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Monday 19 September 2016
Justice Department Announces over $10 Million to Improve Substance Abuse Treatment for Justice-Involved PeopleRead the Press Release
Deputy Attorney General Sally Q. Yates today announced awards totaling more than $10.8 million to assist 162 state, tribal and local government agencies to improve evidence-based substance abuse treatment programs for incarcerated inmates, as well as to prepare justice-involved individuals for reintegration into local communities. The grants were announced during a visit by Deputy Attorney General Yates to a Bureau of Prisons Community Treatment Services Program as part of Prescription Opioid and Heroin Epidemic Awareness Week.
“Cooperation and community partnerships like the ones supported by the Residential Substance Abuse Treatment Program help incarcerated individuals transitioning back to the community receive the support they need to break the cycle of addiction and have the tools they need for successful reentry” said Deputy Attorney General Yates. “These grants are a critical part of the department’s ongoing work to combat the prescription opioid and heroin epidemic and provide treatment to those in need.”
The grants are funded under the Office of Justice Programs Bureau of Justice Assistance’s Residential Substance Abuse Treatment for State Prisoners Program. This annual award provides for the development and implementation of treatment programs and aftercare services in correctional and detention facilities in all 50 states, the District of Columbia and five U.S. territories.
“Treating justice-involved individuals for substance abuse must extend beyond incarceration treatment programs to be successful,” said Assistant Attorney General Karol V. Mason. “These grants reward those state, tribal and local agencies that seek to leverage community partnerships and interagency cooperation as well to help these individuals reenter society.”
The program’s framework allows award recipients to implement three types of programs: residential, jail-based and aftercare. Awardees are required to coordinate treatment programs with state correctional professionals and alcohol and drug abuse agencies to receive grant funding. They are also encouraged to partner with community-based organizations to help continue care as justice-involved individuals reenter local communities.
An additional $485,000 was awarded to Advocates for Human Potential, Inc., to provide training and technical assistance in the development and implementation of substance abuse treatment programs.
For a complete monetary and geographical breakdown of the grants awarded under this program, visit https://www.bja.gov/Funding/16RSATAllocations.pdf.
Huntington man fifth to plead guilty for role in drug ringRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who helped lead a multistate drug ring pleaded guilty today to a federal crime, announced United States Attorney Carol Casto. Corey Bruce Toney, 27, entered his guilty plea to distribution of heroin.
On September 29, 2016, a confidential informant working at the direction of the Drug Enforcement Administration contacted Toney to arrange for the purchase of heroin. Toney agreed to meet the informant, who was accompanied by undercover agents. Toney admitted that he subsequently distributed 10 grams of heroin to the informant in exchange for $1,250. Agents were also able to make numerous additional controlled purchases of heroin from Toney and others during the course of the investigation.
Toney also admitted that from the summer of 2014 to May 2016, he conspired with others to distribute large quantities of drugs in the Huntington and Charleston areas, including heroin, crack, marijuana, and alprazolam pills, commonly known as Xanax. Toney further admitted that he maintained a leadership role in the conspiracy, and that he possessed a number of firearms during the conspiracy.
Toney faces up to 20 years in federal prison when he is sentenced on January 9, 2017.
These prosecutions arose out of a long-term investigation led by the Drug Enforcement Administration, with assistance from the West Virginia State Police, the Putnam County Sheriff’s Department, the Huntington Police Department, the Huntington FBI Drug Task Force, the Ohio Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service, which resulted in charging 12 defendants for offenses related to the distribution of heroin, crack, marijuana and alprazolam in Huntington.
Four defendants have previously pleaded guilty for their roles in this drug ring. Matthew Michael Meadows, Arthur James Canada, Tanisha Lynette Wooding, and Parker Wyatt Mays have all pleaded guilty to federal drug charges and are awaiting sentencing. All of the other defendants charged in the prosecution of this drug ring are presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Hunt County Man Sentenced to 262 Months in Federal Prison on Methamphetamine Trafficking ConvictionRead the Press Release
DALLAS — Adrian Sanchez, 40, was sentenced today by U.S. District Judge David C. Godbey to 262 months in federal prison following his guilty plea in March 2016 to an Information charging one count of possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, Judge Godbey ordered that Sanchez forfeit his residence on Perry Drive in West Tawakoni, Texas, as well as seven firearms that were seized by the government when they executed search warrants at his home and at a storage unit he rented. Law enforcement found methamphetamine, drug ledgers, drug paraphernalia and firearms at both locations. Sanchez has been in custody since his arrest on January 21, 2016, on a related federal criminal complaint. He is subject to deportation upon completion of his sentence.
According to documents filed in the case, Sanchez admitted that from approximately 2015 until the date of his arrest, he knowingly and intentionally possessed with the intent to distribute and distributed 50 grams or more of methamphetamine. On January 6, 2016, at a Walmart parking lot, Sanchez sold a witness one-fourth kilogram of methamphetamine for $2,250. Later the same day, Sanchez sold the witness another one-fourth kilogram of methamphetamine for the same price. Then, approximately two weeks later, after leaving his residence and then stopping at the storage unit he rented on Plano Road in Dallas, Sanchez met the witness at an AutoZone in Dallas and sold him/her one-half kilogram of methamphetamine for $4,500.
Sanchez advised the witness, according to the complaint filed in the case, that his neighbors were suspicious of his activities because he converted liquid methamphetamine to crystal methamphetamine at his home in West Tawakoni, and he believed they knew about his recrystallization laboratory because of the strong chemical odors associated with the methamphetamine conversion process.
The Drug Enforcement Administration, Hunt County Sheriff’s Office, Rockwall Police Department, Allen Police Department and Garland Police Department investigated the case. Assistant U.S. Attorney Suzanna Etessam was in charge of the prosecution.
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Houston, Texas Woman Pleads Guilty to Bank Fraud, False IdentificationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that STACY BORLEY BORTEY, age 26, of Houston, Texas, pled guilty to BANK FRAUD, in violation of Title 18, United States Code, Sections 1344(2) and 2 and UNLAWFUL TRANSFER, POSSESSION OR USE OF A MEANS OF IDENTIFICATION, in violation of Title 18, United States Code, Sections 1028(a)(7) and 2.
The Indictment alleged that on or about March 18, 2016, in the Eastern District of Oklahoma, the defendant did knowingly obtain moneys and funds owned by and under the custody and control of CreditONE, a financial institution as defined by Title 18, United States Code, Section 20, whose deposits were insured by the Federal Deposit Insurance Corporation, by means of false pretenses and representations, by using a unauthorized credit card. It further alleges that on the same date the defendant did knowingly possess in or affecting interstate or foreign commerce, without lawful authority, a means of identification of another person, knowing that the means of identification belonged to another actual person, with the intent to commit, or to aid or abet or in connection with, Bank Fraud.
The charges arose from an investigation by the Murray County Sheriff’s Office and the United States Secret Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. Sentencing will be scheduled upon its completion. The defendant will remain in the custody of the United States Marshal Service, pending sentencing.
The statutory range of punishment for Bank Fraud is not more than 30 years imprisonment, a fine of up to $1,000,000.00 or both and for Unlawful Transfer, Possession or Use of a Means of Identification is not more than 5 years imprisonment, a fine of up to $250,000.00 or both on count 2.
Assistant United States Attorney Christopher Wilson represented the United States.
Houston Man Arrested for Attempting to Transport and Use ExplosivesRead the Press Release
HOUSTON – A 50-year-old man residing in Houston has been arrested on charges that he attempted to transport explosives for the purpose of injury or destruction of property, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Perrye K. Turner of the FBI.
Cary Lee Ogborn is charged with attempting to transport explosives with the intent that those explosives be used to kill, injure, or intimidate any individual or to damage or destroy a vehicle or building. He was arrested late Friday after picking up a package he believed contained such explosives. He is expected to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m. today.
The criminal complaint, filed upon his arrest, alleges he initiated an anonymous online order of explosive materials on a network of computers designed to conceal his true IP address. Ogborn allegedly went to an online marketplace that enables vendors and users to conduct anonymous transactions involving the sale of illegal goods.
Beginning on or around Aug. 20, 2016, Ogborn allegedly sent a private message via this network seeking items he intended to use to cause the explosion of a building. According to the complaint, Ogborn continued to communicate with someone he believed was a vendor, but whom was actually an undercover FBI employee.
Ogborn eventually placed an order for items he intended to use to destroy a vehicle and a building, according to the charges. After receiving notice that his package had arrived in his post office box, Ogborn allegedly retrieved the package and opened it.
He was arrested soon thereafter.
If convicted, he faces up to 10 years in prison and a fine of up to $250,000.
The FBI Joint Terrorism Task Force conducted the investigation with the assistance of the Montgomery County Sheriff’s Office, Houston High Intensity Drug Trafficking Area, Montgomery County Narcotics Enforcement Team and U.S. Postal Inspection Service.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Honolulu Man Pleads Guilty to Identity Theft and Admits to Fraudulent Tax Return SchemeRead the Press Release
Richard Lee Derrick, Jr., 52, of Honolulu, pled guilty today in federal court to one count of aggravated identity theft. Derrick will face a mandatory term of imprisonment of two years, a fine of up to $250,000, and restitution when he is sentenced on January 10, 2017, by United States District Judge Derrick K. Watson.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, stated that, according to documents filed with the court, Derrick engaged in a scheme by which he filed numerous fraudulent federal and state income tax returns using the personal information of others. During court proceedings, Derrick admitted to filing one such fraudulent federal tax return using his deceased wife’s social security number on February 20, 2014. As part of the plea agreement, Derrick pled guilty to the identity theft offense but also agreed that he was responsible for fraudulently obtaining $241,897.60 in refunds from the State of Hawaii. Derrick agreed to pay restitution in that amount to the State of Hawaii Department of Taxation.
The case was investigated by the Internal Revenue Service - Criminal Investigation, the Social Security Administration Office of Inspector General, and the United States Postal Inspection Service, with the assistance of the State of Hawaii Department of Taxation, Criminal Investigation Section. The prosecution is being handled by Assistant U.S. Attorney Amalia Fenton.
Heroin and Opioid Awareness WeekRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today the start of the National Heroin and Opioid Awareness Week, which will reinforce the Department of Justice’s three-fold approach to the nationwide opioid and heroin epidemic: 1) prevention and awareness regarding the opioid and heroin problem; 2) enforcement priorities and best practices; and 3) resources that focus on treatment. This week, the Attorney General and other Department of Justice leaders, as well as U.S. Attorney’s Offices across the country, will participate in events designed to highlight and educate the public about the dangers of heroin and opioids.
On Friday, the U.S. Attorney’s Office for the Eastern District of Arkansas will sponsor a forum at North Little Rock High School, at which time health care professionals, enforcement officials, and recovering addicts will speak to students about heroin and opioid abuse.
More Americans now die every year from drug overdoses than in motor vehicle crashes—and most of those involve prescription opioids or heroin. The statistics are sobering: 80% of the world’s supply of opioid medication is used in the United States, while 4.6% of the world’s population lives in the United States. In 2014 more than 27,000 lives were lost to heroin and opioids, and reports from the field indicate that this number has increased in 2015 and this year. While the largest share of this toll comes from the abuse of prescription opioids, the number of deaths from heroin has increased dramatically over the last several years.
A main component of the Department of Justice’s approach to the epidemic is the enforcement prong. The Department and the Eastern District of Arkansas seek to reduce the supply of these deadly substances by working closely with other federal agencies and our state and local partners to prosecute street dealers, gang members who sell drugs, dirty doctors and pharmacists, up to the leaders of the major cartels who move large quantities of heroin and other opioids into the United States.
However, this crisis will not be solved solely through prosecutions. The heroin and opioid epidemic requires a coordinated response across all elements of government and our society, including federal, state and local law enforcement as well as medical and public health authorities, community groups and concerned citizens. Enforcement efforts are much more effective when they are part of a larger strategy that seeks to educate potential drug users and prevent their involvement with opioids in the first place, and focuses on treatment.
The Eastern District of Arkansas and other U.S. Attorneys are finding new and creative approaches to beat back the heroin and opioid epidemic. For example:
- The Drug Enforcement Administration has developed its 360 Strategy that combines targeted enforcement with efforts to fight the diversion of prescription opioids and efforts to build community coalitions against drug abuse.
- The Organized Crime Drug Enforcement Task Forces runs a National Heroin Initiative that provides seed money to federal prosecutors and agents who come up with new approaches to investigate drug trafficking groups and reduce heroin and opioid deaths.
- The Office of Justice Programs is awarding grants to public health authorities to implement and enhance the use of Prescription Drug Monitoring Programs to help track opioid prescriptions and prevent their abuse.
The President has made clear that addressing the prescription opioid and heroin epidemic is a priority for his Administration, and has proposed to invest $1.1 billion in new funding to make sure that every American with an opioid addiction who seeks treatment can get care. These new investments build on the steps the Administration has been taking to:
- promote evidence-based prevention programs;
- increase access to the overdose-reversal medicine naloxone;
- expand access to treatment, including medication-assisted treatment;
- improve opioid prescribing practices;
- carry out targeted enforcement activities; and
- support the millions of Americans in recovery.
States and communities are also working to save lives through innovative partnerships between public safety and public health. For example, first responders are using naloxone to reverse overdoses and prevent deaths; states are strengthening prescription drug monitoring programs which help detect doctor-shopping and overprescribing of opioids; and the criminal justice community is establishing programs that send people with substance abuse problems to treatment rather than jail.
Recovery from opioid and other controlled substance addictions is possible, and many Americans are able to recover because they get the treatment and care they need. But too many still are not able to get treatment. That’s why the President has called on Congress to provide the resources needed to ensure that every American with an opioid addiction who wants treatment can get it and start the road to recovery. This is an epidemic that can be confronted and defeated, but everyone has a role to play in turning the tide of this epidemic:
- Have a meaningful conversation with your family about the dangers of heroin and opioid abuse.
- Get involved in activities in your community against heroin and opioids. Many communities are hosting public forums, town halls, events at schools, vigils, walks, and similar activities.
- Contact law enforcement if you suspect drug-related activity in your neighborhood.
- If you have prescription opioids in your home, make sure they are safely locked away.
- Take advantage of drug take back days sponsored by the DEA, other law enforcement agencies, and some pharmacy chains to safely dispose of your unneeded prescription opioids.
During Heroin and Opioid Awareness Week, Americans can learn more about addiction, join with community members to support evidence-based prevention and treatment programs, and stand with those suffering from addictions or who are in recovery—to let them know they are not alone.
Greenfield Man Sentenced to 24 Years for Enticing Teens for Illicit SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Greenfield, Mo., man was sentenced in federal court today for attempting to entice two teenage victims to engage in illicit sexual activity.
Christopher L. Johnson, 38, of Greenfield, was sentenced by U.S. District Judge Stephen R. Bough to 24 years and four months in federal prison without parole. The court also sentenced Johnson to a lifetime of supervised release following incarceration.
Johnson, who pleaded guilty on June 28,2016, engaged in text messages and Facebook messages that were sexual in nature with two victims, identified in court documents as Jane Doe 1, who was 16 years old, and Jane Doe 2, who was 13 years old. Johnson admitted in his plea agreement that he engaged in sexual contact with Jane Doe 1 at his residence.
According to court documents, Johnson engaged in sexual intercourse with both of the minor victims. Johnson also asked Jane Doe 2 to take sexually explicit photographs of herself to send to him. Even after the investigation with Jane Doe 2 began in June 2014, Johnson did not cease his behavior, but instead moved onto Jane Doe 1.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the FBI and the Dade County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Four Sentenced for Racketeering Conspiracy to Commit Violent Robberies, Murder of Off-Duty Reserve Police OfficerRead the Press Release
CHARLOTTESVILLE, VIRGINIA – Four members of a violent street gang, who were convicted of federal racketeering charges in February, were sentenced today in the United States District Court for the Western District of Virginia in Charlottesville for their roles in a RICO conspiracy that was responsible for the abduction and murder of a Waynesboro Police Department reserve officer, as well as multiple, violent armed robberies and home invasions, United States Attorney John P. Fishwick Jr. announced today.
Daniel Lamont Mathis, 20, of Charlottesville, Va., Shantai Monique Shelton, 26, of Charlottesville, Va., Mersadies Lachelle Shelton, 22, of Charlottesville, Va., and Kweli Uhuru, 25, of Winchester, Va., were each found guilty of multiple federal racketeering counts following a month-long jury trial in February.
Today in District Court, Mathis, Shantai Shelton, Mersadies Shelton and Uhuru were sentenced each to four life sentences plus an additional period of incarceration. Mathis was sentenced today to four life terms plus 132 years in federal prison. Shantai and Mersadies Shelton were each sentenced to four life terms plus an additional 82 years in federal prison and Kweli Uhuru was sentenced to four life terms plus an additional 10 years in federal prison.
“This investigation shows how dedicated the Department of Justice is to addressing violent crime and the presence of street gangs in our communities,” United States Attorney Fishwick said today. “The use of the federal RICO statute in this case allowed prosecutors to not only charge these four defendants, but other members of the gang, including those in leadership positions in Northern Virginia. Today’s sentence of multiple life terms should send a clear and loud message to those operating gang activity in central Virginia, this type of activity will lead you nowhere but federal prison.”
“This case comes at a time when our nation hears confusing messages about who in our society are the good guys and who are the bad guys. Officer Kevin Quick was one of the good guys. Thanks to United States Attorney John Fishwick and his team, our many outstanding law enforcement partners, and the Charlottesville FBI office, Officer Quick's killers have finally been brought to justice,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Division.
At trial, the evidence established that co-defendants Halisi Uhuru, Anthony Stokes and Kweli Uhuru formed the 99 Goon Syndikate, a set of the Bloods criminal street gang, while in prison. All three were released from prison in 2013. Kweli Uhuru recruited his brothers and the Shelton/Mathis siblings to join the gang in the summer of 2013 by persuading them of the easy money and respect earned as a gang member. By October 2013, this violent criminal street gang began committing criminal acts throughout Central Virginia.
Over the ensuing months, the gang members robbed convenience stores, burglarized or robbed homeowners, sold narcotics and ultimately abducted and murdered Captain Kevin Quick of the Waynesboro Police Department Reserves. Tragically, Captain Quick was in the wrong place at the wrong time on the evening hours of January 31, 2014. Quick was on his way to visit his sick child at the same time the gang wanted to commit a carjacking. When he arrived in the parking lot and exited his vehicle, the gang members abducted the unarmed Captain Quick at gunpoint and drove him to Fluvanna, where they forced him to disclose his ATM PIN code at gunpoint. After obtaining his code, the gang members took him into the woods and shot and killed him.
Two days later, gang members Daniel Mathis and Mersadies Shelton attempted to rob a Louisa homeowner who fought back after Mathis threatened a toddler and pistol whipped a female at the residence. During the melee, Mathis lost the magazine to his .40 caliber pistol and shot one of the residents while he escaped. The gang members then reached out to their leadership in Northern Virginia in an effort to escape to Montana. Halisi Uhuru sent Anthony Stokes from Manassas to Louisa in the middle of the night to bring the fellow gang members away from the scene of their crimes.
While in Northern Virginia, the leadership provided the gang members with food, shelter and helped them destroy evidence associated with the murder of Captain Quick, including the murder weapon. Law enforcement caught up with them the night they planned to escape to Montana on February 4, 2014. Two days later, Captain Quick’s body was found off a remote logging road in Goochland County, Virginia.
The investigation of the case was conducted by the Virginia State Police, the Federal Bureau of Investigation, the Louisa County Sheriff’s Office, the Albemarle County Police Department, the Charlottesville City Police Department, the Waynesboro Police Department, the Henrico County Police Department, the Gordonsville Police Department, the Goochland County Commonwealth’s Attorney’s Office, the Fluvanna County Commonwealth’s Attorney’s Office and the Prince William County Police Department. Assistant United States Attorneys Ronald M. Huber and Christopher Kavanaugh prosecuted the case for the United States. Victim and Witness specialists with the United States Attorney’s Office, assisted by Victim and Witness specialists from the FBI, Albemarle County and Louisa County, provided substantial assistance in support of the prosecution.
Fostoria man charged with embezzling $42,000 from labor unionRead the Press Release
A criminal information was filed charging Aaron M. Contreras, 34, of Fostoria, with embezzlement of union funds.
Contreras, while working as financial secretary of a labor union, illegally embezzled approximately $42,700 from the union during 2015. He prepared a false financial report to conceal the embezzlement. Including ATM fees, the loss to the union was $43,293, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Department of Labor, Office of Labor-Management Standards, in Cleveland. The case is being handled by Assistant United States Attorney Tracey B. Tangeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Massachusetts Man Pleads Guilty to Multi-Million Dollar Ponzi SchemeRead the Press Release
BOSTON – A former Massachusetts-resident pleaded guilty on Friday, Sept. 16, 2016, in U.S. District Court in Boston in connection with running a $10 million Ponzi scheme.
Mark Anderson Jones, 64, pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in proceeds of unlawful activity. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Dec. 21, 2016.
Between 2008 and 2015, Jones obtained approximately $10 million in investments from over 20 individuals by leading them to believe that they would be providing financing to Jamaican businesses. Jamaican banks can take time to close loans to businesses and Jones claimed that he was offering these businesses “bridge loans” as an interim measure (i.e., to “bridge” the gap between the date a loan was sought from Jamaican banks and the distribution of funds by those banks). However, Jones made misrepresentations to investors about the purported bridge loan investments and how their money would be used. Specifically, rather than investing in bridge loans and paying returns based on investments, Jones paid a significant amount of investment returns, or repaid investment principal, to investors from new capital provided by other investors.
For example, in January 2015, a Massachusetts-based investor invested approximately $200,000 with Jones. Later that month, Jones used approximately $180,000 of that investor’s money to pay four other investors.
U.S. Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Valuable assistance was also provided by the U.S. Postal Inspection Service and the Internal Revenue Service’s Criminal Investigations in Boston. The case is being prosecuted by Assistant United States Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit, and Special Assistant U.S. Attorney Eric A. Forni from the SEC.
Focus on Fentanyl: Awareness week shines light on emerging threatRead the Press Release
Last month when there were nearly 30 overdoses in Huntington in just four hours, West Virginia was once again in the headlines because of a drug-related issue. But this story was different, in part because the drugs involved were much more powerful than what we’re used to seeing. What is this latest threat, what’s being done about it, and what can you do?
This is National Heroin and Opioid Awareness Week, which has been established in order to shine a light on the threat posed by this class of drugs. Opioids provide rewarding, euphoric effects that can lead to dependence and addiction. The opioid family includes prescription painkillers such as oxycodone, illicit drugs like heroin, and fentanyl, which has emerged as one of the deadliest substances being distributed today. The focus is on fentanyl this week because it has led to clusters of overdoses in our region, similar to what we saw in Huntington in August.
Fentanyl is a synthetic opioid that most of us know as an end-stage cancer drug applied via patches to the skin. But the version being sold on the streets of West Virginia is produced clandestinely in China and Mexico before it reaches the Mountain State. Fentanyl is very powerful – 100 times more powerful than morphine - and is often mixed with heroin by dealers to enhance the high experienced by users. Drug cartels are shipping large quantities of it to the United States to make up for declining marijuana profits.More deaths than ever before in West Virginia are being linked to fentanyl. The consumption of just two milligrams of the substance can be fatal. In the last two years, over 40% of those who died from a drug overdose in our state had fentanyl in their system, a number much higher than we’ve ever seen.
Carfentanil, which is not intended for human consumption but instead meant to tranquilize large animals, has also been introduced into the supply chain. This super drug is believed to have contributed to the rash of overdoses that occurred in our region over the past few months.
But as the substances get stronger, so must we, in the areas of enforcement, prevention and treatment. The task forces in West Virginia are aggressively targeting those who profit from the sale of fentanyl and other substances, and taking the steps necessary to disrupt and dismantle drug trafficking organizations. Supplemental federal funding has been secured to support local enforcement efforts. Additionally, many police departments in the state are now treating overdoses like crime scenes in order to better identify the source of supply. Prevention professionals are working diligently, and while there is still a gap in treatment resources I remain hopeful that it will soon be closed.What can you do? If you have children or grandchildren, you should reject the notion that it can't happen in your family. It can, and it has, in thousands of West Virginia households. Talk to your children about drugs; ask the tough questions; and be prepared to answer the questions that they fire back. Help them to understand that the threat posed by fentanyl and other opioids is very real, that it's here in West Virginia, and that one time is all it takes. If we arm young people with the facts, then hopefully they’ll stop and think before they take a pill or powder provided by a friend, a teammate, or a dealer.
You can also help by calling the police when you see suspicious activity, ensuring that pills in your home are properly secured, and participating in drug take back days. You can become a recovery coach and help those who are struggling with the disease of addiction, or volunteer at a hospital to help babies who have been exposed to opioids while in the womb.
Let's not allow what happened recently in Huntington to become the new normal. Instead, let's all do our part to push back against this threat and begin down a path toward a stronger and healthier West Virginia.
William J. Ihlenfeld, II, is the United States Attorney for the Northern District of West Virginia.Federal Jury Convicts San Angelo, Texas, Man on Methamphetamine Distribution and Firearms ChargesRead the Press Release
SAN ANGELO, Texas — Following a one-day trial that began this morning before Senior U.S. District Judge Sam R. Cummings, a federal has jury convicted Jesse Huerra, 31, of San Angelo, Texas, on methamphetamine distribution and firearms charges outlined in a May 2016 federal indictment, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury convicted Huerra on one count each of possession with intent to distribute 500 grams or more of methamphetamine; possession of firearms in furtherance of a drug trafficking crime; and being a convicted felon in possession of firearms.
The government filed a notice of enhancement because Huerra has two previous “felony drug offenses.” If the Court finds those convictions are final and valid, then, by statute, the Court must impose a life sentence without parole as to the methamphetamine count. A sentencing date was not set.
Huerra has been in custody since his arrest on July 13, 2016, when numerous defendants, most from the San Angelo area, were arrested in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety (DPS) and the San Angelo Police Department. Twelve defendants, including the drug trafficking organization’s leader, Rudolfo Ledesma Castaneda, Jr., 31, were charged in an indictment with various felony offenses stemming from their roles in a methamphetamine distribution conspiracy that operated in San Angelo. While Castaneda’s trial date is set for November 7, 2016, most defendants have pleaded guilty to their roles and are awaiting sentencing.
The government presented evidence at trial that on December 4, 2015, the San Angelo Police Department executed a search warrant at Huerra’s residence on Estella Drive in San Angelo. After being advised of his constitutional rights, Huerra stated that he had methamphetamine in his dresser in the master bedroom and in the top bunk of his children’s bunk bed. He also stated that he had pistols in the master bedroom closet.
A search of Huerra’s residence yielded more than 1,500 grams of methamphetamine, three firearms (one with the serial number removed), and several items of drug trafficking paraphernalia. A law enforcement witness testified that the street value in San Angelo for the methamphetamine was approximately $125,000.
The DEA, Texas DPS and the San Angelo Police Department are leading the investigation, with assistance from the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security Homeland Security Investigations, and the Tom Green County Sheriff’s Office.
Assistant U.S. Attorneys Jeffrey Haag and John Eric Nickols are prosecuting the case.
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East Windsor Woman Charged with Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIYAH THERESA JULIATE DAVIS, also known as Theresa Juliate Sutherland, 36, of East Windsor, has been charged by criminal complaint with making a false statement on a U.S. passport application.
DAVIS was arrested on September 17, 2016. She appeared today before U.S. Magistrate Judge Joan G. Margolis in Hartford and was ordered detained.
According to court documents and statements made in court, on December 17, 2014, DAVIS, who was then known as Theresa Sutherland, was sentenced in Hartford federal court to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme at an insurance company where she was employed. As part of her sentence, DAVIS was ordered to pay total restitution of $400,000 to the victim insurance company and three previous employers that she defrauded.
DAVIS has not yet reported to prison to serve her sentence based on her repeated claims of a diagnosis of terminal cancer and heart conditions.
The complaint alleges that, in March 2015, DAVIS changed her name from Theresa Juliate Sutherland to ALIYAH THERESA JULIATE DAVIS without disclosing her federal fraud and identity theft convictions in probate court documents as required. DAVIS subsequently received a new Social Security number and Connecticut driver’s license under her new identity.
The complaint further alleges that, on April 19, 2016, DAVIS submitted an application for a U.S. passport at the U.S. Postal Service facility on Weston Street in Hartford. On the application where it states “Have you ever applied for or been issued a U.S. Passport Book or Passport Card?” DAVIS marked an “X” in the “No” box. In 2007, DAVIS applied for and received a U.S. passport when she was known as Theresa Juliate Sutherland.
The complaint also alleges that the investigation has revealed that many of DAVIS’s recent claims about her health are false. In addition, since her sentence was imposed, DAVIS has been employed at a local insurance company and local hospitals under her new identity, and she continues to receive unemployment compensation under her previous identity. She also took two cruise vacations earlier this year.
If convicted of passport fraud, DAVIS faces a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of State, Diplomatic Security Service, U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor and East Windsor Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Dubuque Woman Sentenced to Prison for Obstructing JusticeRead the Press Release
A woman who lied to Deputy United States Marshals about the location of a federal fugitive was sentenced on September 16, 2016, to 10 months in federal prison.
Vivian Rochelle Weakley, age 28, from Dubuque, Iowa, received the prison term after a June 29, 2016, guilty plea to one count of obstruction of justice.
In a plea agreement, Weakley admitted that on April 19, 2016, she knew Antwain Deshaun Spratt was inside her residence in Dubuque when Deputy United States Marshals arrived at the residence looking to arrest Spratt on an outstanding federal arrest warrant. Weakley falsely denied knowing Spratt, and claimed there was no one else in the home. Shortly thereafter, Spratt was found hiding in an upstairs bedroom closet. An unloaded handgun was found in Spratt’s clothes in a hamper right outside the closet.
Weakley was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Weakley was sentenced to 10 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Weakley was released on the bond previously set and is to surrender to the United States Marshal in October 2016.
The case is being investigated by the United States Marshals Service and the Dubuque Police Department, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-30-LRR.
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Dubuque Man Sentenced to over Two Years Prison for Identity TheftRead the Press Release
A man who stole the identity of another person was sentenced last Friday to more than two years in federal prison.
Peter Eli George, age 34, from Dubuque, Iowa, received the prison term after a May 2, 2016, guilty plea to one count of misuse of a Social Security Number and one count of aggravated identity theft.
The evidence showed George used a birth certificate and a Social Security card of a real person to obtain a State of Iowa identification card on June 11, 2015. On September 23, 2015, George used the documents to obtain a State of Iowa driver’s license. In January 2016, George used the fraudulent driver’s license when stopped by police in Illinois. George also used the victim’s identity when seeking medical treatment. The victim of the identity theft reported that he had his tax refunds withheld, several fraudulent lines of credit were opened up using his identity, and his medical coverage was used by someone else. When the victim confronted George by phone, George threatened the victim and told the victim to stop using his identity. George later filed a complaint against the victim with the Social Security Administration and a credit reporting agency. George had previously been convicted of forgery, theft, conspiracy to violate the drug laws, grand larceny of an auto, and taking a vehicle without owner’s consent. Three of those convictions were under another alias, the name of another real person.
George was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. George was sentenced to 30 months imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
George is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Social Security Administration, Office of Inspector General, and the Bureau of Investigation & Identity Protection, Iowa Department of Transportation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-1009-LRR.
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Department of Justice Launches Inaugural National Heroin and Opioid Awareness Week, September 19-23, 2016Read the Press Release
United States Attorney Emily Gray Rice announced that the United States Attorney’s Office for the District of New Hampshire will be joining the United States Department of Justice in recognizing National Heroin and Opioid Abuse Week from September 19, through September 23, 2016.
The purposes of this week of action are to prevent further opioid overdose tragedies, focus on enforcement priorities and underscore the critical importance of treatment resources. To further these objectives, the United States Attorney’s Office for the District of New Hampshire participated in the Rally4Recovery sponsored in Manchester by Hope for New Hampshire Recovery on September 17, 2016. With the help of WMUR-TV Channel 9, United States Attorney Rice joined New Hampshire Attorney General Joseph Foster and Drug Enforcement Administration Assistant Special Agent in Charge, Jon DeLena, in producing a public service announcement sharing treatment resources. United States Attorney Rice will also appear with Manchester Police Chief Nick Willard, Attorney General Foster and DEA ASAC DeLena to bring further awareness to the crisis on Jack Heath’s New Hampshire Today program on WGIR AM 610 and The Wave 96.7 FM on Thursday, September 22, 2016.
Speaking about the week’s events, United States Attorney Rice stated: “As the public is all too well aware, our families, friends and co-workers are challenged by unprecedented levels of opioid addiction, fed by a tide of illicit drugs washing into New Hampshire. Our communities, our law enforcement partners, our public officials, our medical and public health professionals, our treatment providers and so many others are working as hard as they can, every day, to stem this tide. We are committed to working together to educate the community in order to prevent opioid abuse, to provide treatment to those who struggle with addiction and to bring to justice those who engage in the criminal conduct which floods our neighborhoods with illicit drugs and violence. For those who struggle with addiction or who know someone who is struggling, help is just a phone call away at New Hampshire’s Statewide Addiction Crisis Line, 1-844-711-HELP (4357).”
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City of Miami Resident Sentenced to More Than 4 Years in Prison for Possessing 242 Stolen Identities Used in Unemployment and Tax Fraud SchemesRead the Press Release
A City of Miami resident was sentenced to 51 months in prison, to be followed by three years of supervised release, for possessing 242 stolen identities used in unemployment and tax fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Miami Office, and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Yordan Gorotiza, 26, was sentenced by U.S. District Judge Paul C. Huck to 51 months in prison, to be followed by three years of supervised release, a $200 special assessment, and $33,608 in restitution, stemming from his conviction on one count of possession of fifteen or more unauthorized access devices (Social Security numbers) with intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, during a traffic stop of Gorotiza’s vehicle, law enforcement officers found Gorotiza in possession of (among other items) four Florida unemployment cards in the names of other individuals; 26 Visa gift cards; a Florida driver’s license with Gorotiza’s picture but with another individual’s name; and a book bag containing personal identifying information (PII) of 242 different people, including employment records from a business and patient data sheets from a hospital. Several of the sheets contained handwritten driver's license numbers and markings commonly used to represent tax or unemployment benefits filings.
Records from the Florida Department of Economic Opportunity show that between October 1, 2013 and July 11, 2014, at least 64 of the victims had their personal information used without authorization to obtain unemployment benefits, including the victims whose unauthorized unemployment cards Gorotiza possessed during the traffic stop. The total actual loss to the Florida Department of Economic Opportunity was $33,608, and the total intended loss attributable to Gorotiza was $281,009.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, the Aventura Police Department and the Florida Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
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.
Canadian Man Ordered Detained Pending Federal Trial Relating to an RV Park and Immigrant Investor Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Karamchand “Raj” Doobay (42, Ontario, Canada and Orlando, Florida) with conspiracy to commit mail and wire fraud and substantive counts of mail and wire fraud. If convicted on all counts, he faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Doobay that the United States intends to forfeit $8,248,547, representing the amount of proceeds obtained as a result of the offenses, and several parcels of real property in Hamilton County, Florida, and a residence in Winter Garden, Florida, which are also alleged to be traceable to proceeds of the offenses. Doobay was arrested on September 1, 2016, and was ordered detained pending trial.
According to the indictment, Doobay operated business entities in Hamilton County, through which he acquired a parcel of land located at 7516 SE 113th Blvd., in Jasper. From about March 2009, through December 2015, Doobay solicited investors to purchase subdivided lots on the land, guaranteeing them returns between 9 percent and 41 percent for investments in RV lots and other lots for sale by his entity, Florida Gateway Resort. He utilized various bank accounts to collect funds for the purchase of RV lots that he purported to sell to investor purchasers. However, Doobay failed to disclose that he had previously contracted to sell and purportedly sold the same RV lots to other investors.
The indictment also alleges that, from about May 2011, through about May 2016, Doobay conspired to commit wire fraud by promising to immigrant investors to use their investments for the development, renovation and/or new construction of Senior Premier Living, a retirement community in the city of Jasper. In fact, Doobay used a portion of the investors’ funds to pay Florida Gateway Resort investors and for his own personal use and enjoyment. This included a withdrawal of $190,000 in immigrant investor funds on or about October 27, 2014.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Hamilton County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kelly S. Karase.
Baltimore Fraudster Sentenced to Five Years in Federal Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jose Miguel Tapia, age 30, of Baltimore, to five years in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft arising from several schemes in which Tapia fraudulently obtained over $130,000. Chief Judge Blake also entered an order requiring Tapia to pay restitution in the full amount of the victims’ losses, which is $132,548.85.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to Tapia’s plea agreement, from October 2010 through November 2014, Tapia devised multiple schemes to defraud financial institutions. For example, during the time of the fraud Tapia obtained the personal identification information of an individual, which Tapia used to gain access to the victim’s credit accounts. Tapia then made purchases totaling approximately $41,000 against the victim’s credit cards. In addition, Tapia submitted fraudulent applications for the financing of automobiles, using the personal information of the victim in order to qualify for the loans and to purchase the vehicles. Tapia obtained and attempted to obtain vehicles worth approximately $38,000, including a 2011 Infinity G37X luxury vehicle, which Tapia purchased on October 9, 2014, using the social security number of the victim.
From September through November 2014, Tapia and others posed as account holders of two businesses in order to gain access to their business accounts at a home improvement store. Once he gained access to the accounts, he made purchases on the accounts, and changed the phone numbers and passwords for the accounts without the knowledge and consent of the business owners. Tapia made a total of approximately $48,000 in unauthorized purchases at the home improvement store against the business accounts of the victims. To extend the scheme and have access to more credit, Tapia obtained the financial account information of a hotel. Tapia withdrew approximately $45,000 from bank accounts owned by the hotel, which he used to pay down the account balances of the victim businesses at the home improvement store. Tapia also posed as an employee of the hotel to open an account at a phone store in Fullerton, Maryland, then charged approximately $2,800 against that account, which was billed to the victim hotel.
Finally, Tapia gained access to Verizon account information of employees at a university in Baltimore, which he used to obtain approximately $9,199 in smartphones, and other goods and services.
The total actual loss to the victims as a result of Tapia’s fraudulent activities was $132,548.85.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service - Baltimore Field Office and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Albuquerque Man Sentenced to Ten Years for Discharging a Firearm During Robbery of Commercial BusinessRead the Press Release
ALBUQUERQUE – Raiff Harland Hayes, 25, of Albuquerque, N.M., was sentence in federal court this morning to 120 months in prison for discharging a firearm during the robbery of a commercial business. Hayes will be on supervised release for three years after completing his prison sentence.
Hayes was arrested on Aug. 18, 2015, on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws. According to the complaint, Hayes robbed ABQ Interlock, a business located at 2444 Menaul Blvd. NE in Albuquerque, on the afternoon of July 27, 2015. According to surveillance video, Hayes pointed a firearm at two employees, fired a shot into the ceiling, placed a bag on the counter, and demanded that the employees put cash into his bag. On July 28, 2015, one of the employees identified Hayes as the robber from a photo array. Thereafter Hayes was arrested on state charges that were later dismissed in favor of federal prosecution.
Hayes was indicted on Sept. 10, 2015, and charged with violating the Hobbs Act and discharging a firearm during a crime of violence on July 27, 2015, in Bernalillo County, N.M.
On May 23, 2016, Hayes pled guilty to Count 2 of the indictment and admitted discharging a firearm during the armed robbery of a business engaged in interstate commerce.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Albuquerque and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Norman Cairns prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Albuquerque Community Advocate Participates in National Heroin and Opioid Awareness Week Events in Washington, D.C.Read the Press Release
Lou Duran is Affiliated with Healing Addiction in our Community (HAC) and is Regular Collaborator in HOPE Initiative’s Education and Outreach Efforts
ALBUQUERQUE – The President of the United States, Barack Obama, has designated the week of September 19-24, 2016, Prescription Opioid and Heroin Epidemic Awareness Week, and has called for a “week of action” to raise awareness about the public health crisis caused by the growing heroin and opioid epidemic. As part of the national awareness week, National Drug Control Policy Director Michael Botticelli and Agriculture Secretary Tom Vilsack today hosted a roundtable conversation in the White House with parents from across the country whose family members have been affected by the prescription opioid and heroin epidemic. Lou Duran, of Albuquerque, N.M., was one of 14 parents who participated in the round table. Following the roundtable conversation, Ms. Duran was one of two parents who joined Director Botticelli, Secretary Vilsack and U.S. Attorney General Loretta E. Lynch for a telephonic press conference to discuss the roundtable conversation.
Ms. Duran lost her 19-year-old son Michael to a heroin overdose in 2011, after a 2.5 year struggle with addiction. Michael was a high school athlete who was prescribed opioids for a sports-related injury, got addicted, and moved on to heroin. Following Michael’s death, Ms. Duran decided that no other mother should never suffer the loss of a child to addiction, and began her personal campaign: “his face, my voice.”
Ms. Duran has devoted the last five years to being an advocate in the community by bringing awareness and education to youth and their families, and shedding light on the stigma and shame associated with addiction. Her efforts have included statewide presentations in various community events, school presentations, treatment centers, community groups, seminars, conferences, as well as participating in three documentaries.
A month after losing Michael, Lou joined Healing Addiction in our Community (HAC), which provided a platform for her advocacy. HAC is a nonprofit, grassroots group of parents and grandparents who advocate for those who struggle with addiction and the families of those who struggle. Ms. Duran and her friend Jennifer Weiss-Burke, who lost her son Cameron to a heroin overdose in 2011 and who founded HAC and Serenity Mesa, a substance abuse treatment center for adolescents and young adults, have collaborated with the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative from the time it was launched in Jan. 2015. Ms. Duran and Ms. Weiss-Burke were part of the inspiration that led the U.S. Attorney to approach Chancellor Paul B. Roth of the UNM Health Sciences Center about partnering up in the HOPE Initiative.
“Years before the rest of the country realized that the opioid epidemic was looming, Lou Duran, Jennifer Weiss-Burke and HAC were using their personal stories to draw attention to this critically important issue. They understood that the first step towards defeating this devastating epidemic was to make our communities’ aware of its existence and the devastating impact it was having on all aspects of our society,” said U.S. Attorney Damon P. Martinez. “The HOPE Initiative continues to be inspired by Lou, Jennifer and HAC, and we are proud to partner with them on HOPE’s education and prevention efforts.”
The HOPE Initiative is a partnership established by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
White House Awareness Week Press Call
"We Are A Community United Against Heroin"Read the Press Release
ASHEVILLE, N.C. – Today, the U.S. Attorney’s Office for the Western District of North Carolina in partnership with the U.S. Drug Enforcement Administration, the Eastern Band of Cherokee Indians (EBCI) and the Cherokee Indian Police Department hosted a day long community awareness summit on the epidemic of heroin and prescription opioid abuse and the related overdose deaths in Indian Country and surrounding areas in western North Carolina.
“Heroin addiction is not a public health concern. It is a public health crisis. The alarming rate of deaths attributed to heroin overdoses in the Western District of North Carolina and the increasing rate of addiction to opiates and prescription drugs demand our immediate attention,” said U.S. Attorney Jill Westmoreland Rose. “As law enforcement we cannot arrest our way out of this epidemic. The Justice Department’s three-pronged approach combines law enforcement action with prevention and treatment efforts. Stemming the flow of drugs, stopping more people from using opiates, and treating those who have become addicted requires coordination and collaboration with our state, local and tribal partners, community leaders, healthcare providers, service groups and community members. Working together we can succeed in implementing a comprehensive strategy that offers viable solutions, delivers sustainable results, and brings relief to afflicted communities,” U.S. Attorney Rose added.
Approximately 110 professionals from the fields of law enforcement, medicine, substance abuse and treatment, and interested community members attended the summit, held at the Chief Joyce Dugan Cultural Arts Center in Cherokee, N.C. Speakers from federal and local law enforcement agencies, medical experts and representatives of community organizations presented on a broad range of topics including: the alarming rise in heroin and opioid addiction; prevention efforts and available treatment options; heroin trafficking trends within the boundaries of the Eastern Band of Cherokee Indians and surrounding areas; and tribal, state, local and federal law enforcement efforts to stem the flow of opiates in the area.
U.S. Attorney Rose thanked the DEA, the Eastern Band of Cherokee Indians and the Cherokee Indian Police Department for co-sponsoring the event and emphasized the importance of the conference stating that, “Today’s summit is part of our ongoing effort to bring attention to heroin addiction and opioid drug abuse and to continue to build upon our collaborative efforts with law enforcement, the healthcare field and our community partners to confront this epidemic and address the problem in real and meaningful ways.”
Saturday 17 September 2016
Missouri Woman Sentenced for Sex Trafficking ConspiracyRead the Press Release
On September 15, 2016, Robin Thompson, 25, of Park Hills, Missouri, was sentenced for her role in the sex trafficking of a minor last year, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Thompson was sentenced to 20 years in prison, as well as 10 years of supervised release, following her prison term, a mandatory $100 special assessment, and a $1,000 fine. Court proceedings revealed that during a six week period in June and July 2015, Thompson took part in a venture with her husband, co-defendant Marcus Dewayne Thompson, which involved the recruitment, transportation, and advertisement of a minor female from Illinois for commercial sex acts in Florida, Georgia and Louisiana. Along with Marcus Thompson, Robin Thompson took and posted sexually explicit pictures of the minor on an internet site as part of an advertisement for sex with the minor. Thompson also arranged prices, services, and meet locations with customers to engage in sex with the minor.
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.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Daniel T. Kapsak.
Former Senior Living Center Employee in Belleville Pleads Guilty to Mail Fraud and Wire FraudRead the Press Release
Tarkeisha Sayles, 36, of Fairview Heights, Illinois, entered pleas of guilty to mail fraud and wire fraud, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Sayles worked at the Atrium of Belleville, a senior living center, from August 3, 2014 through August 18, 2015 as an Operation Coordinator. Sayles’s job responsibilities included receiving and holding USPS parcels and letter mail for certain residents. The criminal charges are the result of Sayles using the credit card of a resident of the senior living center and applying for a credit card in the name of a resident as part of a scheme to defraud. Sayles faces a prison sentence of up to 40 years, a fine of up to $500,000, and up to 3 years’ supervised release with mandatory restitution. Sentencing is scheduled for February 3, 2017.
The prosecution is the result of an investigation by the U.S. Postal Inspection Service and the Fairview Heights Police Department. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Friday 16 September 2016
“We Are A Community United Against Heroin": A Heroin and Opioid Community Awareness Summit, Cherokee, N.C.Read the Press Release
****** MEDIA ADVISORY *******
ASHEVILLE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina in partnership with the U.S. Drug Enforcement Administration, the Eastern Band of Cherokee Indians and the Cherokee Indian Police Department is hosting a community awareness summit on the rising of prescription opiates and heroin abuse and the epidemic of heroin related overdose deaths on the reservation and surrounding areas in western North Carolina. The summit will be held on MONDAY, SEPTEMBER 19, 2016 at 9:00 A.M. EDT.
U.S. Attorney Jill Westmoreland Rose and Principal Chief Patrick Lambert of the Eastern Band of Cherokee Indians will deliver the day’s opening remarks. Speakers and panel participants will discuss a variety of topics, including but not limited to, prescription drug and heroin abuse and addiction, overdose-related fatalities, law enforcement efforts to stem the flow of drugs, availability of community resources, outreach efforts and education to affected communities. This summit will educate community members, law enforcement and service providers about opiate and heroin distribution, the physiological effects of the drugs and introduce the community to interventions and best practices that are available within the boundaries of the EBCI and the western North Carolina region.
Help from the media in advancing news of this summit to encourage attendance by parents, teachers, faith-based organizations and other community leaders would be valuable in spreading the message. Attendance is free of charge but seating is limited.
Media is invited to cover the event from 9:00 to 10:00 a.m., beginning with welcome remarks of agency representatives who will also be available for on-camera interviews.
PRESENTERS: Jill Westmoreland Rose, United States Attorney, Western District of North Carolina
Principal Chief Patrick Lambert, Eastern Band of Cherokee Indians
Chris Fletcher, Special Agent, U.S. Drug Enforcement Administration
Richard Hutchinson, Special Agent, U.S. Drug Enforcement Administration Department
Dr. Steven Lloyd, Internal Medicine
Local Health Officials
Victims of Heroin and Opioids
WHAT: Heroin & Opioid Awareness Summit
WHEN: Monday, September 19, 2016, at 9:00 A.M. EDT
WHERE: Chief Joyce Dugan Cultural Arts Center
Cherokee Central Schools
260 Elk Crossing Lane
Cherokee, NC
(Enter through the Cherokee Middle School)
NOTE: Please arrive no later than 8:45 a.m. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Press inquiries regarding logistics should be directed to Lia Bantavani at [email protected] or 704-338-3140.
NOT FOR RELEASE OR PUBLICATION, FOR PLANNING PURPOSES ONLY
Wallingford Man Admits Operating Ponzi SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH A. CASTELLANO, 59, of Wallingford, pleaded guilty today in Hartford federal court to fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of nearly $1.5 million.
According to court documents and statements made in court, CASTELLANO operated various entities out of offices in Wallingford, including Casbo Investments, Wallingford Investors Limited Partnership, AIM Realty Investors, and Castellano & Co., LLC. As a Certified Public Accountant and owner of Castellano & Co., LLC, CASTELLANO prepared federal and state tax returns for individuals and local businesses. In connection with his tax preparation business, CASTELLANO established a base of clients to which he offered financial services and investment opportunities in addition to preparing their taxes.
Beginning in approximately July 2007, CASTELLANO falsely represented to victim-investors that he had clients who were in need of capital to fund businesses or real estate development projects, but were unable to secure funding from traditional sources such as financial institutions. CASTELLANO told victim-investors that he would obtain for them a consistent rate of return of between approximately six percent and eight percent annually on their money by taking their money and placing it with, or loaning it to, one or more of his other clients. CASTELLANO, through Casbo Investments, prepared and executed official-looking documents and investment contracts termed “Demand Notes,” which contained a promise to return the principal amount, with interest, at any time.
In fact, there were no actual investments or investment opportunities, and the money was not invested with or loaned to other clients of CASTELLANO. CASTELLANO diverted the funds for his own use and benefit, including making “interest” payments to other victim-investors. CASTELLANO also made false statements to certain victim-investors to explain various delays in the purported interest payments.
Through this scheme, CASTELLANO defrauded more than 10 victim-investors of approximately $1.45 million.
CASTELLANO was arrested on April 6, 2016.
CASTELLANO pleaded guilty to one count of mail fraud and one count of money laundering. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 22, 2016, at which time he faces a maximum term of imprisonment of 30 years. He is released on a $250,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys Michael McGarry and John Pierpont.
US Attorney to Launch Heroin and Opioid Awareness Week in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced a series of public discussions and town hall meetings to raise awareness about the rising public health crisis in Rhode Island of opioid addiction, and opioid and heroin overdoses. The programs, to begin on Monday, September 19, 2016, will reinforce the Department of Justice’s three-fold approach to the opioid and heroin epidemic - prevention and awareness; enforcement; and treatment.
On Friday, President Barack Obama and Attorney General Loretta E. Lynch designated the week of September 19-23, 2016, as National Heroin and Opioid Awareness Week.
Regional town hall meetings and discussions organized in collaboration with Prevention Coalitions from across Rhode Island, and open to the public, will be held in Providence, South Kingstown, Woonsocket and Middletown on Monday, September 19 thru Thursday, September 22, respectively. Each program will include the screening of the powerful documentary Chasing the Dragon: The Life of an Opioid Addict; the personal stories of our neighbors touched by the epidemic of drug overdoses that is devastating families across Rhode Island; and a discussion with members of the medical, treatment, education, community-outreach and law enforcement communities. Parents, students, teachers, school administrators and the public are strongly encouraged to join the discussion at these events.
“We are all aware of the opioid/heroin overdose numbers in Rhode Island and across the country. They are staggering, so staggering that it can sometimes be hard to get a handle on this epidemic's real human cost. But behind each number is a person, a real person, with great potential, and with family and others who love them. Some are gone forever, and others are on a path that may soon take them there” said United States Attorney Peter F. Neronha. “Heroin and Opioid Awareness Week is about raising awareness about existing treatment that can divert people from that path, and about preventing addiction in the first place. Thanks to the continuing, terrific work of so many, Rhode Island is an opioid/heroin treatment and prevention leader. Hopefully our discussions can contribute to this effort.”
On Monday, September 19, 2016, at 10:00 am, at the Brown University School of Professional Studies, 200 Dyer Street, Providence, United States Attorney Peter F. Neronha, joined by United States Senators Jack Reed and Sheldon Whitehouse, will kick off National Heroin and Opioid Awareness Week in Rhode Island with a screening of the powerful documentary Chasing the Dragon; the personal story of a local person impacted by addiction; and a discussion about heroin and opioid addiction awareness with local physicians, treatment specialists, educators, and the leadership of the FBI, DEA, and local law enforcement.
Town hall meetings and discussion events around Rhode Island will continue on Tuesday, September 20, 2016. Each program will include a screening of Chasing the Dragon, the personal stories of local families and individuals impacted by addiction, and a discussion about heroin and opioid addiction awareness with local physicians, treatment specialists, educators, and the leadership of the FBI, DEA, and local law enforcement.
The schedule for Heroin and Opioid Awareness Week programs in Rhode Island for the week of September 19, 2016, is as follows:
Monday, September 19, 2016
10:00 a.m.
Brown University School of Professional Studies
200 Dyer Street, Providence
Tuesday, September 20, 6:30 p.m.
South Kingstown High School Auditorium
215 Columbia Street, Wakefield
Wednesday, September 21, 6:00 p.m.
Woonsocket City Hall, Harris Hall
169 Main Street, Woonsocket
Thursday, September 22, 6:30 p.m.
Middletown Town Hall, Council Chambers
350 Main Road, Middletown
The public and the media are strongly encouraged to attend and to participate in the discussion.
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U.S. Attorney’s Office, FBI, and DEA to Present Heroin/Opioid Addiction Awareness Events in Alaskan CommunitiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that representatives from the U.S. Attorney’s Office, FBI, and DEA are holding events this month in a series of rural Alaskan communities, as part of National Heroin and Opioid Awareness Week, to increase awareness about the dangers of opioids and heroin addiction.
The Obama Administration is announcing a “week of action” to raise awareness about the rising public health crisis caused by drug overdoses. As part of this effort, the Department of Justice designated the week of Sept. 18-24, 2016, as National Heroin and Opioid Awareness Week. Heroin and Opioid Awareness Week gives us the chance to educate the public about the dangers of heroin and opioid abuse, as well as how everyone can participate in the effort to help stop the epidemic that is killing so many of our children, friends and neighbors. For those communities hardest hit by this epidemic it is truly terrifying, and it is spreading rapidly across the country, including Alaskan communities.
Here in Alaska, we are holding a series of community events. Each will feature a screening of “Chasing the Dragon,” a documentary film collaboratively produced by the FBI and DEA, which depicts the harsh reality of heroin and opioid addiction. The film was designed to better educate students and young adults about these drugs’ dangers and the tragic consequences that often accompany them. The film will be followed by an interactive community discussion with federal, state, and local law enforcement partners, as well as behavioral health and medical professionals, about the issues that the film raises and how this epidemic is impacting Alaskan communities.
In addition, similar presentations are being held in schools in each community the U.S. Attorney’s Office, FBI, and DEA are visiting as part of this initiative.
Earlier this month, events were held in Kotzebue for the Northwest Arctic Borough School District’s Youth Leaders Program, and Kotzebue Middle/High School. Yesterday, in Barrow, events were held for Barrow High School students, and the community.
Future community events are listed below:
HEROIN/OPIOID AWARENESS EVENT IN BETHEL, ALASKA
WHEN: MONDAY, SEPTEMBER 19, 2016; 5:30-7:30 p.m.
WHERE: Bethel City Hall, Council Chambers, 300 State Highway, Bethel, Alaska
HEROIN/OPIOID AWARENESS EVENT IN KETCHIKAN, ALASKA
WHEN: TUESDAY, SEPTEMBER 20, 2016; 5:00-7:30 p.m.
WHERE: Discovery Center, 50 Main Street, Ketchikan, Alaska
HEROIN/OPIOID AWARENESS EVENT IN NOME, ALASKA
WHEN: THURSDAY, SEPTEMBER 22, 2016; 5:30-7:30 p.m.
WHERE: Nome Eskimo Community Trigg Hall, 200 W. 5th Avenue, Nome, Alaska
HEROIN/OPIOID AWARENESS EVENT IN KODIAK, ALASKA
WHEN: WEDNESDAY, SEPTEMBER 28, 2016; 7:00-9:30 p.m.
WHERE: Kodiak High School Auditorium, 917 Rezanof East, Kodiak, Alaska
HEROIN/OPIOID AWARENESS EVENT IN PETERSBURGH, ALASKA
WHEN: (Date/time TBD)
WHERE: Petersburg High School, 109 Charles W St., Petersburg, Alaska 99833
Additional events are being planned this fall in other Alaskan communities.
U.S. Attorney Loeffler commends the Alaska State Troopers and local law enforcement partners, as well as the behavioral and medical health professionals, in each of these communities for their assistance with these events.
Note: Additional Resources and guidance can be found at: www.FBI.gov/ChasingTheDragon.
Press inquiries regarding logistics should be directed to Chloe Martin at [email protected].
U.S. Attorney’s Office to Host September 22nd Event in Pierre for National Heroin and Opioid Awareness WeekRead the Press Release
In recognition of National Heroin and Opioid Awareness Week (September 19-23, 2016), the United States Attorney’s Office in the District of South Dakota is hosting a screening of the film, “Chasing the Dragon: The Life of an Opiate Addict” and a panel discussion at 7:00 p.m. on Thursday, September 22nd, 2016. The event will be held at T.F. Riggs High School Theatre, located at 1010 E. Broadway Avenue in Pierre.
The film runs for approximately 60 minutes. The panel will feature Ron Deist, Resident Agent in Charge of the Sioux Falls Drug Enforcement Administration field office, Wendy Kloeppner, Hughes County State’s Attorney, Katie Sieverding Chemist at South Dakota State Health Laboratory, and Assistant U.S. Attorney SaraBeth Donovan.
The event is free and open to the public. For further information and resources, visit DEA’s website: https://getsmartaboutdrugs.com
U.S. Attorney’s Office to Host September 22nd Event in Pierre for National Heroin and Opioid Awareness WeekRead the Press Release
In recognition of National Heroin and Opioid Awareness Week (September 19-23, 2016), the United States Attorney’s Office in the District of South Dakota is hosting a screening of the film, “Chasing the Dragon: The Life of an Opiate Addict" and a panel discussion at 7:00 p.m. on Thursday, September 22nd, 2016. The event will be held at T.F. Riggs High School Theatre, located at 1010 E. Broadway Avenue in Pierre.
The film runs for approximately 60 minutes. The panel will feature Ron Deist, Resident Agent in Charge of the Sioux Falls Drug Enforcement Administration field office, Wendy Kloeppner, Hughes County State’s Attorney, Katie Sieverding Chemist at South Dakota State Health Laboratory, and Assistant U.S. Attorney SaraBeth Donovan.
The event is free and open to the public. For further information and resources, visit DEA’s website: https://getsmartaboutdrugs.com
U.S. Attorney Rod Rosenstein, Attorney General Frosh, Mark Week of September 19th “Heroin and Opioid Awareness Week”Read the Press Release
Baltimore, MD –U.S. Attorney Rod Rosenstein and Maryland Attorney General Brian Frosh joined state and federal officials throughout the country in proclaiming the week of September 19th as “Heroin and Opioid Awareness Week” to bring attention to the epidemic of heroin and opioid-related overdose deaths in Maryland.
Opioid and heroin addiction and abuse across the nation is rampant. In Maryland alone, heroin-related deaths increased by over 200% from 2011 to 2015, rising from 247 to 748. There has also been an alarming spike in deaths from fentanyl, rising 105% during the first quarter of 2016 as compared to the same time in 2015. The increases in overdose deaths are not just seen in Maryland’s larger cities – they have been reported throughout the state, including western and central Maryland and the Eastern Shore.
“Heroin and Opioid Awareness Week gives us the chance to educate the public about the dangers of heroin and opioid abuse, and strategies to stop this epidemic that is killing our children, friends, and neighbors,” said U.S. Attorney Rod Rosenstein. “We will continue to work closely with our law enforcement partners to prosecute those who are putting these drugs on our streets, and to build community coalitions to fight this epidemic.”
“Raising awareness is just one step in addressing this widespread, complex epidemic in our State,” said Attorney General Frosh. “Opioids are highly addictive and extremely dangerous, altering the users’ brain permanently, even after just one use. Our goal is to educate as many people as possible so that we save lives, and prosecute those that traffic illegal heroin into Maryland. Addiction to opiates is dangerous, whether obtained through prescriptions or on the street.”
Every heroin overdose in Maryland is being investigated as a homicide, in an effort to identify the distributor. Together with the Drug Enforcement Agency and the State’s Attorneys of Maryland, the Maryland Attorney General’s Office and the U.S. Attorney’s Office are developing a best practices model on gathering evidence required for criminal prosecution.
The Organized Crime Unit of the Attorney General’s Office has prioritized combatting the heroin epidemic by focusing on dismantling the most dangerous drug organizations across the State. Since its inception in 2015, the Organized Crime Unit has indicted over 50 drug traffickers – from the traffickers who knowingly distribute fatal doses of heroin – usually cut or mixed with fentanyl – to the violent trafficking organizations that profit off of addicted individuals. The Unit, in coordination with local, state, and federal prosecutors and law enforcement agencies, is currently investigating dozens more and is committed to continuing to aid in the fight against this tragic epidemic.
Many people become addicted to legally prescribed opiates, but switch to heroin, fentanyl or other drugs, when they can no longer obtain their prescription. A 2014 national survey found an estimated 1.4 million people in the U.S. abused a prescription painkiller for the first time that year. Approximately one in five high school seniors reports misusing prescription drugs at least once.
The U.S. Attorney’s Office and Maryland Attorney General’s Office will continue to work with federal, state and local law enforcement as well as medical and public health authorities, community groups and concerned citizens to develop a coordinated response across all elements of government. Our enforcement efforts are much more effective when they are part of a larger strategy that seeks to educate potential drug users and prevent their involvement with opioids in the first place.
U.S. Attorney Announces ADA Restaurant InitiativeRead the Press Release
BOISE – The Office of the U.S. Attorney for the District of Idaho is reviewing restaurants in both Coeur d’Alene and Nampa to ensure that they provide the access required by the Americans with Disabilities Act of 1990 (the “ADA”), U.S. Attorney Wendy J. Olson announced. The review stems from the Department of Justice’s congressionally-mandated responsibility to ensure compliance with the ADA and is not in response to any specific complaint against a restaurant.
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, which include restaurants. The ADA thus authorizes the U.S. Department of Justice to review restaurants. The ADA requires restaurants to be “designed, constructed and altered in compliance with the accessibility standards established” by the ADA’s implementing regulations.
As part of the review, restaurant owners are first asked to complete a survey regarding their restaurants’ accessibility. Investigators may then visit restaurants to evaluate ADA compliance. If the site visits reveal noncompliance, the U.S. Attorney’s Office will notify the owners and operators. The Department of Justice generally pursues voluntary compliance measures first. It may, however, commence a civil lawsuit in federal court if necessary. It does so, for example, in cases that involve a pattern or practice of discrimination or that raise issues of general public importance.
“People with disabilities who visit, work, or live in Coeur d’Alene and Nampa deserve to have an equal opportunity to enjoy restaurants in these cities, as the ADA requires,” said Olson. “Our goal is to work with restaurant owners to bring them into compliance, so that all their potential patrons have access.”
The U.S. Attorney’s Office for the District of Idaho enforces federal civil rights laws, including the Fair Housing Act, Equal Credit Opportunity Act, Religious Land Use and Institutionalized Persons Act, Servicemembers Civil Relief Act, Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, and the Uniformed Services Employment and Reemployment Rights Act. Civil remedies under these statutes include monetary penalties, injunctions, civil judgments and more.
Two Marijuana Container Businessmen Charged with Conspiracy to Defraud the U.S. as Part of Securities Fraud Involving Microcap Company FusionPharm, Inc.Read the Press Release
DENVER – William Sears, age 50 of Thornton, Colorado, and Scott Dittman, age 47, now of Boyertown, Pennsylvania, and formerly of Elizabeth, Colorado, were charged by Information yesterday with Conspiracy to Defraud the U.S. as part of a scheme to defraud the U.S. Securities Exchange Commission, the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), the Internal Revenue Service – Criminal Investigations and the U.S. Postal Inspection Service announced. Both defendants made their initial appearance before a U.S. Magistrate Judge in U.S. District Court in Denver.
According to the Information, beginning as early as in or about March 25, 2011 and continuing at least through in or about May 15, 2014, the defendants knowingly and willfully conspired, combined and agreed with each other, and with other persons both known and unknown, to defraud the United States and the United States Securities and Exchange Commission ("SEC"), by impeding, impairing, defeating and obstructing the lawful governmental functions of the SEC. The conspiracy includes the offenses of securities fraud, mail fraud and wire fraud.
FusionPharm, Inc. (“FusionPharm”) was a Nevada corporation with its principal place of business at first in Denver, Colorado and later in Commerce City, Colorado. FusionPharm’s principal business was the development, manufacture and sale of steel shipping containers retrofitted and refurbished for use as hydroponic growing pods, branded as “PharmPods,” for indoor plant cultivation, primarily cannabis. Defendant Dittman was the founder, chief executive officer and sole director of FusionPharm but, in fact, operated FusionPharm, and pursued and developed its business, together and in concert with defendant Sears, and the two defendants together beneficially held and controlled the majority of the shares of FusionPharm’s common and preferred stock, which was convertible into the company’s common stock. FusionPharm’s common stock was publicly traded in the over-the-counter markets, primarily through transactions involving networks of securities broker-dealers.
Sears would cause shares of preferred stock of FusionPharm held in the name of Microcap to be converted into shares of FusionPharm common stock and deposited into brokerage accounts established in the name of Microcap. He would induce brokers overseeing these accounts to consider and treat these common shares as unrestricted securities that could be immediately sold in the public securities markets by falsely representing to them that neither he nor Microcap was an affiliate of FusionPharm or a control person of the company. Dittman facilitated the deposit of these shares, and their treatment as unrestricted securities, by executing FusionPharm officer certificates and other documentation affirming that Microcap was not an affiliate of FusionPharm.
Sears would then cause the remainder of these preferred shares to be transferred from Microcap’s name into the names of family members or entities held in the name of family members, in order to make it appear that neither he nor Microcap had shareholdings in FusionPharm in such amounts as to deem either Sears or Microcap to be affiliates or control persons under the federal securities laws or to trigger their disclosure as significant shareholders under reporting guidelines. Sears would thereafter cause portions of the FusionPharm preferred shares that had been transferred into the names of these family members and entities, in turn, to be converted into additional common shares of FusionPharm that could be publicly sold later on or that he and Dittman could later use to raise funds for the company in private sales to select FusionPharm investors.
Sears, working in coordination with another individual, would thereafter cause the FusionPharm common shares that had been deposited into the Microcap brokerage accounts to be sold in the public securities markets and, in consultation with defendant Dittman, would deposit significant portions of the proceeds of these FusionPharm stock sales into operating bank accounts of FusionPharm – both directly and through a series of transactions involving Bayside, Meadpoint or Vertifresh – so that the money could then be used to capitalize and operate the company, as well as be used for the defendants’ own financial support.
Sears and Dittman both face one count of Conspiracy to Defraud the U.S., which carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine. In addition, Sear also faces one count of Filing a False Income Tax Return. That crime carries a penalty of not more than 3 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorneys Kenneth Harmon and Tonya Andrews with Special Assistant U.S. Attorney Scott Mascianica.
Two Former Maui Residents Sentenced for Fraud Charges Related to Operation of $26 Million Dollar Ponzi SchemeRead the Press Release
HONOLULU -- United States District Judge Derrick K. Watson yesterday sentenced George Lindell, 68, and Holly Hoaeae, 41, both formerly of Maui, to 210 months and 120 months imprisonment, respectively, for their involvement in operating an extensive Ponzi scheme in which 166 individuals were induced to invest over $26 million dollars. A federal jury found Lindell and Hoaeae guilty of eight counts of mail fraud and two counts of wire fraud after a 27-day trial concluding in May 2015. Lindell was also convicted of four counts of money laundering.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Judge Watson also ordered both defendants to pay restitution of $8.9 million dollars representing the net loss to investors in the case. According to evidence produced in court, Lindell and Hoaeae began an investment scheme in connection with their operation of their business "The Mortgage Store", in which they issued promissory notes promising to pay a guaranteed rate of return of seven percent. Lindell and Hoaeae, using radio ads, magazines and a weekly radio show, urged potential investors to attend their weekly workshops at "The Mortgage Store" where they taught seminars on how to "harness" or use the equity in their homes for investment purposes. Lindell and Hoaeae would then utilize their status as mortgage brokers to refinance investor residences in order to extract the equity in investor homes for the purposes of investment. Lindell and Hoaeae would then urge investors to invest money in their investment scheme, known as "The Parking Lot", where investors could "park" their money and earn guaranteed rates of interest. Lindell and Hoaeae advertised the Parking Lot as "safe" and invested largely in secure corporate bonds in Fortune 500 companies. In truth and fact, Lindell and Hoaeae were investing in "junk" bonds and/or marginal real estate investment activity and using the bulk of the funds to support their luxurious lifestyles and pay existing investors with new investor funds. During the scheme Lindell built a $3.5 million dollar residence above Lahaina in large part with investor funds and Hoaeae used hundreds of thousands of dollars in investor funds to fund her personal lifestyle including trips, automobiles and pay extensive credit card debt.
The investigation of this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Ken Sorenson and Andrea Hattan.
Two Former Executives of Foreign Defense Contractor Charged in Expanding Fraud and Corruption ProbeRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – September 15, 2016
SAN DIEGO, CA – Two former executives of foreign defense contractor Glenn Defense Marine Asia have been charged with participating in a conspiracy to submit fraudulent information, price quotes, claims and invoices to the U.S. Navy in an effort to steal millions of dollars as part of a years-long corruption and fraud scheme.
Neil Peterson, 38, and Linda Raja, 43, both of Singapore, worked as chief deputies for foreign defense contractor Leonard Glenn Francis to fill the coffers of their company, Glenn Defense Marine Asia (GDMA), at the expense of the U.S. Navy. Peterson served as the Vice President for Global Operations for GDMA and Raja served as GDMA’s General Manager for Singapore, Australia, and the Pacific Isles. Both defendants have been arrested and are currently being held in custody in Singapore, awaiting extradition to the United States to answer charges relating to their participation in the massive scheme to defraud the U.S Navy.
The indictment, unsealed yesterday by order of U.S. District Judge Janis L. Sammartino in the Southern District of California, alleges that Peterson and Raja submitted false claims of well over $5 million to the U.S. Navy. According to the indictment, in addition to the submission of fraudulent claims and invoices, Peterson and Raja worked to perpetuate and cover up their fraud by consistently misrepresenting to the U.S. Navy the cost of providing services to its ships in Asia, even going so far as to submit false price quotes from non-existent companies, on letterhead created from graphics cut and pasted from the Internet.
Peterson and Raja are each charged with one count of conspiracy to defraud the United States with respect to claims; one count of conspiracy to commit wire fraud; and multiple counts of making false claims.
Including Peterson and Raja, a total of 16 named individual defendants have been charged in connection with the GDMA corruption and fraud investigation. Of those, 11 are current or former U.S. Navy officials, including Admiral Robert Gilbeau, believed to be the first active-duty U.S. Navy flag officer charged in a federal criminal case; Captain (ret.) Michael Brooks; Commander Bobby Pitts; Lt. Commander Gentry Debord; Captain Daniel Dusek; Commander Michael Misiewicz; Lt. Commander Todd Malaki; Commander Jose Luis Sanchez; Petty Officer First Class Daniel Layug; Naval Criminal Investigative Service Supervisory Special Agent John Beliveau; and Paul Simpkins, a former DoD civilian employee, who oversaw contracting in Singapore.
Gilbeau, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug, and Simpkins have pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and ordered to pay $15,000 in restitution to the Navy and a $15,000 fine. On March 25, 2016, Dusek was sentenced to 46 months in prison and ordered to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and ordered to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy. Gilbeau, Beliveau, Sanchez, and Simpkins await sentencing.
Brooks, Pitts and Debord were charged in May 2016 and their cases are pending.
Also charged are three additional GDMA executives – Francis, Alex Wisidagama and Ed Aruffo. All three have pleaded guilty; Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing.
The Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case. The Justice Department’s Office of International Affairs provided substantial assistance in this matter.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANTS Case Number: 14-CR-3703-JLS
Neil Peterson 38 Singapore
Linda Raja 43 Singapore
SUMMARY OF CHARGES
Conspiracy to Defraud the United States with Respect to Claims, in violation of 18 U.S.C. § 286
Maximum Penalty: 10 years in prison, a $250,000 fine.
Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. § 1349
Maximum Penalty: 20 years in prison, a $250,000 fine.
False Claims, in violation of 18 U.S.C. § 287
Maximum Penalty: 5 years in prison, a $250,000 fine.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Three Pennsylvania Men Indicted on Carjacking and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an indictment charging Dimas Colon-Cruz, 36, Denis Cruz, 29, and Michael Gonzalez-Colon, 20, all of Erie, Pennsylvania, with carjacking, use of a firearm in furtherance of a crime of violence, and interstate transportation of stolen property. The charges carry a mandatory minimum penalty of seven years in prison and a maximum of life.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that according to the indictment and a previously filed complaint, on July 20, 2015, the defendants traveled from Erie, Pennsylvania to Dunkirk, NY on stolen all-terrain vehicles. Shortly after arriving in Dunkirk, the ATV's were seized by the Dunkirk Police Department leaving the defendants without their means of transportation.
Subsequently, the defendants assaulted an individual (Victim 1) in the vicinity of Robin and Second Streets in Dunkirk. The defendants brandished firearms during the assault, struck Victim 1 in the face during the assault and stole several items from Victim 1. Almost immediately after Victim 1 was assaulted, a second victim (Victim 2) was assaulted by the defendants in the vicinity of 209 Robin Street. After exiting a car, Victim 2 was approached by the defendants and ordered to lie on the ground at which time the victim was struck in the head with a handgun. Following the assault, the defendants stole Victim 2’s car, a 2004 Pontiac Grand Am. Also on July 20, 2015, Lakeside Lawncare in Fredonia, NY, was burglarized and several items were stolen including a gray 2002 GMC Sierra pickup truck. On July 22, 2015, both the 2004 Pontiac Grand Am and the 2002 GMC Sierra pickup truck were recovered in Erie, Pennsylvania.
The indictment is the result of an investigation by the Dunkirk Police Department, under the direction of Chief David Ortolano, the Erie, Pennsylvania Police Department, under the direction of Chief Randy Bowers, the New York State Police, under the direction of Major Steven Nigrelli, and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
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.
Third Man Sentenced in Altered Military ID ScamRead the Press Release
COLUMBUS, Ohio – Michael Edwin Goins, 62, of Columbus was sentenced to 57 months in prison for his role in a conspiracy to steal identities by using altered military identification cards at many “big-box” chain stores throughout Southern Ohio.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Reynoldsburg Police Chief Jim O’Neill announced the sentence imposed today by Senior U.S. District James L. Graham.
Goins, Harold Ross, 60, and Darrick Corley Hackney, 41, both also of Columbus, pleaded guilty earlier this year to charges of conspiracy to commit identity fraud, aggravated identity theft and access device fraud, and conspiracy to commit mail fraud. Ross was sentenced on August 29 to serve 71 months in prison and pay $152,719.18 in restitution. On June 17, Judge Graham sentenced Hackney to serve 27 months in prison and pay $24,250.07 in restitution.
In January 2015, Reynoldsburg police began investigating a series of six identity theft cases that appeared to be related. Each of the cases involved victims that had their personal identifying information used to open multiple credit card accounts at national retailers in Central Ohio. Most of the lines of credit used an altered United States Military Dependent ID card that had been stolen from a woman whose husband was serving out of the country.
To execute the scheme, Ross and Goins photographed other co-conspirators and gave them a fraudulent United States Military Dependent ID with the co-conspirator’s picture. The card would include some information of the true holder of the military ID, as well as the name and date of birth of the victim they were impersonating. Ross and Goins would often provide the co-conspirators with a list of items to purchase in the store once the line of credit was obtained. After the items were purchased, they would sell them on the street for half of the retail cost.
Upon executing search warrants, investigators found multiple documents containing personal identifying information of a number of victims, equipment used to produce ID cards and several appliances such as a washer, dryer, refrigerator, TVs, speakers and tablets that were typical of the fraudulent purchases.
The total loss between November 2015 and March 2016 is known to be more than $150,000, but the scheme included many more retailers who were unable to provide records.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Reynoldsburg Police Department and Assistant United States Attorneys Deborah A. Solove and Jessica H. Kim, who represented the United States in this case.
Tennessee Man Charged with Threatening to Murder Member of United States CongressRead the Press Release
A Murfreesboro, Tennessee, man was taken into custody this morning by FBI agents and U.S. Capitol Police, after a criminal complaint was issued, charging him with threatening to murder a United States official and transmitting in interstate commerce, a communication containing a threat, announced U.S. Attorney David Rivera for the Middle District of Tennessee.
Agents arrested Keahiokahouna Stewart, 36, at his Murfreesboro home this morning without incident. Stewart is scheduled to make an initial appearance later today before a U.S. magistrate judge in Nashville, Tennessee.
According to the criminal complaint, beginning in August and continuing through Sept. 12, Stewart sent threatening emails and posted threatening videos to Instagram accounts, which he created. In an email dated on Aug. 19, Stewart specifically indicates that he will fly from Nashville to Honolulu, Hawaii, on Nov. 1, with the intent to shoot people at the Princess Jonah Federal Building. The specific targets of these threats were U.S. Senator Mazie Hirono, who represents the state of Hawaii and Congresswoman Tulsi Gabbard, who represents the 2nd District for the state of Hawaii.
The complaint outlines that beginning in November 2013, Stewart sent a series of “Grievances” to various U.S. officials and departments, including President Barack Obama, Senator Hirono and Congresswoman Gabbard, inquiring about Stewart’s social security number. Stewart falsely believed that his social security number had been duplicated and issued to a fellow soldier he met while stationed at Camp Stanley in Korea, in 2002. In subsequent correspondence to the Social Security Administration and Department of Defense, Stewart demands he be awarded 100 percent disability and $50 billion.
As set forth in the complaint, Stewart’s actions continued to be investigated by law enforcement including a May 2015 visit to Senator Hirono’s office in Washington, D.C., which resulted in the U.S. Capitol Police being called. In subsequent Facebook and Instagram posts, Stewart continued to post comments about the issue and display photos of himself with firearms. In an Instagram video posted by Stewart on Sept. 8, he states that he is flying to Honolulu on Nov. 1, and will be traveling with an AR-15 and two handguns. Stewart further states that he has already shipped a silencer for one of the handguns and that it is stored in a garage in Waianae, Hawaii.
Investigators recently determined that Stewart had purchased an airline ticket to travel from Nashville to Honolulu on Nov. 1, however it had been “exchanged,” which would allow the ticket holder to travel on any other date.
If convicted, Stewart faces up to 10 years in prison on the charge of threatening to murder a U.S. official and up to five years in prison on the charge of communicating threats through interstate commerce.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI and the U.S. Capitol Police. The case is being prosecuted by Assistant U.S. Attorney Van Vincent.
Syracuse Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
SYRACUSE, NEW YORK – Carl Switala, 34, of Syracuse, New York, was sentenced to serve one (1) year and one (1) day in prison, followed by 5 years of supervised release, for failing to register as a sex offender, announced United States Attorney Richard S. Hartunian.
Switala pled guilty on May 18, 2016 to violating the Sex Offender Registration and Notification Act, which requires a convicted sex offender to register, and keep that registration current, wherever he or she resides, is employed, or is a student. As part of his guilty plea, Switala admitted that he was previously convicted of Criminal Sexual Conduct in the First Degree in Michigan, which required him to register as a sex offender for the rest of his life, and that he had moved from North Carolina to Syracuse in November 2015 without ever registering in New York or updating his registration in North Carolina.
This case was investigated by the United States Marshal Service, Sex Offender Investigation Branch, and was prosecuted by Assistant U.S. Attorney Robert S. Levine.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Sudanese Man Sentenced in Manhattan Federal Court to 7 Years in Prison for Bank Fraud, Credit Card Fraud, and Identity Theft Schemes Exceeding $3 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ASHRAF LAKOU was sentenced to seven years in prison for bank fraud, credit card fraud, passport fraud, and aggravated identity theft charges in connection with orchestrating a scheme to use stolen victim identification information to make fraudulent credit card purchases and to defraud financial institutions by depositing counterfeit checks into accounts controlled by LAKOU and his co-conspirators. Through these schemes, LAKOU and his co-conspirators attempted to defraud individuals, businesses, and financial institutions out of more than $3 million. On April 12, 2016, LAKOU pled guilty before United States Magistrate Judge James L. Cott. United States District Judge Victor Marrero imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Ashraf Lakou engaged in all means of fraud, from bank and credit card fraud to identity theft and passport fraud. Today, Lakou received a significant sentence matching the seriousness of his crimes.”
According to the criminal complaint, indictment, and other documents filed in Manhattan federal court, as well as statements made at related court proceedings:
From September 2013 through July 2015, LAKOU and his co-conspirators engaged in a scheme to defraud businesses and financial institutions by obtaining checks made out to legitimate businesses, opening fraudulent bank accounts in the names of the victim businesses, depositing the checks into the fraudulent accounts, and withdrawing funds from the fraudulent accounts. LAKOU and his co-conspirators carried out this scheme by, among other means, stealing checks from the mail, submitting false documentation in connection with bank account applications, and forging the signatures of other actual persons.
From May 2014 through July 2015, LAKOU and his co-conspirators also engaged in a scheme to commit credit card fraud by using stolen credit card information to make fraudulent purchases of jewelry and other merchandise. LAKOU and his co-conspirators carried out this credit card fraud scheme by, among other means, adding their own names as authorized users of pre-existing victim credit cards without the knowledge or consent of the victims and by submitting fraudulent applications for new credit card accounts in the names and identities of their victims.
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In addition to the prison term, LAKOU, 27, of Manhattan, was sentenced to three years of supervised release and was ordered to pay $557,894.50 in restitution, $557,894.50 in forfeiture, and a $600 special assessment.
Zoheb Qamran, 29, of Manhattan, and Jessica Hattar, 26, of Manhattan, have been separately charged in connection with the bank fraud and credit card fraud schemes. On May 19, 2016, Qamran pled guilty to credit card fraud, bank fraud, and aggravated identity theft charges before United States Magistrate Judge Barbara C. Moses. On May 6, 2016, Hattar pled guilty to credit card fraud and aggravated identity theft charges before United States Magistrate Judge Sarah Netburn.
Mr. Bharara praised the outstanding efforts of Department of State, Diplomatic Security Service, in the investigation.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution.
Shelton Attorney Charged with Child Pornography OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER G. KRUZYNSKI, 50, of Shelton, was arrested today on a criminal complaint charging him with production and possession of child pornography.
According to the criminal complaint, KRUZYNSKI repeatedly engaged in sexual acts with a male victim beginning in 2009, when the victim was 12 years old, and continuing until August 2016, when the victim was 18 years old. KRUZYNSKI also used his Apple iPhone to take photographs of the victim engaged in sexually explicit conduct. The victim was a minor at the time the photographs were taken. KRUZYNSKI threatened to send the photographs to others if the victim did not see him again.
KRUZYNSKI is an attorney with a law office in Shelton.
KRUZYNSKI appeared this afternoon before U.S. Magistrate Judge Joan G. Margolis in New Haven and was released on a $250,000 bond and electronic monitoring.
KRUZYNSKI was arrested on August 30, 2016 on related state charges.
If convicted of the production of child pornography charge, KRUZYNSKI faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years, and a fine of up to $250,000. The charge of possession of child pornography carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, the Shelton Police Department, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Shavertown Man Is Charged with Failing to File His Company's Employment Taxes and His Own Personal TaxesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Scranton charging a Shavertown man with failing to pay his company's employment taxes and failing to pay his personal taxes.
According to United States Attorney Peter Smith, from the first quarter of 2010 to the last quarter of 2012, Jeffrey Miller, age 45, of Shavertown, failed to pay the employment taxes for JMSI Environmental Corporation which he owned and operated. Additionally, Mr. Miller failed to file his own personal income tax returns from 2008 through 2011. These actions resulted in a tax loss of more than $473,000.
The government also filed a plea agreement with the defendant which is subject to the approval of the court.
The charges stem from an investigation by the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 6 years of imprisonment, a term of supervised release following imprisonment, and a maximum fine of $350,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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San Francisco-Based Tax Preparer Convicted of Tax FraudRead the Press Release
SAN FRANCISCO – A federal jury convicted Josiah Larkin of conspiracy to file false claims and presenting false claims to the IRS, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The guilty verdicts, reached yesterday, followed a six-day jury trial before the Honorable Susan Illston, U.S. District Court Judge.
Evidence at trial showed that Larkin, 40, of San Francisco, set up a storefront on Third Street in the Bayview/Hunter’s Point neighborhood of San Francisco in December of 2012. Although not authorized to do so, he identified the shop as a Colbert Ball Tax franchise. Larkin advertised “Get Up to $600- Even if Unemployed, On SSA or SSI.” Larkin prepared false tax returns for clients, reporting that they had no income and that they paid $4,000 in qualified education expenses to attend college. This combination of zero income and $4,000 in qualified education expenses resulted in a $1,000 tax refund based on the American Opportunity Tax Credit (“AOTC”). Larkin took approximately half of the fraudulently-obtained tax refunds and gave the remaining half to his clients. Larkin was indicted on January 6, 2015, and charged with one count of conspiracy to file false federal income tax returns as well as multiple counts of filing false claims and aiding and abetting filing false claims, all in violation of 18 U.S.C. §§ 286 and 287. The jury found Larkin guilty of the conspiracy charge and five counts of filing false claims.
“The fraudulent preparation of tax returns is an insidious drain on the public fisc,” said U.S. Attorney Brian J. Stretch. “This office will continue to devote resources to prosecute those who seek to profit by submitting fraudulently prepared tax returns to the IRS.”
“Josiah Larkin’s verdict today marks another example of a tax return preparer who preyed on the vulnerable,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “He used personal identifying information to make a quick buck. Educating the public about these schemes is a continuing focus for IRS-CI. Tax preparers should take note that if they attempt to defraud the IRS they will be caught and held accountable.”
Defendant's sentencing hearing is scheduled for January 13, 2017, before Judge Illston. The maximum statutory penalty for conspiracy to file false claims is ten years’ imprisonment and a fine of $250,000. The maximum statutory penalty for presenting false claims to an agency of the United States is five years’ imprisonment and a fine of $250,000, plus restitution if appropriate. 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.
Assistant U.S. Attorneys Cynthia Stier and Laurie Gray prosecuted the case. The prosecution is the result of an investigation by the Internal Revenue Service.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Gilbert Nick Montes, 36, of Roswell, N.M., pled guilty this morning in federal court in Las Cruces, N.M., to federal methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Montes was arrested on Nov. 30, 2015, on a criminal complaint charging him with committing a methamphetamine trafficking offense in Chaves County, N.M. According to the complaint, on July 31, 2015, Montes received four pounds of methamphetamine, which he intended to distribute to other people.
Montes was subsequently indicted on March 8, 2016, and was charged with conspiracy and possession of methamphetamine with intent to distribute. During today’s proceedings, Montes pled guilty to indictment, and admitted conspiring with others to distribute four pounds of methamphetamine.
At sentencing, Montes faces a statutory minimum penalty of ten years and maximum of life in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Roswell office of the FBI and is being prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Roanoke Chemical Distributor Sentenced for Illegally Storing and Transporting Hazardous WasteRead the Press Release
ROANOKE, VIRGINIA – A Roanoke-based chemical distributing company, which previously pleaded guilty to illegally storing hazardous waste and to transporting hazardous waste from its facility in Roanoke to another facility, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr., announced.
Chem-Solv, formerly known as Chemicals and Solvents Inc., entered into a plea agreement with the United States in December 2015 in which it agreed to pay a $1million criminal fine for these violations, as well as an additional $250,000 to fund environmental community service projects. Chem-Solv has agreed to serve five years’ probation, during which time it must develop and implement an environmental compliance plan and be subjected to yearly independent environmental audits. In conjunction with the criminal settlement, the U.S. Environmental Protection Agency reached a civil settlement with Chem-Solv and the company paid a $250,000 penalty to settle alleged violations of improper hazardous waste storage at Chem-Solv’s Roanoke facility. Today in District Court, Chem-Solv was sentenced as described in the Plea Agreement.
“This prosecution should send a clear and consistent message to all business operating in the Western District of Virginia, that this United States Attorney’s Office, along with our partners on the Blue Ridge Environmental Crimes Task Force, will not allow profits and corporate bottom lines to harm our environment,” United States Attorney Fishwick said today. “When we find environmental violations, we will pursue righteous cases, both criminally or civilly, to protect our natural resources.”
"Today’s sentencing of Chem-Solv, Inc. stemming from illegal transportation and storage of hazardous waste is a clear signal that such illegal acts will not be tolerated,” said Floyd Sherman, US DOT-OIG regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the public’s safety from those that would seek to circumvent DOT-related laws and regulations.”
“Laws for storing and transporting hazardous waste and toxic chemicals are designed to protect public health and safety,” said Jennifer Lynn, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Virginia. “Today’s sentence sends a strong message that violators who ignore those laws, putting workers and the public at risk, can expect to face the consequences in court.”
Chem-Solv operates a chemical blending and distribution facility on Industry Avenue S.E. in Roanoke as well as distribution facilities in Colonial Heights, Virginia, Rock Hill, South Carolina, and Piney Flats, Tennessee. Chem-Solv is in the business of purchasing chemicals and then reselling them to customers, either directly or after repackaging. Occasionally, Chem-Solv generated hazardous waste. A hazardous waste is waste which, because of its designation, quantity, concentration, or characteristics, poses a substantial present or potential hazard to human health or the environment.
Count One of the Information is based on a spill of several hundred gallons of ferric chloride – a hazardous substance – on the Chem-Solv facility in Roanoke in June 2012. Although most of the waste was cleaned up using vacuum trucks, some of the ferric chloride flowed from the Chem-Solv facility onto an adjoining property both before, and during, the cleanup. The pleadings allege that the adjoining property owner was not notified that ferric chloride had leaked onto their property. Chem-Solv then employed a waste transportation company to transport the waste to a disposal facility. Hazardous waste may only be transported by permitted carriers, and it must be properly placarded and be accompanied by a hazardous waste manifest identifying the waste and its characteristics. The pleadings allege that, although Chem-Solv was aware of the hazardous nature of ferric chloride, it did not properly test the waste and instructed the transporter to transport the waste as non-hazardous, without the proper placards and manifests.
Count Two of the Information charges Chem-Solv with the improper storage of hazardous waste. Chem-Solv was given advance notice of an EPA inspection in December 2013. At the time the advance notice was given, Chem-Solv was storing numerous containers of chemical waste on its facility that should have been disposed of properly. The pleadings allege that Chem-Solv directed its employees to load three trailers with the chemical waste in an attempt to prevent EPA inspectors from discovering it. Two of the three trailers were taken offsite. The third trailer, which was not road worthy, was stored on the Chem-Solv property for almost a year and its contents were discovered by law enforcement officers on Nov. 19, 2014, while executing a search warrant. That trailer was found to contain hazardous waste that Chem-Solv did not have a permit to store on its facility.
The investigation was conducted by Special Agents of EPA’s Criminal Investigation Division and the U.S. Department of Transportation’s Office of Inspector General. Assistance in the investigation was provided by the Roanoke Fire-EMS Department, the Virginia Department of Environmental Quality, Roanoke City Police Department, and other members of the Blue Ridge Environmental Task Force. The prosecution was handled by Assistant U.S. Attorney Jennie L. M. Waering, Senior Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section, and Special Assistant United States Attorney and EPA Regional Criminal Enforcement Counsel David Lastra.
Rio Rancho Woman Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Frances Chavez, 32, of Rio Rancho, N.M., pled guilty today in federal court in Albuquerque, N.M., to federal heroin trafficking charges. Under the terms of her plea agreement, Chavez will be sentenced within the range of 15 to 27 months in prison followed by a term of supervised release to be determined by the court.
Chavez was arrested on Dec. 29, 2015, on a seven-count indictment charging her with heroin trafficking offenses. The indictment alleged that Chavez distributed heroin on five occasions in Oct. 2015, and possessed heroin with intent to distribute on Nov. 10, 2015. The indictment alleged that Chavez committed these drug trafficking crimes in Sandoval County, N.M. The indictment also charged Chavez with maintaining a place for the purpose of manufacturing and distributing heroin from Oct. 6, 2015 through Nov. 10, 2015, in Bernalillo County, N.M.
During today’s proceedings, Chavez pled guilty to the indictment and admitted that she sold heroin on five occasions in Oct. 2015, from her home in Rio Rancho. Chavez further admitted that on Nov. 10, 2015, law enforcement agents discovered a distribution amount of heroin and drug paraphernalia while executing a federal search warrant at her residence. Chavez admitted that that she used her Rio Rancho residence for the purpose of distributing heroin.
Chavez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorneys Joel R. Meyers, Shaheen P. Torgoley and Stephen R. Kotz are prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Rapid City Man Sentenced for Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Abusive Sexual Contact was sentenced on September 13, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Silas Lee High Hawk, age 25, was sentenced to 36 months of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and register as a sex offender.
High Hawk was charged on November 17, 2015, and pleaded guilty on June 3, 2016. The conviction stems from High Hawk engaging in sexual contact with a woman who was unable to give consent.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson prosecuted the case.
High Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Prior Felon from Roswell Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Enrique Chavarria, 33, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws by unlawfully possessing a firearm and ammunition. The guilty plea was entered without the benefit of a plea agreement.
Chavarria was arrested on July 21, 2016, in Chaves County, N.M., by the U.S. Marshals Service, and was charged by criminal complaint with being a felon in possession of a firearm and ammunition. At the time, Chavarria was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of methamphetamine and cocaine with intent to distribute.
During today’s proceedings, Chavarria pled guilty to a felony information charging him with being a felon in possession of a firearm. At sentencing, Chavarria faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces offices of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Prescription Opioid and Heroin Awareness Week September 19-26, 2016Read the Press Release
Attorney General Loretta Lynch has designated the week of September 19-23, 2016 as Prescription Opioid and Heroin Awareness Week. The prescription opioid and heroin epidemic has taken a heartbreaking toll on too many Americans and their families, while straining resources of law enforcement and treatment programs.
More Americans now die every year from drug overdoses than they do in motor vehicle crashes—and most of those involve prescription opioids or heroin. Some of the commonly abused drugs are codeine cough syrup, heroin, fentanyl, hydrocodone, methadone, and oxycodone.
The President has made clear that addressing the prescription opioid and heroin epidemic is a priority for his Administration, and has proposed to invest $1.1 billion in new funding to make sure that every American with an opioid use disorder who seeks treatment can get care.
Federal agencies will continue to use all available tools to combat this epidemic. States and communities are also working to save lives through innovative partnerships between public safety and public health.
Recovery from opioid and other substance use disorders is possible, and many Americans are able to recover because they get the treatment and care they need. But too many still are not able to get treatment. That’s why the President has called on Congress to provide the resources needed to ensure that every American with an opioid use disorder who wants treatment can get it and start the road to recovery.
We all have a role to play in turning the tide of this epidemic. Talk with your teens about the consequences of using prescription and over-the-counter drugs for non-medical uses; follow disposal guidelines on unused medicines; lock up powerful medications in a safe place other than your medicine cabinet; count your pills when you receive them and periodically check to see how many are in the container.
During Prescription Opioid and Heroin Awareness Week, Americans can learn more about the disease of addiction, join with community members to support evidence-based prevention and treatment programs, and stand with those suffering from a substance use disorder or in recovery—to let them know they are not alone.
The United States Attorney’s Office for the Middle District of Georgia has copies of a documentary called “Chasing the Dragon”. The video was produced by the Federal Bureau of Investigation and Drug Enforcement Administration. It is a resource for law enforcement, educators, and parents to educate young people on how opiate addiction destroys lives. If you would like to show the video to an audience, contact Pamela Lightsey at 478-621-2603 or [email protected].
For more information about the current heroin and opioid addiction epidemic, go to the Drug Enforcement Administration’s website at dea.gov.