the employees in the bank and went from teller drawer to teller drawer taking cash. Monden and Mosley spent about one minute in the bank before running out the door.
Pihl was waiting outside the bank with a Ford Taurus to use as a getaway car. After leaving the bank, Monden and Mosley got into the trunk of the Taurus. Pihl then drove the Taurus out of Palo and south towards Cedar Rapids. Witnesses saw Monden and Mosley running from the bank wearing masks and then saw the Taurus leaving the area of the bank and reported this information to 911. About seven minutes after the bank robbery, a deputy with the Linn County Sheriff’s Office stopped the Taurus and found Monden and Mosley hiding in the trunk of the car. Law enforcement recovered all the cash stolen from the bank in the trunk of the car and on the persons of Monden and Mosley.
Monden, Mosley and Pihl were sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Monden was sentenced to 120 months’ imprisonment and must also serve a 3-year term of supervised release after the prison term. Mosley was sentenced to 132 months’ imprisonment and must also serve a 3-year term of supervised release after the prison term. Pihl was sentenced to 24 months’ imprisonment and must also serve a 2-year term of supervised release after the prison term. Each must also pay a $100 special assessment. There is no parole in the federal system.
Monden and Mosley are being held in United States Marshal’s custody until they are transported to a federal prison. Pihl was released on conditions of release previously set and is to surrender to the Bureau of Prisons on December 26, 2016.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-00051.
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Tax Return Preparer Sentenced to Three Years in Federal PrisonRead the Press Release
DALLAS — Kevin Troy Jernigan, who owned a tax preparation business in Dallas, was sentenced today by U.S. District Judge David C. Godbey to 36 months in federal prison and ordered to pay more than $112,000 in restitution, following his guilty plea in July 2016 to one count of aiding or assisting in the preparation or presentation of a false or fraudulent individual income tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Jernigan was taken into custody when he entered his guilty plea to the tax offense because of committing multiple violations of his pretrial release.
According to the factual resume filed in the case, since 2007, Jernigan was the owner and a return preparer at The Parks 11 located in Dallas. During tax years 2007 through 2012, Jernigan prepared and filed more than 1,300 tax returns that contained false and inflated deductions and credits which were intended to produce a fraudulently inflated refund to be paid by the IRS. The fraudulently income tax returns caused a tax loss of approximately $2,250,780 to the United States Treasury.
The factual resume further states that in January 2010, Jernigan prepared and filed with the IRS a 2009 tax return on behalf of taxpayer, “CJ.” In preparing and electronically filing that tax return, Jernigan included $27,019 as a Schedule C business loss. Jernigan knew CJ had not incurred the business loss reflected. As a result of the false deduction inserted by Jernigan, the refund was fraudulently inflated to $5,819 and resulted in a tax loss in the amount of $6,432.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Christopher Stokes was in charge of the prosecution.
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Tampa Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Walter M. Fambro has pleaded guilty to theft of government funds and possession of unauthorized access devices. He faces a maximum penalty of 10 years in federal prison for each count. A sentencing date has not yet been set.
According to the facts at the plea hearing, between June 2011 and September 2013, Fambro was involved in a scheme to file false and fraudulent income tax returns with the Internal Revenue Service in order to generate large refunds deposited onto debit cards. When law-enforcement officers arrested Fambro on September 1, 2013, he had 29 debit cards in the names of different individuals in his possession, along with a laptop computer, ledger sheets, and hospital patient records containing the personal identifying information of numerous individuals. The investigation revealed that the IRS had received fraudulent tax returns in the names of many of those individuals which resulted in the delivery of fraudulent income tax refunds, totaling approximately $326,133.00, to debit cards that Fambro used or controlled.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with the assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
St. Petersburg Man Pleads Guilty to Firearm OffenseRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Charles Parker Harrington, III (27, St. Petersburg) today pleaded guilty to possessing a firearm and ammunition as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Harrington was indicted on October 19, 2016.
According to court documents, on August 3, 2016, an officer with the St. Petersburg Police Department initiated a traffic stop on a vehicle in which Harrington was a passenger. Further investigation revealed an outstanding warrant for Harrington’s arrest. The officer detained Harrington, searched him, and found a loaded .380 caliber pistol in his pocket. At the time, Harrington was a convicted felon and therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Sioux Falls Man Charged with Carjacking Appears in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Carjacking.
Jon Henri Bryant, Sr., age 60, was indicted on November 9, 2016. He appeared before U.S. Magistrate Judge Veronica Duffy on November 22, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, on October 25, 2016, Bryant forcefully and violently took a motor vehicle from the victim, who suffered serious bodily injury. Bryant committed the carjacking with the intent to cause death or serious bodily harm.
The charge is merely an accusation and Bryant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Minnehaha County Sheriff’s Office, the Sioux Falls Police Department, the Federal Bureau of Investigation, and the U.S. Marshal’s Service. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Bryant was returned to the custody of the State of South Dakota pending trial. A trial date has not been set.
Rochester Man Pleads Guilty to Robbery and Weapons ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Lowry, 21, of Rochester, NY, pleaded guilty to Hobbs Act robbery and possession of a firearm in furtherance of a crime of violence before U.S. District Judge Charles J. Siragusa for his role in the August 10, 2015, armed robbery of the 7-Eleven Convenience store at 1469 Lake Avenue in Rochester.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, alleged in a previously filed complaint that Lowry and co-defendant Johnny Blackshell entered the 7-Eleven store intending to steal cash and goods. After entering the store, the defendant jumped over the service desk and ordered the employees to the ground. Blackshell pointed a silver handgun at the victim’s head and instructed the victim to open the cash register. The victim opened the cash register, which contained approximately $80 in U.S. currency, and Lowry removed the money. In addition to the money, the defendant and Blackshell took an unknown quantity of cigarettes, tobacco, chewing gum and numerous rolls of scratch-off lottery tickets. Lowry and Blackshell then ran out of the store east toward Lake Avenue. Several of the stolen lottery tickets were redeemed by the defendant and others until the New York Lottery was able to invalidate the stolen tickets.
In addition to the charges related to the convenience store robbery, Lowry also pleaded guilty to possession of a stolen firearm. That charge related to a separate incident, which occurred on August 1, 2015—roughly a week-and-a-half before the 7-Eleven robbery—during which Lowry was found to possess a stolen shotgun. In that regard, on July 29, 2015, Rochester Police officers responded to 1070 Lake Avenue for a report of a burglary occurring at the residence. A resident told officers that intruders entered the house and stole a gun safe that contained three firearms including an AK-47 rifle, a .40 caliber rifle and a 12-gauge shotgun. Subsequently, on August 1, 2015, officers responded to Lowry’s residence at 33 Phelps Avenue in Rochester on an unrelated call for service. While there, officers observed a 12-gauge shotgun on the front porch of the residence, loaded with one round of ammunition. After tracing the firearm's serial number, investigators determined the gun was one of the three stolen on July 29, 2015, from the Lake Avenue residence. One of the other stolen guns, the AK-47 rifle, was later determined to be the murder weapon used in the shooting at the Rochester Boys and Girls Club on August 19, 2015. Johnny Blackshell was convicted in June 2016 on three counts of First Degree Murder in New York State court in connection with that incident.
Federal charges of Hobbs Act robbery and carrying and brandishing a firearm during a crime of violence are still pending against Johnny Blackshell. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The charges to which Lowry pleaded guilty carry a maximum penalty of life in prison and a fine of $250,000.
Today’s plea is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division.
Sentencing is scheduled for March 9, 2017, at 11:00 a.m. before Judge Siragusa.
Residential Properties Forfeited by Heroin and Cocaine Trafficker and Converted to Community Police Officer HousingRead the Press Release
ATLANTA – A federal judge sentenced Elgin Demarco Jordan for heroin and cocaine trafficking and money laundering in connection with a scheme where he used drug proceeds to purchase numerous properties in and around the English Avenue area of Atlanta.
“Jordan victimized this community twice – first by trafficking drugs, and then by using residential properties to conceal the profits from his drug dealing,” said U. S. Attorney John Horn. “As part of his sentence, Jordan agreed to forfeit 14 properties, two of which will become homes to community police officers from the Atlanta Police Department as part of the Secure Neighborhoods program. Through this program, the police officers who serve the English Avenue community become not only homeowners, but neighbors.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The successful prosecution of this case is indeed a victory for drug law enforcement. The collective efforts in this investigation illustrate the true spirit of cooperative law enforcement here in Atlanta. DEA is committed to keeping our communities safe and ultimately the winners in this investigation are the residents in the English Avenue area.”
“Asset forfeiture provides a valuable tool for law enforcement officials, as it is designed to weaken the economic foundations of the illicit drug trade,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The forfeiture of Elgin Jordan’s properties is a great example of this tool at work. We are proud to work hand-in-hand with our law enforcement partners and will continue to provide our financial expertise in narcotics investigations.”
“In partnership with the U.S. Attorney’s Office, the Atlanta Police Department has removed another dangerous and predatory criminal from the City of Atlanta,” said Atlanta Police Chief George N. Turner. “Mr. Jordan’s scheme of using drug money to buy up valuable real estate has backfired and we can now have officers in the English Avenue neighborhood 24 hours a day so the residents in that area will feel safe and protected. The Atlanta Police Department is committed to cracking down on criminal activity and individuals that threaten the safety and quality of life for Atlanta residents and visitors.”
“The Atlanta Police Foundation is spearheading a public safety strategy through our Westside Security Plan to address the safety concerns on Atlanta’s Westside,” said Dave Wilkinson, President and CEO, Atlanta Police Foundation. “The addition of these two properties to our Secure Neighborhoods program will allow us to provide homeownership opportunities for Atlanta police officers to become residents of the communities they protect and serve.”
According to U.S. Attorney Horn, the charges and other information presented in court: From at least February 2010 to July 2015, Elgin Jordan distributed kilogram quantities of cocaine and half-kilogram quantities of heroin using Northwest Atlanta as his base. To conceal the profits from his illegal drug trade, he laundered the money by structuring cash deposits into bank accounts and then used those funds to purchase numerous properties, often with the help and in the name of family members or other individuals. As of July 2015, Jordan controlled properties with a total tax assessed value of approximately $1.5 million, several of which were residential properties in and around the English Avenue area of Atlanta, Georgia.
Federal law allows for the forfeiture of property used to facilitate or commit felony drug offenses, as well as property involved in money laundering. As a part of Jordan’s plea agreement and the judgment in the case, Jordan forfeited his interest in 14 properties he acquired in connection with his crimes.
As a result of a partnership and collaboration between the Department of Justice and community groups, two of the forfeited properties located in the English Avenue neighborhood will be turned over to the Atlanta Police Department and the Atlanta Police Foundation, to be renovated and used to provide homes for Atlanta Police Officers who will help staff the community policing force in the neighborhood.
The goal of the Atlanta Police Foundation’s Secure Neighborhoods Initiative is to improve public safety by placing police in Atlanta neighborhoods through housing opportunities. The initiative offers sworn police officers—who are committed to living in the communities they protect and serve—affordable options, incentives to stay, and clear pathways to homeownership. As individuals from the police department become pillars in their communities, it increases the neighborhood's stability and overall security.
Elgin Demarco Jordan, 42, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to eight years in prison to be followed by four years of supervised release. Jordan was convicted on these charges on June 3, 2016, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration, Atlanta Police Department, and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Garrett L. Bradford and Michael J. Brown prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Reno Man Pleads Guilty to Conspiracy to Provide Material Support to TerroristsRead the Press Release
RENO, Nev. - Balwinder Singh, 42, of Reno, pleaded guilty today to conspiracy to provide material support and resources to terrorists knowing and intending that such support would be used to commit terrorist attacks overseas.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
“Singh attempted to provide material support and resources to terrorists to create violence and disruption abroad,” said Acting Assistant Attorney General McCord. “Identifying, thwarting and holding accountable individuals who pursue international terrorism is a top priority of the Department of Justice.”
“Today’s plea is the result of the FBI’s Joint Terrorism Task Force working proactively to disrupt terrorist attacks,” said U.S. Attorney Bogden. “National security is a top priority for the U.S. Attorney’s Office and we will continue to work with our law enforcement partners to locate, identify, and prosecute those who conspire and attempt to provide material support to terrorists and terrorist activities.”
“This is a strong indicator of the law enforcement community’s commitment to combating terrorism and keeping our nation safe,” said Special Agent in Charge Rouse.
Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, pleaded guilty before U.S. District Judge Larry R. Hicks to one count of conspiracy to provide material support to terrorists. He has been detained since his arrest on Dec. 17, 2013. He was charged on Dec. 18, 2013. Singh is a citizen of India and permanent U.S. resident.
According to court filed documents and admissions made in connection with the plea agreement, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India.
Singh communicated with co-conspirators by telephone to discuss these plans and agreed to provide material support by facilitating a co-conspirator’s travel to and within South Asia and providing funding and materials necessary to carry out an overseas attack.
In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to South Asia in the fall of 2013. Upon arrival, the co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.
In November 2013, Singh purchased two sets of night vision goggles. In December 2013, he provided the night vision goggles to a co-conspirator who was going to carry out the planned attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack with the night vision goggles provided to him by Singh. U.S. law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.
At the time of sentencing, under the plea agreement, Singh faces the statutory maximum penalty of 15 years in prison. 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. Sentencing has been set for Feb. 27, 2017.
The case is being investigated by the FBI-led Joint Terrorism Task Force in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Naval Criminal Investigative Service and Nevada Department of Investigation. In addition, ATF, U.S. Citizenship and Immigration Services and the Washoe County Sheriff’s Office provided assistance in the investigation.
Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan, Carla Higginbotham, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section are prosecuting the case.
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Raymond Man Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Raymond Dostie, Jr., 61, of Raymond, pleaded guilty in federal court to one count of Theft of Public Money.
According to public records in the case and statements made in court, Dostie began receiving Social Security disability benefits in December 2005. In September 2012, Dostie started working as a personal care attendant. His income from this job rendered him ineligible to receive any disability benefits. Dostie did not report this work activity to the Social Security Administration (SSA), but instead, he falsely told the SSA that he had worked part-time as a driver and a custodian, only, reporting wages that did not affect his eligibility for benefits. In early 2015, Dostie admitted to investigators that he had concealed his work and income as a personal care attendant from the SSA in order to continue receiving disability benefits. To that end, from September 2012 through December 2014, Dostie stated that he was paid for this work by checks, all of which were made payable to his wife, because he knew these earnings would have rendered him ineligible for benefits. As a result of his concealment, Dostie was able to convert approximately $68,140.90 in disability benefits to his own use that he would not have received if the SSA had been aware of his actual work activity and income.
Dostie is scheduled to be sentenced on March 8, 2017.
The case was investigated by the Social Security Administration’s Office of the Inspector General and the Department of Health and Human Services’ Office of the Inspector General, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Public Safety Funding Available to Federally-Recognized Tribes and Tribal ConsortiaRead the Press Release
The Department of Justice today announced the opening of the grant solicitation period for comprehensive funding to American Indian and Alaska Native tribal governments and tribal consortia to support public safety, victim services and crime prevention. The department’s Fiscal Year (FY) 2017 Coordinated Tribal Assistance Solicitation (CTAS) posts today at https://www.justice.gov/tribal/open-solicitations.
“The CTAS program is a cornerstone of the Justice Department’s partnership with sovereign tribal nations,” said Attorney General Loretta E. Lynch. “By providing tribes and villages with critical funding for everything from law enforcement equipment to programs for native youth and victims of crime, the CTAS program gives tribes the resources they need to address the particular challenges they face. I encourage tribes and villages to take advantage of this program, and I look forward to continuing our work with our tribal partners to build stronger and safer communities for all.”
The Department of Justice launched CTAS in FY 2010 in direct response to concerns raised by tribal leaders about the department’s grant process that did not provide the flexibility tribes needed to address their criminal justice and public safety needs. The department designed this comprehensive approach to save time and resources and allow tribes and the department to gain a better understanding of the tribes’ overall public safety needs.
The department’s Office of Community Oriented Policing Services (COPS), Office on Violence Against Women (OVW) and the Office of Justice Programs (OJP), specifically OJP’s Bureau of Justice Assistance (BJA), Office of Juvenile Justice and Delinquency Prevention (OJJDP) and Office for Victims of Crime (OVC) all award funding under CTAS. The funding can be used to enhance law enforcement, bolster adult and juvenile justice systems, prevent and control juvenile delinquency, serve native victims of crime and support other efforts to combat crime.
Grantees submit applications for CTAS online through DOJ’s Grants Management System (GMS). Applicants must register with GMS at https://grants.ojp.usdoj.gov/gmsexternal/
prior to submitting an application. The application deadline is 9:00 p.m. Eastern Standard Time (EST), Feb. 28, 2017. Applicants are strongly urged to apply in advance of the deadline.
For the FY 2017 CTAS, a tribe or tribal consortium will submit a single application and select from any or all of the nine competitive grant programs referred to as “purpose areas.” This approach allows the department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.
The nine purpose areas (PA) are:
- PA1 - Public Safety and Community Policing (COPS)
- PA2 - Comprehensive Tribal Justice Systems Strategic Planning (BJA)
- PA3 - Justice Systems and Alcohol and Substance Abuse (BJA)
- PA4 - Corrections and Correctional Alternatives (BJA)
- PA5 - Violence Against Women Tribal Governments Program (OVW)
- PA6 - Victims of Crime: Children’s Justice Act Partnerships for Indian Communities (OVC)
- PA7 - Victims of Crime: Comprehensive Victim Assistance (OVC)
- PA8 - Juvenile Healing to Wellness Courts (OJJDP)
- PA9 - Tribal Youth Program (OJJDP)
Tribes or tribal consortia may also be eligible for non-tribal specific federal grant programs and are encouraged to explore these other funding opportunities. Additional funding information may be found at the department’s Tribal Justice and Safety website at www.justice.gov/tribal or the www.grants.gov.
Today’s announcement is part of the department’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
Pharmacist Sentenced to 4 Years for Illegally Distributing Approximately 100,000 Oxycodone Tablets, Medicare Fraud, and Money LaunderingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LILIAN JAKACKI, a/k/a/ “Lilian Wieckowski,” was sentenced today by U.S. District Judge Jed Rakoff to four years in prison for illegally distributing 100,000 tablets of oxycodone, Medicare fraud, and money laundering. JAKACKI pled guilty on July 28, 2016, before Judge Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “Through her pharmacies in Queens and Brooklyn, Lilian Jakacki dumped 100,000 illegally diverted oxycodone pills into the City’s streets. Driven by greed, Jakacki abused her pharmacy license, helping to fuel the opioid abuse epidemic that is ravaging too many of our communities. For her crimes, Jakacki will spend four years in prison and forfeit her ill-gotten gains.”
According to the allegations in the Indictment and the civil Complaint, and other information in the public record:
Between in or about March 2010 and October 2015, JACKACKI owned and operated two pharmacies in Queens and Brooklyn doing business as “Chopin Chemists.” During that time period, at these pharmacies, JACKACKI knowingly distributed approximately 100,000 tablets of oxycodone based on fraudulent prescriptions, including prescriptions made out in the names of famous luxury brands, such as Coach and Chanel. In addition, JACKACKI used the proceeds of that illegal narcotics trade to help finance the purchase of a multimillion-dollar home. Finally, JACKACKI deliberately overbilled Medicare by more than $500,000, submitting reimbursement claims for medication that she never actually distributed to patients.
In addition to the prison term, JACKACKI was also directed to forfeit $800,000 and to pay restitution of $520,000.
Mr. Bharara praised the outstanding investigative work of the DEA’s Tactical Diversion Squad, the U.S. Internal Revenue Service, and the U.S. Department of Health and Human Services. The DEA’s Tactical Diversion Group includes agents and officers of the DEA, the New York City Police Department, the New York State Police, the Town of Orangetown Police Department, and the Westchester County Police Department.
The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Sidhardha Kamaraju, Jordan Estes, and Louis A. Pellegrino are in charge of the prosecution.
North Carolina Man Pleads Gulty to Attempting to Commit an Act of Terrorism Transcending National BoundariesRead the Press Release
ASHEVILLE, N.C. – Justin Nojan Sullivan, 20, of Morganton, North Carolina, appeared in federal court in Asheville, North Carolina today and pleaded guilty to one count of attempting to commit an act of terrorism transcending national boundaries.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division. U.S. District Judge Martin Reidinger presided over Sullivan’s plea hearing.
“Sullivan was in contact and plotted with now-deceased Syria-based terrorist Junaid Hussain to execute acts of mass violence in the United States in the name of the Islamic State of Iraq and the Levant (ISIL),” said Acting Assistant Attorney General McCord. “Counterterrorism remains our highest priority and we will continue to identify and hold accountable those who seek to commit acts of terrorism within our borders.”
“Sullivan admitted in court today that he attempted to commit acts of terrorism transcending national boundaries by planning mass casualty shooting attacks on behalf of ISIL against innocent people in North Carolina and Virginia. Sullivan also admitted he had frequent and direct communications with Junaid Hussain, one of ISIL’s prominent members in Syria, who asked Sullivan to make a video of the deadly attack,” said U.S. Attorney Rose. “There is no more important work that we in the Department of Justice undertake than the fight against terrorism. It is frightening to know that the defendant in this case was able to use social media to contact and seek advice from ISIL, a murderous organization. Yet, it emboldens us to be fiercely aggressive and diligent in our efforts to combat this special kind of evil.” U.S. Attorney Rose added.
“Justin Sullivan planned to kill hundreds of innocent people. He pledged his support to ISIL and took calculated steps to commit a murderous rampage to prove his allegiance to the terrorist organization. There is no higher priority for the FBI than to thwart the next terrorist attack. This case is proof of what law enforcement agencies can accomplish to disrupt terrorist activities of any kind,” said Special Agent in Charge Strong.
According to information contained in plea documents, starting no later than September 2014, Sullivan watched violent ISIL attacks on the Internet, such as beheadings, and collected them on his laptop computer. Court records indicate that Sullivan openly expressed support for ISIL in his home and destroyed religious items that belonged to his parents.
Beginning no later than June 7, 2015, Sullivan conspired with Junaid Hussain, a prominent ISIL member responsible for online recruitment and providing directions and inspiration for terrorist plots in Western countries, to plan mass shooting attacks in North Carolina and Virginia. Sullivan discussed those plans on social media with an undercover FBI employee (UCE), who Sullivan attempted to recruit to join in such attacks.
Court documents indicate that Sullivan told the UCE via social media that it was better to remain in the United States to support ISIL than to travel. Sullivan suggested that the UCE obtain weapons and told the UCE that he was planning to buy a semi-automatic AR-15 rifle at an upcoming gun show in Hickory, North Carolina. On or about June 20, 2015, Sullivan attempted to purchase hollow point ammunition to be used with the weapon(s) he intended to purchase.
According to court records, Sullivan had researched on the Internet how to manufacture firearm silencers and asked the UCE to build functional silencers that they could use to carry out the planned attacks. Court records show that Sullivan told the UCE he planned to carry out his attack in the following few days at a concert, bar or club, where he believed as many as 1,000 people would be killed using the assault rifle and silencer.
Filed documents indicate that over the course of Sullivan’s communications with Junaid Hussain, Hussain had asked Sullivan to make a video of his planned terrorist attack, to which Sullivan had agreed.
On or about June 19, 2015, the silencer, which was built according to Sullivan’s instructions, was delivered to him at his home in North Carolina, where Sullivan’s mother opened the package, according to court records. Sullivan took the silencer from his mother and hid it in a crawl space under his house. When Sullivan’s parents questioned him about the silencer, Sullivan, believing that his parents would interfere with his plans to carry out an attack, offered to compensate the UCE to kill them.
In filed plea documents, Sullivan admitted that he took substantial steps towards carrying out terrorist attacks in North Carolina and Virginia by: (1) recruiting the UCE; (2) obtaining a silencer from the UCE; (3) procuring the money that would have enabled him to purchase the AR-15; (4) trying to obtain a specific type of ammunition that he believed would be the most “deadly”; (5) identifying separate gun shows where he and the UCE could purchase AR-15s; and (6) obtained coupons for the gun shows he planned for himself and the UCE to attend on June 20 or 21, 2015.
According to filed documents, on June 19, 2015, Sullivan was arrested at his parents’ home, where law enforcement also executed a search warrant for the silencer and other items. Law enforcement interviewed Sullivan on separate occasions following his arrest. Sullivan also provided false statements on his involvement in the murder of his neighbor, John Bailey Clark, who had been killed in December 2014. Sullivan later admitted that he had stolen the rifle from his father’s gun cabinet and hid it in the crawl space. Forensic testing shows that the .22 rifle hidden by Sullivan was used to murder Mr. Clark.
The grand jury alleged that Sullivan also killed Mr. Clark, but Sullivan did not admit to this act in his plea today. However, in the plea documents filed, the United States Attorney set forth evidence supporting this allegation and specifically reserved the Government’s right to prove this additional conduct at Sullivan’s sentencing hearing.
The District Attorney’s Office for North Carolina’s 25th Prosecutorial District, which includes Burke, Caldwell and Catawba Counties, is handling North Carolina’s prosecution of Sullivan for Clark’s murder.
Sullivan is currently in federal custody. According to the filed plea agreement, Sullivan pleaded guilty to Count Nine of the Superseding Indictment, which charged him with attempting to commit an act of terrorism transcending national boundaries, an offense that carries a maximum penalty of life in prison. Under the plea agreement, the parties have agreed that a sentence of life in prison is an appropriate sentence.
In making today’s announcement, Acting Assistant Attorney General McCord and U.S. Attorney Rose thanked District Attorney David Learner for his office’s continued assistance and coordination. Both also praised the investigative efforts of the FBI, the Burke County Sheriff’s Office and the North Carolina State Bureau of Investigation in this case. Acting Assistant Attorney General McCord and U.S. Attorney Rose also thanked the U.S. Postal Inspection Service’s Charlotte Division, the FBI’s Washington Field Office, the U.S. Attorney’s Office for the Eastern District of Virginia, the U.S. Customs and Border Protection in Charlotte, the North Carolina Highway Patrol and the Hickory Police Department for their assistance in this investigation.
The case is being prosecuted by Assistant U.S. Attorney Michael E. Savage of the Western District of North Carolina and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism section.
North Carolina Man Pleads Guilty to Attempting to Commit an Act of Terrorism Transcending National BoundariesRead the Press Release
Justin Nojan Sullivan, 20, of Morganton, North Carolina, appeared in federal court in Asheville, North Carolina today and pleaded guilty to one count of attempting to commit an act of terrorism transcending national boundaries.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division. U.S. District Judge Martin Reidinger presided over Sullivan’s plea hearing.
“Sullivan was in contact and plotted with now-deceased Syria-based terrorist Junaid Hussain to execute acts of mass violence in the United States in the name of the Islamic State of Iraq and the Levant (ISIL),” said Acting Assistant Attorney General McCord. “Counterterrorism remains our highest priority and we will continue to identify and hold accountable those who seek to commit acts of terrorism within our borders.”
“Sullivan admitted in court today that he attempted to commit acts of terrorism transcending national boundaries by planning mass casualty shooting attacks on behalf of ISIL against innocent people in North Carolina and Virginia. Sullivan also admitted he had frequent and direct communications with Junaid Hussain, one of ISIL’s prominent members in Syria, who asked Sullivan to make a video of the deadly attack,” said U.S. Attorney Rose. “There is no more important work that we in the Department of Justice undertake than the fight against terrorism. It is frightening to know that the defendant in this case was able to use social media to contact and seek advice from ISIL, a murderous organization. Yet, it emboldens us to be fiercely aggressive and diligent in our efforts to combat this special kind of evil.” U.S. Attorney Rose added.
“Justin Sullivan planned to kill hundreds of innocent people. He pledged his support to ISIL and took calculated steps to commit a murderous rampage to prove his allegiance to the terrorist organization. There is no higher priority for the FBI than to thwart the next terrorist attack. This case is proof of what law enforcement agencies can accomplish to disrupt terrorist activities of any kind,” said Special Agent in Charge Strong.According to information contained in plea documents, starting no later than September 2014, Sullivan watched violent ISIL attacks on the Internet, such as beheadings, and collected them on his laptop computer. Court records indicate that Sullivan openly expressed support for ISIL in his home and destroyed religious items that belonged to his parents.
Beginning no later than June 7, 2015, Sullivan conspired with Junaid Hussain, a prominent ISIL member responsible for online recruitment and providing directions and inspiration for terrorist plots in Western countries, to plan mass shooting attacks in North Carolina and Virginia. Sullivan discussed those plans on social media with an undercover FBI employee (UCE), who Sullivan attempted to recruit to join in such attacks.
Court documents indicate that Sullivan told the UCE via social media that it was better to remain in the United States to support ISIL than to travel. Sullivan suggested that the UCE obtain weapons and told the UCE that he was planning to buy a semi-automatic AR-15 rifle at an upcoming gun show in Hickory, North Carolina. On or about June 20, 2015, Sullivan attempted to purchase hollow point ammunition to be used with the weapon(s) he intended to purchase.
According to court records, Sullivan had researched on the Internet how to manufacture firearm silencers and asked the UCE to build functional silencers that they could use to carry out the planned attacks. Court records show that Sullivan told the UCE he planned to carry out his attack in the following few days at a concert, bar or club, where he believed as many as 1,000 people would be killed using the assault rifle and silencer.
Filed documents indicate that over the course of Sullivan’s communications with Junaid Hussain, Hussain had asked Sullivan to make a video of his planned terrorist attack, to which Sullivan had agreed.
On or about June 19, 2015, the silencer, which was built according to Sullivan’s instructions, was delivered to him at his home in North Carolina, where Sullivan’s mother opened the package, according to court records. Sullivan took the silencer from his mother and hid it in a crawl space under his house. When Sullivan’s parents questioned him about the silencer, Sullivan, believing that his parents would interfere with his plans to carry out an attack, offered to compensate the UCE to kill them.
In filed plea documents, Sullivan admitted that he took substantial steps towards carrying out terrorist attacks in North Carolina and Virginia by: (1) recruiting the UCE; (2) obtaining a silencer from the UCE; (3) procuring the money that would have enabled him to purchase the AR-15; (4) trying to obtain a specific type of ammunition that he believed would be the most “deadly”; (5) identifying separate gun shows where he and the UCE could purchase AR-15s; and (6) obtained coupons for the gun shows he planned for himself and the UCE to attend on June 20 or 21, 2015.
According to filed documents, on June 19, 2015, Sullivan was arrested at his parents’ home, where law enforcement also executed a search warrant for the silencer and other items. Law enforcement interviewed Sullivan on separate occasions following his arrest. Sullivan also provided false statements on his involvement in the murder of his neighbor, John Bailey Clark, who had been killed in December 2014. Sullivan later admitted that he had stolen the rifle from his father’s gun cabinet and hid it in the crawl space. Forensic testing shows that the .22 rifle hidden by Sullivan was used to murder Mr. Clark.
The grand jury alleged that Sullivan also killed Mr. Clark, but Sullivan did not admit to this act in his plea today. However, in the plea documents filed, the United States Attorney set forth evidence supporting this allegation and specifically reserved the Government’s right to prove this additional conduct at Sullivan’s sentencing hearing.
The District Attorney’s Office for North Carolina’s 25th Prosecutorial District, which includes Burke, Caldwell and Catawba Counties, is handling North Carolina’s prosecution of Sullivan for Clark’s murder.
Sullivan is currently in federal custody. According to the filed plea agreement, Sullivan pleaded guilty to Count Nine of the Superseding Indictment, which charged him with attempting to commit an act of terrorism transcending national boundaries, an offense that carries a maximum penalty of life in prison. Under the plea agreement, the parties have agreed that a sentence of life in prison is an appropriate sentence.In making today’s announcement, Acting Assistant Attorney General McCord and U.S. Attorney Rose thanked District Attorney David Learner for his office’s continued assistance and coordination. Both also praised the investigative efforts of the FBI, the Burke County Sheriff’s Office and the North Carolina State Bureau of Investigation in this case. Acting Assistant Attorney General McCord and U.S. Attorney Rose also thanked the U.S. Postal Inspection Service’s Charlotte Division, the U.S. Secret Service, the North Carolina Highway Patrol, the U.S. Attorney’s Office of the Eastern District of Virginia, the FBI’s Washington Field Office and the Hickory Police Department for their assistance in this investigation.
The case is being prosecuted by Assistant U.S. Attorney Michael E. Savage of the Western District of North Carolina and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism section.
Non-Native Man from Rio Arriba County Sentenced to Prison for Assaulting Native American WomanRead the Press Release
ALBUQUERQUE – Deandre Lamont Brown, 29, a non-Native man who resides in Dulce, N.M., was sentenced today in federal court in Santa Fe, N.M., to 12 months in prison for assaulting his intimate partner. Brown will be on supervised release for three years after completing his prison sentence.
Brown was arrested on April 17, 2015, on an indictment charging him with assaulting his intimate partner, an Indian woman, by strangling or suffocation. According to the indictment, Brown committed the crime on Oct. 3, 2014, on the Jicarilla Apache Reservation in Rio Arriba County, N.M.
On Jan. 12, 2016, Brown pled guilty to the indictment and admitted assaulting the victim, a Native American woman who was his intimate partner, by strangling and suffocating her.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
New York Man Sentenced for Computer Hacking That Shut Down Internet Service ProviderRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dariusz J. Prugar, age 32, of Syracuse, New York, was sentenced today by United States District Court Judge Sylvia H. Rambo in Harrisburg, to 24 months in prison for computer hacking and wire fraud. In March 2016, a jury convicted Prugar of these offenses after a one-week jury trial.
Judge Rambo ordered Prugar to pay $26,000 in restitution. Judge Rambo also ordered Prugar to report to the Bureau of Prisons on December 27, 2016, to begin service of his prison sentence.
According to United States Attorney Bruce D. Brandler, Prugar was the network administrator for Pa Online, an internet service provider formerly located in Enola, Pennsylvania. Prugar was fired by Pa Online in June 2010. Days later, Prugar retaliated against his former employer by secretly hacking into the business’s computer network.
Prugar installed computer programs throughout the internet service provider’s network, which caused files and directories to be erased and ultimately caused the network to crash. For approximately a week, Pa Online was unable to provide sustained service to over 5,000 residential customers and over 500 business customers. He also installed numerous “backdoor” entry points into the network so that he could access the network again.
Over a dozen former employees, outside consultants, and former clients of Pa Online testified about the impact the outage had on them. Former employees and outside consultants hired by Pa Online testified that the crash caused them to work for days attempting to return service. Former customers described their inability to access tools essential to their businesses, which resulted in the customers terminating their relationship with Pa Online. Out of fear that Prugar would re-sabotage the business, the owner of Pa Online testified he had the entire network rebuilt.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Michael A. Consiglio and Carl D. Marchioli prosecuted the case.
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New Haven Man Sentenced to 87 Months for Distributing Fentanyl-Laced Cocaine Involved in Spate of OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that FRANK PINA, 57, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 87 months of imprisonment, followed by four years of supervised release, for distributing fentanyl-laced cocaine that led to three overdose deaths in New Haven in June.
According to court documents and statements made in court, on June 23, 2016, 17 individuals in New Haven overdosed after consuming narcotics. Three of the victims died. An investigation conducted by the DEA and New Haven Police Department revealed that many or all of the victims believed the substance they were consuming was cocaine. However, DEA laboratory testing indicated the cocaine was laced with fentanyl, a powerful opioid that can be at least 50 times more powerful than heroin.
The investigation revealed that PINA supplied drugs through various middlemen to several of the individuals who overdosed, including the three who died, on June 23, 2016. The investigation further revealed that the day before the overdoses occurred, PINA was discharged from the hospital after having overdosed on the same drugs that he subsequently distributed.
“This defendant sold cocaine laced with fentanyl creating a lethal cocktail that tragically stole three lives,” said U.S. Attorney Daly. “He himself spent three days in the hospital having overdosed on the same toxic mixture. His crime is all the more shameful as he was fully aware of the acute danger of the cocaine he was peddling. His actions reflect a callous disregard for human life and were motivated solely by profit. I commend the DEA Task Force, the New Haven Police and all the emergency medical personnel who responded on that terrible day in June. Their swift actions saved lives that day and their ongoing investigative work during this opioid epidemic continues to save lives.”
“Anytime there is a loss of life involving a drug overdose it is a tragic event; but even more so in this case given the number of victims in less than one day,” said Special Agent in Charge Ferguson. “Those suffering from the disease of fentanyl and heroin addiction need access to treatment and recovery. But, those responsible for distributing these lethal drugs to the citizens of New Haven need to be held accountable for their actions. In response to the ongoing opioid epidemic, DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
PINA has been detained since his arrest on June 27. On August 4, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, controlled substances.
PINA’s criminal history includes multiple state felony convictions, and a federal felony drug conviction in 2004.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the New Haven Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Nevada Man Pleads Guilty to Conspiracy to Provide Material Support to TerroristsRead the Press Release
Balwinder Singh, 42, of Reno, Nevada, pleaded guilty today to conspiracy to provide material support and resources to terrorists knowing and intending that such support would be used to commit terrorist attacks overseas.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
“Singh attempted to provide material support and resources to terrorists to create violence and disruption abroad,” said Acting Assistant Attorney General McCord. “Identifying, thwarting and holding accountable individuals who pursue international terrorism is a top priority of the Department of Justice.”
“Today’s plea is the result of the FBI’s Joint Terrorism Task Force working proactively to disrupt terrorist attacks,” said U.S. Attorney Bogden. “National security is a top priority for the U.S. Attorney’s Office and we will continue to work with our law enforcement partners to locate, identify, and prosecute those who conspire and attempt to provide material support to terrorists and terrorist activities.”
“This is a strong indicator of the law enforcement community’s commitment to combating terrorism and keeping our nation safe,” said Special Agent in Charge Rouse.
Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, pleaded guilty before U.S. District Judge Larry R. Hicks to one count of conspiracy to provide material support to terrorists. He has been detained since his arrest on Dec. 17, 2013. He was charged on Dec. 18, 2013. Singh is a citizen of India and permanent U.S. resident.
According to court filed documents and admissions made in connection with the plea agreement, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India.
Singh communicated with co-conspirators by telephone to discuss these plans and agreed to provide material support by facilitating a co-conspirator’s travel to and within South Asia and providing funding and materials necessary to carry out an overseas attack.
In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to South Asia in the fall of 2013. Upon arrival, the co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.
In November 2013, Singh purchased two sets of night vision goggles. In December 2013, he provided the night vision goggles to a co-conspirator who was going to carry out the planned attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack with the night vision goggles provided to him by Singh. U.S. law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.
At the time of sentencing, under the plea agreement, Singh faces the statutory maximum penalty of 15 years in prison. 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. Sentencing has been set for Feb. 27, 2017.
The case is being investigated by the FBI-led Joint Terrorism Task Force in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Naval Criminal Investigative Service and Nevada Department of Investigation. In addition, ATF, U.S. Citizenship and Immigration Services and the Washoe County Sheriff’s Office provided assistance in the investigation.Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan, Carla Higginbotham, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section are prosecuting the case.
Naugatuck Man Sentenced to Prison for Stealing $120K from ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER SCULL, 37, of Naugatuck, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, from approximately June 2011 to January 2014, SCULL, while employed as an insurance agent with Bankers Life & Casualty Company, stole nearly $120,000 from seven clients. Most of the money was stolen from two vulnerable victims.
As part of the scheme, SCULL induced one victim to make withdrawals from her annuity and give the money to SCULL by falsely representing that the victim owed certain fees in connection with the account. SCULL caused the victim to submit an annuity withdrawal form and, after the victim received a check in the mail from Bankers Life, SCULL directed the victim to deposit the money into her account and write SCULL a personal check. SCULL then used the money for his own benefit.
On December 16, 2015, SCULL pleaded guilty to two counts of mail fraud.
Chief Judge Hall ordered SCULL to pay restitution in the amount of $119,965.38.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Military Men Admit to Human SmugglingRead the Press Release
CORPUS CHRISTI, Texas – Two active duty Army soldiers have entered guilty pleas to smuggling two illegal aliens through a U.S. Border Patrol (BP) checkpoint, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement's Homeland Security Investigations (HSI).
Marco Antonio Nava Jr., 19, and Joseph Edmond Cleveland, 25, both of El Paso, admitted they smuggled two Illegal aliens through the BP checkpoint in Falfurrias. They claimed that they were approached by a man who offered to give them $1,500 if they came to the valley to drive two illegal aliens through the checkpoint. On June 19, 2016, the defendants approached the checkpoint with the two illegal aliens in the rear passenger seats of the vehicle. The BP agent asked one of the passengers if he had documents to be in the United States legally to which he said no. Both passengers were ultimately found to be aliens unlawfully present in the U.S. and taken into custody.
Upon questioning, the illegal aliens stated they crossed into the country eight days prior and had been moved to two different trailer homes. On the day of their arrest, they were told by a person in the trailer home that someone was going to come to pick them up and take them Houston. Nava was driving and told them to get into the vehicle. Once inside, the illegal aliens were told they were going to go through an immigration checkpoint and were coached as what to answer to the agent's questions at the checkpoint.
Nava and Cleveland face up to 10 years in federal prison. They were permitted to remain on bond pending sentencing, which is set for Feb. 9, 2017.
HSI conducted the investigation. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
Miami-Dade County Resident Charged with Money LaunderingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announced federal money laundering charges against Miami-Dade County resident Luis Hernandez-Gonzalez.
Hernandez-Gonzalez, 45, of Miami Lakes, appeared in federal court today before U.S. Magistrate Judge Patrick A. White and was arraigned on an Indictment charging:
- 18 U.S.C. § 1956(h) - Conspiracy to Commit Money Laundering
- 18 U.S.C. §§ 1956(a)(1)(B)(ii) and 1957 - Money Laundering
- 31 U.S.C. § 5324(a)(1) - Structuring to Avoid Reporting Requirements
The Indictment alleges that Mr. Hernandez-Gonzalez avoided and attempted to avoid currency reporting rjavascript:void('Copy')equirements that apply to currency deposits exceeding $10,000 at financial institutions and to the purchase of money orders in amounts in excess of $3,000 at United States post offices. The Indictment further alleges that Mr. Hernandez-Gonzalez committed money laundering by conducting financial transactions in amounts over $10,000 using the proceeds of the manufacture, importation, and distribution of a controlled substance and by conducting financial transactions designed to avoid currency reporting requirements with proceeds of the manufacture, importation, and distribution of a controlled substance.
An Indictment is merely an accusation and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Mr. Ferrer commended the investigative efforts of USPIS, the U.S. Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigation (IRS-CI), and Miami-Dade Police Department (MDPD). The case is being prosecuted by Assistant United States Attorney Elijah Levitt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medical Office Manager Sentenced for $200K Bank FraudRead the Press Release
RICHMOND, Va. – Pamela Minor-Chiles, 47, of Chesterfield, was sentenced today to one year in prison for misappropriating approximately $200,000 from a medical practice.
Minor-Chiles pleaded guilty to a criminal information on August 17. According to court documents, from 2007 through 2012, while the office manager of the Central Virginia OB/GYN Associates (CVOG), Minor-Chiles misappropriated approximately $200,000 from the practice. Minor-Chiles wrote numerous checks on the CVOG operating account at SunTrust Bank and fraudulently deposited them into her personal accounts at Bank of America. Minor-Chiles concealed the misappropriations by putting fraudulent entries on the check stubs to make it appear that the checks were written to outside vendors for legitimate expenses of the practice and then submitted the fraudulent check stubs to the outside accountants.
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 M. Hannah Lauck. Assistant U.S. Attorney David T. Maguire 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-83.
Maryland Man Sentenced to 7 1/2-Year Prison Term for Sexually Abusing 12-Year-OldRead the Press Release
WASHINGTON – Enrique Carbajal, 25, of Wheaton, Md., was sentenced today to 90 months in prison on a charge of first-degree sexual abuse of a child for sexually abusing a 12-year-old girl this year in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Carbajal pled guilty in September 2016, in the Superior Court of the District of Columbia, before the Honorable José M. Lopez. The plea, which was subject to the Court’s approval, called for a prison sentence of 90 months. Judge Lopez accepted the plea today and sentenced the defendant accordingly. Following his prison term, Carbajal will be placed on five years of supervised release. He also must register as a sex offender for ten years after his prison term and pay $1,000 in restitution.
According to the government’s evidence, on March 26, 2016, Carbajal contacted the victim’s mother to ask whether he could come to her house in Northwest Washington to have lunch with the child. When the mother told him that the child was not likely to be home, he went there regardless. At about noon that day, the child opened the door and allowed Carbajal to come inside. He then sexually assaulted the child inside of her parent’s bedroom. At the conclusion of the assault, Carbajal took the victim to his apartment in Wheaton.
Once inside the apartment, Carbajal approached his roommate with the victim and described her as “a piece of new meat.” According to the government’s evidence, the roommate then took the victim into a bedroom and sexually assaulted the child. Then, both Carbajal and the roommate took the child to a party in Alexandria, Va., where the roommate once again sexually assaulted the child inside a bedroom.
Both Carbajal and the roommate were arrested in Montgomery County, Md., on June 3, 2016, and have been held in jail during the pendency of their cases. The roommate pled guilty to one count of second-degree rape in the Circuit Court for Montgomery County on Aug. 17, 2016. He will be sentenced on Dec. 7, 2016, before the Honorable Mary McCormick.
In announcing the sentence, U.S. Attorney Phillips commended the work performed by those who investigated the case from the FBI's Child Exploitation Task Force, the Metropolitan Police Department’s Youth Division, the Special Victims Investigation Division of the Montgomery County, Md. Department of Police, the Montgomery County State’s Attorney’s Office in Maryland, and the Office of the Commonwealth Attorney in Alexandria, Va. He also acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Tiffany Jones and Lashaune Briggs, Victim/Witness Advocate Yvonne Bryant, Witness Security Specialist Michael Hailey, and Computer Forensic Examiner John Marsh. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Lindsay Suttenberg and Danny Nguyen, who investigated and prosecuted the matter.
Manchester Man Sentenced to 210 Months for Heroin and Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Zakee Stuart-Holt, 34, of Manchester, New Hampshire, was sentenced to 210 months in federal prison based upon his convictions for conspiracy to distribute heroin and fentanyl and money laundering. The defendant previously had pleaded guilty to those offenses.
According to court documents, the defendant distributed drugs in the Manchester, New Hampshire area since at least July of 2014. Pursuant to a search warrant, law enforcement recovered approximately 1.8 kilograms of fentanyl and $198,000 in drug proceeds from an apartment occupied by the defendant and another individual. In addition, law enforcement seized approximately $560,000 in drug proceeds from a safe deposit box in the defendant’s name. The defendant was not employed at the time of the conspiracy and the currency recovered by law enforcement constituted proceeds of the defendant’s drug distribution conspiracy.
“I commend the Manchester Police Department and the DEA on their thorough investigation of this case leading to the seizure of such a significant quantity of drugs and drug proceeds,” stated United States Attorney Emily Gray Rice. “Prosecuting those individuals who introduce dangerous narcotics into our community, and ensuring that they do not profit from doing so, is a critical priority of my office.”
“Opioid abuse is at epidemic levels in New Hampshire,” said Special Agent in Charge Michael J. Ferguson. “Let this sentence serve as an example to Drug Trafficking Organizations and individuals who distribute fentanyl and heroin in order to profit and destroy people’s lives, that DEA is committed to aggressively pursue and hold you accountable. This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire to intensely go after anyone who traffics these drugs.”
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated hundreds of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The case was investigated by the Manchester Police Department, the Massachusetts State Police, and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
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Louisville Felon Pleads Guilty to Multiple Drug and Firearms ChargesRead the Press Release
Federal prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., today announced the guilty plea of a Louisville felon to multiple charges including the sale and distribution of controlled substances; unlawful possession of firearms by a convicted felon; and possession of a firearm in furtherance of a drug trafficking crime, in United States District Court before District Judge David J. Hale. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky, law enforcement agencies, developed by the U.S. Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
Demetric A. Flint, a/k/a Meechie, pleaded guilty to all counts of a June 7, 2016, federal indictment. He also agreed to forfeit his interest in ammunition, $469.00 in United States currency, and firearms including a SigSauer Model P232, .380 Caliber pistol, a Hi-Point Model JHP45, .45 caliber pistol, and a Browning Citori 12 gauge shotgun seized at the time of his arrest.
According to the plea agreement, on October 19, 2015, law enforcement officials conducted a controlled purchase of heroin from Demetric Flint – using a confidential informant. Following the controlled purchase, law enforcement officials obtained and executed a Kentucky state search warrant at Flint’s residence on East Ormsby Avenue the address where the controlled purchase had occurred. No one was at home. The law enforcement officials forced entry and seized suspected methamphetamine, a Sig Sauer Model P232, .380 caliber pistol, and Kentucky identification card for Flint, United States currency, a 50-gram weight digital scale, suspected heroin, and marijuana. Later, law enforcement officials found Flint at his child’s mother’s residence on South Jackson Street. While speaking with the woman, officers saw Flint walk from hallway to the living room and arrested him. At the time of his arrest, Flint was in possession of $469.00 United States currency. The woman gave written consent for a search of her residence. The search resulted in seizure of suspected crack cocaine, prescription pills, digital scale, box of baking soda, items with suspected residue of crack cocaine, 12 gauge and 45 caliber ammunition, marijuana, a Hi-Point .45 caliber pistol, and a Browning Citori 12 gauge shotgun.
During a post-Miranda, signed waiver, statement by Flint, he admitted the items seized from both the Ormsby and South Jackson addresses were his. He admitted selling “hard” (i.e., crack cocaine), and heroin. During the interview, Flint admitted that he had crack cocaine and heroin secreted on his body.
On or about May 31, 2012, in Jefferson Circuit Court case number 11-CR-3685, Flint was convicted of trafficking in a controlled substance first degree, tampering with physical evidence, and trafficking in a controlled substance second degree, crimes punishable by imprisonment for more than one year.
Flint is scheduled for sentencing before Judge Hale on March 14, 2017, at 10:00 a.m. in Louisville. The term of imprisonment ranges from a minimum term of five years in prison to a combined maximum term of life imprisonment.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Long Island Man Pleads Guilty to Trafficking in Rhinoceros HornsRead the Press Release
Fengyi Zhou, a resident of Syosset, New York, and the owner of a business that specialized in Asian works of art, pleaded guilty today to illegally trafficking horns from endangered black rhinoceros.
The guilty plea was announced by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).
Zhou, 49, who has worked as an Asian art dealer for years, pleaded guilty today before U.S. District Judge William F. Kuntz II for the Eastern District of New York in Brooklyn, New York, to a one count information charging him with wildlife trafficking in violation of the Lacey Act.
Zhou was identified as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
In papers filed in federal court, Zhou admitted to purchasing as many as five uncarved rhinoceros horns from another Asian arts dealer in New York. Along with the horns, Zhou was given an “Endangered Species Bill of Sale,” from which Zhou was made aware that four of the horns were purchased in Texas and unlawfully transported to New York. Immediately after purchasing the rhinoceros horns, Zhou offered to sell and later sold the horns, to an associate who was a Chinese national residing in the People’s Republic of China for more than $130,000.
“These horns are the remains of a dead animal, and one of the world’s most iconic species that will certainly go extinct in our lifetimes if we do not stop this illegal trafficking,” said Assistant Attorney General Cruden. “We expect those in the arts and auction trade to understand and obey the law, and those that do not will be investigated and prosecuted for these crimes.”
“Because of the scourge of wildlife trafficking and those like Mr. Zhou who practice it, there is now a very real possibility that the rhinoceros could disappear from Africa,” said Director Ashe. “We are determined that this never happen and that we don’t leave behind for our children a world without this magnificent wild creature. The law enforcement efforts of Operation Crash have now seen dozens of rhino traffickers caught and prosecuted, each case sending a clear message to others engaged in this shameful practice that we will stop you and we will bring you to justice.”
Rhinoceros are herbivores of prehistoric origin and the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 183 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
The investigation is continuing and is being handled by the Justice Department’s Environmental Crimes Section and USFWS’s Office of Law Enforcement. The government is represented by Trial Attorneys Lauren D. Steele and Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Local Couple Pays over $18,000 to Worker Held Unlawfully at Their HomeRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – November 3, 2016
SAN DIEGO – Firas Majeed and Shatha Abbas were sentenced today to three years of probation and ordered to pay $18,270 in restitution for illegally withholding the passport of an Indonesian woman who worked in their home without pay.
Majeed and Abbas were arrested on April 8, 2016, after the Indonesian woman – whose identity is being withheld – was rescued from their El Cajon home. On August 18, 2016, both Majeed and Abbas pleaded guilty before U.S. Magistrate Judge Jan M. Adler to procuring the victim’s passport without lawful authority in order to maintain her labor between November 2015 and March 2016. As part of the agreement, Majeed and Abbas agreed to pay the victim in full for her labor.
The victim reported that she was previously held at a home belonging to relatives of Abbas in Dubai, United Arab Emirates. She explained that she was required to provide domestic services in Dubai for 20 hours a day, every day, without pay. The victim explained that, after five years in Dubai, she was instructed to travel to the United States and work at the home of Majeed and Abbas in El Cajon.
The victim reported that, once in El Cajon, she was required to clean and provide other services for the entire household for up to 18 hours every day of the week. The victim explained that, again, she received no days off and was not paid for her services. She also reported she speaks no English, had no money, and was not allowed to leave the El Cajon residence alone, except to throw away the family’s trash.
Agents from Immigration and Customs Enforcement’s Homeland Security Investigations rescued the victim from the residence of Majeed and Abbas on March 22, 2016, after receiving a translated note the victim surreptitiously gave to a healthcare worker who had visited the residence.
Investigators from the United States Department of Labor’s Wage and Hour Division determined that the victim was owed $18,270 in back wages for her labor (2,520 hours, plus 800 hours of overtime). The victim was provided $7,280 that was seized from the defendants’ home, and the defendants paid an additional $10,990 as a condition of their plea.
“Forcing someone to work under these horrible conditions is slavery, pure and simple,” said U.S. Attorney Laura Duffy. “Victims of domestic servitude live in misery and fear. We stand ready to rescue victims and investigate and prosecute these crimes, but we need the public’s help to recognize and report these crimes.”
“Firas Majeed and Shatha Abbas’ reprehensible decision to dehumanize an innocent person has resulted in a justified sentence,” said David Shaw, special agent in charge of Homeland Security Investigations in San Diego. “It is impossible to quantify the extent of the harm done by Majeed and Abbas, but holding them accountable will continue to prove that our agents are dedicated to identifying and putting a stop to those engaged in human trafficking.”
“We have been seeing more and more of these types of domestic servitude cases involving unpaid wages of individuals of vulnerable communities,” said Rodolfo Cortez, district director of the U.S. Department of Labor’s Wage and Hour Division in San Diego. “We are committed to keep working together with the DOJ to fight against these bad actors. Our message is clear: if you are evading the law, you will be caught and held accountable.”
DEFENDANTS Case Number: 16CR0819-JMA
Firas Majeed (aka Firas Ghazi Majeed Al Tameemi) Age: 45
Shatha Abbas (aka Shatha Yehia Abbas Hussain) Age: 39
SUMMARY OF CHARGE
Title 18, United States Code, Section 1597 (Unlawful Conduct with Respect to Immigration Documents)
Maximum penalty: 1 year of custody; $100,000 Fine
AGENCIES
Homeland Security Investigations
Department of Labor, Wage and Hour DivisionAssistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
Lincoln Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Dean L. Baldwin, 38, of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 68 months in prison by United States District Judge John M. Gerrard, for receipt of child pornography. After serving his prison sentence Baldwin will be required to register as a sex offender and complete 5 years of supervised release.
In October, 2015, the Lincoln Police Department was investigating computers sharing child pornography files via the internet. On that date, investigators identified an IP address as having files available for sharing. Investigators were able to download files from a computer at the identified IP address on that date as well as three other dates. A subpoena was served on Time Warner/Roadrunner regarding the IP address and identified that the IP address was registered to Baldwin at his home address.
In February, 2016, investigators executed a search warrant at Baldwin’s residence. During the execution of the search warrant, investigators located a laptop computer in the basement utility room, along with two additional laptops and a desktop computer. Investigators previewed the laptop located in the utility room and located files depicting sexually explicit conduct involving children under the age of 18 years old and additional files indicating use by defendant. A later forensic investigation revealed 20 videos and approximately 100 images of child porn in a download file, including videos and images of prepubescent minors engaged in sexually explicit conduct.
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.
This case was investigated by the Lincoln Police Department.
Largest Producer of Child Pornography Ever Prosecuted in Minnesota Sentenced to 38 Years in PrisonRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ANTON ALEXANDER MARTYNENKO, 33, to 38 years in prison after pleading guilty in January to federal child pornography charges. MARTYNENKO was sentenced before U.S. District Judge Richard H. Kyle in U.S. District Court in Saint Paul, Minn.
“This defendant exploited and extorted over 150 young people in a disturbingly manipulative scheme,” said U.S. Attorney Luger. “We hope the victims in this case take some solace in the sentence imposed today. I urge parents and teachers to help Minnesota youth protect themselves from online predators.”
Rosemount Police Chief Mitchell Scott said: “This case was the result of a collaboration between local, federal and state partners. While there are no winners here, the lengthy prison sentence for Anton Martynenko provides some measure of justice for the many people he victimized over the years.”
According to MARTYNENKO’s guilty plea and documents filed in court, between at least 2011 and 2015, he used social media to obtain homemade child pornography from unsuspecting boys, many of them teenagers. The defendant created and used various false aliases, including “Marie Anna,” “Courtney Jansgen,” and “Marie94mn,” on social media outlets for the purpose of obtaining nude and sexually explicit images and videos of minor males. MARTYNENKO created different cover stories, including that he (posing as a woman) had recently moved to Minnesota and was trying to make new friends, that he worked for a modeling agency, or that he was a college student at the University of Minnesota. MARTYNENKO would engage in sexual conversations with victims and eventually ask for nude images and/or video of the minor male victims.
According to the defendant’s guilty plea and documents filed in court, in approximately 2012, MARTYNENKO contacted a victim using a decoy social media account under the name “Marie Anna.” He claimed to be a woman who recently moved to Minnesota from Illinois who was looking to meet new people. MARTYNENKO told the victim that he was handsome and quickly moved to suggesting they exchange nude photographs. MARTYNENKO, using the moniker, “Marie Anna,” sent pictures to the victim of a nude female. The victim then sent nude pictures of himself to “Marie Anna” via social media. MARTYNENKO, still using the handle, “Marie Anna,” demanded more photos of the victim, but the victim stopped responding to the messages when he became suspicious. MARTYNENKO then threatened to distribute the victim’s nude photographs if the victim did not send more. About one year later, the victim learned that his pictures were being distributed via social media.
According to the defendant’s guilty plea and documents filed in court, MARYNENKO also used decoy accounts to advertise child pornography over the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case was prosecuted by Assistant United States Carol M. Kayser.
This case is the result of an investigation conducted by the FBI, Minneapolis Police Department, Rosemount Police Department, Eagan Police Department, Chaska Police Department, and Dakota County Electronic Crimes Task Force.
Defendant Information:
ANTON MARTYNENKO, 33
Eagan, Minn.
Convicted:
- Production of child pornography, 1 count
- Distribution of child pornography, 1 count
- Advertising child pornography, 1 count
Sentenced:
- 38 years in prison
- Supervised release for a term of 15 years
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Lancaster Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Lombardo, 25, of Lancaster, NY, pleaded guilty to possession of child pornography and receipt of child pornography before U.S. District Judge Lawrence J. Vilardo. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 50 years and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in May, 2014, a 15-year-old female (Victim 1) reported to Lancaster Police that three or four years earlier when she was 12 or 13 years old, she was contacted on the social media site “Kik” by an unknown male calling himself “Chris Richardson.” Victim 1 stated that “Chris Richardson” requested that she send him naked pictures. If she refused, Victim 1 said that “Chris Richardson” claimed he would post the pictures of her on the internet to exploit her. Victim 1 sent at least 50 naked pictures of herself to “Chris Richardson.” Victim 1 confided in her friend (Witness 1) who stated that “Chris Richardson” had also solicited pictures from her.
After a parent of took her phone away from her for approximately one year, Victim 1, in April 2014, got a new phone and was again contacted by “Chris Richardson” on “Kik.” Richardson demanded more naked pictures. Victim 1 sent an additional 100 pictures. Victim 1 told Witness 1 about the continued extortion, and Witness 1 told Victim 1 about a male, identified as “Dan,” who had reached out to her and offered to help deal with “Richardson.” Thereafter, Victim 1 was contacted by “Dan” who offered to help her if she hung out with him. Victim 1 agreed and chatted with “Dan” on a daily basis for several weeks. “Dan” also requested naked pictures and Victim 1 complied. Victim 1 and “Dan” eventually met in person and over the next few weeks had sexual contact several times. “Dan” asked Victim 1 for permission to record one of their sexual encounters which he would put on the internet and make money for her. Victim 1 is unsure if she was videotaped. Victim 1 stated that she told “Dan” her actual age.
On May 9, 2014, during a police photo array, Victim 1 identified the defendant Lombardo as the person she knew as “Dan.” On that same day, police recovered several items, including a laptop, during the execution of a search warrant at Lomabardo’s Lancaster residence.
During a forensic analysis of the contents of the laptop computer, officers discovered images of a 13-year-old female (Victim 2). The images were sent to the defendant by phone. In a subsequent interview with Victim 2, she indicated that she met Lombardo on meetme.com. Victim 2 also indicated that the defendant identified himself as “Chris Richardson.”
The forensic analysis also revealed pictures of a 16-year-old female (Victim 3) who told police she also met the defendant on meetme.com. Victim 3 had sexual contact with Lombardo and also sent 30 to 40 naked pictures of herself to the defendant.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-In-Charge, the Lancaster Police Department, under the direction of Chief Gerald Gill and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for March 7, 2017, at 10:00 a.m. before Judge Vilardo.
Kansas Tax Return Preparer Sentenced to Prison for Aggravated Identity Theft and Stealing Government FundsRead the Press Release
A Stillwell, Kansas tax return preparer was sentenced to 48 months in prison today for stealing his clients’ identities and federal income tax refunds falsely claimed in their names, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Thomas Beall for the District of Kansas.
According to documents filed with the court, Richard Drake used three of his clients’ personal identities to file false federal income tax returns that claimed inflated refunds. As part of his scheme, Drake prepared accurate federal income tax returns for these clients, which he provided to them but did not file with the Internal Revenue Service (IRS). He then had these clients make estimated tax payments to the IRS during the year. Once it was time to file on behalf of his clients, Drake filed false tax returns with the IRS that underreported his clients’ income and claimed false expenses in order to generate large income tax refunds which he directed to accounts under his control. In total, Drake stole and converted to his own use $2,432,147.
Drake pleaded guilty on June 6 to one count of aggravated identity theft and one count of theft of government funds. As part of his plea agreement, Drake agreed to serve 48 months in prison, followed by three years of supervised release and to pay restitution in the amount of $2,432,147 to the IRS, and $98,087 to the Kansas Department of Revenue.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beall commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ryan Raybould of the Tax Division and Assistant U.S. Attorney Tris Hunt, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kansas Tax Return Preparer Sentenced to PrisonRead the Press Release
WASHINGTON – A Stillwell, Kansas tax return preparer was sentenced to 48 months in prison today for stealing his clients’ identities and federal income tax refunds falsely claimed in their names, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Thomas Beall for the District of Kansas.
According to documents filed with the court, Richard Drake used three of his clients’ personal identities to file false federal income tax returns that claimed inflated refunds. As part of his scheme, Drake prepared accurate federal income tax returns for these clients, which he provided to them but did not file with the Internal Revenue Service (IRS). He then had these clients make estimated tax payments to the IRS during the year. Once it was time to file on behalf of his clients, Drake filed false tax returns with the IRS that underreported his clients’ income and claimed false expenses in order to generate large income tax refunds which he directed to accounts under his control. In total, Drake stole and converted to his own use $2,432,147.
Drake pleaded guilty on June 6 to one count of aggravated identity theft and one count of theft of government funds. As part of his plea agreement, Drake agreed to serve 48 months in prison, followed by three years of supervised release and to pay restitution in the amount of $2,432,147 to the IRS, and $98,087 to the Kansas Department of Revenue.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beall commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Ryan Raybould of the Tax Division and Assistant U.S. Attorney Tris Hunt, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Kansas Men Plead Guilty for Roles in Federal Hate Crime Against Black Somali MenRead the Press Release
Armando Sotelo, 24, pleaded guilty today to a hate crime offense for his role in a June 19, 2015, assault of a black Somali man in Dodge City, Kansas. Omar Cantero Martinez, 32, also pleaded guilty today to providing perjured testimony during a hate crimes prosecution arising from the same assault.
Sotelo pleaded guilty in the District of Kansas to one count of a hate crime violation based on race and national origin, while Martinez pleaded guilty to one count of perjury for providing materially false testimony during the October 2016 federal criminal jury trial related to the hate crime.
“Hate violence not only harms individuals but also threatens the diversity of our society and the well-being of our communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “In this case, Sotelo attacked the victim because of the color of his skin and his country of origin, inflicting bodily injury during the assault. The Justice Department will continue to vigorously prosecute hate crimes so that all people can live their lives with the security, protection and freedom they deserve.”
During Sotelo’s plea hearing, he admitted that he assaulted the victim, identified as M.H.D., because of M.H.D.’s race and national origin. Sotelo admitted that he, with the assistance of two other men, approached M.H.D., who is black and from Somalia, while M.H.D. was sitting with two other Somali men on a bench outside the African Market. The defendant approached the bench from one side, while the two other men approached the bench from the other. Sotelo and the other men all yelled racial and anti-Somali slurs at M.H.D. and at the two other Somalis on the bench. The defendant then punched M.H.D. in the head without any justification, causing M.H.D. bodily injury. Following the assault, Sotelo fled the scene and directed another person to wash his clothing, which was bloody from the assault.
During his plea hearing, Martinez admitted that on the night of June 19, 2015, he had used a broken glass bottle to stab victim S.A.M. and slash victim A.M.A. without justification. Martinez also admitted that racial and anti-Somali slurs were used during the attack and that he and Sotelo instigated the attack. He further admitted that he provided false testimony about the incident during a federal jury trial in which he and Sotelo were charged with hate crimes offenses for the attack, that he knew his testimony was false at the time that he gave it and that his false testimony was material to the hate crimes charges.
Sotelo faces a maximum sentence of 10 years in prison and Martinez faces a maximum sentence of five years in prison. Sentencing for both defendants is scheduled for Feb. 22, 2017, and they will remain in custody until then.
This case was investigated by the FBI’s Garden City Resident Agency with assistance from the Dodge City Police and the Ford County, Kansas, Sheriff’s Departments. The case is being prosecuted by Trial Attorney Risa Berkower and Special Litigation Counsel Jared Fishman of the Civil Rights Division’s Criminal Section with assistance from Assistant U.S. Attorney Mona Furst of the District of Kansas.
Honduran Man Sentenced for Illegally Re-Entering the United States After Previous DeportationsRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Alexander Alcerro-Romero, of Honduras, was sentenced to serve 15 months in prison for illegally re-entering the United States after having been previously deported.
According to public records and statements in court, in March of 2016, a deportation officer learned that Alcerro-Romero was illegally present in the United States after having been deported on two previous occasions. During a motor vehicle stop on April 11, 2016, Alcerro-Romero could not produce a U.S. driver’s license and later acknowledged that he was not lawfully in the United States. A fingerprint match subsequently confirmed his identity and his prior deportations.
Alcerro-Romero, who pleaded guilty on July 6, 2016, faces likely deportation after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
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Hancock County man sentenced for unlawful possession of a stolen firearmRead the Press Release
WHEELING, WEST VIRGINIA – Brandon S. Moore, 24, of New Cumberland, West Virginia, was sentenced to 63 months in prison for unlawfully possessing a stolen firearm, United States Attorney William J. Ihlenfeld, II, announced.
In June 2015, Moore stole a .40 caliber pistol from a residence in Brooke County, West Virginia. He pled guilty in June 2016 to one count of “Possession of a Stolen Firearm.”
“This case reflects the connections between firearms traffickers and drug traffickers, which threaten public safety and endanger law enforcement officers,” said Stuart L. Lowrey, Special Agent in Charge of the Louisville Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “We will continue to work aggressively with the West Virginia State Police and local police agencies to identify illicit traffickers, disarm violent offenders and interdict stolen and unlawfully possessed firearms.”
Assistant U.S. Attorney Randolph J. Bernard prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Brooke County Sheriff’s Office, and the Weirton Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Gorham Man Pleads Guilty to Health Care FraudRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Paulo D. Braga, 66, of Gorham, Maine, pleaded guilty today in U.S. District Court to health care fraud. He was indicted on August 9, 2016.
According to court records, from 2010 to 2013, the defendant was a licensed clinical professional counselor who had offices in Portland and Windham, Maine. He billed MaineCare through a third-party mental health agency that required him to submit progress notes for each counseling session. He instructed his office staff to create and sign his name on false progress notes based on scheduled appointments that did not occur, or on past progress notes, or that they created using their “imagination.” As a result, his staff submitted progress notes to his billing agency that contained false information or dates-of-service and caused MaineCare to pay for counseling sessions that never took place. The investigation revealed that MaineCare paid $5,202 for over fifty counseling sessions that took place when Braga was out of the country and also paid for weekly or bi-weekly counseling sessions with some clients with whom he met less frequently or for less than the time billed.
Braga faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Healthcare Crimes Unit of the Maine Attorney General’s Office and U.S. Immigration & Customs Enforcement’s Homeland Security Investigations.
Gorham Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Steven Tutt, 45, of Gorham, Maine, pleaded guilty today in U.S. District Court to possession of child pornography.
According to court records, law enforcement, using a peer-to-peer file sharing program, downloaded a child pornography video from the defendant’s home computer. A search warrant was subsequently obtained for the defendant’s residence. A forensic examination of the defendant’s computer was conducted and revealed several additional videos of child pornography. During an interview with law enforcement, the defendant admitted that he had actively searched for and obtained images and videos of child pornography using peer-to-peer software.
The defendant faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by U.S. Immigration & Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Georgia Resident Sentenced to over Three Years in Prison for Threatening Several Palm Beach County LocationsRead the Press Release
Preston Alexander McWaters was sentenced by United States District Judge James I. Cohn, in Fort Lauderdale, Florida, to forty-two months in prison for sending threatening communications to several Palm Beach County locations.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Lawrence Leon, Chief, Palm Beach County School District Police Department, made the announcement.
McWaters, 26, of Athens, Georgia, previously pled guilty before U.S. District Judge James I. Cohn to four counts of transmitting a threat in interstate commerce to injure another person, in violation of Title 18, United States Code, Section 875(c), and two counts of conveying false and misleading information indicating that a bombing of a place of public use would take place, in violation of Title 18, United States Code, Section 1038(a)(1)(A) and (c).
According to the factual proffer accompanying his plea, McWaters, over the course of several months in late 2015 and early 2016, sent numerous e-mails and other communications threatening to bomb various locations in Palm Beach County, including schools, a hospital, a business and the Palm Beach International Airport. McWaters also posted a number of threats to injure a woman who had previously obtained a protective order against him as well as to injure the family of a high school principal in Palm Beach County. McWaters used tools to prevent law enforcement from tracing the online threats back to him, and exerted substantial effort to implicate a romantic rival and, later, his rival’s then-girlfriend in an attempt to conceal his identity. The FBI ultimately was able to trace the threats back to McWaters, who was arrested in March 2016.
While awaiting sentencing McWaters sent and attempted to send additional threating communications to others. The subsequent criminal conduct increased McWaters’ sentencing guidelines.
Mr. Ferrer commended the outstanding investigative efforts of the FBI, Palm Beach County School District Police Department and the Jupiter Police Department. Mr. Ferrer also thanked the myriad of law enforcement partners in Florida and Georgia, including the Palm Beach County Sheriff's Office, the Palm Beach County State Attorney's Office, the Jupiter Police Department, the West Palm Beach Police Department, the University of Georgia Police Department, the Clarke County Georgia Police Department, and the United States Attorney's Office for the Middle District of Georgia, for their assistance. The case is being prosecuted by Assistant U.S. Attorneys Edward Nucci, Karen Gilbert, and Adam Fels.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Georgia Man Sentenced to More Than 21 Years for String of Armed Robberies in CharlotteRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today Alex Arnez Jones, 27, of Atlanta, Georgia, to 262 months in prison for a string of armed robberies of Charlotte-area businesses, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Jones to serve three years of supervised release and to pay $6,319 as restitution.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to filed court documents and today’s sentencing hearing, between November 17, and November 23, 2015, Jones robbed five Charlotte-area businesses at gunpoint. Court documents show that on November 17, Jones robbed a Boost Mobile store located on Central Avenue, a Fuel Mart gas station on North Tryon Street and a Subway restaurant on South Boulevard. Upon entering each business, Jones brandished a firearm and demanded money from store employees. In one of the robberies, Jones pointed his firearm at a store employee, threating to shoot her if she did not comply.
Four days later, on November 21, 2015, Jones robbed Beautiful Hair Palace, a business located on Central Avenue in Charlotte. Jones entered the store and, brandishing his firearm, he ordered the store clerk to put store merchandise into a backpack he was carrying and to hand over all the cash from the register. According to court records, when the employee told Jones she did not have access to the register, Jones took $220 from the employee’s wallet. On November 23, 2015, Jones entered iBeauty, a business located on North Tryon Street, posing as a customer interested in certain products. After a few minutes inside the store, court records show that Jones pulled out his firearm and, pointing it at the store owner, he demanded cash and merchandise.
Jones pleaded guilty in August 2016 to five counts of Hobbs Act Robbery and one count of use and carry of a firearm in furtherance of a crime of violence.
Jones is currently in federal custody, will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and CMPD. Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Former Utz Quality Foods Employee Sentenced in $1.4 Million False Invoice Kickback SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Myers, age 38, a former resident of Abbottstown, Pennsylvania, was sentenced today by United States District Court Judge Yvette Kane in Harrisburg, to 51 months in federal prison for his participation in a false invoice, kickback scheme that defrauded Utz Quality Foods, Inc. (Utz) out of approximately $1.4 million.
Judge Kane ordered Myers to pay Utz $1.4 million in restitution and to forfeit the same amount to the government. Judge Kane also ordered Myers to report to the Bureau of Prisons on January 16, 2017.
According to United States Attorney Bruce D. Brandler, Myers, the former Director of Purchasing for Utz and Jonathan Haas, age 46, of Easton, Pennsylvania, the owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, pleaded guilty in July 2016 to an information charging them with wire fraud. Haas is scheduled to be sentenced on the charges by Judge Kane on January 12, 2017.
Haas Packaging & Design supplied Utz with shelving and packaging products. The defendants defrauded Utz between January 2010 and August 2014 by Myers’s preparation of approximately 43 bogus purchase orders and Haas’ submission of approximately 83 false invoices for products Utz never received. After Myers approved Haas’s false invoices for payment, Haas would kickback a portion of the proceeds to Myers. According to a forensic audit commissioned by Utz, Haas received approximately $1,474,765 from Utz and from that amount Haas paid Myers approximately $651,000.
Myers and Haas attempted to conceal some of the kickbacks to Myers as payments for fictional consulting services. The payments were made in the form of checks payable to “Myers Packaging Consulting,” a non-existent, paper company created by Myers.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Former Office Worker Pleads Guilty to Stealing Nearly $290,000 from Three Different EmployersRead the Press Release
WASHINGTON – Tinita Joyner, 52, of Rockville, Md., pled guilty today to embezzling nearly $290,000 from three companies where she had access to financial accounts while working as an office manager or as an executive assistant, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Joyner pled guilty in the U.S. District Court for the District of Columbia to wire fraud, an offense that is punishable by a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, she faces a likely range of 33 to 41 months in prison and a fine of up to $50,000. The plea agreement calls for her to pay a total of $289,640 in restitution. The Honorable James E. Boasberg scheduled sentencing for Feb. 7, 2017.
According to the government’s evidence, Joyner stole the money from September 2012 through September of 2015, while working a succession of three jobs in which she had access to her employer’s financial information and accounts. The companies, which are not identified by name in court documents, did not authorize Joyner to make credit card purchases outside of her responsibilities of paying office related expenses and bank transfers and withdrawals that she then used for the benefit of herself and others.” The losses took place as follows:
“Company A” – Joyner was hired as an office manager in July 2012 for this consulting firm, which assisted organizations that wanted to establish and elevate their presence with emerging economies across the globe. In September of 2012, she became director of internal affairs and was in charge of the company’s day-to-day operations. According to the government’s evidence, from September 2012 through February 2014, Joyner fraudulently obtained $187,682 through unauthorized purchases on corporate credit cards and unauthorized bank transfers. Meanwhile, as the company fell behind on rental payments and payments for employee health insurance, Joyner forged documents to secure a loan for the firm. Finally, in February of 2014, the company’s chief executive officer learned that Joyner had forged his name, giving her unlimited access to the company’s account, and that she had made unauthorized withdrawals. Soon after that, he told Joyner that her services would no longer be needed. At the time of her departure, the company owed $31,120 on the bank loan that she had taken out.
Total loss caused by these activities: $218,802.
“Company B” – In April 2014, Joyner began employment at a temporary agency and was assigned to work as an executive assistant to the president of this non-profit that is focused on empowering students to become leaders in the community. In September of 2014, she was hired as a permanent employee. From August until December 2014, according to the government’s evidence, Joyner made $6,964 in unauthorized purchases on the company’s credit card. She also used the personal information of the president to fraudulently obtain two additional credit cards. From September 2014 through February 2015, she made $23,753 in unauthorized purchases on these cards. She also made two unauthorized electronic transfers to the cards from the company’s account, totaling $10,523. She was terminated in December 2014.
Total loss caused by these activities: $41,240.
“Company C” – In February 2015, Joyner was hired as the executive assistant to this management consulting company, which primarily worked with the federal government on civilian programs. From March 2015 through September 2015, according to the government’s evidence, she made $20,638 in unauthorized charges to the company’s credit card, using the money to pay a relative’s tuition at a private high school and for various personal expenses. In addition, she created six fraudulent vouchers that cost the company an additional $8,960.
Total loss caused by these activities: $29,598
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section, Paralegal Specialists Kaitlyn Krueger, Jessica Mundi and Christopher Toms, and Assistant U.S. Attorney Teresa A. Howie, who investigated and prosecuted the matter.
Former Middle School Teacher Pleads Guilty to Attempting to Purchase Live Video Sex Shows Involving Filipino ChildrenRead the Press Release
BOSTON – A former Southbridge Middle School teacher pleaded guilty today in U.S. District Court in Worcester in connection with attempting to purchase live video sex shows involving Filipino children and to possessing child pornography.
Scott Peeler, 54, who previously resided in Worcester, pleaded guilty to three counts of attempting to entice a minor to engage in unlawful sexual conduct and one count of possession of child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 28, 2017. Pursuant to a plea agreement, Peeler will be sentenced to a minimum of 10 years and no greater than 15 years in prison. Peeler remains in custody pending sentencing.
Between April 2013 and July 2014, Peeler used internet-based instant messaging services with video streaming capabilities to communicate with individuals in the Philippines engaged in child sex trafficking and the sale of live streaming sex shows involving children. Peeler admitted to attempting on at least three occasions to arrange the purchase of live video sex shows involving children who ranged in age from four years old to fourteen years old.
At the time of his arrest in June 2015, Peeler admitted that he was the user of the email and instant messaging account that had been used to solicit the streaming videos, but claimed that he had never actually purchased any videos. A preliminary forensic review revealed the presence of child pornography on Peeler’s computer.
The charge of attempting to entice a minor to engage in unlawful sexual conduct provides for a mandatory minimum sentence of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Worcester County District Attorney Joseph D. Early, Jr.; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent, made the announcement today. Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Former Executive of Fabric Company Admits Stealing Nearly $1 Million from EmployerRead the Press Release
NEWARK, N.J. – A former vice president of a Secaucus-based fabric company pleaded guilty today to stealing nearly a $1 million in goods from his employer and selling it for his own profit, U.S. Attorney Paul J. Fishman announced.
Javan Smith, 72, of Delray Beach, Florida, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of interstate transportation of stolen property.
According to documents filed in this case and statements made in court:
From 1992 to 2014, Smith was an employed as vice president of distribution for a fabric company and worked at the company’s Secaucus warehouse. Starting in 2010, Smith engineered a scheme to steal merchandise and sell it “off the books” to several of his employer’s customers for less than what they would pay if they purchased the items legitimately.
Smith made side arrangements in which a customer would place orders for a certain amount of merchandise, receive far more than the amount on the purchase orders, and then pay Smith for his role in getting the stolen goods. In other cases, the customer would place an order for merchandise, have the merchandise delivered, and then – with Smith’s help – would cancel the order and receive a refund. The customer kept the merchandise and paid a portion of the refund to Smith. Overall, Smith’s scheme caused approximately $945,000 in losses to his employer.
The conspiracy charge to which Smith pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Lakshmi Herman and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Evan Goldman Esq., Hackensack, New Jersey
Former Army Explosives Expert Pleads Guilty to Unlawful Possession of Explosive DevicesRead the Press Release
KANSAS CITY, KAN. – A former Army explosive ordinance disposal technician pleaded guilty Tuesday in federal court to unlawful possession of explosive devices, U.S. Attorney Tom Beall said.
John A. Panchalk, 42, Overland Park, Kan., pleaded guilty to possessing two M-67 fragmentation grenades that were not registered to him in the National Firearms Registration and Transfer Record.
The investigation began in May when police were called to the Parkville Self Storage Facility in Parkville, Mo. They found several trailers and vehicles had been vandalized. In and around one trailer, they found ammunition canisters, rocket fins, blasting caps, C-4 explosive and military grenade simulators. They determined Panchalk was the owner of the trailer.
When investigators contacted Panchalk at home in Overland Park, he was evasive when they asked him about the contents of the trailer. When they executed a search warrant at Panchalk’s home, they found 38 pounds of C-4 explosive, detonation cord, blasting caps, grenade simulators, incendiary devices and the two M-67 fragmentation grenades.
Sentencing will be set for a later date. The government has agreed to recommend a sentence of probation.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Parkville, Mo., Police Department, the Overland Park Police Department and Assistant U.S. Attorney Terra Morehead for their work on the case.
Five Charged in Drug Conspiracy Operating in Mecklenburg CountyRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose announced today that five individuals are facing federal charges for their involvement in a heroin trafficking ring operating in Mecklenburg County. A criminal indictment was returned on November 15, 2016, and was unsealed today in federal court, following the defendants’ arrests. Eleven other members of the conspiracy are facing state drug charges.
According to allegations contained in the criminal indictment, from on or about April 2015 to about November 2016, the defendants operated in a drug conspiracy responsible for trafficking heroin in Mecklenburg County and elsewhere.
The five defendants named in the federal indictment are each charged with one count of conspiracy to distribute and to possess with intent to distribute heroin. They are:
- Maggie Elizabeth Sanders, 36, of Concord, N.C. (arrested)
- Kevin Tyler Bell, 24, of Concord (arrested)
- Elyssa Breanne Shuford, 37, of Gastonia, N.C. (arrested)
- Jamie Nicole McDaniel, 31, of Concord (arrested)
- Joshua Dale Gregory, 28, of Concord (pending arrest)
In addition to the drug trafficking conspiracy charge, Kevin Bell and Jamie McDaniel are each charged with one count of possession with intent to distribute heroin, and Elyssa Shuford is charged with two counts of possession with intent to distribute heroin. Maggie Sanders is also charged with one count of possession of a firearm in furtherance of a drug trafficking crime.
Eleven others are facing state charges for their involvement in the drug conspiracy. They are: Kenneth Junior Bell, Silas Lamont Swain, Monica Bell, Jessica Marie James, Christopher Godwin, Sara Dianne Weaver, Charles Thomas Anderson, Jason Eugene Lavender, Michael Todd Lowe, James Dillard Proctor, and Timothy Kyle Bennett.
Over the course of the investigation law enforcement seized in Mecklenburg and Cabarrus Counties more than ten kilograms of heroin and five firearms. The drugs were shipped into the Western District of North Carolina from Mexico.
In making today’s announcement, U.S. Attorney Rose said, “The arrests in this case are part of my office’s ongoing effort to combat heroin trafficking rings throughout our district. As heroin is quickly becoming the number one cause of overdose related deaths, not just in Western North Carolina but throughout the country, law enforcement agencies continue to ramp up the fight against drug trafficking conspiracies operating in our communities.”
U.S. Attorney Rose thanked the Drug Enforcement Administration, ICE’s Homeland Security Investigations in Charlotte, the North Carolina State Highway Patrol, the Charlotte Mecklenburg Police Department, the Concord Police Department, the Gastonia Police Department, the Huntersville Police Department, the Mint Hill Police Department, the Kannapolis Police Department, the Iredell County Sheriff’s Office and the Wingate Police Department for their assistance in this case.
This prosecution is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The federal defendants arrested today are currently in federal custody. Their initial appearances were held in U.S. District Court before U.S. Magistrate Judge David S. Cayer.
The charges contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte is handling the prosecution.
Five Affiliated with Physician Home Visit and Health Care Companies in Dallas Plead Guilty in Health Care Fraud ConspiracyRead the Press Release
DALLAS – A Dallas woman who was among those charged last year as part of a nationwide sweep led by the Medicare Fraud Strike Force for her alleged participation in Medicare fraud schemes pleaded guilty today, announced U.S. Attorney John Parker of the Northern District of Texas.
Myrna S. Parcon, a/k/a “Merna Parcon,” 63, pleaded guilty to one count of conspiracy to commit health care fraud. She faces a statutory penalty of up to 10 years in federal prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victim. Restitution may also be ordered. In addition, according to the plea agreement, she will be excluded from Medicare, Medicaid and all federal health care programs.
Last week, two of Parcon’s co-defendants, Oliva A. Padilla, 57, of Garland, Texas, and Ben P. Gaines, 56, of Plano, Texas, pleaded guilty to a conspiracy count, and each faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Co-defendants Ransome N. Etindi, 56, of, Waxahachie, Texas, pleaded guilty earlier this year to conspiracy to commit health care fraud; he faces a maximum statutory penalty of 10 years in federal prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victim. Lita S. Dejesus, 70, of Allen, Texas, pleaded guilty to a conspiracy count and faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. The one defendant charged in the case who has not pleaded guilty, Noble U. Ezukanma, 57, a physician from Fort Worth, Texas, is set to go to trial in January 2017, before U.S. District Judge Jane J. Boyle.
According to documents filed in the case, from approximately January 2009 through June 9, 2013, Parcon and the other five defendants conspired to defraud Medicare by making materially false and fraudulent representations and promises in connection with health care services, namely physician house call visits and home health care.
Parcon owned US Physician Home Visits (USPHV) and managed its operations. USPHV, located on Viceroy Drive in Dallas, provided physician home visits to Medicare beneficiaries. It also certified and recertified Medicare beneficiaries for home health services, and it provided medication to Medicare beneficiaries. It became a credentialed Medicare provider in May 2009.
Ezukanma was a medical doctor for USPHV, had an ownership interest in USPHV, and provided his Medicare number to USPHV to use to bill Medicare. Etindi was also a medical doctor for USPHV, served as its medical director, and also provided his Medicare number to USPHV to use to bill Medicare. Dejesus held herself out to Medicare as the owner of USPHV and served various roles, including office manager. Gaines formed a home health agency known as A Good Homehealth, a/k/a “Be Good Healthcare, Inc.,” in 2007, A Good Homehealth, which was located in the same office as USPHV, applied for a Medicare number. Parcon purchased A Good Homehealth through a straw buyer, and both Parcon and Gaines concealed Parcon’s ownership from Medicare.
Parcon and Padilla formed another home health care company known as Essence Home Health, a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas, and in December 2002, Padilla applied for a Medicare number for Essence. Parcon, Padilla, Dejesus and Gaines concealed from Medicare that Parcon exercised control over USPHV, A Good Homehealth and Essence Home Health. While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies. Had Medicare known about the improper relationship and true nature of the businesses, that is, the companies shared almost all of their beneficiaries, these companies would not have been allowed to enroll in the program and bill for services.
Once USPHV established a new patient and Ezukanma, Etindi or others conducted a home visit, USPHV, at the direction of Ezukanma, Parcon and Dejesus submitted billings for fraudulent claims for services not rendered.
USPHV submitted claims as if Ezukanma provided the services to Medicare beneficiaries, regardless of who actually performed the service; this caused Medicare to pay a higher reimbursement rate. Then, beginning in January 2013, the majority of claims for USPHV were submitted as if Etindi provided the services, regardless of who actually did perform the services. Ezukanma, Parcon and Dejesus submitted reimbursement claims for physician home visits that falsely represented to Medicare that Ezukanma and Etindi conducted comprehensive patient exams and prolonged service patient exams, when they did not. At the defendants’ directions, the majority of the claims fraudulently claimed that Ezukanma or Etindi spent a minimum of 90 minutes of face-to-face time with a patient, when in fact, most visits took a total of 15-20 minutes.
Ezukanma and Etindi signed Medicare Form 485s certifying the Medicare beneficiaries for home health services even if the beneficiary was ineligible to receive the benefits. They also signed and certified Form 485s regardless of the homebound status of the patient and often without any knowledge of the patient or the patient’s medical condition.
More than 97% of USPHV’s Medicare patients received home health care – whether they needed it or not. As a result of these false Form 485 certifications, Medicare paid more than $40 million in fraudulent home health services.
The investigation is being conducted by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Katherine Pfeifle is in charge of the prosecution.
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Eighth Defendant in North Idaho Drug Trafficking Organization Pleads GuiltyRead the Press Release
COEUR D'ALENE – Robert Hill, 48, of Williston, North Dakota, pleaded guilty yesterday to conspiracy to distribute heroin and oxycodone, U.S. Attorney Wendy J. Olson announced. Hill is the eighth defendant to plead guilty. Eleven defendants in total were charged in the superseding indictment which was issued by the grand jury on April 19, 2016.
During the court hearing, Hill admitted that he became a member of the drug trafficking organization beginning in 2009 and sold oxycodone pills and heroin in Idaho, Montana, North Dakota and Eastern Washington. Hill helped the organization by selling and transporting controlled substances and by making sure the profits went to the appropriate
co-conspirator. In addition to pleading guilty, Hill agreed to forfeit any interest he has in real property, jewelry or cash held by himself or by conspirators as outlined in the indictment.
The charge of conspiracy to distribute controlled substance is punishable by at least five and up to 40 years in prison, a maximum fine of $5,000,000, and at least 4 years supervised release.
Sentencing is set for May 2, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by Coeur d’Alene Police, Drug Enforcement Administration (DEA), Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigations (IRS-CI), Kootenai County Sheriff, North Idaho Violent Crimes Task Force (NIVCTF), and U.S. Customs and Border Protection.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Eight Defendants Convicted for Conspiracy to Manufacture and Distribute Counterfeit 5-Hour Energy DrinkRead the Press Release
SAN JOSE - A federal jury convicted Joseph Shayota and Adriana Shayota late yesterday of conspiracy to traffic in counterfeit goods and conspiracy to commit criminal copyright infringement and to introduce misbranded food into interstate commerce announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Food and Drug Administration (FDA) Office of Criminal Investigations’ Los Angeles Field Office Special Agent in Charge Lisa L. Malinowski. The guilty verdicts followed an eight-day jury trial before the Honorable Lucy H. Koh, U.S. District Court Judge, and brings to eight the number of people convicted as part of the conspiracy.
The evidence at trial demonstrated that Joseph Shayota, 64, and his wife, Adriana Shayota, 45, both of El Cajon, Calif., were leaders of a conspiracy concerning the illegal relabeling, repackaging, and eventual counterfeiting of the liquid dietary supplement 5-Hour ENERGY. The supplement is owned by Living Essentials, who manufactured all 5-Hour ENERGY at factories in Wabash, Indiana. Living Essentials registered and owns all 5-Hour ENERGY trademarks and related copyrights. Among the important aspects of the trademarks and copyrights are various graphical elements of the product’s labeling and packaging; the 5-Hour ENERGY trademarks and copyrighted material are displayed on every bottle of 5-Hour ENERGY and display boxes. Living Essentials did not grant licenses to any individual or entity to manufacture 5-Hour ENERGY. Joseph and Adriana Shayota (“the Shayotas”), through their company Tradeway International Inc., doing business as Baja Exporting, LLC, agreed with Living Essentials to distribute 5-Hour ENERGY in Mexico. According to the evidence at trial, rather than distributing authentic 5-Hour ENERGY with Spanish-language labeling in Mexico, the Shayotas, along with the other charged defendants, attempted to increase their profits by diverting, relabeling, repackaging, and eventually counterfeiting the product. The jury convicted both defendants of all the charges presented against them at the trial.
“A jury has now determined that the defendants were involved in a conspiracy to substitute a well-known product with a dangerous counterfeit of their own,” said U.S. Attorney Stretch. “We are proud of the hard work of our law enforcement partners in the Food and Drug Administration and the Federal Bureau of Investigation who have worked so hard to uncover the evidence necessary to bring these criminals to justice.”
“U.S. consumers rely on the FDA to ensure that their foods – and drinks – are safe and wholesome. When criminals introduce counterfeit foods into the U.S. marketplace, they not only cheat consumers, but place consumers’ health at risk,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to pursue and bring to justice those who jeopardize the public’s health.”
Under its agreement with Baja Exporting, LLC, Living Essentials agreed to manufacture the liquid 5-Hour ENERGY product and provide Spanish-language labeling and display boxes to the exporter. Under the agreement, the 5-Hour ENERGY product provided to Baja was to be distributed only in Mexico. The agreement also specified that Living Essentials would provide to Baja a “complete product package” including Spanish-language labeling. The evidence at trial demonstrated that the Shayotas and charged codefendants diverted the product in order to sell it in the United States at a higher price. After initial efforts to sell the product failed because of the Spanish-language labeling and display boxes, the Shayotas took additional steps to profit illegally from the 5-Hour ENERGY product.
The Shayotas and other defendants next replaced the labeling and display boxes with counterfeit labels and boxes in English designed to imitate Living Essentials’ packaging in the United States. The defendants relabeled and repackaged over 350,000 bottles of 5-Hour ENERGY. The defendants removed the legitimate lot numbers and expiration dates, replaced them with false labeling, and sold them in the United States at a price that was lower than what Living Essentials charged for authentic United States 5-Hour ENERGY. By December 2011, the Shayotas had sold off Baja’s remaining stock of the repackaged/relabeled 5-Hour ENERGY.
Further, the evidence at trial demonstrated that by early 2012, the Shayotas and other defendants began to substitute the entire 5-Hour ENERGY product with a counterfeit product. They manufactured the counterfeit 5-Hour ENERGY liquid at an unsanitary facility using untrained day workers, and mixed unregulated ingredients in plastic vats while attempting to mimic the real 5-Hour ENERGY products. From approximately December 2011 through October 2012, the defendants ordered more than seven million counterfeit label sleeves and hundreds of thousands of counterfeit display boxes, and placed false lot and expiration codes on the bottles and boxes. They often changed the lot and expiration codes on the counterfeit bottles and boxes to parallel the valid codes being used on the authentic product.
In addition, evidence at trial demonstrated that from May 2012 to October 2012, Midwest Wholesale Distributors, a company owned by defendant Walid Jamil, distributed more than four million bottles of counterfeit 5-Hour ENERGY into commercial channels throughout the United States. Midwest sold over 500,000 counterfeit 5-Hour ENERGY bottles to Baja Exporting and over 3,500,000 counterfeit 5-Hour ENERGY bottles to the Dan-Dee Company, which was owned by defendants Kevin Attiq and Fadi Attiq.
A Superseding Information was filed on June 29, 2016, charging the Shayota’s, Jamil, the Attiqs, and four others with conspiracy to traffic in counterfeit goods, in violation of 18 U.S.C. § 2320(a); and conspiracy to commit criminal copyright infringement and conspiracy to introduce misbranded food into interstate commerce, in violation of 18 U.S.C. § 371.
Joseph Shayota and Adriana Shayota are out of custody pending sentencing. Their sentencing hearing is scheduled for April 5, 2017, before Judge Koh in San Jose. The maximum statutory penalty for conspiracy to traffic in counterfeit goods is ten years’ imprisonment, a fine of $2,000,000 and restitution. The maximum statutory penalty for conspiracy to commit criminal copyright infringement and conspiracy to introduce misbranded food into interstate commerce is five years’ imprisonment, a $250,000 fine, and restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Six defendants, listed below, have pleaded guilty.
Defendant
Guilty Plea
Sentencing Date
Kevin Attiq, 58, of El Cajon
Conspiracy to Commit Criminal Copyright Infringement, and to Introduce Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371
February 1, 2017
Raid Jamil, 47, of West Bloomfield, Michigan
Conspiracy to Commit Criminal Copyright Infringement, and to Introduce Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371
May 17, 2017
Walid Jamil, 66, of Troy, Michigan
Conspiracy to Traffic in Counterfeit Goods, in violation of 18 U.S.C. § 23202(a), and Conspiracy to Commit Criminal Copyright Infringement, and to Introduce Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371
April 26, 2017
Mario Ramirez, 57, of San Diego, California
Conspiracy to Commit Criminal Copyright Infringement, and to Introduce Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371
February 8, 2017
Leslie Roman, 62, of Rancho Cucamonga, California
Conspiracy to Commit Criminal Copyright Infringement, and to Introduce Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371
February 8, 2017
Justin Shayota, 33, of San Diego, California
Conspiracy to Traffic in Counterfeit Goods, in violation of 18 U.S.C. § 23202(a), and Conspiracy to Introduce Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371
March 15, 2017
Defendant Juan Romero remains a fugitive.
Assistant U.S. Attorneys Matt Parrella and Susan Knight are prosecuting the case with the assistance of Lakisha Holliman, Nina Burney, and Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Food and Drug Administration’s Office of Criminal Investigations.