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20 October 2016
Sentencings for October 17 - October 19, 2016Read the Press Release
Eddie Ray Rios, 58, of Sacramento, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 19, 2016, for possession with intent to distribute methamphetamine, heroin, and marijuana and for carrying a firearm in furtherance of a drug trafficking crime. Rios was arrested in Rawlins, Wyoming. He received 180 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and $1,000.00 in restitution. This case was investigated by the Rawlins Police Department and the Wyoming Division of Criminal Investigation.
Joseph Dustin Buchanan, 25, of Mills, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 18, 2016, for conspiracy to distribute methamphetamine and for use of firearms during and in relation to a drug trafficking crime. Buchanan was arrested in Casper, Wyoming. He received 108 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and $250.00 in restitution. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
William Arthur Curran, II, 32, of Lander, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 17, 2016, for kidnap, seize, confine and hold. Curran was arrested in Fort Washakie, Wyoming. He received 13 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a
$400.00 fine. This case was investigated by the Federal Bureau of Investigation.
Anissa Rene Maldonado, 24, of Porterville, California, was sentenced by Federal District Court Judge Alan B. Johnson on October 17, 2016, for possession with intent to distribute cocaine. Maldonado was arrested in Cheyenne, Wyoming. She received 46 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Cheyenne Police Department.
Brad Calvin Titchener, aka Brad Calvin Titchner, 49, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 17, 2016, for being an unlawful user of a controlled substance in possession of a firearm and for possession of equipment used to manufacture a controlled substance. Titchener was arrested in Cheyenne, Wyoming. He received six months of imprisonment, followed by six months of home confinement. He will be placed on two years of supervised release after serving his sentence and was ordered to pay a $200.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Seminole County Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Rowy De Jesus Vasquez (26, Altamonte Springs) today pleaded guilty to sex trafficking of a minor. He faces a penalty of 10 years, up to life, in federal prison. Vasquez was indicted on December 9, 2015.
According to the plea agreement, between April 24, 2015, and June 10, 2015, Vasquez caused a 14-year-old girl to engage in commercial sex acts for his financial gain and profit. He provided the girl with a cellphone to communicate with potential customers and to post advertisements for prostitution services on the Backpage website. Vasquez also set the prices for the sex acts and kept all of the proceeds.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Metropolitan Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Rock Island Man Sentenced for Possessing Firearm as a FelonRead the Press Release
Rock Island, Ill. – Michael Andrew Ford, 22, of Rock Island, Ill., was sentenced today for possessing firearms and ammunition as a felon, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara L. Darrow ordered Young to serve a term of 57 months in federal prison.
Ford entered a plea of guilty on June 16, 2016, to the charge. On Dec. 2, 2015, Rock Island police investigating an apparent drug robbery and shooting sent out an officer safety advisory that Ford and two other individuals might attempt to retaliate against the alleged robber and shooter, an individual residing in Moline, Ill. A few hours later, during the early morning hours of Dec. 3, 2015, Moline police spotted Ford and the two other individuals and stopped their car. Ford and the others were searched. Ford was carrying a loaded .38 caliber handgun with an obliterated serial number. Ford previously had been convicted of felony offenses by courts in the State of Illinois.
The case was prosecuted by Assistant U.S. Attorney Don Allegro. The charges were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Moline Police Department, and the Rock Island Police Department.
Repeat Offender Receives Prison Sentence for Identity Theft and Bank FraudRead the Press Release
PORTLAND, Ore. – On Wednesday, October 19, 2016, a South Korean native with previous federal convictions was sentenced to 39 months in prison for bank fraud, identity theft, and illegal reentry into the United States. Chae Sun Kim, 62, who pled guilty to the charges in March 2016, was sentenced by U.S. District Court Judge Robert E. Jones.
According to court records, between April and May of 2015, Kim and an associate created a Republic of Korea passport using a fictitious name to open numerous bank accounts in the Portland metropolitan area. Using the false identities, Kim opened the accounts using his name and the name of his business, King Blackbox. Subsequent activity with these bank accounts by Kim and others resulted in a loss of more than $18,000 to at least six banks. When executing a search warrant at Kim’s Las Vegas residence, agents found equipment and paraphernalia capable of producing hundreds of fraudulent identifications as well as identification documents in other people’s names.
In 2002, Kim was convicted in the Western District of Washington for conspiracy to defraud the United States, Social Security number fraud, and visa fraud, and was sentenced to 63 months in prison. He was deported in 2007.
Judge Jones ordered Kim to pay $48,718.49 in restitution, including $30,000 to the U.S. Department of Homeland Security (DHS). Judge Jones concluded the sentencing hearing by calling Kim a “crook” and telling him that he cannot return to the United States. Kim assured the court he would not return.
The case was investigated by DHS, Homeland Security Investigations, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case was prosecuted by Helen Cooper, Special Assistant United States Attorney as part of a partnership venture between the SSA Office of the General Counsel, Seattle Region and the United States Attorney’s Office in Portland, Oregon.
Remarks by U.S. Attorney Zachary T. Fardon at Northwestern University Pritzker School of Law, Oct. 20, 2016Read the Press Release
The following are remarks by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, as prepared for delivery at Northwestern University Pritzker School of Law's "Opioids: An Interdisciplinary Symposium," on October 20, 2016:
Thank you Professor Geraghty for that kind introduction, and thank you Northwestern for having me. It’s great to be here. I’m grateful that you’re shining your light on this terrible epidemic.
Opiate consumption is a full-on crisis in this country. It is nothing shy of an historic national public health and safety epidemic. Opioids are now killing more people in this country than gun violence. Opioids are now killing more people in this country than car crashes.
Heroin is everywhere. It’s in our cities, suburbs, schools and homes. The good old days of black tar heroin being expensive and hard to obtain, and ugly to use because it’s intravenous – those days are long gone. Now powder heroin is cheap; it can be snorted or smoked; and in some neighborhoods, it’s easier to find than a fresh head of lettuce.
Heroin is rampant in Chicago. You can go buy some right now for $10 on the West Side just off the Eisenhower Expressway, now known to some as the “Heroin Highway.” And it’s all too cheap and easy to find heroin now in our collar counties as well: DuPage County, Lake County, Kane County, Will County and beyond.
In Chicago, about a person a day is dying right now from a heroin overdose. And about one additional person dies every day from an opioid other than heroin. In the collar counties, we’re now seeing about one person every three days, dying from heroin or opioid overdose.
Heroin is an equal-opportunity killer. It is killing men, women, Blacks, Whites, Hispanics, friends, neighbors, loved ones. It doesn’t discriminate; young and old, rich and poor, urban and rural, inner city and suburb.
According to the CDC, between 2002 and 2013, the heroin death rate across the country nearly quadrupled – from 0.7 deaths per 10,000 people to 2.7 deaths per 10,000. During that same time frame, heroin use doubled among women, it increased 114% among whites, and it increased 109% among all 18-25 year olds.
The mean age of first use of heroin in this country is now 18 years old. And heroin has one of the highest dependency liability profiles of any drug, licit or illicit. Only nicotine ranks higher. Of those who are offered heroin, about 20% will try it, and of those who do, 25% will become addicted.
And for those who become dependent, the prognosis is not good; mortality rates for heroin addicts are extremely high. Over 50% of heroin addicts will be dead before the age of 50, with the average age of death being 30.
If all of that is not scary enough, here’s the kicker – heroin isn’t necessarily the biggest threat this crisis presents. Heroin now has an even more dangerous cousin on the streets: fentanyl. We are seeing an explosion right now, from a law enforcement perspective, in presence of fentanyl and fentanyl analogues.
Many folks still don’t know what fentanyl is. Fentanyl is made in a lab. Traditionally, it has been a very powerful prescription pain medication used for end of life situations or for those in extreme pain. But now, it’s being cooked up in Mexican super labs run by drug cartels, and it’s being manufactured in China and sold to those cartels, or otherwise smuggled into the U.S. for illicit use.
Drug dealers are using fentanyl to dilute and increase the volume of the heroin they are selling on our streets. While heroin is cheap, fentanyl is even cheaper, and so dealers are juicing their profits by mixing fentanyl into their heroin street products.
And that means more people are dying. Fentanyl is 40 to 50 times stronger than heroin. Fentanyl is 80 to 100 times stronger than morphine. Fentanyl has the power to kill with the ingestion, inhalation or skin absorption of just two milligrams. By point of reference, that sweetener packet your kids play with at the restaurant table – that contains 1,000 milligrams per packet. Two milligrams of fentanyl can be lethal.
Fentanyl-laced heroin is increasingly killing people in our area. Cook County has seen at least 124 fentanyl-related deaths since January 2015. Many drug users don’t even know that heroin they are using may be laced with fentanyl. They don’t know until it’s too late.
And because of its potency, fentanyl poses an unwitting risk not only to those heroin users but also to first responders. For cops or agents who are seizing dope or searching a crime scene and unwittingly touch or inhale powder fentanyl, their lives are also at stake.
And fentanyl has analogues. We’ve recently seen one called carfentanil – an analogue literally used in zoos to tranquilize elephants. An elephant tranquilizer. Carfentanil is roughly 100 times stronger than common fentanyl. I mentioned that two milligrams of fentanyl is enough to kill a person. Well, that same two milligrams of carfentanil is enough to knock out a 2,000-pound African elephant.
So it’s no surprise then that carfentanil-laced heroin is a killer. Last month, it was responsible for at least 8 overdose deaths in the Cincinnati, Ohio, area. And unfortunately I can tell you that carfentanil is not limited to Ohio and points east. It is right here in Chicago. Right now.
Another similar analogue that has popped up recently is called W-18, which like carfentanil is 10,000 times more powerful than morphine. Earlier this month, the Will County Coroner confirmed that a man who died from an overdose in April of this year had W-18 in his system.
Fentanyl and its analogues are finding their way into heroin powder. By itself, that is frightening. But here’s more: we are now seeing a swell of illicit counterfeit pills containing fentanyl. Hundreds of thousands of counterfeit prescription pills – pills made to look like oxycodone or hydrocodone but containing fentanyl -- are now being trafficked in the U.S. Some of these counterfeit pills are manufactured outside the U.S. and smuggled in, principally through Mexico and Canada. But we also now are finding clandestine pill operations domestically.
Just two weeks ago, the Wall Street Journal ran a front page story about how two people in San Francisco were charged this summer with manufacturing fentanyl-laced pills. The pills were made to look like oxycodone but actually contained fentanyl. During a search of a San Francisco home, the DEA found fentanyl powder, mixing equipment, and a $1,000 pill press.
On the other coast, in January of this year, DEA, after making undercover purchases of about 6,000 counterfeit pills, arrested a counterfeiter in New York. Again, the pills were made to look like 30 milligram oxycodone pills but contained fentanyl. Just like the couple in San Francisco, this counterfeiter in New York was making those pills in his home.
And there’s a reason we’re seeing more and more of that. It’s called profit. The pill presses are easy to acquire and are fairly cheap. And you can purchase a kilo of fentanyl powder from China for a few thousand dollars. That kilo, plus the press, can generate millions in quick profit.
Let’s say you make a batch at 1.5 milligrams of fentanyl per pill. Then one kilo can generate about 666,666 counterfeit pills. According to DEA, counterfeit pills containing fentanyl are now retailing between $10 and $20 per pill. That means between $6.5 and $13 million in sales from pills made for a few thousand bucks. That is a serious problem.
And these counterfeit pills closely resemble the authentic medications. The presence of fentanyl is often only detected through laboratory analysis. The people taking these pills may have no idea that the pill contains a potentially deadly substance. They may not know until it’s too late.
That is a dire diagnosis. And I’m sorry for the parade of horribles to begin this speech, but I think it’s important that we be honest about the nature and scope of the problem before discussing solutions.
Let me talk now about some of the things we are doing federally to push back against this epidemic. And I’ll start with criminal enforcement, but first let me make this clear up front: while our primary function at the U.S. Attorney’s Office is to investigate and prosecute crimes, criminal enforcement alone cannot solve, and will never solve this crisis. Treatment and prevention are equally if not more important ingredients to any solution. This crisis demands a coordinated response across all elements of government and society. After I talk about criminal enforcement, I’ll offer some thoughts and ideas, from my Office’s perspective, about treatment and prevention.
Enforcement
First, enforcement. Under the leadership of the Drug Enforcement Administration, the FBI, and other federal, state and local law enforcement partners, we are working harder than ever right now to attack the illicit opioids supply chain.
The vast majority of heroin that’s flooding our Chicago region is brought here by international drug cartels and specifically Mexican-based cartels like the Sinaloa Cartel, the Juarez Cartel, the New Generation Cartel, the Zetas and others. While it is impossible to know exactly how much heroin the cartels are smuggling into the Chicago area, based on recent seizure and source information, I think it’s safe to say that thousands of kilograms are now being imported here every year.
Why is the heroin problem particularly acute in Chicago? Because we are a transshipment hub for cartels; because our location and transportation networks - air, rail and road – make Chicago an ideal transshipment point. So we have a profound supply problem, and of course that eases distribution to street gangs that plague so many of our communities.
So we are committing more and more federal resources here to investigating and prosecuting suppliers - heroin traffickers from the cartel leaders to the street gangs. Between 2005 and 2014, the number of heroin-related arrests by DEA surged more than 200 percent. 2014 was the first year ever that DEA arrested more defendants for heroin trafficking than cocaine. And that trajectory has only escalated since then. DEA Chicago has proclaimed combatting heroin and opioid crime its number 1 priority for our district.
At the U.S. Attorney’s Office, I’ve instructed all of our prosecutors who work narcotics cases that investigating heroin and opioid trafficking is now our number one narcotics enforcement priority. As little as three years ago, the majority of new case initiations in our office involved cocaine trafficking. Since the beginning of this year, over 75% of the major narcotics investigations we’ve logged in at the U.S. Attorney’s Office are heroin, fentanyl or other illicit opioid trafficking cases.
One recent example is Operation Over the Top. In the spring of this year, DEA agents, working with Assistant U.S. Attorneys in my office, identified a heroin trafficking organization that was responsible for transporting, in the hollowed out axles of tractor-trucks, 20-30 kilograms of heroin every week into the Chicago area. We made multiple seizures resulting in the recovery of almost 100 kilos of heroin. Until we made those seizures and stopped this particular distribution line, this group had been smuggling all of this heroin into our city for at least two years. And that’s just one organization and one investigation. We have many more charged and in the investigative pipeline.
Last year, in an Operation titled G.I. Joe, DEA agents and the Chicago Police Department took down what may have been the largest open-air heroin market in Chicago history, at Grenshaw and Independence on the West Side. CPD and DEA made over 70 undercover purchases of heroin from gang members operating the drug spot, and seized over two kilos of heroin. Before we took it down, conservative estimates based on the volume of customer traffic indicate heroin sales were in excess of $2.6 million per year at that spot alone.
So we’re going after the gangs and drug trafficking organizations that are moving heroin into our communities. We’re also committing significant resources to going after the cartels bringing the dope here in the first instance.
I hope most of you have heard something about the Sinaloa Cartel prosecutions we have brought recently in my Office. The Sinaloa Cartel is perhaps the single biggest transnational criminal organization in the world, responsible for the distribution of hundreds of tons of illegal drugs, including heroin, to virtually every corner of the world. Because Sinaloa has decided to use Chicago as one of its principal transshipment points in the United States, my office together with our law enforcement partners, have targeted the cartel with every resource and tool at our disposal.
And we have been successful. We have brought indictments against all levels of the cartel and its infrastructure – from the cartel’s command and control based in Mexico, to its Chicago-based distribution cells, and all the way down to the street gangs who push the cartel’s dope onto the streets of Chicago and the surrounding communities. We’ve indicted over 70 individuals, including Sinaloa leader Chapo Guzman, his sons and a slew of the other highest-ranking Sinaloa members in Mexico and here in Chicago. Of those, we have convicted all but 18, and among the rest some are awaiting trial and others are fugitives from justice, including some now in custody awaiting extradition from Mexico. And we have seized over eleven tons of Sinaloa cocaine, 80 kilograms of heroin, and $30 million in cartel assets – the lifeblood of their organization. Because Sinaloa is the number 1 importer of heroin into our district, we have, and will continue to, take the fight directly to them.
Our fentanyl enforcement activities here in Chicago are also a focus of my Office right now. We are working closely and constantly with our partners to track and prosecute fentanyl distributors. About a month ago, we joined the Cook County State’s Attorney’s Office, DEA, CPD and others, to announce new charges against more than 30 defendants for distributing fentanyl and heroin on the West Side of Chicago.
In addition to cartels and gangs and fentanyl, we’re also focused federally on diversion – which is a different kind of supply-side problem. Abuse of prescription medications like hydrocodone and oxycodone are a gateway to heroin use. According to the CDC, 45% of people who use heroin are also addicted to prescription painkillers. And nearly 80% of new heroin users previously used prescription medications. Just last month, HHS released new stats showing that at least 3.8 million Americans age 12 years and older are misusing prescription medications. That is, sadly, our future heroin and fentanyl overdose population.
To beat the heroin and fentanyl problem, we have to stem the tide of prescription medications diverted for unlawful use. To that end, my office and DEA are ramping up our investigations of doctors, pharmacists, and pharmacy employees who illegally prescribe and dispense hydrocodone and oxycodone. To give one recent example, at the end of last year, we brought federal charges against a doctor in Lockport, Illinois, who wrote an astounding 500-plus prescriptions to one person for both oxycodone and Adderall. From these prescriptions, 37,000 oxy and Adderall pills were illegally diverted from their intended pharmaceutical use to those who suffer from opioid addiction.
Because research shows that abuse of prescription opioids is a gateway to heroin use, it is vital that law enforcement identify and prosecute those in the medical field who abuse their oath by illegally diverting opioids for their own financial gain. That’s another important piece of our long-term strategy for success.
Treatment
So those are some of the things we’re doing on the enforcement front. Let me say a few words about treatment. Enforcement is all about supply side. Treatment flips the script; it’s about demand.
Cartels wouldn’t be importing heroin into our district if there wasn’t a market. The hard truth is that demand for heroin in our district appears to be at an all-time high.
According to an August 2015 study, admissions for heroin treatment in Illinois are significantly higher than the nation as a whole. Nationally, heroin-treatment admissions comprise about 16% of total state-funded treatment admissions, whereas in Illinois, heroin caused about 25% of all such treatment admissions. Heroin is now the second most common reason for citizens in our state to enter state-funded treatment programs, only behind alcohol addiction.
And the growing heroin addiction problem is not just an adult problem. It’s now affecting our kids, and that situation is rapidly getting worse. In 2013, 3.8% of Illinois youth reported using heroin in the past year. 3.8% of all kids in this state said ‘yes, I’ve used heroin within the last year.’ That is a disturbing reality and trend.
So, with this seemingly endless flow of heroin into our area, what can we in law enforcement do about demand and addiction? Here are a few quick thoughts and ideas.
First, from a criminal justice perspective, we have to make sure we are separating users and addicts from traffickers and profiteers. When we catch users in the act, or with heroin in their pocket, and we arrest and incarcerate that user without any attention to the underlying problem, we’ve not only ignored the problem, we’ve made it worse. Those addicts, without help, will use again upon release (if not while in jail). And meanwhile we are straining our jails and our budgets by locking up people who are sick and no risk to society.
This issue is principally a state and local justice systems issue. And across the state, I have seen many courts and prosecutors' offices recognize this dilemma and respond to it. In Cook, DuPage, Lake, Kane, McHenry Counties and others, there are now drug courts and diversion programs designed to separate drug users from other defendants and put those users on a pathway not of incarceration but of treatment and rehabilitation. Those efforts are laudable, and critical. And while a lot has been done on that front, we do need to make sure those kinds of efforts are being duplicated across our local justice systems, including in rural areas.
One great example is the partnership between the Chicago High Intensity Drug Trafficking Area, or HIDTA, and the Cook County State’s Attorney’s Office, where they have established a program under which individuals caught distributing heroin or other drugs but who themselves are substance abusers or addicts and have minor, non-violent criminal histories, those individuals are immediately evaluated by addiction treatment professionals and given the option of entering treatment. If the addict decides to avail himself of the treatment opportunity, then the arrest for distribution is dismissed. This is the type of forward-thinking approach to addiction and treatment that can make a real difference.
More broadly, inside and outside of our justice systems, we have to do a better job of providing addiction treatment for those who are in the throes of abuse. Whether public, private or philanthropic, we need to stretch and find ways to fund treatment for those who don’t have insurance or otherwise can’t afford it. While I realize that presents enormous challenges - and I also realize that I may be swimming outside my lane - the truth is that the alternative won’t work. If we don’t improve treatment, we will pay more in the end – more in connection with medical emergency responses to increasing overdoses, more through enforcement, arrests, and incarceration, and more as measured by lives lost. So, however we do it, we have to improve our game statewide on the treatment front.
As a component of that, we need to make sure our educators and community leaders understand the nature of opioid addiction and are prepared to help those who are opioid dependent. Rather than responding to someone’s heroin or opioid abuse as a crime, we need folks to respond to it as a threshold matter for what it is: an illness that requires medical treatment and a pathway to rehabilitation.
Lastly on the treatment front, I’d like to make a related but different point. I want to make a strong plug for the continued proliferation, particularly to our first responders, including fireman and patrol officers, of naloxone, most commonly referred to by the brand name Narcan. Narcan is an easy-to-use, lifesaving antidote for heroin and opioid overdoses. Used in hospitals for decades, the medication has no abuse potential, is not that expensive, and is easy to administer. Well over a hundred lives in the Chicagoland area have been saved already this year by use of Narcan, and that number will only increase as the heroin crisis continues.
I have heard some concerns and criticism that naloxone emboldens addicts to push their limits. If they believe they can be brought back from overdose, then the risk/reward analysis of that higher dosage arguably can change. I get that. But I also know that people are dying right now. And with the increased presence of fentanyl, more of those overdoses than ever are unexpected. So, for now, I don’t think we as a society have a next best responsible choice. We need to embrace training and investment in naloxone as a way to save lives. We have to keep spreading the word and making those investments.
Prevention
So that’s enforcement and treatment. Let me, as promised, say something briefly about prevention. I start from this base point: as I said earlier, we have to be honest and recognize that prosecutions alone will not solve this problem. Until we stem demand, the supply chain will continue to fight and find a way. So we have to get every bit as aggressive about education and prevention as we are already about enforcement.
One of the great attributes of this conference today is that it has brought together professionals from so many different disciplines that touch on this crisis. It is not every day that lawyers, doctors, economists, and law enforcement are all together under the same roof talking about the same problem. And having you all here together gives me the opportunity to mention a phenomenon that I worry contributes significantly to the heroin and opioid problem in this country. And that is the over-prescription of pain medications.
I have attended too many events where I hear the same story told, over and over. How a teenager or young adult playing sports is injured and goes to a doctor for treatment, receives a multi-week course of prescription opioid pain medications, and even though he or she may not need all of those meds to manage the pain, they take them and become dependent, leading to a crippling downward spiral of abuse that eventually leads to heroin.
And I’ve heard about parents who received a large prescription for pain medications after a surgery and took some, but nowhere near all, of those pills. And the pills then sat forgotten in the medicine cabinet, until one day they were found by a teenager living in the house. And so the downward spiral begins.
These stories, which are real and are happening every day across this country, give color to the sobering statistic that the United States, with roughly 5% of the world’s population, consumes more than 75% of the world’s prescription drugs. There is something wrong there.
When I say I love doctors, it’s literal. I am the son of an orthopedic surgeon. I know that the issue of prescribing pain medications is a difficult and complex balance. And I also know that the lions’ share of doctors work hard every day, patient by patient, to get that balance right.
But the system as a whole is not working; 75% consumption of the world’s opioids reflects a problem, an imbalance in our health care system in this country. And so I ask our physicians and health care providers to work even harder to come up with ideas and solutions for the underlying issue of over-prescription. It’s imperative that you stretch. It’s imperative that we all stretch.
Every one of us has to do more and do better at teaching our citizens and kids that pain medications can begin dependency that can lead to downward spiral into heroin use and death. We have to be open and honest about how common opioid addiction is in this country, about the stark realities of that downward spiral, about the ravages heroin reeks on the body, and the devastation it brings on an addict’s friends and family.
Everyone has to own this. We need to leverage every medium we can think of – from print to TV to internet and social media. We need to talk and educate in our schools, our churches, our businesses, and our community organizations. And maybe most importantly, we need to talk in our homes. No parent can any longer afford to wait and hope the opportunity to try heroin never finds your kid. It will. So let’s talk to our kids about it now, so they will be ready when that day soon comes.
And maybe most fundamentally, it’s time to de-stigmatize heroin addiction. For decades, heroin was linked in our public consciousness with dirty needles, dark alleys, and perforated forearms. That’s no longer our reality. Heroin and opioid abuse is all around us. It’s in our poorest communities and our wealthiest enclaves. It no longer knows socioeconomic bounds. It’s happening under city bridges, and at suburban high school proms.
Heroin is not a rich or poor issue, not a black or white issue, it’s not a man or woman issue. It’s a human issue. So let’s lift the shadows. No more hushed silence and whispering in shame. This not shameful. It’s tragic. We are all impacted, and we all are in this together.
Today’s event is an important step. We at the U.S. Attorney’s Office look forward to continuing this discussion and working with each and all of you until we reach a solution. Thanks for having me and for listening.
Queens Man Charged in New York City “Vermin Control” Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the arrest and charges against MYONG HWAN HAN, a/k/a “David Han,” for mail fraud and conspiracy to commit mail fraud in connection with a scheme that sought to defraud thousands of victims out of more than $1 million. From April 2016 through September 2016, HAN and a co-conspirator (“CC-1”) allegedly created and mailed thousands of fraudulent notices of violation, which purported to be official communications from New York City related to vermin control violations. The notices directed the recipients to make immediate payments to a sham entity created by HAN and CC-1. In response, victims mailed checks to the sham entity based on their mistaken belief that the notices of violation were legitimate. HAN was presented today before Magistrate Judge Henry B. Pitman.
According to the Complaint unsealed today in Manhattan federal court[1]:
In April 2016, CC-1 hired a print shop to print approximately 10,000 copies of a fraudulent notice (the “Fraudulent Notice”). The Fraudulent Notice, which included a New York City Department of Health and Mental Hygiene (“NYC Health”) logo and was purportedly signed by the Commissioner of the New York City Department of Buildings, directed immediate payment of $120 to be mailed to an entity called “Vermin Control of New York,” under threat of additional penalties, including fees and property liens. In response to the Fraudulent Notice, approximately 101 victims mailed checks to Vermin Control of New York.
In fact, NYC Health did not authorize the Fraudulent Notice or use of the NYC Health logo. HAN and CC-1 created Vermin Control of New York as part of their scheme and used the location of CC-1’s post office box as the organization’s mailing address. HAN created a bank account for Vermin Control of New York and agreed with CC-1 to share any proceeds from their scam.
* * *
HAN, 31, of Queens, New York, is charged with one count of conspiracy to commit mail fraud and one count of mail fraud. Each of the charges carries a maximum term of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the United States Postal Inspection Service, and thanked the New York City Department of Investigation for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Plattsburgh Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Michael Kimball, age 28, of Plattsburgh, New York, pled guilty today to distributing, transporting, and possessing child pornography.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Kimball admitted that he distributed child pornography to others over the Internet, downloaded child pornography, and saved it to electronic devices.
Kimball was ordered held in custody pending his sentencing on February 21, 2017 in Syracuse, New York, by Senior United States District Judge Norman A. Mordue. He faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Kimball would also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
Pittsburgh Man Admits Defrauding Citizens and First Niagara BanksRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has plead guilty in federal court to a charge of bank fraud, United States Attorney David J. Hickton announced today.
Alvin R. Simmons, 56, of Pittsburgh, PA, pleaded guilty to one count before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, Simmons used fraudulent personal checks to buy postage stamps at Post Offices in western Pennsylvania, and committed bank fraud upon Citizens and First Niagara banks.
The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service conducted the investigation that led to the prosecution of Alvin R. Simmons.
Palm Beach County Resident Pleads Guilty to Production of Child Pornography and Enticement of a Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Palm Beach County resident pleads guilty to production of child pornography and enticement of a minor to engage in unlawful sexual activity.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Frank Earle Noyes, III, 51, of Palm Beach County, pled guilty on October 19, 2016, before U.S. District Judge Kenneth A. Marra in West Palm Beach, Florida, to one count of production of child pornography, in violation of Title 18, United States Code, Section 2251 and one count of enticing a minor to engage in an illegal sexual activity, in violation of Title 18, United States Code, Section 2422(b). Noyes is scheduled to be sentenced on January 20, 2017. At sentencing, Noyes faces a statutory mandatory minimum sentence of 15 years and a maximum term of up to 30 years in prison on the production of child pornography count and a statutory mandatory minimum sentence of 10 years and a maximum term of up to life in prison on the enticement of a minor count.
According to documents filed with the court, Noyes entered into an online chat with a 12-year old minor female who lived in Minnesota. During the chat, Noyes sent the minor child pornographic images that he produced of a 5-year old minor engaged in illegal sexual conduct. Noyes was arrested and law enforcement found additional child pornographic images that he produced on his phone of a 3-year old minor female engaged in illegal sexual conduct. During the chat session with the 12-year old child, Noyes repeatedly enticed her to send him pornographic images of herself.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI, Plymouth Police Department, Minnesota, the FBI Safe Streets Task Force, and the South Florida Minor Vice Task Force. The case is being prosecuted by Assistant U.S. Attorneys Lothrop Morris and Ellen Cohen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
O'Fallon man sentenced to federal prision for heroin offensesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Alfred Vernon Reeves, Jr., 43, of O’Fallon, Illinois, was sentenced to 67 months in federal prison for distribution of heroin and conspiracy to distribute heroin.
Reeves was charged in a superseding indictment on December 16, 2015, along with two co-defendants: Lacy Snead, 52, of Chicago, Ill. and Ciera McNeal, 29 of East St. Louis, Ill. Reeves was charged with distributing heroin on March 5, 2013, and for participating in an ongoing conspiracy to distribute heroin over a three-year period of time.
Records filed in court established that Reeves sold heroin to a confidential informant on March 5, 2013, and continued to be involved in heroin distribution thereafter. Evidence showed that on June 18, 2015, Reeves traveled from Chicago with Lacy Snead and Ciera McNeil transporting approximately 150 grams of heroin that was intended to be distributed in the St. Louis metropolitan area.
Snead was charged with participating in the same heroin deal that occurred on March 5, 2013, and also for conspiracy to distribute heroin. Snead pled guilty to both counts on September 19, 2016, and he faces a minimum of 5 to 40 years in prison. It is expected that Snead will be sentenced in March of 2017.
McNeil was sentenced to 30 months in federal prison on October 11, 2016, for her role in transporting the 150 grams of heroin from Chicago on June 18, 2015.
The investigation was conducted by agents from the Drug Enforcement Administration and the Madison County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
November 2016 ElectionsRead the Press Release
WILMINGTON, Del. – United States Attorney Charles M. Oberly, III announced today that Assistant United States Attorney (AUSA) Patricia C. Hannigan will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016 general elections. AUSA Hannigan has been appointed to serve as the District Election Officer for the District of Delaware, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Oberly said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Oberly stated that AUSA Hannigan will be on duty in this District while the polls are open. She can be reached by the public at the following telephone numbers: (O) 302-573-6117 or (C) 302-507-1607.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached at 302-658-4391.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Oberly said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Northampton County Man Charged with Possession of Child PornographyRead the Press Release
Jeffrey Curtis Drexler, age 27, of Northampton County, Pennsylvania, was charged today by Indictment with one count of Possession of Child Pornography, announced United States Attorney Zane David Memeger. The defendant was previously convicted in Northampton County Court of Common Pleas of Sexual Abuse of Children, and was registered as a sex offender under Megan’s Law at the time that he is charged with committing these federal offenses.
If convicted the defendant faces a maximum possible sentence of 20 years’ imprisonment with a 10-year minimum mandatory term of incarceration, a $250,000 fine, 5 years up to a lifetime of supervised release, and a $100 special assessment.
The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty
Nassau County Executive Edward Mangano and Town of Oyster Bay Supervisor John Venditto Indicted for Federal Program Bribery, Honest Services Wire Fraud, Conspiracy, and Related CrimesRead the Press Release
A 13-count indictment was unsealed this morning in federal court in Central Islip charging Edward Mangano and John Venditto with conspiracy to commit federal program bribery and honest services fraud, as well as the related substantive counts, and charging Mangano with extortion. The indictment also charges Edward Mangano, Linda Mangano, and Venditto with obstructing justice, and Linda Mangano and Venditto with making false statements. Since January 2010, Edward Mangano has served as the Nassau County Executive. Since January 1998, Venditto has served as the Town of Oyster Bay (the TOB or Town) Supervisor.
The defendants were arrested this morning and will be arraigned today before the Hon. Sandra J. Feuerstein, United States District Judge, at the United States Courthouse, 100 Federal Plaza, Central Islip, New York. Earlier today, federal agents also executed two search and seizure warrants at the Manganos’ residence in Bethpage, New York, and at the County Executive’s Office in Mineola, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI).
“Yet again, we announce a breach of trust by two of our public officials. In 2010, Nassau County voters granted Edward Mangano the opportunity to serve by electing him their highest ranking official in the County. Similarly, in 1998, Town of Oyster Bay voters granted John Venditto the honor of electing him their chief elected official. Yet, as alleged in the indictment, both of these men undermined the very system of laws they promised to uphold by furthering their personal interests rather than the best interests of their constituents. Sadly, Mangano also enlisted the assistance of his wife in an attempt to shield his wrongdoing from public scrutiny,” stated United States Attorney Capers. “However, no one is above the law, and the defendants will now be held to account for their actions.” Mr. Capers extended his grateful appreciation to the FBI, IRS-CI, the agencies responsible for leading the government’s investigation, and thanked the Securities and Exchange Commission and the Nassau County District Attorney’s Office for their valuable assistance.
“As detailed in the indictment, Edward Mangano and John Venditto abused their positions as the highest ranking elected officials in Nassau County and the Town of Oyster Bay, respectively – at least, until today. Those involved in this scheme allegedly lied about their conduct to investigators, fanning the flames of a fire that became too large to contain. Public corruption wastes countless tax dollars every year, threatens the credibility of governmental institutions, and opens the door for further criminal activity,” stated FBI Assistant Director-in-Charge Sweeney.
“The public expects its elected officials to serve them honestly and honorably,” stated IRS-CI Special Agent-in-Charge Kitchen. “When public officials abuse the power they have been entrusted for their own personal benefit, they violate the public trust and betray their constituents. As a law enforcement agency, IRS Criminal Investigation takes allegations of public corruption very seriously, and we are always ready to contribute to an investigation when the allegation has a financial component.”
I. Background
As alleged in the indictment and other court filings, between January 2010 and February 2015, Nassau County Executive Edward Mangano, TOB Supervisor John Venditto, and others, engaged in a scheme to receive bribes and kickbacks from a businessman and restaurateur, identified in the indictment as Co-Conspirator #1, in exchange for performing official actions to benefit Co-Conspirator #1 in connection with that individual’s businesses in Nassau County and the TOB. The official actions included: (a) the TOB’s guarantee of certain loans that Co-Conspirator #1 received from a bank and lender in connection with Co-Conspirator #1’s status as a TOB concessionaire (the “TOB Loan Scheme”); and (b) Nassau County’s award of certain contracts to Co-Conspirator #1’s businesses (the “Nassau County Contracts Scheme”). In connection with these schemes, Mangano and Venditto are each charged with conspiring to commit federal program bribery and honest services wire fraud and related substantive counts, and Mangano is charged with extortion under color of official right.
II. The TOB Loan Scheme
The indictment charges that Co-Conspirator #1 paid bribes and kickbacks to Edward Mangano and John Venditto in exchange for, among other things, the officials’ assistance in obtaining the Town’s guarantee of four loans totaling approximately $20 million that two of Co-Conspirator #1’s businesses received from a bank (identified in the indictment as the Bank) and from a private corporate financing company (identified in the indictment as the Lender). As detailed in the government’s bail letter filed today, the first loan, which closed on June 9, 2010, was a $1,500,000 line of credit from the Bank. The second loan, which closed on May 25, 2011, was a $3,400,000 loan from the Bank. The third loan, which closed on November 18, 2011, was a $7,843,138 loan from the Lender. The fourth loan, which closed on June 22, 2012, was a $12,273,748 loan from the Lender. In late 2012 and 2013, Co-Conspirator #1 sought an additional loan of approximately $12 million from the Lender in connection with improvements to be made to Co-Conspirator #1’s facilities at two Town beaches – this loan was not ultimately extended.
Edward Mangano and John Venditto used their official positions to influence and reach a particular outcome, i.e., the Town’s guarantee of the loans for Co-Conspirator #1. As a result of the guarantees, were Co-Conspirator #1’s entities to default on the loans, the Town would be responsible for repaying the Bank and/or the Lender the entire amount of the loans. In or about November 2015, Co-Conspirator #1 defaulted on the repayment of the two loans with the Lender and the loans’ holder, which had previously been assigned the loans from the Lender, demanding that the TOB remit payment on the outstanding money due under the loan documents.
III. The Nassau County Contracts Scheme
As set forth in the indictment, beginning in approximately late 2011 through December 2012, Co-Conspirator #1, through certain business entities, was awarded lucrative contracts by Nassau County, including certain contracts worth hundreds of thousands of dollars to provide food services to Nassau County agencies. Specifically, as detailed in the government’s bail letter, Nassau County awarded two contracts to business entities of Co-Conspirator #1: a 2012 Nassau County contract to supply bread and rolls to the Nassau County Correctional Center (the Bread and Rolls Contract), and November/December 2012 daily purchase orders with the Nassau County Office of Emergency Management (OEM) to supply emergency food services to OEM following Hurricane Sandy (the OEM Emergency Food Services Contract). The Bread and Rolls contract was valued at approximately $200,000 and the OEM Emergency Food Services Contract was valued at approximately $237,000. Edward Mangano used his official position to effectuate a specific outcome, i.e., the award of these contracts to Co-Conspirator #1.
IV. The Receipt of Bribes and Kickbacks
As set forth in the indictment and, in greater detail, in the government’s bail letter, Co-Conspirator #1 provided Linda Mangano with a “no-show” job for approximately three and one-half years, from April 2010 to August 2014, at a restaurant owned and operated by Co-Conspirator #1, identified in the indictment as Restaurant #2. The payments from Co-Conspirator #1 to Linda Mangano in connection with her “no-show” job totaled over $450,000. In addition, Co-Conspirator #1 paid for various hotel and travel expenses for the Mangano family, including vacations to Niagara Falls in 2010, Marco Island Florida in December 2011, St. Thomas in July 2012, Turks and Caicos in July 2013, and Amelia Island, Florida in July 2014, as well as an ergonomic office chair in January 2010 ($3,371.90), massage chair from Brookstone in September 2012 ($3,623.73), a Panerai Luminor watch in November 2012 ($7,304), and hardwood flooring and its installation in the Manganos’ bedroom in January 2013 ($3,701.81). Co-Conspirator #1 also provided free meals to Edward Mangano and his family and associates.
From July 2011 to December 2013, Co-Conspirator #1 additionally provided Venditto and his family members and associates with free limousine service. Co-Conspirator #1 also allowed Venditto to hold fundraisers at Co-Conspirator #1’s restaurants at a discounted rate and permitted Venditto to use a conference room in the basement of one of Co-Conspirator #1’s restaurants.
V. The Obstruction of Justice
The indictment further alleges that Edward Mangano, Linda Mangano, and Venditto engaged in obstruction of justice in connection with their attempts to cover-up their wrongdoing, and Linda Mangano and Venditto are also charged with making false statements to federal law enforcement authorities.
As alleged in the indictment, between January 2015 and the present, the Manganos engaged in a conspiracy intended to obstruct a grand jury investigation. Specifically, they repeatedly met with Co-Conspirator #1, and fabricated stories in an attempt to explain Linda Mangano’s employment by Co-Conspirator #1 and Co-Conspirator #1’s payments of gifts and vacation expenses to the Mangano family.
On January 13, 2015, FBI agents interviewed Linda Mangano at her residence. On May 20 and 24, 2015, prosecutors and FBI and IRS agents interviewed her at the U.S. Attorney’s Office in Central Islip. On all three occasions, Linda Mangano was advised that lying to federal officials was a federal crime. Nevertheless, on each occasion, when asked about her employment by Co-Conspirator #1, Linda Mangano fabricated examples of work she allegedly did for Co-Conspirator #1.
On October 23, 2016 and December 18, 2015, prosecutors and FBI and IRS agents interviewed Venditto at the U.S. Attorney’s Office in Central Islip. At the beginning of each interview, Venditto was advised that lying to federal officials constituted a federal crime. During the December 18, 2015 interview, Venditto stated that he had not received anything of value, including the payment for limousine services, from Co-Conspirator #1. Records from the limousine company, bank records for Co-Conspirator #1, and interviews with numerous witnesses, establish that Co-Conspirator #1 paid for the limousine service.
If convicted, Edward Mangano and John Venditto each face a term of imprisonment of up to 20 years for each honest services wire fraud charge, the conspiracy to commit honest services wire fraud charge, up to 10 years for the federal program bribery charge, up to five years for the conspiracy to commit federal program bribery. Edward Mangano faces a term of up to 20 years for the extortion charge. Edward Mangano, Linda Mangano, and John Venditto each face a term of imprisonment of up to 20 years for each obstruction of justice charge, and up to five years for each false statement charge. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorneys Catherine M. Mirabile, Raymond A. Tierney, and Lara Treinis Gatz are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendants:
EDWARD MANGANO
Age: 54
Bethpage, NYLINDA MANGANO
Age: 54
Bethpage, NYJOHN VENDITTO
Age: 67
North Massapequa, NYE.D.N.Y. Docket No. 16-CR-540 (SJF)
Morgantown couple pleads guilty to failure to pay taxesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeffrey D. Dawson, 59, and Katherine M. Dawson, 40, of Morgantown, West Virginia pled guilty to failing to pay $8,505.41 in taxes for their Morgantown business, United States Attorney William J. Ihlenfeld, II, announced.
They each pled guilty to one count of “Failure to Pay Over Employment Taxes.” They face up to five years in prison and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Internal Revenue Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Milton Truck Driver Sentenced to 15 ½ Years for Federal Child Pornography CrimesRead the Press Release
PENSACOLA, FLORIDA – Andre M. Straughn, 40, of Milton, Florida, was sentenced late yesterday to 15 ½ years in prison for receipt and transportation of child pornography, as well as making a false statement to a federal agent. After incarceration, Straughn will serve 10 years of supervised release and will be required to register as a sex offender. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In July 2015, law enforcement agents became aware of online child pornography files that were linked to Straughn’s online activities. Law enforcement agents conducted an investigation and determined that Straughn was a truck driver who traveled to other states with his cellular device and laptop and used multiple electronic platforms to engage in online child pornography. After Straughn returned home from a trip, agents searched Straughn’s residence. Straughn told law enforcement agents that he did not have an online storage account, did not use the social media application Kik, and could not remember the password to his cellular telephone. A forensic review of Straughn’s electronic devices revealed that Straughn did maintain online storage accounts and a Kik account. In total, Straughn’s online storage account, laptop, and other electronic devices revealed more than 50,000 images and videos of child pornography, dating back approximately 10 years. Straughn pled guilty on June 2, 2016.
“Protecting our children from exploitation is a top priority of my office and the Department of Justice,” said United States Attorney Canova. “I commend the hard work of our prosecutors and law enforcement professionals who protect our communities and bring child predators to justice.”
“Our communities are safer today now that this criminal will spend the next 15 ½ years behind bars,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents will continue to relentlessly pursue those who want to do harm to our children.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, and the other agencies in the North Florida Internet Crimes Against Children Task Force. Assistant United States Attorney David L. Goldberg prosecuted the case.
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 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]Manhattan U.S. Attorney and NYPD Commissioner Announce Charges Against Narcotics Dealer Responsible for Heroin and Fentanyl Overdose DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest and filing of charges against DASHAWN HAWKINS, a/k/a “Jhonny Cash,” for narcotics dealing that resulted in the overdose death of a 29-year-old man.
On October 19, 2016, the United States Attorney’s Office secured an indictment against HAWKINS, charging HAWKINS with distribution of heroin and fentanyl and conspiracy to distribute heroin. The indictment alleges that heroin and fentanyl distributed by HAWKINS resulted in the death of Colin Cameron, age 29, of New York, New York, on September 2, 2016.
HAWKINS will be presented in federal court in Manhattan before U.S. Magistrate Judge Henry B. Pitman later today. The case has been assigned to U.S. District Judge Gregory H. Woods. HAWKINS faces a mandatory minimum term of 20 years in prison.
U.S. Attorney Preet Bharara stated: “Far too often now, we are seeing the devastating effects of opioid abuse on our communities. We must work to stop these dangerous drugs from reaching our streets and killing our citizens. Dashawn Hawkins allegedly dealt in heroin, including the fentanyl-laced heroin that killed Colin Cameron. We thank the New York City Police Department for their outstanding investigative efforts and their collaboration that made the bringing of these federal charges possible.”
NYPD Commissioner James P. O’Neill stated: “The deadly effects of heroin are real. Look no further than the overdose of Colin Cameron last month in New York City. We will continue to investigate every single overdose and attempt to find and arrest those responsible, as alleged in today's charges against Dashawn Hawkins.”
As alleged in the Indictment against HAWKINS[1]:
From at least in or about August 2016 up to and including in or about October 2016, in the Southern District of New York and elsewhere, DASHAWN HAWKINS, a/k/a “Jhonny Cash,” and others conspired to sell heroin. In addition, on or about September 1, 2016, HAWKINS distributed and possessed with the intent to distribute heroin and fentanyl. The use of controlled substances distributed by HAWKINS resulted in the death of Colin Cameron, on or about September 2, 2016.
In a search of HAWKINS’s apartment pursuant to a search warrant executed at the time of his arrest, the NYPD recovered, among other things, quantities of heroin, cutting agent, packaging for fentanyl, a 9mm firearm with high-capacity magazines loaded with hollow-point bullets, and what appears to be a silencer.
* * *
DASHAWN HAWKINS, 26, faces a maximum of life in prison, and a mandatory term of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the NYPD.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Jason M. Swergold is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manager of A Cocaine Importation Conspiracy Sentenced to Eight Years in Federal PrisonRead the Press Release
Orlando, Florida – Senior United States District Judge G. Kendall Sharp has sentenced Lakisha Abney (33, Washington, D.C.) to eight years and one month in federal prison for conspiracy to import cocaine into the United States. She pleaded guilty on July 20, 2016.
According to court documents, in May 2016, Abney and her co-conspirators, Shawnta Aiken, Ciera Bryant, and Shenique Milbourne, traveled to Jamaica aboard a commercial cruise ship. Upon arriving in Jamaica, Abney coordinated a meeting with an individual who provided the four women with more than six kilograms of cocaine concealed in bras and underwear. Abney paid the individual for the cocaine and the four women returned to the cruise ship with the cocaine concealed under their dresses in the bras and underwear. The women then concealed the drugs in the cabin they shared aboard the cruise ship for the remainder of the cruise. When the ship returned to Port Canaveral, Abney and her co-conspirators departed the ship and entered the customs area of the port, with the cocaine concealed in their bras and underwear. U.S. Customs and Border Protection officers identified the cocaine during screenings and searches of the four passengers.
Aiken, Bryant, and Milbourne previously pleaded guilty and have been sentenced for their roles in this case. Aiken was sentenced to two years in federal prison, Bryant was sentenced to one year and ten months in federal prison, and Milbourne was sentenced to two years and six months in federal prison.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Media Advisory – Press ConferenceRead the Press Release
Thursday, October 20, 2016, at 1:00 p.m.
Cinemark Alliance Town Center
9228 Sage Meadow Trail
Fort Worth, Texas
John Parker, United States Attorney for the Northern District of Texas
Calvin Bond, Assistant Special Agent in Charge DEA Dallas
Jennifer Gilley, Executive Director at Challenge of Tarrant County
During October 2016, proclaimed National Youth Substance Use and Substance Use Disorder Prevention Month, by President Obama, the U.S. Attorney’s Office for the Northern District of Texas, DEA Dallas, and Challenge of Tarrant County are joining together to announce their combined and continued efforts in raising awareness of the dangers of prescription painkillers, including:
- As an introduction, U.S. Attorney John Parker’s Public Service Announcement (PSA) on the dangers of opioid abuse will be shown. Cinemark Theatre at Alliance Town Center will show the PSA prior to each feature film during the upcoming month.
- DEA’s National Prescription Take-Back Day on Saturday, October 22, 2016
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DEA’s Red Ribbon Week Campaign, October 23-31, 2016
For logistical information, please contact Cynthia Velazquez, program director for Stay on Track Challenge of Tarrant County at [email protected]
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Justice Department and Federal Trade Commission Release Guidance for Human Resource Professionals on How Antitrust Law Applies to Employee Hiring and CompensationRead the Press Release
Guidance Helps Protect Workers Against Anticompetitive Conduct and Puts Firms on Notice that DOJ Will Proceed Criminally Against Naked Wage Fixing and No-Poaching Agreements
Today, the Justice Department’s Antitrust Division and the Federal Trade Commission issued guidance for human resource (HR) professionals and others who are involved in hiring and compensation decisions. HR professionals are often in the best position to ensure their companies’ hiring practices comply with the law and this guidance will help educate and inform them about how the antitrust laws apply to the employment arena.
Workers are entitled to the benefits of a competitive market for their services. They are harmed if companies that would ordinarily compete against each other to recruit and retain employees agree to fix wages or other terms of employment or enter into so-called "no-poaching" agreements by agreeing not to recruit each other’s employees.
Going forward, the Justice Department intends to criminally investigate naked no-poaching or wage-fixing agreements that are unrelated or unnecessary to a larger legitimate collaboration between the employers. These types of agreements eliminate competition in the same irredeemable way as agreements to fix the prices of goods or allocate customers, which have traditionally been criminally investigated and prosecuted as hardcore cartel conduct. Agreements that do not constitute criminal violations may still lead to civil liability under statutes enforced by both agencies.
"Antitrust violations in the employment arena can greatly harm employees and impact earnings over the course of their entire careers," said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. "HR professionals need to understand that these violations can lead to severe consequences, including criminal prosecution. The newly released joint guidance provides HR professionals with information to prevent violations and report potentially unlawful activity, furthering the Justice Department’s commitment to protect workers from harmful conduct that stifles competition."
"Competition is essential to well-functioning markets, and job markets are no exception," said Chairwoman Edith Ramirez of the Federal Trade Commission. "These guidelines will help ensure that employers understand how to comply with the antitrust laws and will help employees reap the benefits of a competitive market for their services."
The guidance also discusses how the antitrust laws apply to firms’ decisions to share sensitive information, such as compensation information, with competing employers, either directly or through third party entities. Information sharing may violate antitrust law unless the information exchange is carefully designed to prevent harm to competition.
The agencies’ joint guidance includes a Q&A section that explains how antitrust law applies to various scenarios that HR professionals might encounter in their daily work lives. The agencies also urge HR professionals and others who have information about possible antitrust violations to contact the Justice Department Antitrust Division’s Citizen Complaint Center or the Federal Trade Commission’s Bureau of Competition.
The agencies have also issued a quick reference card that encapsulates some of this information in a convenient, index-card-sized format. The card provides a list of antitrust red flags that HR professionals should look out for during their day-to-day work. The listed situations are not exhaustive, and the existence of a red flag does not necessarily imply an antitrust violation. Still, HR professionals should proceed with particular caution if they are confronted with any of the scenarios listed on the card. By doing so, HR professionals can play an important role in protecting employees and consumers and ensuring the competitiveness of the employment marketplace.
Justice Department Sues to Stop Oregon Woman from Promoting Religious Non-Profit Corporation SchemeRead the Press Release
The United States has sued an Oregon City, Oregon woman to bar her from promoting an alleged tax fraud scheme, the Justice Department announced today. The government’s complaint alleges that Priscilla E. Schrock promotes the formation and use of “Religious Non-Profit Corporations” (RNPCs), which Schrock falsely informs her customers are exempt from tax laws. According to the complaint, Schrock claims that by assigning income to the RNPC, the customer can avoid paying federal income tax on their income. Schrock also tells her customers that transferring assets to an RNPC protects the assets from the Internal Revenue Service (IRS) collection action, the complaint alleges. The suit asks the court to bar Schrock from promoting and selling the scheme and to order her to provide a list of her customers’ names, addresses, telephone numbers and email addresses to the Justice Department.
According to the complaint, Schrock promotes the scheme through an Oregon City based entity called South Beach Missions. The complaint also alleges that the U.S. District Court for the District of Oregon previously enjoined a similar scheme that John D. Fitzgerald promoted. According to the complaint, Fitzgerald and Schrock are friends and some of Fitzgerald’s former customers are now Schrock’s customers.
According to the complaint, Schrock and South Beach Missions know or have reason to know the statements they make about RNPCs, aka corporations sole, are false sham non-profit corporations. The IRS has issued guidance regarding sham non-profits and advised the public to be aware of tax evasion schemes that misuse corporation sole laws. The IRS has specifically advised that “[a] taxpayer cannot use a corporation sole created to avoid or evade income taxes as a means to exclude the taxpayer’s personal income from tax.”
Abusive tax schemes and return preparer fraud are on the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues to Stop Oregon Woman from Promoting Religious Non-Profit Corporation SchemeRead the Press Release
WASHINGTON – The United States has sued an Oregon City, Oregon woman to bar her from promoting an alleged tax fraud scheme, the Justice Department announced today. The government’s complaint alleges that Priscilla E. Schrock promotes the formation and use of “Religious Non-Profit Corporations” (RNPCs), which Schrock falsely informs her customers are exempt from tax laws. According to the complaint, Schrock claims that by assigning income to the RNPC, the customer can avoid paying federal income tax on their income. Schrock also tells her customers that transferring assets to an RNPC protects the assets from the Internal Revenue Service (IRS) collection action, the complaint alleges. The suit asks the court to bar Schrock from promoting and selling the scheme and to order her to provide a list of her customers’ names, addresses, telephone numbers and email addresses to the Justice Department.
According to the complaint, Schrock promotes the scheme through an Oregon City based entity called South Beach Missions. The complaint also alleges that the U.S. District Court for the District of Oregon previously enjoined a similar scheme that John D. Fitzgerald promoted. According to the complaint, Fitzgerald and Schrock are friends and some of Fitzgerald’s former customers are now Schrock’s customers.
According to the complaint, Schrock and South Beach Missions know or have reason to know the statements they make about RNPCs, aka corporations sole, are false sham non-profit corporations. The IRS has issued guidance regarding sham non-profits and advised the public to be aware of tax evasion schemes that misuse corporation sole laws. The IRS has specifically advised that “[a] taxpayer cannot use a corporation sole created to avoid or evade income taxes as a means to exclude the taxpayer’s personal income from tax.”
Abusive tax schemes and return preparer fraud are on the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jonesville man sentenced to 12 months in prison for possessing unregistered silencerRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Jonesville man was sentenced Wednesday to one year and one day in prison for possessing a silencer.
John Wesley Smith, 40, of Jonesville, La., was sentenced by U.S. District Judge Dee D. Drell on one count of possessing an unregistered firearm (a firearm silencer, firearm muffler and suppressor). He was also sentenced to one year of supervised release. According to the June 30, 2016 guilty plea, Louisiana State Police officers were surveilling a house in a Jonesville neighborhood on September 1, 2015 while working another investigation. State police observed Smith enter the home and confronted him when he emerged. While accompanying Smith to his vehicle to retrieve his identification, the officer saw an M4 rifle with a scope, silencer and large capacity magazine placed barrel down in the front seat. When asked about the weapon, Smith told the officers he made the silencer from parts of an old boat. Silencers and silencer parts are defined as firearms according to federal law and are required to have serial numbers and be registered in the National Firearms Registration and Transfer Record. The illegal silencer Smith possessed was not registered and had no serial number. Officers seized the M4 rifle with the silencer, and they told Smith that silencers must be registered and have a serial number. When Smith was arrested on March 3, 2016 at his home, agents found methamphetamine and marijuana in Smith’s pants pocket along with a 22 caliber pistol strapped to his ankle. During a search of Smith’s property, agents also found three more homemade, illegal, unregistered silencers on a workbench in a shed.
The ATF and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
Johnstown Man Pleads Guilty to Federal Drug OffensesRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Vantroy Godboat, 45, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 27, Feb. 2, and Feb. 4, 2016, Godboat distributed less than 100 grams of heroin on each of those dates, and on Feb. 5, 2016, Godboat possessed with the intent to distribute less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Feb. 27, 2017, at 10:00 a.m. The law provides for a maximum sentence of 80 years in prison and a fine of $4,000,000 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 Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Godboat.
Indiana Man Sentenced for Possessing Firearms as a FelonRead the Press Release
Rock Island, Ill. – Gregory F. Young, 37, of South Bend, Ind., was sentenced today for possessing firearms and ammunition as a felon, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara L. Darrow ordered Young to serve a term of 84 months in federal prison.
Young entered a plea of guilty on June 16, 2016, and admitted that on November 20, 2015, he and his girlfriend, while driving westbound on Interstate 80 in Henry County, Illinois, were pulled over by a trooper of the Illinois State Police for a traffic violation. Young, who was found to be the subject of an arrest warrant from Indiana for a parole violation, was arrested. A subsequent search of his car revealed a loaded .40 caliber semi-automatic pistol, an SKS semi-automatic assault rifle with nine magazines and over 200 rounds of 7.62mm ammunition, and quantities of marijuana and heroin. Young previously had been convicted of felony offenses in courts in the state of Indiana.
According to court documents, Young told police that he acquired the weapons for protection because there was “a hit out” on him related to a dispute over drug money.
The case was prosecuted by Assistant U.S. Attorney Don Allegro. The charges were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Illinois State Police.
Independence Father, Son Plead Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., father and son pleaded guilty in federal court today to their roles in a conspiracy to distribute methamphetamine.
Jesse L. Davis, Jr., 27, and his father, Jesse L. Davis, Sr., 50, both of Independence, pleaded guilty in separate appearances before U.S. District Judge Brian C. Wimes to participating in a conspiracy to distribute methamphetamine from November 2013 to September 2014.
By pleading guilty today, Davis, Jr., admitted that he lived in the home of a co-conspirator, where drug transactions occurred, to act as a “strong hand” and provide protection. According to today’s plea agreement, Davis, Jr., is individually responsible for the purchase and redistribution of at least 1.5 kilograms of methamphetamine. Under the terms of the plea agreement, Davis, Jr., must forfeit to the government a money judgment of $52,500 (based upon a conservative street price of $35 per gram of methamphetamine).
Davis, Sr., admitted that he purchased methamphetamine from a co-conspirator and then redistributed the methamphetamine to others. According to the plea agreement, Davis, Sr., is individually responsible for the purchase and redistribution of approximately 340 grams of methamphetamine. Under the terms of today’s plea agreement, Davis, Sr., must forfeit to the government a money judgment of $11,900 (based upon a conservative street price of $35 per gram of methamphetamine).
Under federal statutes, Davis, Jr., is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Under the terms of today’s plea agreement, Davis, Sr., will be sentenced to 87 months in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Jackson County Drug Task Force and the Independence, Mo., Police Department.
Hazleton Man Pleads Guilty to Pill Distribution ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion in Scranton, to conspiring with others to distribute and possess with intent to distribute oxycodone, hydrocodone, Tramadol, Diazepam, and other Schedule II and IV drugs.
According to United States Attorney Bruce D. Brandler, the defendant, Franklin Tejeda, age 35, admitted to regularly orchestrating the delivery of parcels of Schedule II and IV pills to co-conspirators’ residences in Hazleton, and distributing the drugs to customers. The illegal conduct occurred between November 2014 and March 2016. The drugs were obtained from suppliers in India.
Tejeda was charged in a criminal information filed by the United States Attorney’s Office in April 2016. The charge stemmed from an investigation by agents of the Drug Enforcement Administration (DEA), U.S. Postal Inspectors, and Hazleton Police.
Judge Mannion ordered a presentence investigation to be completed and will schedule sentencing after the pre-sentence investigation is completed. Tejeda faces a potential maximum sentence of 20 years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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 20 years in prison, 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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Hampshire County man found guilty of possessing materials to manufacture methamphetamineRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal jury convicted Aaron Matthew Reed, 37, of Romney, West Virginia of possessing materials capable of manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented at trial indicated that Reed was in possession of a pill grinder, wire cutters, Coleman fuel, Pure Lye, plastic tubing, lithium batteries, cold compress packs, and a pill bottle with salt, all of which may be used to manufacture methamphetamine.
Following a two day trial, a jury found Reed guilty of one count of “Possession of Material Used in the Manufacture of Methamphetamine.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Anna Z. Krasinski and Shawn M. Adkins prosecuted the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia Division of Natural Resource Criminal Investigation, and the Hampshire County Sheriff’s Office.
Chief U.S. District Judge Gina M. Groh presided.
Hammond Man Charged with Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTOPHER HUTTON, age 26, was indicted today for being a felon in possession of firearms.
According to the Indictment, HUTTON, who had previously been convicted of a felony in Tangipahoa Parish, possessed a total of eight firearms on June 6, 2016 and June 8, 2016.
If convicted, HUTTON faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Former director of Ohio County Schools Credit Union charged with embezzlementRead the Press Release
WHEELING, WEST VIRGINIA – The former executive director of the Ohio County Schools Public Credit Union was charged in federal court today with embezzlement, United States Attorney William J. Ihlenfeld, II, announced.
Kathleen Gramlich, 65, of Valley Grove, West Virginia, has been charged by Information with “Theft from a Credit Union.” It’s alleged that between June 2013 and March 2016, Gramlich stole more than $156,000 from the Credit Union and used the funds to pay personal debts. The embezzlement scheme was uncovered in March after a routine reconciliation of accounts by an employee of the credit union revealed possible wrongdoing.
Gramlich faces up to 30 years in prison if convicted. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The United States will also seek an order that Gramlich make full restitution.
“The member accounts at the Ohio County Public Schools Federal Credit Union are insured by the National Credit Union Administration Board,” said U.S. Attorney Ihlenfeld. “Because of this insurance, and because of the way that the scheme was perpetrated, the funds of account holders are not, and never were, in jeopardy.”
The Credit Union serves approximately one-thousand members, comprised of current, former, and retired employees of Ohio County Public Schools and their families.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The case was investigated by the Federal Bureau of Investigation and the West Virginia State Police.
An information is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Former Watch Manufacturer Employee Gets A Year in Prison for Using False Invoicing Scheme to Steal Company MerchandiseRead the Press Release
TRENTON, N.J. –A former employee of a Bergen County, New Jersey, watch manufacturer was sentenced today to 12 months in prison for using phony documents and corporate records to defraud her employer out of hundreds of thousands of dollars of watches and watch parts, U.S. Attorney Paul J. Fishman announced.
Lissette Delarosa, 37, of Woodland Park, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging her with one count of mail fraud conspiracy. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Delarosa admitted that from May 2003 through July 2010, she and Cynthia Alvarez, a/k/a “Cynthia Espejo,” 51, of Kissimmee, Florida, abused their positions in the watch manufacturer’s Bergen County customer service department to fraudulently obtain merchandise. Alvarez and Delarosa created hundreds of fictitious invoices, records, and customer complaints for watches and watch parts in their employer’s invoicing system and directed the merchandise to be sent to addresses they controlled. The watch manufacturer received no payment related to these invoices and no legitimate basis existed for providing the parts free of charge.
In addition to the prison term, Judge Shipp sentenced Delarosa to three years of supervised release and ordered her to forfeit $126,460.81.
Alvarez pleaded guilty to the same offense and was sentenced on July 8, 2016 to two years of probation.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, Newark Division, with the investigation.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Alan D. Bowman, Esq., Newark, New Jersey
Former United States Navy Contractor Sentenced on False Statement ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former U.S. Navy Contractor, Andrew Persaud, age 44, of North Potomac, Maryland, was sentenced today by United States District Court Judge Sylvia H. Rambo in Harrisburg to 21 months’ incarceration in connection with making a false statement to the government in connection with a $4.4 million contract to renovate warehouses at the Naval Support Facility in Mechanicsburg, PA.
According to United States Attorney Bruce D. Brandler, Persaud was indicted in October 2015 and charged with three counts of false statements to the Government and three counts of wire fraud. On February 23, 2016, Persaud pled guilty to one count of false statements before Judge Rambo.
Persaud was the President and Corporate Director of Persaud Companies, Inc., a Virginia and Maryland based construction company that entered into a $4.4 million contract in 2011 to renovate several warehouses at the Naval Support Activity (NSA) facility in Mechanicsburg.
Persaud hired approximately 17 sub-contractors to work on the project which began in May of 2012. In June and July of 2012, Persaud submitted invoices to the Navy for progress payments. In the documents, Persaud attached signed certifications verifying that all of his subcontractors had been paid for their work. Relying on the verity of Persaud’s representations, the Navy paid Persaud $1,206,470 between June and August 2012.
However, by September 2012, most of the subcontractors had walked off the job site and the Navy terminated Persaud’s contract after it learned, contrary to Persaud’s certifications, that none of the subcontractors had received payment for their work on the project.
The Navy had required Persaud to purchase a materials/labor bond prior to his first contract draw, the premium for which cost Persuad $53,539. As a result, the subcontractors filed claims and eventually received payments from the bond carrier for their work totaling $1,281,753.
Under the terms of a plea agreement with the government Persaud agreed that the loss suffered by the victims was $1,206,470.
Judge Rambo ordered Persaud to pay restitution in the amount of $1,206,470 and entered a forfeiture against him in that same amount. Persaud was ordered to report to the Bureau of Prisons on November 21, 2016.
The case was investigated by the U.S. Naval Criminal Investigative Service and the Defense Criminal Investigative Service. The case was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Former Office Manager of Baton Rouge Surgery Group Sentenced for Wire FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LORRIE LYNN ROGERSON, age 57, of Baton Rouge, Louisiana, was sentenced by U.S. District Judge John W. deGravelles for defrauding $430,490 from the Pediatric Surgery of Louisiana (“PSL”), a group of Baton Rouge physicians who specialize in surgery on children. Rogerson was ordered to serve 12 months in prison, 12 months of supervised release following prison, restitution to the victim of $430,490, a fine of $10,000, and asset forfeiture of $394,584. Rogerson was also ordered to repay $13,505 to the victim to reimburse the costs of investigating her offense.
PSL employed Rogerson to act as their office manager. Rogerson was responsible for PSL’s payroll, accounts receivable, accounts payable, and human resources. In her role, Rogerson enjoyed access to the bank accounts of PSL for the purpose of making deposits to, and paying bills from, the PSL bank account. Rogerson was entrusted with the authority and responsibility to manage PSL’s banking affairs. Rogerson had access to all accounts and was familiar with PSL’s account information.
In April 2015, a review of PSL financial records discovered that Rogerson had accessed PSL’s bank account to make unauthorized withdrawals and transfers for her personal benefit. Between May 2008 and May 2015, Rogerson caused unauthorized electronic withdrawals to be made from the PSL bank account for the purpose of paying Rogerson’s credit cards. Rogerson also issued numerous, unauthorized PSL checks for her benefit, and mischaracterized said checks in the accounting software as business expenses.
Rogerson embezzled funds on approximately 256 occasions during the period of May 2008 and May 2015. In order to execute the scheme to defraud on January 5, 2015, Rogerson used internet services to divert funds from a PSL bank account for the purpose of paying her personal credit card bills.
U.S. Attorney Green stated: “Today’s sentencing is yet another example of the insider threat that businesses face. Such offenders must be held to account and should be reported to law enforcement immediately. Our office, together with the FBI and our other federal, state, and local partners, stand ready to aggressively pursue these important matters.”
FBI Special Agent-in-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”
This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, PSL, and their accountants, Faulk and Winkler. The matter is being prosecuted by Assistant United States Attorney René Salomon.
Former JPD Officer Sentenced to 27 Months in PrisonRead the Press Release
Jackson, Miss – Bryan Jones, 45, of Jackson, was sentenced by U.S. District Judge Dan Jordan to 27 months in federal prison followed by three years of supervised release for extortion by use of his position as a police officer, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
While working as a JPD officer, Jones violated the Hobbs Act by taking cash during a stop from undercover FBI agents and never recording or placing the money in Jackson Police Department evidence. At the time of the stop, Jones was carrying his service pistol holstered on his belt and driving his patrol car.
A confidential source called Jones in order to provide him with the location where he would find who Jones thought was a drug dealer but was really an undercover agent. Jones, acting in his capacity as a police officer, conducted illegal searches and seized $4,000 and $5,000, respectively. He later split the money with the confidential source and never recorded the money or turned it over to the Jackson Police Department.
This case was investigated by the FBI and the Jackson Police Department. It was prosecuted by Assistant U.S. Attorneys Mary Helen Wall and Erin Chalk.
Former IRS Special Agent Charged with Filing False Tax Returns, Theft of Government Money and Obstructing a Federal InvestigationRead the Press Release
A federal grand jury in Sacramento, California returned an indictment today charging a former Internal Revenue Service–Criminal Investigation (IRS-CI) special agent with six counts of filing false income tax returns, one count of corruptly endeavoring to obstruct the internal revenue laws, one count of theft of government money and one count of destroying records during a federal investigation, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Brian J. Stretch of the Northern District of California, Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration (TIGTA) and Acting Special Agent in Charge Darrell Waldon of IRS-CI.
According to the allegations in the indictment, Alena Aleykina, of Sacramento, a certified public accountant and former IRS-CI special agent, filed false individual income tax returns for the years 2009, 2010 and 2011, on which she claimed false filing statutes, dependents, deductions and losses and tax returns on behalf of two trusts. The indictment further alleges that, between 2008 and 2013, Aleykina attempted to obstruct the IRS by preparing false tax returns for herself, family members, trusts and partnerships and by making false statements to representatives of the Department of the Treasury and attempted to obstruct a federal investigation by destroying evidence on a government computer. Aleykina is also charged with fraudulently causing the IRS to issue IRS Tuition Assistance Reimbursement payments to her.
If convicted, Aleykina faces a statutory maximum sentence of three years in prison on each count of filing a false tax return and corruptly endeavoring to obstruct the internal revenue laws, 10 years in prison for the charge of theft of government money and 20 years in prison for the destruction of evidence charge, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Stretch, Special Agent in Charge Ammari and Acting Special Agent in Charge Waldon thanked agents of TIGTA and IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman of the Northern District of California and Trial Attorneys Gregory Bernstein and Charles O’Reilly of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former IRS Special Agent Charged with Filing False Tax Returns, Theft of Government Money, and Obstructing A Federal InvestigationRead the Press Release
SAN FRANCISCO- A federal grand jury in Sacramento, California returned an indictment today charging a former Internal Revenue Service–Criminal Investigation (IRS-CI) special agent with six counts of filing false income tax returns, one count of corruptly endeavoring to obstruct the internal revenue laws, one count of theft of government money and one count of destroying records during a federal investigation, announced U.S. Attorney Brian J. Stretch, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration (TIGTA), and Acting Special Agent in Charge Darrell Waldon of IRS-CI.
According to the allegations in the superseding indictment, Alena Aleykina of Sacramento, a certified public accountant and former IRS-CI special agent, filed false individual income tax returns for the years 2009, 2010 and 2011, on which she claimed false filing statutes, dependents, deductions and losses and tax returns on behalf of two trusts. The indictment further alleges that, between 2008 and 2013, Aleykina attempted to obstruct the IRS by preparing false tax returns for herself, family members, trusts and partnerships and by making false statements to representatives of the Department of the Treasury and attempted to obstruct a federal investigation by destroying evidence on a government computer. Aleykina is also charged with fraudulently causing the IRS to issue IRS Tuition Assistance Reimbursement payments to her.
If convicted, Aleykina faces a statutory maximum sentence of three years in prison on each count of filing a false tax return and corruptly endeavoring to obstruct the internal revenue laws, 10 years in prison for the charge of theft of government money and 20 years in prison for the destruction of evidence charge, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Stretch, Principal Deputy Assistant Attorney General Ciraolo, Special Agent in Charge Ammari, and Acting Special Agent in Charge Waldon thanked agents of TIGTA and IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman of the Northern District of California and Trial Attorneys Gregory Bernstein and Charles O’Reilly of the Tax Division, who are prosecuting this case.
Former Government Employee Convicted of Defrauding Department of Veterans AffairsRead the Press Release
PORTLAND, Ore. – A former employee of the Deschutes County District Attorney’s Office and the Oregon Department of Justice was sentenced this week to probation for his theft of more than $56,000 from the U.S. Department of Veterans Affairs (VA), the U.S. Department of Agriculture (USDA), and the U.S. Department of Health and Human Services (HHS). Bruce A. Endicott, 34, pled guilty last June to one count of theft of government funds from a six-count indictment. Endicott’s guilty plea was pursuant to a plea agreement, and included Endicott’s admissions to conduct over a course of three years that supported all six counts of the indictment. On Tuesday, U.S. District Court Judge Robert E. Jones sentenced Endicott to a three-year term of probation, 250 hours of community service, and payment of full restitution.
According to court records and the government’s sentencing memorandum which included a detailed timeline of events, Endicott began receiving service-connected disability benefits through the VA in 2005, following his three years of Navy service in San Diego, Calif. In June 2012, Endicott filed an additional claim with the VA for Individual Unemployability (IU) benefits, claiming he was unemployed and unable to be employed due to his service-connected disabilities that included mental and physical impairments. Endicott also submitted a statement to the VA in February 2013, that stated he had not worked within the past 12 months, when in fact, Endicott was currently working at the Oregon Department of Justice under a second Social Security number that he had not disclosed to the VA. Based on Endicott’s false statements and concealments, the VA awarded him additional benefits and advised him to notify the VA immediately if he became employed.
Endicott left the Oregon Department of Justice in December of 2013, and began working for the Deschutes County District Attorney’s Office, and again failed to notify the VA he was working.
After Endicott left the District Attorney’s Office in May 2014, he applied for welfare benefits through the Oregon Department of Human Services (Oregon DHS), using the second Social Security number, and claimed to have no income. Endicott failed to disclose to Oregon DHS that he was receiving approximately $2,700 per month in VA benefits. Based on Endicott’s false statements and concealments, Oregon DHS awarded him Supplemental Nutrition Assistance Program (SNAP) (also known as food stamps) and Temporary Assistance to Needy Family (TANF) benefits.
In February 2015, Endicott submitted a statement to the VA regarding his IU claim, in which he failed to disclose his former employment with the Deschutes County District Attorney’s Office, and falsely asserted that he had not worked in the past 12 months. As a result of his false statements and concealments, the VA continued to pay his IU benefits. Between June 2012 and October 2015, Endicott received approximately $47,947 in IU benefits, $5,996 in SNAP benefits, and $2,770 in TANF benefits to which he was not entitled.
In their argument for jail, the government noted the ongoing and repeated nature of Endicott’s fraud, his purchase of a $65,000 truck instead of paying past-due child support and restitution, the burden of his repeated false claims on the VA and Oregon DHS systems, and the detrimental affect his fraud had on truly deserving veterans whose benefits were delayed due to his conduct. Judge Jones warned Endicott that despite receiving probation, further wrongdoing would result in a much harsher sentence. As a condition of his probation, Endicott was ordered to participate in a mental health treatment program.
The case was investigated by the Criminal Investigations Division of the VA Office of Inspector General, Oregon DHS, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case was prosecuted by Helen Cooper, Special Assistant United States Attorney, as part of a partnership venture between the SSA Office of the General Counsel, Seattle Region and the United States Attorney’s Office in Portland, Oregon.
Former Employee of Realty Company Indicted for $250K FraudRead the Press Release
NORFOLK, Va. – Lindsay Kneff, 36, of Virginia Beach, was indicted by a federal grand jury today on six counts of wire fraud, six counts of mail fraud, one count of falsely altering Postal Service money orders and three counts of engaging in monetary transactions in criminally derived property.
According to the indictment, Kneff was employed in the Virginia Beach office of Rose & Womble Realty Company in a managerial position and was responsible for overseeing the processing of commissions and accounts payable. Between January 2014 and August 2015, Kneff is alleged to have written checks on the Rose & Womble operating account to pay her personal expenses. Kneff made unauthorized wire transfers into her own accounts and altered Rose & Womble money orders by writing in her own name as the payee, resulting in a $255,147.20 loss for the company.
Kneff faces a maximum penalty of 20 years in prison on each of the wire and mail fraud counts, five years on the count charging false alteration of Postal Service money orders, and 10 years on each of the counts for engaging in monetary transactions in criminally derived property, if convicted. 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 Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after Kneff’s’s initial appearance before U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Alan M. Salsbury 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-139.
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.
Former City of Chicago Building Inspector Pleads Guilty to Soliciting Bribe from Property Owner to Allow Renovations Without a PermitRead the Press Release
CHICAGO — A former building inspector for the City of Chicago admitted in federal court today that he solicited a $300 bribe from a property owner in exchange for allowing renovation work without a permit.
ROBERTO URIBE, 55, of Frankfort, demanded the bribe from an owner of a two-story building in Chicago, according to a written plea agreement. Unbeknownst to Uribe, the building owner was cooperating with federal authorities and had surreptitiously recorded the bribery demand.
In a recorded conversation on Nov. 9, 2015, Uribe boasted of his ability to shut down the renovation work unless the owner paid him $300. “So now, what’s happening now is you’re gonna give me some appreciation, and you’re gonna hurry up and get this done,” Uribe told the building owner, according to the plea agreement. “And that appreciation is gonna be $300. Now how quickly can you get me my money to keep my mouth shut?”
A few days later, the property owner paid $300 in cash to Uribe during a meeting at the property, the plea agreement states. The property owner was equipped with a recording device that recorded this meeting.
Uribe pleaded guilty to one count of attempted extortion under color of official right. The conviction is punishable by up to 20 years in prison and a maximum fine of $250,000. U.S. District Judge Jorge L. Alonso set sentencing for Feb. 2, 2017, at 11:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, Inspector General for the City of Chicago.
The government is represented by Assistant U.S. Attorney Sarah Streicker.
Former Central Iowa Psychiatrist Pleads Guilty to Health Care FraudRead the Press Release
DES MOINES, IA – – On October 19, 2016, Richard Lee Hauser, M.D., 66, of North Liberty, Iowa, appeared before the Honorable Stephanie M. Rose, and pleaded guilty to two counts of health care fraud, announced United States Attorney Kevin E. VanderSchel.
According to the plea agreement, from about October 2008 until about August 2013, Dr. Hauser, a psychiatrist licensed to practice in Iowa, oversaw and personally provided services at a clinic in Grinnell, Iowa. The clinic operated under the name Prevention Systems, Inc. and did business as The Hauser Clinic. Beginning by at least November 8, 2011, and continuing to at least on or about December 31, 2012, Dr. Hauser devised, participated in and intended to devise a scheme to obtain, by means of materially false and fraudulent representations, money and property owned by and under the custody and control of the State of Iowa Medicaid program and Wellmark Blue Cross and Blue Shield of Iowa, in connection with the delivery of and payment for health care benefits and services. As part of this scheme, Dr. Hauser would "up code"—that is, submit and cause to be submitted claims to both Iowa Medicaid and Wellmark misrepresenting the service Hauser provided to certain patients by "coding" for a more expensive service, which was not, in fact, performed, for the purpose of increasing the amount of reimbursement The Hauser Clinic would receive from Iowa Medicaid and Wellmark.
Dr. Hauser is scheduled to be sentenced before The Honorable Stephanie M. Rose, United States District Court Judge, on February 16, 2017, at 10:00 a.m., at the Federal Courthouse in Des Moines. Health care fraud is a felony offense that is punishable by a maximum of ten years of imprisonment and a maximum $250,000 fine.
This matter was investigated by the State of Iowa Medicaid Fraud Control Unit and the United States Postal Inspection Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former California-Based Global Vice President of International Technology Company and Two Others Indicted in Scheme to Commit Insider Trading and Money LaunderingRead the Press Release
A former Palo Alto, California, based global vice president of SAP SE and two other individuals were charged in a federal indictment for their roles in a scheme to commit insider trading and money laundering that allegedly resulted in hundreds of thousands of dollars in profits.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector in Charge Regina L. Faulkerson of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
Christopher G. Salis, 39, of San Mateo, California, a former SAP global vice president; Douglas M. Miller, 40, of Dyer, Indiana; and Edward M. Miller, 43, of Munster, Indiana, were charged in a 17-count indictment returned yesterday by a federal grand jury in the Northern District of Indiana.
The indictment charges all defendants with one count of conspiracy to commit wire fraud and securities fraud, one count of conspiracy to commit money laundering and one count of conspiracy to structure currency transactions involving a financial institution for the purpose of evading the reporting requirements. In addition, Salis is charged with four counts of wire fraud and five counts of securities fraud; Douglas Miller is charged with six counts of wire fraud, five counts of securities fraud and one count of making false statements; and Edward Miller is charged with one count of wire fraud, one count of securities fraud, one count of witness harassment and one count of obstruction of justice.
According to allegations in the indictment, while Salis was employed as a SAP global vice president, he obtained material, non-public information about SAP’s acquisition of Concur, which he disclosed to Douglas Miller in violation of a duty of confidentiality. Douglas Miller, Edward Miller and others then allegedly purchased securities in Concur based on this information for the purposes of profiting from these transactions and returning a portion of the profits to Salis. Following the acquisition, the indictment alleges that Douglas Miller and Edward Miller sold the securities and Douglas Miller made approximately $119,000 and Edward Miller made approximately $149,000. Other traders who allegedly used the information profited a total of approximately $237,000. In order to conceal the nature of the proceeds, the Millers allegedly used cash, money orders and checks to transfer some of their trading profits to Salis. In total, Salis allegedly received nearly $90,000 from his co-conspirators.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPIS investigated the case. Trial Attorneys L. Rush Atkinson, Jennifer G. Ballantyne and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission has provided substantial assistance in this matter.
Former Adams County Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Adams County man was sentenced today to 87 months’ imprisonment by United States District Court Judge Sylvia H. Rambo in Harrisburg for receipt of child pornography.
According to United States Attorney Bruce D. Brandler, Earl Greg Walker, age 53, pled guilty on June 13, 2016, to receiving child pornography at his home in Adams County between 2011-2012.
An examination of Walker’s computer revealed over 1,000 Skype chat messages with minor Russian females and three minor females between the ages of 13-15 years old in the United States. Also recovered from Walker’s computer were numerous video files containing minor females engaged in sexual acts and various stages of undress, to include full nudity.
“There is no greater satisfaction than an investigation culminating in a child predator facing justice. Minors here and abroad are safer with the defendant in custody,” said Brian A. Michael, Acting Special Agent in Charge of Homeland Security Investigation Philadelphia.
This case was investigated by Homeland Security Investigations and the Pennsylvania State Police and was prosecuted by Assistant United States Attorney Daryl F. Bloom.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Five people sentenced to prison for defrauding investors out of $17 millionRead the Press Release
Five people were sentenced to prison for their roles in a conspiracy to defraud about 70 investors out of approximately $17 million, law enforcement officials said.
Kenneth Grant, of Copley, was sentenced to 92 months in prison.
Thomas Abdallah, of Brunswick, was sentenced to 82 months in prison.
Jerry Cicolani, formerly of Richfield, was sentenced to 57 months in prison.
Jeffrey Gainer, of Copley, was sentenced to 52 months in prison.
Mark George, of Independence, was sentenced to 21 months in prison.
Kelly Hood, formerly of Richfield, was sentenced to one year of home confinement followed by probation.
Collectively, the defendants were also ordered to repay more than $17 million in restitution.
All six previously pleaded guilty to charges related to the case.
“These defendants swindled people out of millions of dollars so they could live extravagant lifestyles,” U.S. Attorney Carole S. Rendon said. “This was flat-out fraud. The defendants knew fully that they were stealing from the investors.”
“These defendants callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” said FBI Special Agent in Charge Stephen D. Anthony. “Fraudsters such as these remain a top priority of the FBI.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge of IRS Criminal Investigation.” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Combining the financial investigative expertise of the IRS with the skills and resources of the FBI and the U.S. Attorney’s Office makes a formidable team for combating major, greed-driven crimes.”
Abdallah and Kenneth Grant owned and operated KGTA Petroleum, Ltd. They and others marketed KGTA as a company that earned profits from buying and selling crude oil and refined fuel products. They represented to investors that they had relationships with third-party purchasers and investor funds would be used to purchase fuel products at a discount and then resold at substantial profit, according to court documents.
KGTA issued investment agreements and promissory notes which offered guaranteed monthly payments up to five percent per month or annual payments of approximately 60 percent per year, according to the information. The defendants never filed documentation about KGTA with the Securities and Exchange Commission, according to court documents.
Together, they obtained approximately $31 million from about 70 investors between 2010 and 2014 through false and fraudulent pretenses. They knew KGTA did not have agreements in place to sell oil and fuel. Instead, the defendants used investor money for personal expenditures and luxury items including a Mercedes Benz, a boat and mortgage payments on high-end residential property, according to court documents.
The defendants defrauded the investors out of approximately $17 million as a result of the conspiracy.
This case was prosecuted by Assistant U.S. Attorneys Mark S. Bennett and M. Kendra Klump following an investigation by the Federal Bureau of Investigation and Internal Revenue Service—Criminal Investigations.
Five Members of Portsmouth Based Heroin & Fentanyl Trafficking Organization Plead GuiltyRead the Press Release
NORFOLK, Va. – Nathaniel Powell, 33, Ernest Cross, 38, Detuan Gordon, 25, Valerie Wilson, 55, and Marque Wilson, 33, all of Portsmouth, have pleaded guilty to charges related to their role in a heroin and fentanyl drug trafficking conspiracy.
According to court records, from March 2012 through July 2016, members of this organization conspired to manufacture and distribute heroin in excess of 1,000 grams. The group’s primary source of supply for heroin and fentanyl came from Baltimore. The narcotics were transported to Hampton Roads and repackaged using a hydraulic press machine and gel capsules for retail sales. This organization further disseminated their drugs and served as a source of supply for other individuals in the Outer Banks of North Carolina.
On Dec. 22, 2015, police executed a search warrant on Gordon’s residence and recovered opiates, scales, drug paraphernalia, and firearms. During the conspiracy Gordon, a convicted felon, possessed an AK-47-style rifle as well as a Taurus handgun. When Gordon was arrested on June 8, police recovered nearly $50,000 in cash, a firearm, heroin, and fentanyl. Valerie Wilson was arrested on June 2, in Moyock, North Carolina, after selling five grams of heroin. Wilson’s six-year-old grandson was in her vehicle when she distributed the heroin.
Two members of the group led police on two separate vehicle pursuits. Marque Wilson, who was in possession of heroin and cocaine, was arrested on June 10, after attempting to elude police. Powell led police on a high speed chase through residential neighborhoods of Portsmouth before he crashed into another driver. Powell, who is a paraplegic from a gunshot wound, used a cane to drive during the pursuit. Police recovered seven grams of fentanyl from Powell. After Powell’s arrest, he threatened to kill an individual he believed was working with police.
Name
Date of Guilty Plea
Date of Sentencing
Nathaniel Powell
October 20
Feb. 17, 2017
Ernest Cross
September 23
Jan. 20, 2017
Detuan Gordon
September 20
Jan. 26, 2017
Valerie Wilson
September 16
Jan. 20, 2017
Marque Wilson
October 18
Jan. 27, 2017
A federal grand jury charged the Portsmouth based heroin and fentanyl drug trafficking group with a 20 count indictment on July 20. Charges included, but were not limited to, Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Heroin, Distribution of Heroin and Fentanyl, Felon in Possession of a Firearm, and Possession of Firearms in Furtherance of a Drug Trafficking Crime.
Gordon faces a mandatory minimum sentence of 15 years in prison and a maximum penalty of life. Cross and Powell face mandatory minimum sentences of five years and a maximum penalty of 40 years in prison. The Wilsons face a maximum sentence of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kelvin L. Wright, Chief of the Chesapeake Police Department, and Tonya D. Chapman, Chief of the Portsmouth Police Department, made the announcement after Powell’s guilty plea was accepted by U.S. Magistrate Judge Lawrence Leonard. Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-97.
Federal Jury in Del Rio Convicts Mexico City Man for Importation of Cocaine and HeroinRead the Press Release
Guillermo Rodriguez-Sanchez, a 42-year-old resident of Mexico City, faces a mandatory minimum sentence of at least ten years and up to life in federal prison after a jury convicted him late yesterday afternoon of importation cocaine and heroin, announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; and, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division.
Jurors convicted Rodriguez-Sanchez of one count of importation of cocaine and one count of importation of heroin. According to evidence presented during trial, on March 16, 2016, Rodriguez-Sanchez, a Mexican citizen and resident of Mexico City, attempted to enter the United States of America through the Eagle Pass Port of Entry Number One. CBP officers subsequently discovered four bricks of cocaine and one brick of heroin hidden inside of a secret compartment that was built into the air intake manifold of the 2007 Toyota Tundra the defendant was driving. The total weight of the cocaine was approximately four kilograms; the heroin, approximately 1.4 kilograms. Testimony at trial established that the value of the narcotics was approximately $200,000. At the time of his arrest, Rodriguez-Sanchez denied knowledge of the drugs.
Rodriguez-Sanchez remains in federal custody pending sentencing scheduled for 10:00 am on April 4, 2017, before United States District Judge Alia Moses in Del Rio.
This investigation was conducted by the Homeland Security Investigations (HSI), the United States Customs and Border Protection (CBP) and the Drug Enforcement Administration (DEA). Assistant United States Attorneys Goran Krnaich and Justin Chung are prosecuting this case on behalf of the Government.
Federal Jury Convicts Woman in Stolen Identity Refund Scheme - Some Stolen Identities Belonged to Incarcerated IndividualsRead the Press Release
DALLAS — Following a four-day trial before Chief U.S. District Judge Barbara M. G. Lynn, a federal jury has convicted Latonya Carson, 42, of Dallas, on several federal offenses stemming from her role in a scheme to steal personal identifying information, use it to fraudulently obtain income tax refunds, and then launder those funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Carson was convicted on one count of conspiracy to commit theft of public funds, access device fraud and wire fraud; three counts of aggravated identity theft; one count of conspiracy to commit money laundering; four counts of money laundering; and four counts of wire fraud. The first conspiracy count carries a maximum statutory penalty of five years and a $250,000 fine. The statutory penalty for each aggravated identity theft count is two years and a $250,000 fine. The money laundering conspiracy count, each of the money laundering counts, and each wire fraud count carries a maximum statutory penalty of 20 years in federal prison and a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater. In addition, the superseding indictment includes a forfeiture allegation that would require Carson to forfeit eight pairs of Christian Louboutin shoes; one pair of Gucci booties, seven designer handbags, and more than $26,000 seized from two bank accounts.
The government presented evidence at trial that beginning in 2012, Carson and her coconspirators were involved in a scheme in which they filed false tax returns using stolen identities, some of which belonged to incarcerated individuals. Carson and her coconspirators converted the tax refunds from debit/Green Dot cards, using shell company bank accounts, into cash and cashier’s checks used to purchase luxury vehicles that they then shipped to Nigeria.
Between May 2012 and May 2014, the defendants and their conspirators paid $1,184,950 from these accounts to purchase used cars from wholesale dealer auctions in Dallas County, and between January 2012 and January 2015, the defendants and their conspirators exported approximately 204 used cars to Nigeria.
Five defendants were charged in the scheme. Segun Edomwonyi, a/k/a “Benny O. Prince,” and Titalayo Idowu Olukoya remain fugitives. Charges were dismissed against Ricardo Garth Solomon. Smith Olsola Akin, 33, pleaded guilty to one count of conspiracy to commit money laundering in May 2016, and is to be sentenced in January 2017.
The FBI, IRS Criminal Investigation, U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Secret Service and the Texas Department of Public Safety investigated. The case is being prosecuted by Assistant U.S. Attorneys Christopher Stokes and Camille Sparks.
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Federal Agent and Local Attorney Charged with Bribery, Fraud and Obstruction of JusticeRead the Press Release
A Special Agent with U.S. Immigration and Customs Enforcement – Homeland Security Investigations and an attorney have been charged with bribery, conspiracy to defraud the United States and obstruction of justice, announced U.S. Attorney Barbara L. McQuade. The charging documents were unsealed today.
Joining in the announcement was Giovanni Tiano, Special Agent in Charge of the Detroit, Michigan office of the Department of Homeland Security – Office of Inspector General and Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations.
Charged in an Indictment was Clifton Divers, 48, of Detroit, Michigan. Divers was charged with misusing his position as a Special Agent with U.S. Immigration and Customs Enforcement – Homeland Security Investigations to obtain numerous deferrals of deportation and other immigration benefits for non-citizen foreign nationals in return for over $5,000 in cash payments, free legal services and other things of value.
Special Agent Divers is also charged with conspiring to impair, obstruct and defeat the lawful function of the U.S. Department of Homeland Security by dishonest means. In addition, Agent Divers is charged with destruction and falsification of records to obstruct an official investigation by the Office of Inspector General of the U.S. Department of Homeland Security. The crimes are alleged to have occurred between 2009 and 2015. The six charged crimes carry maximum penalties of between five and twenty years.
Charged in an Information was attorney Charles T. Busse, 58, of Birmingham, Michigan. Busse was charged with paying bribes to a Special Agent with U.S. Immigration and Customs Enforcement – Homeland Security Investigations to obtain numerous deferrals of deportation and other immigration benefits for his clients. Attorney Busse maintains law offices in Rochester Hills, Michigan and in Dearborn, Michigan.
Busse was also charged with conspiring to impair, obstruct and defeat the lawful function of the U.S. Department of Homeland Security by dishonest means. In addition, Busse was charged with criminal tax evasion and with violating the federal law that requires an attorney to report any cash payments of more than $10,000. The crimes are alleged to have occurred between 2009 and 2015. The four charged crimes carry maximum penalties of between five and fifteen years.
McQuade stated, “Anyone who abuses a federal law enforcement position for personal profit can expect to face serious penalties, including criminal prosecution.”
Special Agent in Charge Tianno stated, “Acts of corruption within the Department of Homeland Security represent a threat to our national security, and the Office of Inspector General is committed to doing everything possible to eradicate those who choose to place our country at risk. Homeland Security Investigations (HSI) have some of the finest agents in law enforcement and this arrest today is not indicative of the selfless work the fine men and women from HSI perform every day.”
“This case should serve to reassure the public that the IRS will continue to enforce our nation’s tax laws to protect the integrity of our tax systems and we will take particular interest in cases where someone, for their own personal benefit, attempts to profit from corruption,” said Manny Muriel, Special Agent in Charge. “For years, criminals have devised complex schemes in an attempt to conceal their illegal activities. Tax cheats should take note that they cannot evade their tax reporting obligations without consequences.”
U.S. Attorney McQuade commended the outstanding work of the Office of Inspector General of the U.S Department of Homeland Security and the Internal Revenue Service – Criminal Investigations in conducting a comprehensive criminal investigation into potential corruption activities involving a federal law enforcement official.
An indictment/information is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government's burden to prove guilty beyond a reasonable doubt
Essex County, New Jersey, Woman Sentenced to 92 Months in Prison for Leadership Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – A Belleville, New Jersey, woman was sentenced today to 92 months in prison for her role in leading a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.
Victoria Horvath, 44, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging her with conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Victoria Horvath as a senior member of the drug trafficking organization.
Horvath admitted that, between Feb. 5, 2014 and Aug. 13, 2014, she personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled by various pharmacies, and sold the pills to members of the conspiracy and others. Horvath also drove other conspirators to specific doctors to obtain oxycodone prescriptions, assisted them in getting the prescriptions filled, and helped them sell the pills.
For example, Horvath admitted that she, while working with multiple conspirators, sold 119 oxycodone pills to an undercover law enforcement officer in February 2014 in exchange for $2,020. Horvath also admitted to being an organizer and manager of the conspiracy.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
In addition to the prison term, Judge Salas sentenced Horvath to three years of supervised release.
Of the individuals originally charged with Horvath, Alexis Horvath, 27, of Belleville, New Jersey, Rickie Horvath, 54, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey, and Justin Farraj, 24, and Matthew Policarpio, 28, of Newark, and Sabrina Vajda, 32, of Brooklyn, New York, have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced to a term of 40 months in prison in September 2014. Luis Rivera, 25, was sentenced to 54 months in prison in August 2015. Daniel Horvath, 27, was sentenced to 27 months in prison in and Johnny Horvath, 46, was sentenced to 30 months in prison in April 2016. Monica Horvath, 22, was sentenced to 24 months in prison in August 2016. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014. The indictment remains pending against two other conspirators.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office in Newark.
Defense counsel: Frank P. Arleo Esq., West Orange, New Jersey
Darren Sharper’s Co-Defendants SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced today’s sentencing of BRANDON LICCIARDI and ERIK J. NUNEZ, who were charged along with former New Orleans Saint DARREN SHARPER, in a conspiracy to drug and rape women.
U.S. District Judge Jane Triche Milazzo sentenced LICCIARDI to serve 17 years imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, LICCIARDI will be required to register as a sex offender for life pursuant to the Sex Offender Registration Notification Act.
U.S. District Judge Milazzo also sentenced NUNEZ to serve 10 years imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, NUNEZ will be required to register as a sex offender for 15 years pursuant to the Sex Offender Registration Notification Act.
LICCIARDI, a former St. Bernard Parish Deputy, previously pled guilty on July 15, 2016, to conspiracy to distribute Schedule IV controlled substances with the intent to commit crimes of violence, including rape.
NUNEZ previously pled guilty on July 11, 2016, to conspiracy to distribute controlled substances to victims without their knowledge and with the intent to commit sexual battery.
DARREN SHARPER was sentenced on August 18, 2016, to 18 years imprisonment.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. U.S. Attorney also thanked District Attorney Cannizzaro and the Orleans Parish District Attorney’s Office for their invaluable cooperation. Assistant United States Attorneys Michael E. McMahon, Theodore R. Carter, III, and Brandon Long were in charge of the prosecution.
DEA and Partners Hold Prescription Drug Take Back Day SaturdayRead the Press Release
Boston, MA – This weekend DEA will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday October 22 between 10 a.m. and 2 p.m. the public can dispose of their expired, unused, and unwanted prescription medications at one of 566 collection sites throughout New England, operated by 505 local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department.
America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.4 million Americans age 12 and over—2.4 percent of the population—abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health released last month, more than abuse cocaine, heroin, hallucinogens, and methamphetamine combined. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.
“The diversion of prescription pain killers contribute to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities,” said DEA Special Agent in Charge Michael J. Ferguson. "Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."
United States Attorney for the District of New Hampshire Emily Gray Rice stated: “Participation in the DEA’s Drug Take-Back Day is one of the most important things that the average person can do to prevent the misuse of prescription drugs. Removing these drugs from our homes insures that these powerful substances do not fall into the wrong hands or become the spark that ignites opioid addiction. I hope that everyone will take this opportunity to safely dispose of these drugs, and to encourage their friends and neighbors to do the same.”
Last April, during its 11th Take Back Day, the DEA New England Field Division (NEFD) participated in the Drug Take-Back Day and over the course of four hours 86,900 pounds of expired, unused, and unwanted prescription drugs were collected at 551 collection sites throughout New England. The following was the breakdown of collected weights for the six New England states:
Connecticut
8,815.50 lbs.
Massachusetts
25,028 lbs.
Maine
31,960 lbs.
New Hampshire
12,560 lbs.
Rhode Island
3,460 lbs.
Vermont
5,094.60 lbs.
Total for NEFD
86,918.1 lbs.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code. Or they can call 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.
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Cross-Border Human Smuggler Sentenced to 36 MonthsRead the Press Release
SYRACUSE, NEW YORK - Terri Ann Bush, age 43, of Hogansburg, New York, and St. Regis, Quebec, was sentenced yesterday to 36 months in prison for her role in a human smuggling conspiracy.
The announcement was made by U.S. Attorney Richard S. Hartunian and John C. Pfeifer, U.S. Border Patrol’s Chief Patrol Agent for the Swanton Sector. Senior U.S. District Judge Senior Frederick J. Scullin, Jr. imposed the sentence, which also included 2 years of post-imprisonment supervised release.
Bush pled guilty on June 21, 2016.
In the evening of November 17, 2015, a New York State Police (NYSP) Trooper in rural northern New York performed a traffic stop on a southbound vehicle. A male citizen of Israel, Bush, and the driver, also from Hogansburg, told the Trooper they were headed from the international border area to New York City. They were released after the Trooper issued a traffic ticket.
Later, the NYSP and Border Patrol determined that the Israeli man was known to immigration officials and not lawfully in the United States. The next morning, on November 18, 2015, Border Patrol agents stopped the same vehicle northbound, and the Israeli man was absent. After a search, federal agents found and arrested him in Philadelphia. He was brought back to the Northern District of New York for prosecution for illegal entry to the United States from Canada, and later pled guilty. The driver from Hogansburg also pled guilty to an alien smuggling charge.
This case was investigated by the U.S. Border Patrol Burke Station, aided by its Sector Intelligence Unit, and Immigration and Customs Enforcement Fugitive Alien investigators in Philadelphia. The New York State Police, the Massena Border Enforcement Security Task Force (BEST), and the Saint Regis Mohawk Tribal Police assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Elizabeth Horsman.