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Friday 16 September 2016
Police and Prosecutors Join Pensacola Students for Youth Dialogue EventRead the Press Release
PENSACOLA, FLORIDA – The United States Attorney’s Office for the Northern District of Florida developed and presented the district’s first BLAST youth dialogue event on Tuesday in coordination with the Pensacola Police Department. The program offered local students an opportunity to meet law enforcement officers in their community and ask the officers questions, share their perceptions of law enforcement, and interact with the officers in a familiar setting. Officers also provided students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The event was held at Camelot Academy of Escambia County, a transitional school for 11 to 18-year-olds, who have been removed from a traditional school. Approximately 59 students from the school attended the event.
Participating agencies included:
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United States Attorney’s Office, Northern District of Florida
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Pensacola Police Department
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Federal Bureau of Investigation
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Bureau of Alcohol, Tobacco, Firearms and Explosives
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United States Probation Office
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Florida Department of Law Enforcement
The schedule included the following breakout sessions, during which students had a chance to participate in role play with law enforcement officers:
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Crime and Justice Overview: Students learned about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
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Domestic Violence: Students participated in a scenario in which police respond to an injured victim. Discussion topics included de-escalation in a stressful environment, rights of witnesses and suspects, and the benefits of providing information to the police.
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Traffic Stop Simulation: Students took turns playing the roles of civilians and officers in a traffic stop scenario in which some participants were compliant and some were argumentative. Discussion topics included vehicle searches based on probable cause and the dangers faced by officers during a traffic stop.
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Use of Force: Facilitators and students discussed when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
After lunch, students heard two formerly incarcerated individuals speak about the consequences of criminal activity and the difficulties of living with a felony record. The day ended with a basketball game between officers and youth. The United States Attorney’s Office plans to expand the BLAST program across the district, which runs from Escambia to Alachua Counties.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Watch Video
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Police Officer Arrested on Honest Services Wire FraudRead the Press Release
HONOLULU -- Agents of the Federal Bureau of Investigation today arrested Maulia LaBarre, 34, a resident of Honolulu, and a Honolulu Police Department (HPD) officer, after a federal grand jury returned an indictment on September 14, charging him with five counts of honest services wire fraud. LaBarre will have an initial appearance and arraignment before U.S. Magistrate Judge Richard L. Puglisi on September 19.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the indictment, LaBarre breached his duty of honesty and loyalty to the citizens of the City and County of Honolulu and the HPD to act in the public’s interest and not for his own illicit enrichment. The indictment alleges that, between January and March 2016, LaBarre solicited, and agreed to accept, sex from an individual by promising to arrange to have an arresting officer not appear to testify in a pending case involving prostitution charges against that individual. LaBarre is alleged to have sent wire communications in the form of text messages for the purpose of executing his criminal scheme.
If convicted of the charges in the indictment, LaBarre faces a maximum of 20 years in prison on each count. The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty.
The arrest and charges resulted from a joint investigation conducted by the Federal Bureau of Investigation and the Investigations Division of the Department of the Attorney General for the State of Hawaii. Homeland Security Investigations also provided assistance during the joint investigation. The case is being prosecuted by Assistant U.S. Attorney Michael Nammar.
Pine Ridge Man Indicted for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Bert Cottier, a/k/a Bert Chang, age 50, was indicted on July 26, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on September 9, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Cottier stabbing a man with a knife at Pine Ridge. The charge is merely an accusation and Cottier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Cottier was released pending trial. A trial date has been set for November 15, 2016.
Orland Woman Pleads Guilty to EmbezzlementRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Carolyn J. Saunders, 57, of Orland, Maine, pled guilty yesterday in U.S. District Court to embezzlement in connection with health care.
According to court records, from November of 2011 until April 2015, Saunders, while employed as a financial administrator for Coastal Eye Care, PA and Coastal Eye Surgery Center, LLC, embezzled money by stealing cash from the practices’ bank deposits.
Saunders faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General and the Ellsworth Police Department.
Norfolk Businessman Pleads Guilty to Bribery and Bank FraudRead the Press Release
NORFOLK, Va. – Ronald W. Boone, Sr., 67, of Norfolk, pleaded guilty today to charges related to bribing the Norfolk City Treasurer and multiple other high-ranking Norfolk city officials, in addition to bank fraud.
Conspiracy involving bribery of Norfolk city officials
According to the statement of facts filed with the plea agreement, from March 2004 through December 2015, Boone provided cash, gifts, other things of value, and free access to a beach house to Anthony Burfoot, who is the current Norfolk City Treasurer and a former Norfolk City Councilman. In exchange, Burfoot performed specific official actions and promised to engage in future official actions to benefit Boone and his business interests. Throughout the conspiracy, Boone routinely gave Burfoot cash in increments of several thousand dollars, but typically not less than $2,500 at a time. Burfoot always demanded the payments in cash. In addition to the cash payments, on numerous occasions Burfoot asked Boone to “loan” him a few thousand dollars, which Boone provided in cash, and totaled at least $20,000. Burfoot never made payments on these “loans,” and Boone never asked Burfoot for payments on the “loans.”
According to the statement of facts filed with the plea agreement, on numerous occasions throughout the conspiracy, Burfoot took different friends to Kitty Hawk, North Carolina, to stay free of charge at Boone’s beach house. Burfoot never paid for any of his overnight or daily stays at the beach house. Burfoot used the beach house so regularly that Boone gave Burfoot a key to the beach house. To conceal Boone’s ownership of the beach house, Burfoot repeatedly told friends that the beach house was his, and claimed to at least three individuals who went to the beach house with him – each on separate occasions – that he owned the beach house.
According to the statement of facts filed with the plea agreement, in exchange for things of value provided to Burfoot, Boone regularly sought Burfoot’s support for important issues before City Council. In addition to assisting Boone by ensuring that a particular individual was removed from the Board of Commissioners for the Norfolk Redevelopment and Housing Authority, Burfoot repeatedly voted in accordance with Boone’s wishes in numerous matters before the council, including but not limited to: special exceptions for a Boone business; special exceptions for business that operated out of Boone’s properties, ordinances dealing with Boone’s properties, and ordinances that directly and indirectly impacted Boone’s business interests. Prior to a certain vote, Boone paid Burfoot between $5,000 and $10,000 in cash, and Burfoot subsequently voted as Boone requested.
According to the statement of facts filed with the plea agreement, from in or about 2002 through in or about 2012, Boone engaged in a corrupt quid-pro-quo relationship with another high-ranking Norfolk City Official, again providing cash and other things of value in exchange for the public official using his position to benefit Boone.
According to the statement of facts filed with the plea agreement, in or about early 2015, Boone gave an undisclosed, interest-free, undocumented loan of at least $5,000 to another high-ranking employee of the Norfolk City Treasurer’s Office.
Bank Fraud
According to the statement of facts filed with the plea agreement, in November 2011, Boone obtained a $1 million loan from BB&T Bank, pledging dozens of properties as collateral for the loan, including vacant lots. In October 2015, Boone contacted BB&T and advised them he had agreed to sell two vacant lots for $105,000, and asked BB&T what it would require to release the liens on the properties. In reality, and unbeknownst to BB&T Bank, Boone had built a house on the vacant lots and had agreed to sell the property for $290,000. After BB&T responded indicating they would release the liens for 90 percent of gross sales proceeds, but no less than $94,500, Boone, or someone at his direction, altered the documents to reflect that BB&T would receive a fixed amount of $94,500. After the sale for of the properties for $290,000, Boone pocketed $167,444, and sent BB&T a check for $94,500. In reality, BB&T should have received 90 percent of the sale proceeds, which was $261,000.
According to the statement of facts filed with the plea agreement, Boone also defrauded Fulton Bank to obtain a $13.2 million loan, providing false and fraudulent documents and information to qualify for the loan. The materially false documents included falsified personal financial statements, false tax returns, falsified cash flow statements, falsified lease agreements, inflated rent rolls, and fraudulently inflated bank statements.
Boone was charged yesterday by criminal information with one count of bank fraud and one count of conspiracy to commit honest services wire fraud. Boone faces a maximum penalty of 35 years in prison on January 26, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Gordon B. Johnson, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Melissa E. O’Boyle is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-126.
Niagara County Man Sentenced for Threatening the PresidentRead 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 Jared Brown, 19, of Niagara County, NY, who was convicted of threatening the President of the United States, was sentenced to 15 months by U.S. District Court Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Scott S. Allen, Jr., who handled the case, stated that on September 6, 2015, the defendant called the Lockport City Police Department through the 911 Emergency Call Center and made oral threats over the telephone. During this call, Brown stated to an employee that he would kill President Obama. When a Secret Service Agent asked the hypothetical question what Brown would do if the President walked into the interview room, Brown said he would shoot him.
The sentence was the culmination of an investigation by the United States Secret Service, under the direction of Assistant Special Agent in Charge Thomas Braun.
New York Man Pleads Guilty to Falsifying Firearms Forms, Illegally Transporting a GunRead the Press Release
PITTSBURGH - A New York resident pleaded guilty in federal court to conspiracy and firearms offenses, United States Attorney David J. Hickton announced today.
Donovan Crawford, 21, of Bronx, NY, pleaded guilty on Wednesday to one count of conspiracy to commit offenses against the United States, one count of falsification of Firearms Purchase Form, and one count of illegal transportation in state of residency of firearm purchased outside of state of residency, before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from on or about March 27, 2015, and continuing thereafter until on or about Aug. 15, 2015, in the Western District of Pennsylvania and elsewhere, Donovan Crawford and others known and unknown to the grand jury, conspired to commit, and did commit, offenses against the United States, that is, to falsify firearms purchase forms, and to illegally transport a firearm from out of state into a state of residency. The court was further advised that Crawford did so by using third parties to purchase firearms on his behalf, both in the state of Pennsylvania, and in the state of West Virginia.
Judge Bissoon scheduled sentencing for Dec. 21, 2016, at 10 a.m. The law provides for a maximum total sentence of incarceration of up to 40 years, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Washington Police Department conducted the investigation that led to the prosecution of Donovan Crawford.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes.
National Heroin and Opioid Awareness Week Set for September 18-24, 2016Read the Press Release
ALBUQUERQUE – Following President Obama’s announcement of a “week of action” to raise awareness about the public health crisis caused by the growing heroin and opioid epidemic, U.S. Attorney General Loretta E. Lynch has designated the week of September 18, 2016, as National Heroin and Opioid Awareness Week. U.S. Attorneys throughout the country are sponsoring events geared towards increasing awareness and developing solutions to the growing epidemic of heroin and opioid abuse in our country during the awareness week.
The importance of this national awareness effort is underscored by devastating impact of the heroin and opioid epidemic. Nationwide heroin overdoses have increased 244 percent between 2007 and 2013. Many of the new heroin users are youths, with an average age of 24 ½ years old for first-time users. Nationwide, on an average day, 78 people will die from an opioid-related overdose.
In New Mexico, the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, a partnership between the UNM Health Sciences Center and the U.S. Attorney’s Office, will host a series of education events during National Heroin and Opioid Awareness Week. Bruce G. Ohr, Associate Deputy Attorney General and Director of DOJ’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, will participate in the HOPE Initiative’s events.
“The Justice Department wants to highlight the incredible work that the U.S. Attorney’s Office and its HOPE partners are doing to combat the heroin and opioid epidemic in New Mexico,” said Associate Deputy Attorney General Bruce G. Ohr. “The hardest-hit communities in New Mexico, including many tribal communities, are benefitting from the HOPE initiative’s comprehensive approach, which looks beyond enforcement to incorporate prevention and treatment. HOPE is a model for communities across the nation suffering from this deadly epidemic.”
The HOPE Initiative’s events will include discussions with tribal leaders, high school students and student athletes, and law enforcement officials, to offer solutions and help raise awareness. There will also be discussions with local law enforcement agencies and medical professionals about new treatment options and delivery methods for overdose medications such as Naloxone. Discussion details from the events will be posted to the NM HOPE Initiative website and available to the public at www.hopeinitiativenm.org.
“We are committed to improving the health and well-being of all New Mexicans,” said Paul B. Roth, MD, MS, Chancellor for Health Sciences at the University of New Mexico. “This partnership with the U.S. Attorney’s Office presents us with an extraordinary opportunity to help reduce opioid overdose deaths and help alleviate the awful personal and social costs that accompany drug dependency.”
“In 2014, New Mexico had the second-highest per capita overdose death rate in the country. Our community has acknowledged that we are in an epidemic, and we are coming together to take control of our future and our destiny,” said U.S. Attorney Damon P. Martinez for the District of New Mexico. “Through the HOPE Initiative, we are pursuing a comprehensive strategy to deal with, and defeat, this epidemic, and we will highlight our efforts in the coming week.”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. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Murfreesboro Man Charged with Threatening to Murder Member of United States CongressRead the Press Release
A Murfreesboro, Tenn. 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 David Rivera, U.S. Attorney 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.
According to the criminal complaint, beginning in August 2016 and continuing through September 12, 2016, Stewart sent threatening emails and posted threatening videos to Instagram accounts, which he created. In an email dated August 19, 2016, Stewart indicates that he will fly from Nashville to Honolulu on November 1, 2016, 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 Senator Hirono and Congresswoman Gabbard, inquiring about Stewart’s Social Security number. Stewart falsely believed that his SSN 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% 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 September 8, 2016, he states that he is flying to Honolulu on November 1, 2016, 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 November 1, 2016, 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 5 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 United States Capitol Police. The case is being prosecuted by Assistant U.S. Attorney Van Vincent.
McLaughlin Man Sentenced for LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Larceny was sentenced on September 12, 2016, by U.S. District Judge Charles B. Kornmann.
Blaze Miles Thundershield, age 21, was sentenced to time served of 14 months custody, 3 years of supervised release, restitution in the amount of $10,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Thundershield was indicted by a federal grand jury on October 14, 2015. He pled guilty on July 11, 2016.
The conviction stemmed from an incident on July 18, 2015, when a Corson County Sherriff’s Deputy was approached by the manager of the feedlot in McLaughlin, who informed the deputy that a blue Dodge Ram 2500 pickup truck, with a red horse trailer, had been stolen. The manager observed the vehicle “spinning cookies” in the lot, and he thought the vehicle’s owner was messing around. However, when he called the owner of the vehicle, he learned he was working near Kennel, South Dakota, and was not driving his vehicle. It was at this point that the manager noticed the deputy across the street and informed him of the stolen vehicle. The victim also called dispatch to report his truck stolen. The deputy left to search for the vehicle, which he was unable to locate.
Later in the evening, Bureau of Indian Affairs law enforcement was dispatched to McLaughlin after receiving several reports of shots being fired in the area. Responding officers were informed that four young male individuals were seen walking in the area with a handgun firing it in the air. Law enforcement was also informed that two young males were seen driving a blue pick-up truck, with a red horse trailer.
While law enforcement was collecting statements, a neighbor pointed up the street to a group of young boys approaching the location of the officers. Officers began running towards the boys, ordering them to lie on the ground. Three of the boys complied. One boy fled on foot, heading towards the McLaughlin rodeo grounds. He was eventually apprehended, hiding in a bed of weeds, and identified as Thundershield, the Defendant. Thundershield and another person were arrested on tribal charges.
Officers later found the stolen pick-up truck and trailer in a stand of trees near the golf course. The truck had been shot multiple times and was declared a total loss by the insurance company. The victim’s loss was valued in excess of $20,000 by his insurance company. The gun has not yet been recovered.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Thundershield remained in custody due to an outstanding warrant on an unrelated matter.
Massage Parlor Owner Sentenced for Sex Trafficking of Illegal AliensRead the Press Release
COLUMBUS, Ohio – Hui Li, 47, of Columbus was sentenced to one year and one day in prison for promoting prostitution involving aliens unauthorized to work in the United States through massage parlors she owned in Columbus and Dublin, Ohio.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Documents filed with the court by the U.S. Attorney’s Office prior to sentencing say that Li used online classified ad websites to advertise massage parlors she owned. Li transported Asian female employees to and from her Columbus massage parlors on a daily basis. The employees worked for 11 to 12 hours per day, seven days a week. Interviews of the employees and online postings revealed that sexual favors were being performed at the massage parlors.
Li pleaded guilty on November 18, 2015 to one count of travelling in interstate commerce to promote unlawful business enterprise and one count of hiring aliens unauthorized to work in the United States.
Li, a naturalized U.S. citizen, was also sentenced to serve two years under court supervision after completing her prison term.
Acting U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Ohio Organized Crime Investigations Commission Human Trafficking Task Force, which includes authorities from the U.S. Homeland Security Investigations, Columbus Division of Police, the Powell Police Department, Ohio State Highway Patrol, the Franklin County Sheriff’s Office, the Franklin County Prosecutor’s Office and the Delaware County Prosecutor's Office. He also commended Assistant United States Attorney Heather A. Hill who represented the United States in this case.
Marianna Man Pleads Guilty in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK— Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Friday that James E. Franklin, Jr., 34, of Marianna, pleaded guilty to an information charging him with conspiracy to commit wire fraud. Franklin conspired to steal money intended to feed children in low income areas during the school year.
Friday’s plea hearing took place in Little Rock before United States District Judge D.P. Marshall, Jr., who will sentence Franklin at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk, after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
At Friday’s hearing Franklin admitted that in the summer of 2013, he and Anthony Waits drove to meet a lady named Dorothy Harper at a bank. Harper lived in England and was a sponsor who participated in the feeding program. Waits got out of the vehicle, approached Harper’s vehicle and then returned with a stack of cash. Franklin estimated that it was around $12,000. Harper and Waits have been indicted on similar charges in Case No. 4:14CR00250-JM.
Prior to the trip, Franklin had limited knowledge of the feeding program from Waits. But after Franklin saw the large amount of cash, Waits explained the fraud to him in more detail. Franklin admitted that he agreed to participate with Waits in a fraudulent scheme to obtain money from the feeding program. Gladys Waits, Anthony Waits’ estranged wife, was also indicted on similar charges in Case No. 4:14CR00250-JM. Gladys Waits pleaded guilty to those charges on March 30, 2016.
Franklin was a sponsor for a feeding program through an organization called "JL&N Outreach." In the 2013 and 2014 contract years, Franklin submitted approximately 12 inflated claims for feeding sites in Brinkley, Ark., and Hughes, Ark. In Brinkley, Franklin falsely claimed they served from 217 to 287 children per day. In Hughes, Franklin falsely claimed they served from 184 to 244 children per day. According to witnesses, no more than 10 children per day were fed in Brinkley and no more than 15 children per day were fed in Hughes.
Because of the inflated claims, Franklin received a total of approximately $380,055.36 from DHS. Franklin withdrew in cash approximately $252,000 of the money he received. Franklin paid Anthony Waits approximately 40% of the total amount of money he received.
Franklin is the tenth person to plead guilty concerning the theft of USDA feeding program funds for children. Previous charges filed in this investigation detail alleged fraud involving over $10 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit mail fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg and Cameron McCree.
If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
MEDIA ADVISORY-- New Mexico Hope Initiative to Launch Naloxone ProjectRead the Press Release
ALBUQUERQUE – U.S. Attorney General Loretta E. Lynch has designated the week of September 18, 2016, as National Heroin and Opioid Awareness Week, and U.S. Attorneys throughout the country are sponsoring events geared towards increasing awareness and developing solutions to the growing epidemic of heroin and opioid abuse in our country during the awareness week.
In New Mexico, the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, a partnership between the UNM Health Sciences Center and the U.S. Attorney’s Office, will host a series of education events during National Heroin and Opioid Awareness Week. Bruce G. Ohr, Associate Deputy Attorney General and Director of DOJ’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, will participate in the HOPE Initiative’s events.
One key component in the fight against addiction and overdose death is the availability of life-saving medications like Naloxone. Naloxone is a prescription drug that reverses the effects of an opioid overdose; it is easy to administer and safe to use. U.S. Attorney Damon P. Martinez and Dr. Joanna G. Katzman, Director of the UNM Pain Clinic, will launch the HOPE Initiative’s Naloxone Project during a press conference at 10:00 a.m. on Monday, September 19, 2016 at the Hotel Andaluz in Albuquerque, N.M. The goal of the Naloxone Project is to enlist law enforcement agencies throughout New Mexico to join HOPE’s life-saving efforts by implementing Naloxone protocols and carrying Naloxone. U.S. Attorney Martinez and Dr. Katzman will be joined by Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Council President Dan Lewis, Albuquerque City Councilor Diane Gibson, and representatives of law enforcement agencies that are carrying Naloxone, or are seeking to do so. Discussion details from this event will be posted to the NM HOPE Initiative website and available to the public at www.hopeinitiativenm.org.
WHO:
Associate Deputy Attorney General Bruce G. Ohr
U.S. Attorney Damon P. Martinez
Dr. Joanna G. Katzman, Director of the UNM Pain Clinic
Bernalillo County Commissioner Maggie Hart Stebbins
Albuquerque City Council President Dan Lewis
Albuquerque City Councilor Diane Gibson
Assistant Special Agent in Charge John Burge, BIA
Group Supervisor Richard Stark, DEA
New Mexico State Police Chief Pete N. Kassetas
Bernalillo County Sheriff Manuel Gonzales III
Rio Arriba Sheriff James Lujan
Santa Fe County Sheriff Robert Garcia
Taos County Sheriff Jeffrey Hogrefe
Rio Rancho Police Chief Michael Geier
Captain Randy Sanchez, Rio Arriba County Sheriff’s Office
Major Gabriel Gonzales, Santa Fe County Sheriff’s Office
Rio Rancho Deputy Chief Paul Rogers
Mark Payne, Executive Director of New Mexico HIDTA
Jack Jones, Executive Director, New Mexico Sheriffs Association
Capt. Sonny Leeper, Capt. APD (Retired)
Participant List in Formation
WHAT:
Press conference to announce HOPE’s Naloxone Project
WHEN:
Monday, September 19, 2016 at 10:00 am
WHERE:
Hotel Andaluz (downtown Albuquerque) – Majorca Room
125 Second Street N.W., Albuquerque, New Mexico 87102
(hotel entrance at southeast corner of 2nd & Copper)
complimentary valet parking are located on Copper Street
Note: Additional street parking is available near hotel/downtown area
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials. Media may begin to arrive at 9:45 am. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
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. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Last of Group of Griffin Unlicensed Gun Dealers SentencedRead the Press Release
NEWNAN, Ga. - Tony Anthony Goodman has been sentenced on charges of dealing firearms without a license, felon in possession of a firearm, possession of sawed off shotguns, and possessing with intent to distribute cocaine and the drug commonly known as “Molly.”
“Goodman repeatedly broke the law by possessing and distributing drugs and firearms, even after having been convicted of a felony on a previous occasion,” said U. S. Attorney John Horn. “Guns that are trafficked illegally often turn up in other criminal offenses and place citizens and police alike in danger.”
“The criminal history of the defendant, Tony Goodman, shows a complete and utter disregard for the lives of others residing in our community,” said ATF Acting Special Agent in Charge James Deir. “ATF will continue to work with our state and local partners to protect the public by investigating and prosecuting violent habitual criminals who unlawfully use firearms to terrorize our communities and reduce our overall quality of life.”
According to U.S. Attorney Horn, the charges and other information presented in court: Goodman had at least eight prior felony convictions between 1984 and 1997 on charges including forgery, drug dealing, burglary, aggravated assault, possession of a firearm during the commission of a crime, and possession of a firearm by a convicted felon. From 1997 until he was paroled in 2012 Goodman was in the custody of the Georgia Department of Corrections. Between January and February, 2015, Goodman sold twelve separate firearms to an undercover ATF officer. At the time of his arrest on March 18, 2015, Goodman was found in possession of two additional firearms along with various narcotics packaged for distribution.
Goodman was originally indicted on March 4, 2015, along with co-defendants David Combs, Demetrice Coggins, and Shedrick Howard. Howard pled guilty to four counts of being a felon in possession of 10 separate firearms and was sentenced to eight years, three months in federal prison on October 13, 2015. Combs pled guilty to two separate counts of being a felon in possession of firearms and was sentenced on January 7, 2016, to two years, ten months in federal prison. Coggins pled guilty to one count of being a felon in possession of a firearm and was sentenced on September 22, 2015, to one year and a day in federal prison.
Tony Anthony Goodman, 51, of Griffin, Georgia, has been sentenced by United States District Judge Timothy C. Batten, Sr., to 17 years in prison to be followed by three years of supervised release. Goodman was found guilty after a bench trial presided over by Judge Batten on May 9, 2016.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Matthew S. Carrico prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Kenel Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kenel, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer, was sentenced on September 12, 2016, by U.S. District Judge Charles B. Kornmann.
Dylan Demery, age 23, was sentenced to 12 months and a day in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Demery was indicted by a federal grand jury on January 21, 2016. He pled guilty on June 6, 2016.
The conviction stemmed from an incident which happened during the early morning hours of January 1, 2016, when an officer with the Bureau of Indian Affairs was dispatched to Kenel, in response to a report of a drunk driver.
The officer went to the side of a residence in Kenel, and noticed a male exiting a Blazer. The officer called out Demery’s name and ordered him to stop. Demery immediately fled on foot, and the officer pursued.
When they reached the road, both the officer and Demery slipped and fell on the ice. As the officer was attempting to rise, Demery grabbed the left shoulder of the officer’s jacket. The officer grabbed onto Demery’s legs, and Demery began to strike the officer on the left side of his face, as well as a few more times as the officer attempted to regain his footing. The officer then reached for his handcuffs in an attempt to restrain Demery. As he was doing this, Demery struck the officer in the face again, knocking him to his knees.
Multiple officers responded to the area to assist. The officer sustained multiple injuries as a result of this assault, including an injured eye, and shoulder.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Demery was immediately turned over to the custody of the U.S. Marshals Service.
Iowa Woman Sentenced to Prison for Making a False Statement in an Immigration PetitionRead the Press Release
A woman who made a false statement in an immigration petition was sentenced today to more than three months in federal prison.
Tamie Marie Samuels, age 46, from North Liberty, Iowa, received the prison term after a May 9, 2016, jury verdict finding her guilty of one count of making a false statement in an immigration matter.
The evidence at trial showed that on March 11, 2015, Samuels filed an immigration petition to help her fourth husband, who she married on February 3, 2015, gain legal status to remain in the United States. Samuels’ husband is from Jamaica and he entered the United States on a visitor visa on February 1, 2015. In the immigration petition, Samuels falsely claimed she had never filed a petition for an alien relative before. Samuels had previously filed a petition for an alien relative in 1997 for her second husband who was from Peru. United States Citizenship and Immigration Services (USCIS) reviews immigration petitions and investigates whether the marital relationships indicate marriage fraud. By denying that she filed a previous immigration petition, USCIS was unaware of Samuels previous filing which could have impacted USCIS’ review of the new petition. The investigation of Samuels began in February 2015 when Homeland Security Investigations learned that Samuels had booked a flight and given her third husband’s U.S. passport to another individual to use to attempt to illegally enter the United States from an island in the Caribbean in May 2014.
Samuels was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Samuels was sentenced to three months’ imprisonment. A special assessment of $100 was imposed. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Samuels was released on the bond previously set and is to surrender to the United States Marshal on October 10, 2016.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by investigated by the Department of Homeland Security, United States Immigration and Customs Enforcement, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-0001.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnson in Great Falls on September 15, 2016 and entering pleas of Not Guilty were:
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KEITH JOSEPH HANKS, a 433year-old resident of Minneapolis, Minnesota, appeared on charges of second degree murder.If convicted of the charge contained in the indictment, HANKS faces life in prison, $250,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-59
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JANELLE RED DOG, a 42-year-old resident of Poplar, appeared on charges of first degree murder, second degree murder, felony child abuse and accessory after the fact.If convicted of the most serious charges contained in the indictment, RED DOG faces life in prison, $250,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-60
Appearing before U.S. Magistrate Ostby in Billings on September 12, 2016 and entering pleas of Not Guilty were:
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KERIANN RUTH REED, a 27-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense.If convicted of the most serious charge contained in the indictment, REED faces life in prison, $5,000,000 in fines, and 5 years supervised release.The case was investigated by the Drug Enforcement Administration.PACER Case Reference. 16-65
Appearing before U.S. Magistrate Ostby in Billings on September 6, 2016 and entering pleas of Not Guilty were:
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JUSTIN R. SUNDSTROM, a 30-year-old resident of Billings, appeared on charges of felon in possession of a firearm.If convicted of the charge contained in the indictment, SUNDSTROM faces 10 years in prison, $250,000 in fines, and 3 years supervised release.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.PACER Case Reference. 16-22
Appearing before U.S. Magistrate Lynch in Missoula on September 1, 2016 and entering pleas of Not Guilty were:
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NICHOLAS DENNIS LAMERE, JR., a 44-year-old resident of Marion, appeared on charges of failure to register as a sex offender.If convicted of the charge contained in the indictment, LAMERE faces 10 years in prison, $250,000 in fines, and lifetime supervised release.The case was investigated by the United States Marshals Service.PACER Case Reference. 16-33
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MICHAEL WAYNE POWELL, a 38-year-old resident of Lolo, appeared on charges of conspiracy to distribute methamphetamine, and distribution of methamphetamine.If convicted of the most serious charges contained in the indictment, POWELL faces life in prison, $10,000,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-35
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Fort Thompson Man Sentenced for False Statements Relating to Health Care MattersRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of False Statements Relating to Health Care Matters was sentenced on September 8, 2016, by U.S. District Judge Roberto A. Lange.
Bryce Damon Drapeau, age 42, was sentenced to 1 year of unsupervised probation, and a $100 special assessment to the Federal Crime Victims Fund.
Drapeau was indicted by a federal grand jury on October 14, 2015, for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud. He pled guilty on June 8, 2016.
The conviction stems from an incident that occurred in July of 2015, when Drapeau altered his prescription increasing the number of Norco (Hydrocodone) tablets and attempted to fill the prescription at the Fort Thompson Indian Health Service Hospital Pharmacy. The pharmacist refused to fill the prescription, after suspecting it had been altered, and confirmed those suspicions with Drapeau’s treating physician.
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Former Selmer Police Lieutenant Pleads Guilty to Accessing Child PornographyRead the Press Release
Jackson, TN – A former Selmer Police Department lieutenant has pleaded guilty to accessing child pornography on a hidden website. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to information presented in court, Tony O. Miller, 36, of Finger, Tennessee, was a member of a website dedicated to sharing child pornography. Miller used special technology to access it regularly between early January and March 2015. The website could not be found using traditional search engines, like Google or Bing; members had to use special technology designed to conceal their identity in order to access it. Images of minor children engaging in sexual activity with adults were featured on the website. Some of the minors were under 12 years of age.
An undercover investigation conducted by the Federal Bureau of Investigation (FBI) identified users of a website set up for the purposes of sharing child pornography. Visitors to the website could view, download, and comment on other users' material, as well as upload their own. Miller was identified as one of the website’s users.
At the time of the aforementioned conduct, Miller was a lieutenant with the Selmer Police Department.
Miller admitted that he used the Internet and work-issued digital devices to access the website and view child pornography. He also admitted to using technology to try to hide his criminal activity.
On Thursday, September 15, 2016, Miller pleaded guilty before Chief U.S. District Judge J. Daniel Breen to one count of accessing with intent to view child pornography.
Miller is scheduled to be sentenced on Friday, December 16th.
He faces up to 20 years in federal prison and a fine of up to $250,000.
This case was investigated by the FBI, with assistance from the FBI Major Case Coordination Unit in Linthicum, Maryland, and the Selmer Police Department.
Assistant U.S. Attorney Debra Ireland is prosecuting this case on the government’s behalf.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former San Francisco Restaurant Owner Pleads Guilty to Concealing Facts About Employee WagesRead the Press Release
SAN FRANCISCO – Ming Lian Zhou pleaded guilty in federal court in San Francisco today to a scheme to conceal a material fact from a government agency, announced United States Attorney Brian J. Stretch and Department of Labor Office of the Inspector General Special Agent in Charge Abel Salinas.
In pleading guilty, Zhou, 58, of San Francisco, admitted that he covered up the fact that he had not paid back wages to employees at two San Francisco restaurants he formerly owned, Hong Kong Lounge and Hong Kong Lounge II. On March 16, 2012, Zhou was notified by a representative of the Department of Labor Wage and Hour Division that he owed employees of those two restaurants $92,966.51 in overtime wages. Zhou admitted that, on or about March 27, 2012, he signed and submitted to the Wage and Hour Division two Forms WH-56, in which he represented and agreed that he would pay his employees the assessed amount and would mail proof of that payment to the Wage and Hour Division. In April 2012, he deliberately signed and submitted to the Wage and Hour Division 46 Forms WH-58, in which he reported that he had paid 46 employees their overtime back wages. In truth, he did not pay the employees their overtime back wages. He nevertheless signed the forms, and asked his employees to sign the forms, confirming that the employees had received their wages.
This case originated with an investigation by the Department of Labor’s Wage and Hour Division into whether restaurants in the Bay Area were in compliance with the Fair Labor Standard Act.
Zhou was indicted by a federal Grand Jury on September 17, 2015. He was charged with one count of concealing a material fact from a government agency, in violation of 18 U.S.C. § 1001(a)(1), and three counts of interfering with commerce by threats of economic harm, in violation of 18 U.S.C. § 1951. Under the plea agreement, Zhou pleaded guilty to a single count under 18 U.S.C. § 1001(a)1(1).
Zhou is currently on release on bond. Zhou’s sentencing hearing is scheduled for January 17, 2017, at 2:30 p.m., before the Honorable Richard Seeborg, U.S. District Judge, in San Francisco. The maximum statutory penalty for a count in violation of 18 U.S.C. § 1001(a)(1) is five years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorney John Hemann and Special Assistant U.S. Attorney Katherine Lloyd-Lovett with the assistance of Marina Ponomarchuk and Matthew Swartsfager. The prosecution is the result of an investigation by the Department of Labor’s Office of the Inspector General and the Wage and Hour Division.
Former Owner of Investment Firms Pleads Guilty to $9 Million FraudRead the Press Release
RICHMOND, Va. – Sherman Carl Vaughn, 45, of Blackstone, pleaded guilty today to charges related to his role in an investment fraud scheme that caused more than $9 million in losses to over 50 investors.
According to the statement of facts filed with the plea agreement, in 2009, Vaughn and co-conspirator Merrill Robertson, Jr., 36, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth management, LLC. From 2009-2016, Vaughn and Robertson solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and the National Football League, while Vaughn focused on developing investment opportunities.
According to the statement of facts, Vaughn and Robertson led individuals to believe they were experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.
As a result of this conspiracy, Vaughn and Robertson fraudulently obtained more than $9 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
Vaughn faces a maximum penalty of 20 years in prison when sentenced on December 14. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the guilty plea was accepted by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case.
This investigation was initiated based on information received from the U.S. Securities and Exchange Commission (SEC).
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-111.
Florida Man Convicted of Engaging in Child Exploitation EnterpriseRead the Press Release
A federal jury today convicted a Naples, Florida, man of engaging in a child exploitation enterprise and related charges for creating and running a website dedicated to the sexual abuse of children.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina; Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division; Special Agent in Charge Harold H. Shaw of the FBI’s Boston Division; and Special Agent in Charge Paul Wysopal of the FBI’s Tampa, Florida, Division made the announcement.
Steven W. Chase, 57, was found guilty of one count of engaging in a child exploitation enterprise, one count of advertising child pornography, three counts of transportation of child pornography and one count of possession of child pornography. The jury also returned a special verdict determining that Chase should be ordered to forfeit all property derived from, involved in, or traceable to his criminal activities, to include his Naples residence.
Evidence at trial established that Chase created and served as the primary administrator of a highly-sophisticated global enterprise dedicated to the sexual abuse of children, via a website that operated on the Tor anonymity network, through which he and more than 150,000 other members authored and viewed tens of thousands of postings involving child pornography. Images and videos shared through the website were highly categorized towards victim age and gender, as well as the type of sexual activity, according to trial evidence. Testimony at trial also established that website members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor network and elaborate file encryption.
Chase was arrested following a court-authorized search of his home on Feb. 19, 2015. Forensic examination of a computer and devices seized pursuant to the search revealed that he was in possession of thousands of images depicting the sexual abuse of children as young as toddlers.
Chase’s co-defendants Michael Fluckiger, 46, of Portland, Indiana, and David Lynn Browning, 47, of Wooton, Kentucky, the co-administrator and global moderator of the website, respectively, pleaded guilty in December 2015 to engaging in a child exploitation enterprise for their roles in helping Chase run the website.
The FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation, with assistance from the FBI’s Charlotte, Tampa and Boston Field Offices. Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Cortney Randall of the Western District of North Carolina prosecuted the case.
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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Law Enforcement Leaders to Hold Community Open House September 27 at Coeur d’Alene Public LibraryRead the Press Release
COEUR D’ALENE – U.S. Marshal Brian Underwood, FBI Supervisory Special Agent Richard Collodi and U.S. Attorney Wendy Olson will hold a community open house meeting Tuesday, September 27, at the Coeur d’Alene Public Library, 702 East Front Street. Underwood, Collodi and Olson will be in the public meeting room from 3 p.m. to 4:30 p.m. to meet and visit with persons interested in learning more about federal law enforcement in Idaho.
“We will be available for any question, concern or issue community members would like to talk about,” said Olson. “Frankly, we simply want members of the public, whom we serve, to have a chance to personally visit with their federal law enforcement leaders in Idaho. We recognize that it is not always practical for people to come to our offices.”
“Confidence in government and the enforcement of law is achieved by providing true justice and being sincere in our working relationships with all people,” said Underwood. “In Idaho, the work of our local law enforcement is really amazing to see – and we are proud to work with such great professionals and police leadership. Like our local law enforcement partners, we want to ensure that we are doing our part in community policing and relationship building.”
“We are honored to be part of a strong and dedicated law enforcement community serving northern Idaho,” said Collodi. “It is important to take every opportunity to maintain lasting relationships with the community in which we serve.”
Underwood and Olson were both appointed to their positions in 2010 by the President. They serve the entire state of Idaho, which is a single federal judicial district. Collodi supervises the FBI’s Coeur d’Alene office. He has been with the FBI since 2002, and has served in three offices.
El Salvadoran Man Convicted for Hindering His Removal from the United States and Assaulting Federal Law Enforcement OfficersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 15, a jury in Harrisburg convicted Jose Luis Benitez-Hernandez, age 30, an El Salvadoran national, of hindering his removal from the United States and assaulting law enforcement officers.
According to United States Attorney Peter Smith, following a two-day trial, the jury deliberated approximately one hour before delivering its verdict. The charges stemmed from an incident in February 2016 in which Immigration and Customs Enforcement (ICE) Officers located Benitez-Hernandez in Mechanicsburg after he failed to leave the United States in accordance with an Immigration Judge’s order.
After identifying Benitez-Hernandez leaving his home in a vehicle, the officers activated their emergency equipment in their vehicles. Benitez-Hernandez failed to stop, charged at one of the vehicles repeatedly, ultimately bumping the front bumper of one of the ICE vehicles. Benitez-Hernandez then refused to exit his vehicle and had to be forcibly removed. Before ultimately being apprehended, Benitez-Hernandez bit one of the ICE Officers and scratched another.
The investigation was conducted by U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorneys Scott Ford and Daryl Bloom.
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 8 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Eagle Butte Man Sentenced for Robbery and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Robbery and Assault by Striking, Beating, and Wounding was sentenced on September 14, 2016, by U.S. District Judge Roberto A. Lange.
Chad Ryan Lara, age 34, was sentenced to 42 months in custody, followed by 30 months of supervised release, $26.25 in restitution, and a $100 special assessment to the Federal Crime Victims Fund on the robbery charge. Lara was sentenced to 6 months in custody, and ordered to pay $181.50 in restitution, along with a $25 special assessment to the Federal Crime Victims Fund on the assault case. The two sentences are to be served consecutively.
Lara was indicted on the robbery charge by a federal grand jury on March 15, 2016. Lara was indicted on the assault charge by a federal grand jury on May 17, 2016. He pled guilty to both charges on June 8, 2016.
The conviction on the robbery stemmed from an incident on March 9, 2016, when Lara entered the Mini Mart in Eagle Butte, wearing a black ski mask over his face, brandished a large knife, and demanded money from the cash register. When the clerks were unable to open the cash register, Lara grabbed it and pulled on it. One of the clerks prevented Lara from grabbing the cash register, so Lara threw down the knife, grabbed a case of Hurricane beer off the counter and fled the store. Some customers went after Lara and were able to apprehend him nearby. He was detained until the police arrived.
The conviction on the assault stemmed from an incident on April 7, 2016, when Lara was appearing on the above charge for a bail review hearing. Following the hearing, he was ordered to be detained pending trial. While awaiting transfer back to the Hughes County jail, Lara assaulted another inmate by striking him with closed fits in the face and chest area.
This cases were investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe. Assistant U.S. Attorney Jay Miller prosecuted both cases.
Lara was immediately turned over to the custody of the U.S. Marshals Service
Eagle Butte Man Sentenced for Assault Resulting in Serious Bodily Injury and Failure to AppearRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and Failure to Appear was sentenced on September 14, 2016, by U.S. District Judge Roberto A. Lange.
Raymond Uses The Knife, III, a/k/a Yamni Uses The Knife, III, age 25, was sentenced to 37 months in custody, to be followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100 on the assault charge. Uses The Knife was sentenced to 2 months in custody, and ordered to pay a special assessment of $100 to the Federal Crime Victims Fund on the failure to appear charge. The two sentences are to be served consecutively.
Uses The Knife was indicted on the assault charge by a federal grand jury on February 17, 2016. Uses The Knife was indicted on the failure to appear charge by a federal grand jury on April 13, 2016. He pled guilty on both charges on June 1, 2016.
The conviction on the assault stemmed from an incident on July 25, 2015 when Uses The Knife, along with three other co-defendants (one of them a juvenile), assaulted a male victim. One co-defendant confronted the victim. The victim kept backing away. Uses the Knife and his co-defendants encouraged the other co-defendant to fight the victim, who eventually took off running. Uses The Knife and one co-defendant started running after the victim, while the other adult co-defendant and the juvenile co-defendant followed in a car, eventually catching up with the victim and blocking his way, but the victim was able to get away and continued to run. The juvenile followed on foot and was able to catch up with the victim, knocking the victim to the ground. All three adult co-defendants caught up and started hitting and kicking the victim repeatedly, then fled the scene and drove off together. As a result of the assault, the victim had a broken arm. He also received six sutures to his head from a laceration. He also had numerous “bumps” on his head from the attack.
The conviction on the failure to appear stemmed from an incident on April 5, 2016, when Uses The Knife, who was directed to appear in court for a bond violation, failed to appear for the hearing.
These cases were investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe. Assistant U.S. Attorney Jay Miller prosecuted both cases.
Uses The Knife was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact with a Child.
Luther Blue Thunder, age 35, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 1, 2011, and September 1, 2012, and again between September 1, 2013, and December 31, 2013, at Mission, South Dakota, Blue Thunder knowingly engaged in and attempted to engage in sexual acts or contact with three different victims. All three victims were children who had not attained the age of 12 years.
The charges are merely accusations and Blue Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Blue Thunder was released on bond pending trial. A trial date has not been set.
District Man Sentenced to Six Years in Prison for Failing to Register as Sex Offender and Felony ThreatsRead the Press Release
WASHINGTON – Azeik Keys, 38, of Washington, D.C., has been sentenced to six years in prison on charges stemming from his failure to register as a sex offender and threats he made to kill the mother of his son, U.S. Attorney Channing D. Phillips and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia, announced today.
Keys was found guilty in June 2016, in the Superior Court of the District of Columbia, of failure to register as a sex offender, and felony threats. He was sentenced on Sept. 15, 2016, by the Honorable Todd E. Edelman. After his prison term, Keys will be placed on five years of supervised release.
Keys was convicted in 2004 in the Superior Court of the District of Columbia of first-degree sex abuse, sentenced to a six-year prison term, and ordered to register as a sex offender. He was required to register quarterly for the rest of his life. In 2013, he was convicted in the District of Columbia of failing to register as a sex offender. He registered the following year, using his parents’ address in Northeast Washington. Despite moving from that residence, he continued to register that address between November 2014 and April 2015 as his own.
The U.S. Marshals Service began an investigation in January 2015, and Keys’s true residence was ultimately located in Southeast Washington. On April 15, 2015, when Deputy U.S. Marshals entered his house to arrest him, Keys attempted to flee out his bedroom window. He was apprehended on the scene. Additional evidence linking Keys to the address was found in the defendant’s bedroom.
In late 2015, while Keys was in jail awaiting trial on charges stemming from this incident, the mother of his young son brought to the government a letter that Keys had sent her from jail threatening to kill her or to have her killed. Fingerprint and handwriting analysis and recorded calls made by Keys from jail confirmed that Keys sent the letter.
As part of an overall strategy to combat child exploitation, the U.S. Marshals Service launched a nationwide operation to target sex offenders who violate registration laws by knowingly failing to comply with their sex offender registration requirements.
In announcing the sentence, U.S. Attorney Phillips and Marshal Hughes commended the work of those who investigated the case from the U.S. Marshals Service, particularly Deputy Marshals William Straw, Justin Bankert, and Jesse Miller. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorney Elizabeth Danello; Supervisor Security Specialist Michael Hailey; Victim/Witness Advocate Tracey Hawkins; and Paralegal Specialist D'Yvonne Key. Finally, they commended the work of Assistant U.S. Attorney Michael Marando, who was responsible for the initial investigation, and Assistant U.S. Attorneys John Timmer and Sumit Mallick, who secured the indictment and tried the case.
District Business Owner Sentenced for Conspiring to Violate Campaign Laws and to Obstruct Justice in a Federal InvestigationRead the Press Release
WASHINGTON - Eugenia C. Harris, a business owner in the District of Columbia, was sentenced today to 90 days in a halfway house or community corrections facility and an additional 180 days of home confinement for taking part in a conspiracy to disguise the source of campaign contributions in federal and local elections, including the 2010 District of Columbia mayoral campaign, and then taking steps to conceal the illegal activities from investigators.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI Washington Field Office’s Criminal Division, and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Harris pled guilty on July 10, 2012, in the U.S. District Court for the District of Columbia, to three charges: one count of conspiring to violate federal campaign finance law and to obstruct justice; one count of engaging in fraud and making false statements, and one count of conspiring to violate District of Columbia campaign finance law. The Honorable Colleen Kollar-Kotelly sentenced Harris to one day in jail, which she already has served, and three years of supervised release. The 90 days in a halfway house or community corrections center and the 180 days of home confinement are to take place at the start of the period of supervised release. Judge Kollar-Kotelly also fined Harris $1,000.
Harris, 79, of Washington, D.C., admitted to participating in a scheme with business owner Jeffrey E. Thompson and others, in which Thompson’s funds were used to make conduit contributions to various federal and District of Columbia political candidates and to finance “shadow campaigns” of unreported contributions and expenditures in support of candidates.
Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. In his guilty plea, Thompson admitted using funds from those corporations to secretly finance campaign contributions and activities from at least 2006 until 2012. He was sentenced on Aug. 15, 2016 to three months of incarceration, to be followed by 90 days of home confinement. Both Thompson and Harris ultimately cooperated with the investigation.
Harris and Thompson are among 14 people who pled guilty to charges in a broader investigation related to federal and local political campaigns. They are among six defendants who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election. All 14 defendants charged in this investigation have now been sentenced.
According to the government’s evidence, Harris, Thompson, and others conspired with each other to make contributions in violation of the prohibition against disguised contributions made through conduits in various District of Columbia and federal elections.
Further, in 2010, Harris conspired with Thompson and others to use over $653,000 of Thompson’s funds to implement a shadow get-out-the-vote effort to support a candidate running for Mayor of the District of Columbia. Money for this campaign passed through Belle International, Inc., one of Harris’s companies.
In 2011, when the mayoral shadow campaign was being investigated, Harris conspired to, and did, obstruct the investigation. Among other things, she created false documentation and filed false 2010 federal and District of Columbia tax returns for Belle International - essentially characterizing the shadow campaign payments from Thompson as a legitimate business arrangement. By deducting these non-deductible expenses of the shadow campaign from her company, Harris caused a total tax loss of $402,366.
The Federal Election Campaign Act establishes limits on the amounts that individuals can contribute to individual and multi-candidate political action committees. It also prohibits a person from making a political contribution in the name of another person. The act bars a person from reimbursing a donor who has already given to a candidate. In addition, the law bans corporations from contributing money to candidates for federal public office.
The District of Columbia Campaign Finance Reform Act and Conflict of Interest Act similarly regulates financial activity intended to influence the election of candidates for District of Columbia office.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge Jankowski commended the work of those who investigated the case for the FBI and IRS-CI. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Ellen Chubin Epstein and Lionel André, Criminal Investigators Mark Crawford and Melissa Matthews, and Paralegal Specialists Tasha Harris and Corinne Kleinman. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Michael K. Atkinson and Special Assistant U.S. Attorney Jonathan P. Hooks, who represented the government at sentencing.
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Department of Justice to Launch Inaugural National Prescription Opioid and Heroin Epidemic Awareness WeekRead the Press Release
Attorney General Lynch will Travel to Lexington, Kentucky, as Part of the Justice Department’s Awareness Campaign to Address the Rising Public Health Crisis of Drug Addiction
The Obama Administration has designated the week of Sept. 18-23, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week. As part of this effort, the Department of Justice is announcing a “week of action” to raise awareness about the rising public health crisis caused by drug overdoses. Senior Department of Justice officials, members of the President’s Cabinet and other federal agencies will hold events focused on the work being done to address the national prescription opioid and heroin epidemic.
Attorney General Loretta E. Lynch will travel to Lexington, Kentucky, tomorrow, TUESDAY, SEPTEMBER 20, 2016, to hold a youth town hall at a local high school; meet with parents who have lost their children due to overdoses and now work with the Heroin Education Action Team (H.E.A.T.); and deliver a policy speech regarding the actions and resources the Justice Department is bringing to bear on this issue.
“The heroin and opioid epidemic is one of the most urgent law enforcement and public health challenges facing our country,” said Attorney General Lynch. “Through Prescription Opioid and Heroin Epidemic Awareness Week, the Department of Justice seeks to raise awareness and prevent new victims from succumbing to addiction; to highlight the department’s ongoing commitment to holding accountable traffickers and others responsible for this epidemic; and to help provide treatment to those grappling with addiction. To be successful in this important endeavor, we need the help of all our federal, tribal, state and local partners. In the months ahead, we will continue working to erase this scourge from our communities and to ensure a brighter future for all Americans.”
Prescription Opioid and Heroin Epidemic Awareness Week will reinforce the Justice Department’s three-fold approach to the opioid and heroin epidemic: prevent further tragedies by raising awareness regarding the Opioid and Heroin epidemic; focus on enforcement priorities and highlight best practices; and deploy resources for treatment. As part of the initiative, over 70 U.S. Attorneys around the country have already committed to doing over 160 different events around the country and over 90 events are planned at Bureau of Prison (BOP) facilities.
As part of the week of action, the Attorney General is expected to announce a new strategy memo directed to the department that focuses on the three-fold prevention, enforcement and treatment approach to combatting the opioid epidemic. The President issued a proclamation designating Sept. 18-23, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week on Friday, Sept. 16.
ATTORNEY GENERAL LYNCH HOSTS TOWN HALL AT MADISON CENTRAL HIGH SCHOOL
WHO: Attorney General Loretta E. Lynch
U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky
WHEN: TUESDAY, SEPTEMBER 20, 2016
9:15 a.m. EDT
WHERE: Madison Central High School
Auditorium
705 North 2nd St
Richmond, KY 40475
OPEN PRESS (Camera Preset: 7:30 a.m. EDT for an 8:00 a.m. EDT K9 sweep; Media Access: 8:30 a.m. EDT; Final Access: 9:00 a.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected].
MEDIA AVAILABILITY
WHO: Attorney General Loretta E. Lynch
U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky
WHEN: TUESDAY, SEPTEMBER 20, 2016
10:30 a.m. EDT
WHERE: Madison Central High School
Lecture Lab
705 North 2nd Street
Richmond, KY 40475
OPEN PRESS (Camera Preset: 7:30 a.m. EDT for an 8:00 a.m. EDT K9 sweep; Media Access: 9:30 a.m. EDT; Final Access: 10:00 a.m. EDT)
NOTE: All cameras planning to attend the media availability must be preset in the auditorium prior to the Town Hall as there will be only one K9 sweep. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected].
ATTORNEY GENERAL LYNCH DELIVERS REMARKS AT UNIVERSITY OF KENTUCKY
WHO: Attorney General Loretta E. Lynch
WHEN: TUESDAY, SEPTEMBER 20, 2016
3:45 p.m. EDT
WHERE: University of Kentucky
BioPharm Complex
Lecture Hall 124
789 S. Limestone St
Lexington, KY 40508
OPEN PRESS (Camera Preset: 2:00 p.m. EDT for a 2:30 p.m. EDT K9 sweep; Media Access: 3:00 p.m. EDT; Final Access: 3:30 p.m. EDT)
NOTE: Media parking is available in the UK HealthCare Parking Garage, 140 Transcript Avenue, located south of the Pharmacy Building (789 South Limestone St). All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected].
Senior Administration, DOJ Officials Events for National Prescription Opioid and Heroin Epidemic Awareness Week of Action:
Monday, Sept. 19, 2016
Deputy Attorney General Sally Q. Yates will visit a BOP Community Treatment Services program at the Renaissance Medical Group in Washington, D.C. The Community Treatment Program is the final stage of BOP’s Residential Drug Abuse Program, as the inmates completing their sentences transition through Residential Reentry Centers. This visit will highlight BOP’s efforts to provide treatment to inmates with substance abuse issues, particularly prescription and other forms of opioids.
Monday, Sept. 19, 2016
Acting Bureau of Prisons Director Thomas Kane will meet participants in a Residential Drug Abuse Program (RDAP) at the Federal Correctional Institution in Cumberland, Maryland. This event is in conjunction with other special programming created during the administration’s week of action within the 90 RDAPs around the country to help raise awareness about the severity of heroin and prescription opioid abuse. Activities will also include presentations by mental health service providers, inmate panel discussions and observing moments of silence during community meetings for lives lost to opioid addiction.
Tuesday, Sept. 20, 2016
Attorney General Lynch will travel to Lexington, Kentucky to hold a student town hall at a high school, meet with H.E.A.T. parents that have lost their children to heroin abuse, and then close the day at the University of Kentucky for a policy speech on how the department is addressing the issue through prevention, enforcement and treatment.
Tuesday, Sept. 20, 2016
Organized Crime Drug Enforcement Task Forces Director Bruce Ohr will travel to New Mexico to hold a meeting with the leaders of three pueblo communities in the Espanola Valley, which has the highest heroin overdose death rate in the country on a per capita basis. He will also do additional outreach meetings with tribal leaders to discuss DOJ assistance to address the heroin/opioid crisis in Indian Country and best practices for first responders to carry naloxone.
Tuesday, Sept. 20, 2016
Secretary of the Veteran’s Administration Robert McDonald, Principal Associate Attorney General Bill Baer, and Office of National Drug Control Policy Director Michael Botticelli will participate in a roundtable discussion on the administration's efforts to assist our nation's veterans suffering from opioid abuse.
Wednesday, Sept. 21, 2016
Attorney General Lynch will deliver welcoming remarks prior to a screening of the “Chasing the Dragon” documentary, a film created jointly by the FBI and the Drug Enforcement Administration (DEA). FBI Director James Comey and DEA Acting Administrator Chuck Rosenberg will also participate in a question and answer session.
Thursday, Sept. 22, 2016
Office of Community Oriented Policing Services (COPS Office) Director Ron Davis will participate in a joint event at the Indiana State Police headquarters to announce grant funding to support law enforcement efforts to combat the distribution and trafficking of heroin, methamphetamine and other harmful opioids. The COPS Office will also release a new report, “Building Successful Partnerships Between Law Enforcement and Public Health Officials to Address Opioid Abuse” to serve as a resource to better assist law enforcement strategies in addressing the complex challenges posed by opioid overdoses.Defendant Involved in Multi-Million Dollar ‘High-Yield Prime Bank’ Scheme Found Guilty of Federal Fraud ChargesRead the Press Release
SANTA ANA, California – A Marina Del Rey man has been found guilty of federal fraud charges for participating in a “high-yield prime bank” scam by bringing in approximately $5 million from victims who were promised huge returns on investments, purportedly with little or no risk.
Mark Gelazela, who was also known as Mark Zella, 43, of Marina Del Rey, who operated IDLYC Holdings Trust, was found guilty yesterday afternoon by a federal jury of two counts of wire fraud related to the scheme.
Gelazela lured victims to invest in a scheme that claimed to be using money to lease and monetize bank guarantees. According to Gelazela, once the bank instruments were leased, a credit line would be drawn from the instruments that would then be used for trading, leading to extraordinary profits.
Once money came in from investors, Gelazela and his co-conspirators almost immediately used the money to pay themselves. In some cases, money from new victims was used to pay off older investors to keep the scheme running. When victims began inquiring about the status of payouts under the program and then began seeking the return of their capital, Gelazela lulled them with falsehoods and took steps to conceal the fraud.
The evidence presented at trial showed that Gelazela brought 18 victims into the scheme with false promises of astronomical returns on their investments.
“The victims in this case suffered losses of approximately $5 million after the defendant convinced them to invest with a series of lies,” said United States Attorney Eileen M. Decker. “This scheme was based on extravagant promises of high returns, which underscores the importance of exercising extreme caution when a deal sounds too good to be true.”
Gelazela was found guilty following a five-day trial before United States District Judge David O. Carter, who is scheduled to sentence Gelazela on December 12. At sentencing, Gelazela faces a statutory maximum sentence of 40 years in federal prison.
“Mr. Gelazela and his co-defendants solicited victims by claiming to be an international finance guru, only to lie about how investors’ money would be used, make excuses for delays in payment and convince victims to avoid cooperating with investigators,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “As is typical of Ponzi schemes, investors did not receive returns on their investments.”
Previously in this case, a co-defendant who participated in the scheme pleaded guilty. Francis Wilde, 65, of Mountain View, California, who was the chief executive officer of Riptide Worldwide Inc. and the owner of Matrix Holdings, LLC, pleaded guilty in May to wire fraud and admitted that he was involved in 26 deals that cost victims more than $6.3 million. Judge Carter is scheduled to sentence Wilde on December 5, at which time he faces a statutory maximum sentence of 20 years in federal prison.
Charges against two other defendants named in a grand jury indictment are still pending. Those defendants are Steven Woods, a 55-year-old Missouri man, who operated company called BMW Majestic, and attorney Bruce Haglund, a 65-year-old Irvine resident, who acted as an escrow “paymaster” in deals made by his co-defendants.
“Financial fraud schemes are often described as a house of cards. The underlying structure can fall apart at any time and expose the individuals responsible,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint investigation and help put a stop to this and other types of white collar crime.”
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Daniel H. Ahn of the Santa Ana Branch Office.
Conspirator in Prison Tax Fraud Ring Sentenced to Additional 2.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Scott Albert Johnson, 36, of Turlock, was sentenced today by United States District Judge Garland E. Burrell Jr. to two years and six months in prison and ordered to pay $13,854 in restitution for his role in a conspiracy to defraud the United States by filing false claims for federal tax refunds, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Johnson, who was incarcerated on state charges at the California Correctional Center in Susanville, and three fellow inmates participated in a conspiracy to file false claims for federal tax refunds. Johnson and his fellow conspirators obtained the personal identification information of other inmates, with or without their consent, and provided it to three other co-defendants located outside the prison. The co-defendants then used that information to prepare and file false income tax returns with the Internal Revenue Service, claiming refunds that they knew to be false and to which the inmates were not entitled. The proceeds from these refunds were deposited into bank accounts for the personal benefit of the conspirators, and transferred to the inmate commissary accounts. Johnson also filed at least four tax returns in his own name seeking false refunds.
The conspirators filed at least 247 false claims for income tax returns in tax years 2008 through 2011. The IRS stopped some of these refunds, however, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.
“This fraud was perpetrated from behind bars,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Johnson and his co-defendants had the time to concoct a scheme to systematically defraud the government and the taxpaying public. Refund fraud is a top priority, and we will continue to aggressively pursue those who undermine the integrity of the U.S. tax system.”
This case is the product of an investigation by the by the IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Services Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.
To date, three other co-defendants have pleaded guilty and have been sentenced: on July 15, 2015, Edwin Ludwig IV was sentenced to seven years in prison; on July 29, 2016, Judy Mullin was sentenced to 21 months in prison; and on August 19, 2016, Daniel Coats was sentenced to 18 months in prison. The charges against the three remaining defendants are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Clinton Man Charged with Murder for HireRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAMES ERIK GODIKSEN, 54, of Clinton, has been charged by criminal complaint with murder for hire.
As alleged in the complaint, the ATF received information that GODIKSEN was seeking a person who would be willing to kill his former wife. Between September 10 and September 14, GODIKSEN and an ATF special agent acting in an undercover capacity spoke multiple times by phone. During these conversations, GODIKSEN offered to pay the undercover agent $5,000 to murder his “ex-wife,” and provided the agent with a physical description of his former wife, her phone number, her home address, her place of work and the route she typically drove to work. He also told the undercover agent how he would like his former wife to be murdered. GODIKSEN offered the undercover agent additional money if he encountered his former wife’s current boyfriend and killed him, too.
GODIKSEN was arrested on September 14 after he met with the undercover agent and provided him with a “down payment” of $80, some of which was to be used to purchase a knife.
GODIKSEN appeared yesterday before U.S. Magistrate Judge Holly B. Fitzsimmons in New Haven and was ordered detained.
The charge of murder for hire 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Clinton Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Chicago Police Officer Charged with Federal Civil Rights ViolationsRead the Press Release
CHICAGO — A Chicago police officer has been indicted on federal civil rights charges for allegedly using unreasonable force against two individuals while on duty.
MARCO PROANO, 41, of Chicago, is charged with two counts of deprivation of rights under color of law. Proano is alleged to have used unreasonable force with a dangerous weapon while on duty as an officer of the Chicago Police Department on Dec. 22, 2013. The victims suffered bodily injuries as a result of the unreasonable force, the indictment states.
The indictment was returned Thursday in federal court in Chicago. A date for arraignment has not yet been set.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
“When a police officer uses unreasonable force, it has a harmful effect on not only the victims, but also the public, who lose faith and confidence in law enforcement,” Mr. Fardon said. “Our Office will continue to independently and vigorously pursue civil rights prosecutions to hold officers accountable and strengthen trust in the police.”
Each count of the indictment is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorneys Georgia Alexakis and Erika Csicsila.
Indictment
California, Pennsylvania Men Charged with Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – Two men were charged in an indictment unsealed yesterday in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Virayuth Chau, a/k/a David Chau, 40, of Temecula, Calif., was indicted on one count of conspiracy to distribute over 1,000 kilograms of marijuana and two counts of conspiracy to launder money. Chau was arrested yesterday in Temecula, Calif. Ratanack Oung, a/k/a Yoshi, 31, of Allentown, Penn., was indicted on one count of conspiracy to distribute and possess with intent to distribute marijuana and two counts of conspiracy to launder money. Oung is a fugitive from justice.
As alleged in the indictment, beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, co-conspirators deposited cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast. The “feeder” accounts were maintained in the names of businesses or persons associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the account. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation is alleged to have laundered approximately $6,135,035 in drug proceeds.
On Sept.14, 2016, law enforcement officers executed a series of federal and state search warrants of marijuana grow houses allegedly operated by Chau in Riverside County, Calif. During these operations, more than 5,000 marijuana plants were seized and destroyed.
The charge of conspiracy to distribute over 1,000 kilograms of marijuana provides a mandatory minimum sentence of 10 years and up to a lifetime in prison, a minimum of five years of supervised release, and a fine of $10 million. The charge of conspiracy to distribute and possess with intent to distribute marijuana provides a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. The charge of money laundering provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. This case is being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics & Money Laundering Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
California Man Sentenced for Role in Cross-Country Cocaine Distribution NetworkRead the Press Release
PITTSBURGH - A California resident has been sentenced in federal court to 46 months of imprisonment with credit for time served, on his conviction of conspiracy to distribute a quantity of cocaine and his conviction of possessing with the intent to distribute a quantity of cocaine, a Schedule II controlled substance, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence Wednesday on Francisco Javier Campos-Ortega, age 32, of Yucaipa, California.
According to information presented to the court, Olufemi Young, Tayde Torres, Javier Ochoa, Hector Armenta-Cardenas, Francisco Javier Campos-Ortega, Joel Rodriguez, and Manuel Alejandro Cardenas conspired to distribute and possess with the intent to distribute heroin and cocaine. Campos-Ortega also possessed cocaine with the intent to distribute it. Olufemi Young previously pleaded guilty to trafficking cocaine and heroin on a large-scale. Since his release from federal prison in 2011, law enforcement collected evidence that Young conspired to distribute multiple kilogram quantities of cocaine and heroin in the Western District of Pennsylvania, with these narcotics coming mainly from California and Arizona. Young’s primary suppliers of these narcotics were, as alleged: Torres, Armenta-Cardenas, Ochoa, and others. From May 2012 until May 2014, in relation to this conspiracy, law enforcement seized four kilograms of heroin and five kilograms of cocaine, $920,000 in cash, and an “owe sheet,” indicating that Young had purchased 10 kilograms of cocaine and two kilograms of heroin from Ochoa and his co-conspirators. In November of 2014, law enforcement stopped a tractor trailer, being driven by Campos-Ortega and Rodriguez, carrying 19 kilograms of cocaine destined for Pittsburgh.
Assistant United States Attorneys Cindy K. Chung, Ryan Hart, and Eric S. Rosen prosecuted this case on behalf of the government.
The Drug Enforcement Administration, Internal Revenue Service, Federal Bureau of Investigation, Munhall Police Department, Allegheny County District Attorney’s Office, Pennsylvania Attorney General, and the City of Pittsburgh Bureau of Police, conducted the investigation leading to the successful prosecution of Francisco Javier Campos-Ortega.
Bullhead Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 12, 2016, by U.S. District Judge Charles B. Kornmann.
Parrish Antelope, age 20, was sentenced to 19 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Antelope was indicted by a federal grand jury on October 14, 2015. He pled guilty on June 6, 2016.
The conviction stemmed from an incident on September 5, 2015, when Bureau of Indian Affairs law enforcement was dispatched to Little Eagle, South Dakota, in response to a call of an intoxicated male trying to start a fight. Antelope opened the door, then staggered back to the kitchen.
Law enforcement informed Antelope that they had received a call about him trying to start fights. Antelope stated that if he wanted to start a fight, he would have a long time ago. The homeowner and another female entered the kitchen and stated that she wanted him arrested for beating up her boyfriend, the victim. The ladies informed law enforcement that the victim’s forehead was split open and they believed he needed stitches.
Antelope began yelling at the ladies and told law enforcement that he had assaulted the victim for leaving him in town. Antelope also stated to law enforcement that he struck the victim with his fist and elbow.
Law enforcement then proceeded to meet with the victim, who had a hole in the center of his forehead extending out in a star pattern to the size of a 50 cent piece with the skin deeply ripped. The victim indicated he was sleeping in the basement when he heard a loud commotion, and he was struck on the head. The victim then got up and chased Antelope out of the basement to the main level. When he reached the top of the stairs, the victim noticed he was bleeding badly and went to the bathroom to tend to his injuries.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Antelope was immediately turned over to the custody of the U.S. Marshals Service.
Bridgeport Meth Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK LEIGH-JAMES, 24, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by five years of supervised release.
According to court documents and statements made in court, in July and August 2015, the Fairfield Police Department orchestrated four controlled purchases of methamphetamine from LEIGH-JAMES. The DEA’s Bridgeport Task Force then made two additional controlled purchases of methamphetamine from LEIGH-JAMES. On August 12, 2015, LEIGH-JAMES sold an undercover officer approximately 82.9 grams of methamphetamine in exchange for $3,600. On September 18, 2015, LEIGH-JAMES sold a second undercover officer approximately 104 grams of methamphetamine in exchange for $8,000. The purity of the methamphetamine sold by LEIGH-JAMES ranged from 98.7 percent to 100 percent.
LEIGH-JAMES was arrested in Bridgeport on October 5, 2015. A search of a backpack LEIGH-JAMES had been holding at revealed approximately 7.5 grams of heroin, and a search of a second backpack located in LEIGH-JAMES’ vehicle revealed a clear plastic bag containing approximately 120 grams of methamphetamine and a loaded Kel-Tec .380 semi-automatic handgun. Agents also found a loaded Charter Arms .44 magnum revolver, which was in a jacket in the vehicle.
The .380 handgun had been reported stolen in Stratford in 2009.
At the time of his arrest, LEIGH-JAMES was on bond for state charges involving the unlawful possession of a firearm and oxycodone pills.
LEIGH-JAMES has been detained since his arrest. On June 24, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, with the assistance of the Fairfield Police Department. The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorney Amy C. Brown.
Birmingham Man Sentenced to 20 Years in Prison for Armed CarjackingsRead the Press Release
BIRMINGHAM -- A federal judge this week sentenced a Birmingham man to 20 years in prison for three armed carjackings in 2015, and for being a convicted felon in possession of a 9mm pistol, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge R. David Proctor sentenced JERMAINE DANIEL PARKS, 32, on three carjacking counts, one count of being a felon in possession of a firearm and one count of using a firearm in furtherance of a violent crime. Parks pleaded guilty to the charges in March. Parks’ previous felony conviction was for an unrelated robbery. He was convicted in Jefferson County Circuit Court.
On April 9, 2015, according to court records, Parks brandished a firearm and forcefully took a 2005 Nissan Altima from an individual in eastern Birmingham. Later the same day, he also brandished a firearm and forcefully took a 2008 Saturn Vue from a second individual in eastern Birmingham. On April 18, Parks brandished a gun, forcefully took a 2010 Nissan Rogue from a woman in Birmingham’s Avondale neighborhood, and forced her to visit several ATMS and withdraw cash.
Several days after releasing the victim from Avondale, Parks telephoned her and asked for a date, according to court records. Police were able track his phone number and identify Parks through Facebook.
The FBI investigated the case, which Assistant U.S. Attorney John B. Felton prosecuted.
*******media Advisory*******Read the Press Release
FOR PLANNING PURPOSES
FRIDAY, SEPT.16, 2016
As part of National Prescription Opioid and Heroin Epidemic Awareness Week, U.S. Attorney Joyce White Vance will join Walgreens officials to demonstrate the ease and importance of safely disposing of unused prescription drugs at a permanent take-back receptacle in the Walgreens Pharmacy in Bessemer.
In late July, Alabama became one of 21 states where Walgreens has implemented its Safe Medication Disposal Program.
WHAT: Press conference
WHEN: Monday, Sept. 19
10:30 A.M.
Thursday 15 September 2016
Zanesville Man Pleads Guilty to Receiving Child Porn via Video Game SystemRead the Press Release
COLUMBUS, Ohio –Jordan M. Macenko, 21, of Zanesville, Ohio pleaded guilty in U.S. District Court to one count of receiving child pornography. He admitted to enticing an 11-year old victim in Columbus, Indiana to send an explicit photograph of himself using an online videogame system.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and agencies in the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the plea entered today before U.S. District Judge Michael Watson.
According to court documents, in February 2016, the mother of an eleven-year-old boy in Columbus, Indiana called police regarding inappropriate photos of her son that she found in a PlayStation app on her phone, which was linked to her son’s account. Police interviewed the victim who told them that he had been communicating via his PlayStation system with a man who had offered him a $20 game card if he sent a photo of his genitalia. Investigators recovered evidence from the mother’s phone and the videogame system that led to Macenko.
A search of Macenko’s residence found evidence supporting the victim’s claims.
The plea agreement with Macenko includes a sentence of between 66 and 114 months in prison, followed by a period of time under court supervision to be determined by the judge. Judge Watson will schedule a date for sentencing.
“The key to this case is a vigilant parent who took action immediately when she found a threat to her child,” Acting U.S. Attorney Glassman said. “We know that danger exists any time that anyone is online on any device.”
“As this case underscores, parents who are engaged with their children about safe online activities provide a critical barrier between young people and online predators,” said Marlon Miller, special agent in charge of HSI Detroit, which covers Michigan and Ohio. “Homeland Security Investigations will continue to aggressively target child predators, but parents, because of their proximity, and as this case clearly demonstrates, often act as the first line of defense.”
Acting U.S. Attorney Glassman commended the investigation of this case by the HSI, as well as Assistant U.S. Attorney Heather A. Hill, who is prosecuting the case.
Utahns invited to attend screenings of Chasing the Dragon documentary, panel discussions as a part of National Heroin and Opioid Awareness WeekRead the Press Release
SALT LAKE CITY – Screenings of the FBI and DEA’s documentary about the dangers of opioid addiction, “Chasing the Dragon: The Life of an Opiate Addict,” will be held in West Jordan, Orem, and Ogden next week as a part of National Heroin and Opioid Awareness Week, U.S. Attorney John W. Huber announced today. The screenings are open to the public.
The title of the documentary refers to the never-ending pursuit of the original or ultimate high. It features first-person accounts of people who have abused opioids or who have children who have abused opioids with tragic consequences. The documentary also includes interviews with medical and law enforcement professionals discussing a variety of issues, including how quickly addiction can set in, how the increasing costs of prescriptions opioids can lead to the use of heroin as a less expensive alternative, the challenges of withdrawal, the ties between addiction and crime, and the fact that opiate abuse is prevalent in all segments of society.
The 45-minute screening of the documentary will be followed by a panel discussion in each community exploring issues related to prevention, enforcement, and treatment of prescription opiate and heroin abuse.
"We cannot arrest and prosecute our way out of the problems contributing to overdose deaths in Utah. We have to get to the root of the problem, and that is not something that those of us in law enforcement can do alone,” U.S. Attorney John W. Huber said today. “We need a community response, one that brings law enforcement professionals, health care providers, educators, policy makers, faith leaders, and families together to approach the opioid challenge. The first step toward that response is community education and awareness about these issues.”
The first screening will be Monday, Sept. 19, at 7 p.m. at the Viridian Event Center in West Jordan. The center is located at 8030 South 1825 West in West Jordan. The screening will be in Room B. Panelists involved in the discussion following the documentary will be Assistant U.S. Attorney Stewart Young, FBI Special Agent Cameron Smilie, Johnny Ngo of the Unified Police Department; and Trish Henrie-Barrus, Assistant Professor of Educational Psychology at the University of Utah.
The second screening will be Tuesday at 7 p.m. in the Ragan Theatre on the campus of Utah Valley University in Orem. Participating in the panel discussion following the UVU screening will be Assistant U.S. Attorney Aaron Clark, Greg Peterson of the U.S. Probation Office, Taylor West of the Salt Lake City Police Department, and Carol Lundwall of the Intermountain Specialized Abuse Treatment Center (ISAT) in Provo.
The final screening will be Thursday, Sept. 22, at 7 p.m. in the Thomas D. Dee Auditorium at McKay-Dee Hospital in Ogden. Participating in the panel discussion following the Ogden screening will be Special Assistant U.S. Attorney Michael Gadd, Troy Burnett of the Ogden Police Department, Scott Byington of the Davis Metro Narcotics Strike Force, and Dr. Timothy Houden, Medical Director of Pain Medicine at Intermountain Health Care.
"This film may be difficult to watch,” explains FBI Director James Comey, “but we hope it educates our students and young adults about the tragic consequences that come with abusing these drugs and that it will cause people to think twice before becoming its next victim.”
According to Acting DEA Administrator Chuck Rosenberg, “The numbers are appalling – tens of thousands of Americans will die this year from drug-related deaths, and more than half of these deaths are from heroin and prescription drug overdoses. I hope this documentary will be a wake-up call for folks.”
UConn Health Center Pays $184,984 to the Federal Government to Settle Overbilling AllegationsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the UNIVERSITY OF CONNECTICUT HEALTH CENTER (“UConn Health”) has entered into a civil settlement agreement with the federal government in which it will pay $184,984 to resolve allegations that it overbilled the Medicare Program.
The government alleges that UConn Health improperly submitted claims to Medicare for certain wound closure procedures. Specifically, the government alleges that UConn Health submitted claims using codes for higher paying wound closure procedures, rather than using codes for the lower paying wound closure procedures that were actually performed. By coding the wound closure procedures improperly, UConn Health received payments from Medicare that it was not entitled to receive.
UConn Health agreed to pay $184,984 to resolve its liability for conduct that occurred from January 1, 2011, to June 2, 2016.
“Providers who bill Medicare must follow the relevant coding rules when submitting claims and the failure to do so will have serious consequences,” said U.S. Attorney Daly. “The U.S. Attorney’s office will vigorously pursue health care providers who receive payments from Medicare that they are not entitled to receive.”
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services, Federal Bureau of Investigation and U.S. Postal Service, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Susan Spiegel.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
U.S. Attorney’s Office Presents Community Summit, Law Enforcement Seminar to Address Opiate Abuse and AddictionRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office for the Northern District of Alabama is presenting law enforcement training on the illegal diversion of prescription opioid drugs and a community summit focused on seeking solutions to the problems of opioid abuse and addiction as part of National Prescription Opioid and Heroin Epidemic Awareness Week, which begins Sunday.
Dr. Stephen M. Taylor, an addiction and recovery specialist who serves as medical director of the National Basketball Association’s drug testing and treatment program, will be the keynote speaker at the community summit on Friday, Sept. 23, in Birmingham. Taylor has worked as a licensed and board-certified general, child/adolescent and addiction psychiatrist for 20 years.
President Barack Obama today proclaimed Sept. 18-24 as National Heroin and Opioid Abuse Awareness Week to focus the nation’s attention on the burgeoning problem of abuse, addiction and overdose deaths associated with heroin and prescription opiate painkillers.
“Heroin and opiate drug addiction are at crisis levels in our community, as are overdose deaths,” said U.S. Attorney Joyce White Vance. “This problem demands a community-wide response, and we are hard at work in north Alabama bringing together law enforcement, educators, the medical and treatment communities, and prevention specialists to engage with affected individuals, their families and their employers,” she said.
“This week, my office is hosting events to enhance our prosecutions of people who make these drugs available in our communities, while also working to educate the community, particularly our youth, on the dangers of these drugs, and to develop strategies to increase treatment resources.”
The U.S. Attorney’s Office and the federal Drug Enforcement Administration’s Birmingham Field Office have joined together to present the Drug Diversion Training Seminar to law enforcement Monday on the Shelby County Campus of Jefferson State Community College. More than 100 local, state and federal law enforcement members are expected to attend the one-day training.
The seminar will focus on investigating and prosecuting the diversion of legal drugs, primarily opioids, for illegal purposes. DEA Deputy Chief of Staff Michael Ben’Ary will present the seminar’s morning session, discussing use of the federal 20-year mandatory minimum penalty in cases where it can be proven that a defendant sold a controlled substance that resulted in an overdose death. Assistant U.S. Attorney John Meynardie from Southern Mississippi, who has had marked success in building diversion cases, will present a case study during the afternoon session.
Members of law enforcement may register for the training at https://usaoalntraining.org/DrugDiversionTraining.
On Sept. 23, the U.S. Attorney’s Office, the University of Alabama at Birmingham School of Public Health and the Jefferson County Department of Health, as part of the Pills to Needles Initiative, will present a community summit to focus on building solutions to the heroin and prescription opioid problem.
“Pills to Needles Summit 2.0: Building Solutions” is a follow-up to the 2014 Pills to Needles summit that focused on raising awareness of the growing epidemic of opioid abuse, addiction and overdose deaths.
Summit 2.0 is designed to engage participants from diverse backgrounds in conversations about building solutions to the heroin and prescription opioid problem in our community. The program will include an update on the Pills to Needles Initiative and the status of opioid addiction in our community, as well as panel and community discussions focused on prevention, education, and treatment access and options.
Friday’s summit will be from 8:30 a.m. to 4 p.m. at the Harbert Center, 2019 Fourth Ave. North. It is free and open to the public. Use this registration link to find more information about the event. You can also register for Summit 2.0 by visiting the Pills to Needle’s website, KNOWDOPE.org.
Summit 2.0 will conclude with a special viewing of the FBI-produced documentary, Chasing the Dragon: The Life of an Opiate Addict. The 45-minute film, whose title refers to the never-ending pursuit of the original or ultimate high, is designed to help educate students and young adults about the dangers of opioid addiction.
Pills to Needles is a community collaboration initiated by the U.S. Attorney’s Office in 2013. Its mission is to create a comprehensive and responsive community infrastructure to address heroin and prescription drug abuse.
Two Former Executives of Foreign Defense Contractor Charged in Expanding Fraud and Corruption ProbeRead the Press Release
Two former executives of a foreign defense contractor have been charged in an indictment unsealed today 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.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Acting Director Dermot O’Reilly of the Department of Defense’s (DoD) Defense Criminal Investigative Service (DCIS) and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Neil Peterson, 38, and Linda Raja, 43, both of Singapore, were 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. Both defendants have been arrested by authorities in Singapore at the request of the U.S. government.
According to the indictment, Peterson and Raja worked for Singapore-based Glenn Defense Marine Asia (GDMA) and conspired with Leonard Glenn Francis, the owner of GDMA, in order to defraud the U.S. Navy for GDMA’s financial benefit. The indictment alleges that 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.
The indictment alleges that Peterson and Raja submitted more than $5 million in false claims and invoices to the U.S. Navy. In addition, Peterson and Raja allegedly 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.
Including Peterson and Raja, a total of 16 individuals 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; 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; NCIS 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 $95,000 in restitution to the Navy and a $100,000 fine. 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, and all three have pleaded guilty. Wisidagama was sentenced on March 18, 2016, to 63 months in prison and was ordered to pay $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
DCIS, NCIS and the Defense Contract Audit Agency are investigating. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California 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.
Two Doctors from Mexican Clinic Sentenced in Scheme to Commit Wire FraudRead the Press Release
McALLEN, Texas ‐ Two physicians from a family medicine clinic in Mexico have been ordered to prison for their role in a scheme to submit false and fraudulent insurance claims, announced U.S. Attorney Kenneth Magidson.
Dr. Mayolo Melchor, 59, and Dr. Bertha Hernandez-Melchor, 61, both of Reynosa, Tamaulipas, Mexico, pleaded guilty June 1, 2016, to conspiring with policyholders of the American Family Life Assurance Company (AFLAC) to fax fraudulent claim forms and accident reports to AFLAC for accidents and injuries that never occurred.
Today, U.S. District Judge Micaela Alvarez handed both Melchor and Herndandez-Melchor sentences of 34 months in federal prison. They were further ordered to pay $2,585,219.50 in restitution. In handing down the sentences, Judge Alvarez noted the large number of fraudulent claims submitted and the time period involved in the conspiracy. Both are expected to face deportation proceedings following release from federal prison.
The defendants admitted AFLAC policyholders paid them to prepare and sign fictitious reports for accidents and injuries that never occurred. AFLAC policyholders filled out the fictitious claim forms in the McAllen area and delivered them to the defendants’ family medicine clinic in Mexico where Melchor and Hernandez-Melchor prepared and signed corresponding accident reports for each fake accident and injury. The policyholders then faxed the fictitious claim and accident forms to AFLAC headquarters in Columbus, Georgia.
The defendants admitted the fraudulent claim forms and accident reports that were faxed to AFLAC from September 2001 to August 2010 resulted in the disbursement of approximately $2,585,219.50 in fraudulent benefit checks to the policyholders.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated. Assistant U.S. Attorneys Michael Day and Tina Ansari are prosecuting the case.
Two Doctors Arraigned after Being Indicted on Federal Charges of Illegally Distributing Prescription NarcoticsRead the Press Release
Update:
After being named in separate indictments returned by a federal grand jury on September 6, two doctors who had medical offices in Lynwood were arraigned this afternoon and entered not guilty pleas.
Edward Ridgill, 64, of Ventura, is charged in a 26-count indictment that alleges the illegal distribution of hydrocodone, alprazolam and carisoprodol. If convicted of all charges, he faces a maximum possible sentence of 239 years in prison.
Oparah is charged in a 14-count indictment that alleges illegal distribution of codeine, alprazolam and promethazine with codeine. If convicted, he faces a statutory maximum sentence of 51 years.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Both defendants were ordered to stand trial on November 1.
Original Release:
Two Doctors Face Federal Charges of Illegally Writing Prescriptions for Addictive Narcotics Connected to Gang’s Drug Trafficking
LOS ANGELES – Two doctors who each operated medical offices in Lynwood have been arrested on federal drug charges that allege they issued prescriptions for narcotics and sedatives without a medical purpose.
The two doctors were charged by the United States Attorney’s Office in conjunction with an operation conducted by the Torrance Police Department and the Los Angeles District Attorney’s Office that targeted members and associates of the East Coast Crips criminal street gang.
The two doctors – Sonny Oparah, 75, of Long Beach, and Edward Ridgill, 64, of Ventura – surrendered to federal authorities on Friday and were released on bond that afternoon after making their first appearances in United States District Court. Both men were ordered to again appear in federal court for arraignments on September 15.
Two criminal complaints unsealed on Friday charge Oparah and Ridgill with illegally prescribing the powerful painkillers hydrocodone (best known as Vicodin or Norco) and codeine (for example, promethazine with codeine cough syrup, which is known on the street as purple drank), alprazolam (commonly known as Xanax), and carisoprodol (a muscle relaxer best known as Soma). According to the affidavit filed in the cases, Oparah issued nearly 13,000 prescriptions for those drugs in a one-year period between July 2014 and July 2015, and Ridgill issued more than 21,000 such prescriptions in a three-year period between July 2011 and July 2014. All of the prescribed drugs were at or near maximum strength.
The affidavit describes 12 undercover operations during which Oparah or Ridgill sold prescriptions in exchange for cash fees. In most instances, the doctors sold the prescriptions without ever examining the undercover officer or cooperating witness. A medical expert’s independent review of the undercover recordings and seized patient files confirmed that there was no legitimate medical basis for the prescriptions. The expert, writing about Oparah, said his “actions are very alarming” and the evidence reflects “extreme departures from the standard of care,” according to the affidavit.
“The powerful drugs in this case, which include addictive painkillers, can kill users who abuse them,” said United States Attorney Eileen M. Decker. “The investigation determined that these doctors were significant suppliers of drugs to a street gang. As the charges in the indictments demonstrate, these doctors enabled the gang’s criminal activity just like street-level drug dealers.”
The arrests of Oparah and Ridgill occurred jointly with a sweep that targeted the East Coast Crips street gang in “Operation Money Bags.” The charges against gang members and their associates are being unsealed today. As described in the federal affidavit, the investigation into Oparah and Ridgill originated when the investigation into the East Coast Crips revealed evidence that “Oparah and Ridgill served as large-scale sources of supply to [gang] members and associates via their issuance of medically unnecessary controlled drug prescriptions.”
“These arrests demonstrate DEA’s resolve to target all drug traffickers regardless of their standing in the community,” said Anthony A. Chrysanthis, Assistant Special Agent in Charge of the DEA’s Los Angeles Field Division. “With our law enforcement partners, we will continue our pursuit of those that contribute to the opioid addiction crisis and poison our society under the guise of the medical profession.”
The federal investigation into Oparah and Ridgill showed that they operated cash businesses. Federal authorities made cash seizures from both doctors, and bank records showing that Ridgill deposited $500,000 in cash into his bank accounts over a period of less than three years.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The investigation in the federal cases against the doctors was conducted by the Drug Enforcement Administration, the Los Angeles Police Department, the Torrance Police Department, IRS - Criminal Investigation, the California Medical Board and the Los Angeles High Intensity Drug Trafficking Area.
The cases against Oparah and Ridgill is being prosecuted by Assistant United States Attorney Benjamin Barron of the Organized Crime Drug Enforcement Task Force.
Two Bristol Residents Arrested for Participating in IRS Impersonation ScamRead the Press Release
United States Attorney Deirdre M. Daly and Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge William Kalb announced that NANCY FRYE, 50, and DOUGLAS MARTIN, 52, both of Bristol, were arrested today on charges related to their alleged involvement in an IRS impersonation scam.
An IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims. Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS. During the calls, the impersonator tells the call recipient that the recipient has an outstanding debt with the IRS that must be paid immediately. The impersonator then threatens persons with either arrest or a lawsuit if they do not immediately settle the bogus IRS debt. Victims are instructed to wire money to individuals they believe are employees of the IRS in order to avoid the threatened action.
As alleged in court documents, in October 2015, FRYE received phone calls and text messages from individuals who successfully recruited her to pick up money that was wired through MoneyGram and Western Union and to deposit the money into specific bank accounts. FRYE, in turn, recruited MARTIN and others to assist her in picking up wired funds from locations in central Connecticut. FRYE then deposited the money that she collected into the bank accounts.
Between October 2015 and May 2016, FRYE, and others working at her direction, received approximately $547,000 in wired funds. FRYE received approximately $40 per transaction and made approximately $500 per day.
“IRS impersonation scams victimize thousands of innocent people across the country, including many here in Connecticut,” said U.S. Attorney Daly. “The money generated from these scams is often very significant. Those who perpetrate these crimes frequently hide overseas and can be difficult to track down. But together with our partners from the Treasury Department and the Postal Inspection Service, we are committed to bringing those responsible to justice. This prosecution serves as another opportunity to warn everyone to avoid becoming a victim of this scam. The IRS will never call anyone and demand immediate payment or threaten arrest. If you receive one of these calls, just hang up and report the call to the Treasury Inspector General for Tax Administration (TIGTA).”
“Since October 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees,” said TIGTA Special Agent in Charge Kalb. “TIGTA has received reports of over 1.6 million impersonation related calls with over 8,600 victims reporting losses of almost $47 million. Victimizing taxpayers by impersonating IRS employees is a serious crime. TIGTA and our law enforcement partners will do everything within our power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.”
FRYE and MARTIN are each charged by federal criminal complaint with wire fraud and conspiracy to commit wire fraud. They appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and were released on bond. If convicted of the offenses, they face a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) of the U.S. Department of the Treasury and U.S. Postal Inspection Service. The U.S. Attorney gratefully acknowledges the assistance provided by the Rocky Hill Police Department, Bristol Police Department, and New York State Department of Taxation and Finance.
The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
U.S. Attorney Daly stated that the investigation is ongoing and encouraged individuals who receive impersonation calls, including those who have been victimized by this scheme, to report the information at https://www.treasury.gov/tigta/contact_report_scam.shtml.
Twin Falls Man Sentenced to Seven Years in Federal Prison for Methamphetamine DistributionRead the Press Release
BOISE – Matthew John Mingoia, Jr., 62, of Twin Falls, Idaho, was sentenced yesterday to 84 months in prison for possession of a controlled substance with intent to distribute, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Mingoia to serve three years of supervised release following his release from prison. Mingoia pleaded guilty on February 23, 2016.
According to information presented in court, Idaho State Police officers received information that Mingoia was selling methamphetamine in the Twin Falls area. On December 3, 2014, investigators executed a search warrant at Mingoia’s residence and located methamphetamine, a firearm, baggies, scales, paraphernalia, surveillance cameras, and other items indicative of methamphetamine distribution.
In determining his sentence, Judge Lodge found that Mr. Mingoia was a habitual offender with multiple prior felony drug convictions. Mingoia has previous convictions of possession of controlled substances for sale in 1999, 2005, and 2007.
The case was investigated by the Idaho State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The One Life Project – The Youth VoiceRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that on Tuesday, September 20, 2016, as part of National Heroin and Opioid Awareness Week -- designated by the Department of Justice as the week of September 19-23, 2016 -- Maine students from high schools throughout the state will be participating in “The One Life Project – The Youth Voice” at the Cross Insurance Center in Bangor, Maine. The Maine Principal’s Association, the U.S. Attorney’s Office for the District of Maine, the Maine Attorney General’s Office, and the Bangor Daily News are sponsoring this one-day conference to bring together diverse groups of students from throughout the state and to provide them with an opportunity to talk about and have their voices heard on the issues of drug use and abuse.
Maine is in the throes of a public health crisis relating to the use and abuse of opioids, opiates and other substances. It is well recognized that effectively combatting this problem requires coordination of treatment, prevention, and law enforcement efforts. As part of this coordinated effort, the U.S. Attorney’s Office; Janet Mills, the Maine Attorney General; and John Morris, the Maine Commissioner of Public Safety formed the Maine Opiate Collaborative. This Collaborative brought together experts from the fields of treatment, prevention/harm reduction, and law enforcement to come up with recommendations to address the opiate epidemic. One key recommendation was to engage our youth in the prevention efforts.
The goal of this summit is to give our youth a forum to discuss the issues they see in their schools and communities and to solicit their ideas on solutions. Information gathered at the summit will be shared with state and federal leaders, and school administrators and personnel to help inform future decisions about prevention efforts.
The summit will start at 9:00 a.m. and should be completed by about 1:30 p.m. Members of the media wishing to report on the conference are invited to attend a press conference at the Cross Insurance Center at 12:45 p.m.