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Friday 10 June 2016
Abilene Man Sentenced to 10 Years in Federal Prison for Having Images of Prepubescent Child Porn on His Cell PhoneRead the Press Release
ABILENE, Texas — A 69-year-old Abilene, Texas, man, Jackie Lee Whitt, was sentenced this morning by U.S. District Judge Reed C. O’Connor to serve 120 months in federal prison, following his guilty plea in February 2016 to one count of access with intent to view prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, while living in Abilene, Whitt owned a Samsung cell phone that he used to access the Internet with the intent to view depictions of minors engaged in sexually explicit conduct. Whitt knew some of the images depicted minors under age 12. He viewed numerous images of prepubescent minors, many who were well under age 12, engaged in various forms of sexually explicit conduct. Whitt had been convicted in federal court in 2003 of six counts of Interstate Receipt of Child Pornography, and served a 57-month term of imprisonment in that case.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by the FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
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73 Year-Old Man Sentenced for Armed Robbery and Firearm PossessionRead the Press Release
GRAND RAPIDS, MICHIGAN — Simon S. Gutierrez, also known as Simon St. John Gutierrez, 73, most recently of Three Rivers, Michigan, was sentenced to 97 months’ imprisonment by U.S. District Judge Robert Holmes Bell. He will be under the court’s supervision for 5 years after he is released, and he was ordered to pay restitution. Gutierrez pled guilty to one count of armed credit union robbery and one count of being a felon in possession of a firearm in January pursuant to a plea agreement.
On January 25, 2013, Gutierrez robbed a branch of the Fifth Third Bank in Kalamazoo and brandished what appeared to be a revolver. On July 10, 2015, he robbed a branch of the Consumers Credit Union next door to the bank he robbed in 2013. In the 2015 robbery, he pretended to be making a lunch delivery before brandishing what appeared to be two handguns and robbing the credit union. Investigators later determined that the two weapons were pellet guns, but a search of his residence led to the recovery of a stolen revolver that matched the description of the weapon used in the 2013 robbery.
Gutierrez’s extensive criminal history includes armed robbery convictions dating back to the 1960s. In the 1980s, he was convicted of bank robberies in Colorado and in Illinois, where authorities described him as "a cunning and dangerous man," a sentiment Judge Bell echoed in imposing sentence. He served approximately thirty years in state and federal prison for those crimes. Altogether he has spent more than forty years in custody. He was last released in 2010.
"Hopefully Mr. Gutierrez’s career in bank robbery and violence is now at an end," U.S. Attorney Patrick Miles said. "The Court’s sentence is a message to younger citizens not to follow the path he has trodden; the consequence of not heeding that message is spending the better part of life locked up."
"The sentencing of Mr. Gutierrez sends a very clear message that the citizens of Kalamazoo County will not tolerate violent crime in our community, and will not tolerate being a crime destination for out-of-state criminals. The FBI Kalamazoo Resident Agency and our local law enforcement partners will continue to work collectively as we did in this investigation to ensure the safety of our community," said David P. Gelios, Special Agent in Charge, FBI Detroit.
The FBI, Kalamazoo Department of Public Safety, and Three Rivers Police Department investigated the robberies. Assistant U.S. Attorney Justin M. Presant prosecuted the case.
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Thursday 9 June 2016
Yakima Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that that Gregory Lavern Wilson, age 46, of Yakima, Washington, was sentenced today after having previously plead guilty to the charge of possession with intent to distribute methamphetamine. United States District Judge Stanley A. Bastian sentenced Wilson to a 10-year term of imprisonment, to be followed by a 5-year term of court supervision upon release from Federal prison
According to information disclosed during the court proceedings, from April through May 2015, the Yakima DEA Task Force conducted several undercover purchases of methamphetamine from Wilson. During the execution of multiple search warrants on May 27, 2015, officers recovered additional methamphetamine, drug packaging, and a digital scale at Wilson’s residence. Wilson subsequently acknowledged that he distributed methamphetamine. He has at least eight prior felony drug offense convictions, as well as numerous other convictions.
Michael C. Ormsby said, “I commend the officers of the Yakima DEA Drug Task Force, the Yakima Police Department, and the U.S. Drug Enforcement Administration for their efforts in investigating this drug trafficking case. Their strong working partnership is reflected by the successful prosecution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities.”
This case was investigated by the cooperative efforts of the Yakima DEA Drug Task Force, the Yakima Police Department, and the U.S. Drug Enforcement Administration. The case was prosecuted by Ian L. Garriques, an Assistant United States Attorney for the Eastern District of Washington.
Woman Pleads Guilty to Defrauding Senior CitizensRead the Press Release
Tea Lynette Ware, 36, from Cedar Rapids, Iowa, pled guilty today in federal court in Cedar Rapids to two counts of mail fraud and one count of using a fictitious name in that fraud.
At the plea hearing, and in a plea agreement, Ware admitted that from about September 2015 through February 2016, Ware intentionally participated in a scheme to defraud an elderly Illinois woman in which false representations and promises were made to the elderly woman claiming she had won a lottery, sweepstakes, or otherwise was entitled to large sums of money. The victim was also told the winnings or funds could be claimed only if she would first mail Ware money for purported taxes, fees, or similar alleged prerequisites for payment. In truth, no such winnings existed and the telephone calls were designed only to permanently deprive the victim and her husband, a resident of a long-term care facility with dementia, of their money. Like many senior citizens in the United States, the couple received unsolicited telephone calls; they even changed their telephone number to avoid unsolicited calls, but such calls nonetheless resumed after they changed their phone number.
In her plea agreement, Ware admitted that, in October 2015, she received $29,000 in two checks from the victim. In the plea agreement, Ware has agreed to make full restitution to the victims. She also agreed to forfeit any proceeds of her crime. The government seized $40,000 prior to Ware’s Indictment.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Ware remains free on terms and conditions of release previously set pending sentencing. Ware faces a possible maximum sentence of 45 years’ imprisonment, a $750,000 fine, $300 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-27-LRR.
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Wilkes Co. Man Sentenced to A 20-Year Prison Term for Possessing and Producing Child PornographyRead the Press Release
STATESVILLE, N.C. B U.S. District Judge Richard L. Voorhees sentenced yesterday Tony Luke Brewer, 25, of Hays, N.C. to 20 years in prison on charges of possession and production of child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Voorhees also ordered the defendant to serve a lifetime of supervised release and to register as a sex offender upon release from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
“Today, we’ve removed a monster from the folds of our society. Brewer’s massive child pornography collection contained images and videos depicting extreme and violent sexual abuse against children, some of whom were infants, which he shared online with other pedophiles,” said U.S. Attorney Rose. “But Brewer did not stop there. He solicited young victims online and enticed them to engage in sexually explicit conduct, which he captured and stored on his computer. Brewer is a predator who belongs behind bars, where he can no longer victimize another young child.”
“Luke Brewer tried to conceal the evidence of his twisted and disturbing criminal activities online. When the safety of our children is at stake, the FBI will not stop until we uncover those vile offenders who seek to do harm with their demented behaviors,” said Special Agent in Charge Strong.
According to filed documents and statements made in court, Brewer was a member of, or attempted to become a member of, multiple Internet websites through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. The websites’ users employed advanced technological means in order to undermine law enforcement’s attempts to identify them.
According to court records, from at least May 2012, Brewer registered with these websites and uploaded images of child pornography or chatted online with other users. Court records show that on one such website, Brewer described himself on his user profile as “a young pedo” who “loves meeting new pedos.” On September 24, 2014, the FBI executed a search warrant at Brewer’s residence, seizing his laptop computers and other storage media. According to court records, forensic examination of the seized items revealed that Brewer possessed thousands of images and videos of child pornography, including material involving infants and prepubescent minors engaging in sadistic and masochistic or other violent conduct.
Court records indicate that, in addition to possessing child pornography, Brewer had engaged in multiple chats online with minor victims from different states. According to court records, Brewer knew the victims were underage and induced the victims to engage in sexually explicit conduct, which he captured and stored on his computer.
Brewer is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Wheeling man pleads guilty to unlawful possession of firearmRead the Press Release
WHEELING, WEST VIRGINIA – Joseph W. Davis, 31, of Wheeling, pled guilty today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Davis, who has a previous felony conviction in federal court in West Virginia, was discovered in unlawful possession of a .22 caliber revolver in January 2016 in Ohio County, West Virginia. Davis was previously convicted of the felony offense of “Aiding and Abetting in the Possession with Intent to Distribute More Than Five Grams of Cocaine Base” in the United States District Court for the Northern District of West Virginia in January 2006.
Davis pled guilty today to one count of “Felon in Possession of a Firearm.” 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. Attorney Randy Bernard prosecuted the case on behalf of the government. The Wheeling Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge James E. Seibert presided.
Waterloo/Black Hawk County Town Hall Discusses Heroin Epidemic and Treatment OptionsRead the Press Release
CEDAR RAPIDS, IA – Last night the United States Attorney’s Office (USAO) for the Northern District of Iowa hosted a town hall at the Waterloo Center for the Arts to discuss treatment options available to tackle the opioid and heroin epidemic facing the greater Waterloo and Black Hawk County community. The community joined Cedar Rapids and Dubuque to fight this threat with the assistance of the Eastern Iowa Heroin Initiative, which recently held a meeting in Davenport sponsored by the USAO for the Southern District of Iowa.
Every day, 44 people in the United States die from overdose of prescription painkillers. Yearly, overdose deaths exceed motor vehicle or firearms deaths. The most recent data available indicates that in 2014, over 47,000 people in the U.S. died from drug overdoses with more than half of that number being caused by prescription painkillers and heroin. The most recent National Survey on Drug Use and Health estimated over 900,000 Americans reported using heroin in 2014, reflecting a 35% increase from the previous year.
United States Attorney Kevin W. Techau offered his assessment of the challenge facing the community in his opening comments stating, “The rise of heroin and the misuse of prescription opioids in Iowa is one of our biggest challenges to public health and public safety. It threatens our communities, families, and children. Heroin use and the prescription drug misuse are intertwined and both must be addressed. The meeting tonight will discuss all aspects of the problem so we can work together with our federal, state, and local partners to fight this growing epidemic through a combination of enforcement, prevention, education, and treatment.”
Following comments made by U.S. Attorney Techau and Black Hawk County Sheriff Tony Thompson, the Eastern Iowa Heroin Initiative Coordinator, Cedar Rapids Police Office Al Fear, discussed how the initiative was started and the importance of community involvement to address the epidemic. Assistant U.S. Attorney Patrick Reinert provided a detailed picture of the threat facing eastern Iowa. The threat was made more real when a mother who lost her son to heroin spoke about how his drug use and death impacted their family. Treatment options were outlined by Pathways Behavioral Services, Inc. and Horizons Family Centered Recovery Program.
A Question and Answer panel discussion engaged those attending and was followed by the Eastern Iowa Heroin Initiative launching C.R.U.S.H. (Community Resources United to Stop Heroin), which is a community outreach initiative designed to involve schools, law enforcement, treatment providers, community leaders and health care organizations to address the growing epidemic. This community response was recently initiated in Linn, Dubuque and Clinton counties. Attendees were encouraged to join and told they could do so by texting “Heroin” to 51555.
To learn more about the Eastern Iowa Heroin Initiative, visit Facebook at www.facebook.com/EasternIowaHeroinInitiative.
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Washington State Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Haben Sebhatu, Bellevue, Washington, pled guilty to possessing more than 100 counterfeit credit cards and credit card making equipment during a multi-state trip during which he conducted numerous fraudulent transactions.
Sebhatu was arrested by the Ladue Police Department on March 25, 2016, and a search of his vehicle revealed the fraudulent credit cards and a card encoder used to place stolen card numbers and other information on a card’s magnetic strip. Sebhatu admitted to organizing the trip.
Sebhatu appeared before Judge Audrey G. Fleissig, who accepted his guilty plea this morning in U.S. District Court in St. Louis. Sentencing has been set for September 20, 2016.
Sebhatu faces up to fifteen years in prison, per count, for possession of more than fifteen counterfeit cards and possession of device making equipment. In addition to a term of imprisonment, Sebhatu faces up to a $250,000 fine per count and mandatory restitution to the victims. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In addition to his federal case in St. Louis, Sebhatu faces criminal charges in his home state of Washington for identity theft and forgery.
The case was investigated by the Ladue (Missouri) Police Department, the U.S. Secret Service and the Pierce County (Washington) Prosecuting Attorney’s Office. Restitution to the victims is also mandatory.
Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Waldorf Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced James Devwan Pixley, age 26, of Waldorf, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base and cocaine, and for possession of a firearm in furtherance of a drug trafficking crime. Judge Chasanow also ordered Pixley to forfeit six firearms, a car and a trailer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Charles County Sheriff Troy Berry; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; St. Mary’s County Sheriff Tim Cameron; and Calvert County Sheriff Mike Evans.
According to his plea agreement and other court documents, from January through July 2015, Pixley conspired with others to sell primarily crack, but also cocaine and other illegal drugs, such as prescription painkillers. Pixley obtained cocaine up to four times a month from co-defendant Colbert Jones, generally in four ounce increments for $1,700 per ounce. Pixley used the majority of that cocaine to manufacture into crack, which he cooked in his kitchen. Pixley sold the cocaine to his customers at various locations including his residence and his mother’s home in Leonardtown, Maryland, which Pixley used as stash houses.
Pixley also possessed and sold firearms on several occasions, while selling drugs. He stored the firearms at his residence and his mother’s. A search warrant was executed on August 6, 2015, at his and his mother’s residences. Several firearms were seized, including a loaded 12 gauge shotgun from Pixley’s residence.
The investigation revealed that Pixley was responsible for the distribution of between 500 grams and 5 kilograms of cocaine, and between 280 and 840 grams of crack cocaine.
Co-defendants Troy Taishon Swann, age 39, of Waldorf; Antoine Dewayne Savoy, age 35, of Lusby, Maryland; Fletcher, age 29, of Clinton, Maryland; and Colbert Juan Jones, Jr., age 33, of St. Leonard, Maryland, previously pleaded guilty to their participation in the drug trafficking conspiracy. Fletcher and Jones were each sentenced to 10 years in prison. Judge Chasanow has scheduled sentencing for Savoy on June 27, 2016 at 12:30 p.m. and for Swann on July 11, 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, DEA, Charles County Sheriff’s Office, Prince George’s County Police Department, Maryland National Capital Park Police, Prince George’s County Division, and the St. Mary’s and Calvert County Sheriffs’ Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Leah J. Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Virginia Man Charged with Providing Material Support to ISILRead the Press Release
In a criminal complaint unsealed in the Eastern District of Virginia today, Mohamad Jamal Khweis, 26, of Alexandria, Virginia, was charged with providing and conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The complaint was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Khweis was detained by Kurdish Peshmerga military forces on March 14, 2016 in northern Iraq after leaving an ISIL-controlled neighborhood in Tal Afar, Iraq. According to the affidavit in support of the criminal complaint, Khweis admitted to renting a car in Alexandria and flying out of Baltimore-Washington International Airport to begin his travel to join ISIL in mid-December 2015. His travel included stops in the United Kingdom and the Netherlands before ultimately crossing into Syria through Turkey with the help of ISIL facilitators. Khweis admitted that he stayed in an ISIL safe house in Raqqa, Syria, with other ISIL recruits who were going through an intake process, and at one point during the intake process, answered yes when asked by ISIL if he would be a suicide bomber. Khweis also admitted to participating in ISIL-directed religious training for nearly one month in preparation for his service to ISIL.
Khweis will have his initial appearance at the federal courthouse in Alexandria today at 2 p.m. EDT before U.S. Magistrate Judge John F. Anderson of the Eastern District of Virginia.
This case is being investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Dennis Fitzpatrick of the Eastern District of Virginia and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section.
Khweis Complaint
Upstate Defendant Sentenced for Lying to FBI During InvestigationRead the Press Release
Contact Person: Max Cauthen (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that William Tore Tint, age 42, of Travelers Rest, South Carolina, was sentenced today in federal court in Anderson, South Carolina by the Honorable Timothy Cain to three (3) years probation. In September 2015, Tint pled guilty to making false statements to agents of the Federal Bureau of Investigation (FBI) during an investigation, in violation of Title 18, United States Code, Section 1001.
Evidence presented at the change of plea hearing established that on or about April 13, 2015, Tint, did knowingly and willfully make a false, fraudulent, and fictitious material statement to FBI agents during their investigation of a possible plot to commit acts of violence in in New York State.
The case was investigated by the FBI. Assistant United States Attorney Max Cauthen of the Greenville office handled the prosecution of the case.
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U.S. Navy Admiral Pleads Guilty to Lying to Feds about his Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud InvestigationRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – June 9, 2016
SAN DIEGO - U.S. Navy Rear Admiral Robert Gilbeau pleaded guilty today in federal court to felony charges that he lied to federal investigators to conceal his illicit years-long relationship with Leonard Glenn Francis, the foreign defense contractor at the center of a massive bribery and fraud scandal.
Admiral Gilbeau is the highest-ranking U.S. Navy officer charged in the investigation so far, and is believed to be the first active-duty Naval flag officer ever charged in federal criminal court.
In his plea agreement, Admiral Gilbeau admitted that he lied when he told agents from Defense Criminal Investigative Service and Naval Criminal Investigative Service that he had never received any gifts from Leonard Glenn Francis, owner of Singapore-based Glenn Defense Marine Asia. Francis has pleaded guilty to plying scores of other U.S. Navy officials with gifts such as luxury travel and meals, cash and electronics and and parties and prostitutes.
According to his plea agreement, Admiral Gilbeau lied when he told investigators that he “always paid for half of the dinner” when he and Francis met about three times a year. When Gilbeau became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013, he destroyed documents and deleted computer files.
Admiral Gilbeau is scheduled to be sentenced on Aug. 26 at 9 a.m. before U.S. District Judge Janis L. Sammartino. At today’s hearing, U.S. Magistrate Judge William V. Gallo set bond at $75,000 secured by real property.
Most of the other Navy officials charged in this case so far have faced allegations that in return for cash, lavish entertainment and travel expenses, the services of prostitutes and other illicit gifts, they brazenly used their public offices to heap benefit after benefit upon Francis and GDMA, including passing on classified U.S. Navy information to advance GDMA’s business interests and advocating for GDMA at every turn.
Gilbeau was charged via information with deliberately and knowingly making false statements, from November 2012 to October 2013, about the nature of his relationship with Francis and his receipt of things of value over the course of years from Francis.
According to charging documents, in 2003 and 2004, Gilbeau was the supply officer on the USS Nimitz, where he was responsible for procuring all goods and services necessary for operation of the ship. He later served as head of the Tsunami Relief Crisis Action Team in Singapore, heading the Navy’s logistics response to the Southeast Asia tsunami in December 2004. In June 2005, Gilbeau was assigned to the office of the Chief of Naval Operations as the head of aviation material support, establishing policies and requirements for budgeting and acquisitions for the Navy’s air forces.
After he was promoted to admiral, Gilbeau assumed command in August 2010 of the Defense Contract Management Agency International, where he was responsible for the global administration of the Defense Department’s most critical contracts performed outside the United States.
“Of those who wear our nation’s uniform in the service of our country, only a select few have been honored to hold the rank of Admiral – and not a single one is above the law,” said U.S. Attorney Laura Duffy. “Admiral Gilbeau lied to federal agents investigating corruption and fraud, and then tried to cover up his deception by destroying documents and files. Whether the evidence leads us to a civilian, to an enlisted service member or to an admiral, as this investigation expands we will continue to hold responsible all those who lied or who corruptly betrayed their public duties for personal gain.”
“As a flag level officer in the U.S. Navy, Admiral Gilbeau understood his duty to be honest with the federal agents investigating this sprawling bribery scheme,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “By destroying documents and lying about the gifts that he received, Admiral Gilbeau broke the law and dishonored his uniform.”
“The guilty plea of Rear Admiral Robert Gilbeau is an unfortunate example of a dishonorable naval flag officer who has betrayed his shipmates, the U.S. Navy and his country,” said Dermot F. O’Reilly, Acting Director, Defense Criminal Investigative Service. “Admiral Gilbeau's guilty plea should be a resounding message that DCIS, Naval Criminal Investigative Service, and the Department of Justice will continue to investigate and seek to prosecute any individual, regardless of position or rank, who would put our mission of 'Protecting America's Warfighters' at risk.”
“This investigation demonstrates that corruption, conspiracy, and the release of sensitive information puts Department of the Navy personnel and resources at risk,” said Special Agent Andrew Traver, Director of the Naval Criminal Investigative Service, “and in concert with our partner agencies, NCIS remains resolved to follow the evidence, to help hold accountable those who make personal reward a higher priority than professional responsibility.”
Anita Bales, director of Defense Contract Audit Agency, said, “DCAA is proud to stand in partnership with our law enforcement allies and make a meaningful contribution to the outcome in this egregious case. It is very disappointing that this high-ranking individual lost sight of his responsibility as a government official. We look forward to continuing our support of this significant investigation.”
So far, a total of 14 people have been charged in connection with the case.
Of those, 11 are current or former U.S. Navy officials, including Admiral Gilbeau; Captain (ret) Michael Brooks; Commander Bobby Pitts; Lt. Commander Gentry Debord; Captain Daniel Dusek; Captain (select) Michael Misiewicz; Lt. Commander Todd Malaki; NCIS Special Agent John Beliveau; Commander Jose Luis Sanchez; Petty Officer First Class Daniel Layug; and Paul Simpkins, a former DoD civilian employee.
Gilbeau, Dusek, Misiewicz, Malaki, Beliveau, Sanchez and Layug have pleaded guilty. On January 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on January 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine. On March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy.
Brooks, Pitts and Debord were charged last week and their cases are pending; Simpkins awaits trial.
Also charged are three GDMA executives – Francis, Alex Wisidagama and Ed Aruffo. All three have pleaded guilty; Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing.
GDMA, the corporate entity, was also charged and has pleaded guilty.
NCIS, DCIS and DCAA are conducting the investigation. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 16cr1313-JLS
U.S. Navy Rear Admiral Robert Gilbeau Age 55 Burke, Virginia
SUMMARY OF CHARGES
False Statements, in violation of 18 U.S.C. § 1001
Maximum Penalty: 5 years in prison
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Navy Admiral Pleads Guilty to Lying to Federal Investigators about His Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud InvestigationRead the Press Release
U.S. Navy Rear Admiral Robert Gilbeau pleaded guilty today in federal court to charges that he lied to federal investigators to conceal his illicit years-long relationship with Leonard Glenn Francis, owner of Glenn Defense Marine Asia (GDMA), the foreign defense contractor at the center of a massive bribery and fraud scandal.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Acting Director Dermot O’Reilly of the Department of Defense’s (DOD) Defense Criminal Investigative Service (DCIS), Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of Defense Contract Audit Agency (DCAA) made the announcement.
Gilbeau, 55, of Burke, Virginia, pleaded guilty to one count of making a false statement. He was charged by information today and is the highest-ranking U.S. Navy officer to be charged in the investigation so far. Gilbeau is scheduled to be sentenced on Aug. 26, 2016, before U.S. District Judge Janis L. Sammartino of the Southern District of California.
In his plea agreement, Gilbeau admitted that he lied when he told agents from DCIS and NCIS that he had never received any gifts from Francis, the owner of Singapore-based GDMA. Gilbeau also admitted that he lied when he told investigators that he “always paid for half of the dinner” when he and Francis met about three times a year. Gilbeau further admitted that when he became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013, he destroyed documents and deleted computer files. Francis previously pleaded guilty to plying scores of other U.S. Navy officials with gifts such as luxury travel, meals, cash, electronics, parties and prostitutes.
According to his plea, in 2003 and 2004, Gilbeau was the supply officer on the USS Nimitz, where he was responsible for procuring all goods and services necessary for operation of the ship. He later served as head of the Tsunami Relief Crisis Action Team in Singapore, heading the Navy’s logistics response to the Southeast Asia tsunami in December 2004, and in June 2005, Gilbeau was assigned to the office of the Chief of Naval Operations as the head of aviation material support, establishing policies and requirements for budgeting and acquisitions for the Navy’s air forces, according to the plea agreement.
In August 2010, after he was promoted to admiral, Gilbeau assumed command of the Defense Contract Management Agency International, where he was responsible for the global administration of DOD’s most critical contracts performed outside the United States, according to admissions made in connection with his plea.
“As a flag level officer in the U.S. Navy, Admiral Gilbeau understood his duty to be honest with the federal agents investigating this sprawling bribery scheme,” said Assistant Attorney General Caldwell. “By destroying documents and lying about the gifts that he received, Admiral Gilbeau broke the law and dishonored his uniform.”
“Of those who wear our nation’s uniform in the service of our country, only a select few have been honored to hold the rank of Admiral – and not a single one is above the law,” said U.S. Attorney Laura Duffy. “Admiral Gilbeau lied to federal agents investigating corruption and fraud, and then tried to cover up his deception by destroying documents and files. Whether the evidence leads us to a civilian, to an enlisted service member or to an admiral, as this investigation expands we will continue to hold responsible all those who lied or who corruptly betrayed their public duties for personal gain.”
“The guilty plea of Rear Admiral Robert Gilbeau is an unfortunate example of a dishonorable naval flag officer who has betrayed his shipmates, the U.S. Navy and his country,” said Acting Director O’Reilly. “Admiral Gilbeau's guilty plea should be a resounding message that DCIS, Naval Criminal Investigative Service and the Department of Justice will continue to investigate and seek to prosecute any individual, regardless of position or rank, who would put our mission of ‘Protecting America’s Warfighters’ at risk.”
“This investigation demonstrates that corruption, conspiracy and the release of sensitive information puts Department of the Navy personnel and resources at risk,” said Director Traver. “And in concert with our partner agencies, NCIS remains resolved to follow the evidence, to help hold accountable those who make personal reward a higher priority than professional responsibility.”
“DCAA is proud to stand in partnership with our law enforcement allies and make a meaningful contribution to the outcome in this egregious case,” said Director Bales. “It is very disappointing that this high-ranking individual lost sight of his responsibility as a government official. We look forward to continuing our support of this significant investigation.”
Including Gilbeau, 14 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including U.S. Navy Captain (Select) Michael Misiewicz, U.S. Navy Capt. Daniel Dusek, Lieutenant Commander Todd Malaki, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense Senior Executive Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months and to pay $34.8 million in restitution to the Navy; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to forfeit $95,000 in proceeds for the scheme. Retired Navy Captain Michael Brooks, Commander Bobby Pitts and Lieutenant Commander Gentry Debord were charged by a federal grand jury on May 25, 2016, and their cases remain pending. GDMA, the corporate entity, was also charged and has pleaded guilty. Francis and Ed Aruffo, a former GDMA employee, have both pleaded guilty and await sentencing.
NCIS, DCIS and DCAA are conducting the investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Two Seminole Men Sentenced for Drug ConpiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRANDON LEE DEATHERAGE, age 40, and SHAWN ASHLEY DEATHERAGE, a/k/a Shawn Ashley Thomas, age 39, both of Seminole, Oklahoma, were sentenced on June 9, 2016, in federal court for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
BRANDON LEE DEATHERAGE was sentenced to 92 months imprisonment. SHAWN ASHLEY DEATHERAGE, a/k/a Shawn Ashley Thomas, was sentenced to 120 months imprisonment.
The Indictment alleged that beginning in or about April 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 2015, within the Eastern District of Oklahoma and elsewhere, the defendants did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshals Service and the Drug Enforcement Administration.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The defendants will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which they will serve their nonparoleable sentences.
Assistant United States Attorney Shannon Henson represented the United States.
Trio Charged in Conspiracy to Illegally Sell Authentic Driver's Licenses to Undocumented IndividualsRead the Press Release
PHILADELPHIA - An indictment was filed today charging three people in a conspiracy to sell illegally obtained driver’s licenses to undocumented aliens, announced United States Attorney Zane David Memeger. Jose Altagracia Morales Santiago, 57, of Philadelphia, PA, Jose Jhonkellyn Castillo-Henriquez, 28, of New York, NY, and Hiram Mojica, 49, of Philadelphia, PA, are each charged with one count of conspiracy, aggravated identity theft, and producing an identification document.
According to the indictment, between February and May of 2016, the defendants obtained the identifying information of Puerto Rican citizens, which they then sold to undocumented aliens. The defendants allegedly obtained through unlawful means both learner’s permits and driver’s licenses from Pennsylvania Department of Transportation (PennDOT) Department of Motor Vehicles (DMV) locations in and around Philadelphia, which defendants Morales Santiago and Castillo-Hernandez sold to undocumented aliens. It is further alleged that defendant Morales Santiago paid individuals to take the written knowledge test portion of the driving test using Puerto Rican identities, fraudulent utility bills, and fraudulent medical reports, all of which defendant Morales Santiago provided. Defendant Mojica allegedly instructed undocumented aliens how to use and drive an automobile, provided undocumented aliens with a car to use during driving tests, drove undocumented aliens to DMVs located in and around Philadelphia, chaperoned undocumented aliens through the DMV procedures, and directed undocumented aliens to falsify documentation supporting their driver’s license applications
If convicted, each defendant faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 22 years, a possible fine, a period of supervised release, and a $300 special assessment. The indictment also contains a notice of forfeiture.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kevin Brenner.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three People Arrested in FBI OperationRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -------- Sherif Abdelwahab Alkassar, age 36, of Myrtle Beach, South Carolina; Lesley Amanda Alkassar, age 38, of Blacksburg, South Carolina, and Katie Leighanne Polson, age 29, of Myrtle Beach, South Carolina; were arrested June 9, 2016,on charges of Electronic Benefits Transfer (EBT card) fraud, a violation of Title 7 United States Code, Section 2024.
Sherif Abdelwahab Alkassar, was also charged with Mail Fraud, a violation of Title 18 USC 1341, and making False Statements relating to Naturalization/Citizenship, a violation of Title 18 USC 1015.
William Nettles, U.S. Attorney for the District of South Carolina, made the announcement after the Defendants’ initial appearances before U.S. Magistrate Judge Kaymani D. West, Florence, South Carolina.
Each faces a maximum possible penalty of not more than twenty years in prison 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.
Each Defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being investigated by agents of the Federal Bureau of investigation (FBI), the Department of Homeland Security/Immigration and Customs Enforcement (DHS/ICE),and the United State Department of Agriculture USDA (USDA). The case is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
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St. Louis County Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Charles Hicks, Fenton, Missouri, was indicted Wednesday afternoon on mail fraud charges in connection with a fraud and embezzlement scheme that spanned three years and involved two employers.
According to the indictment, Hicks submitted false invoices to his ex-employers, RockTenn and MarChem, both with offices in St. Louis County, for equipment not delivered and services not rendered. The invoices were payable to two shell companies created and controlled by Hicks.
If convicted, Hicks faces up to 20 years imprisonment and/or a fine of $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the victims is also mandatory.
This case was investigated by the FBI and the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sixty-Six Gang Members Facing Federal Rico, Firearm and Drug Trafficking ChargesRead the Press Release
BOSTON – Sixty-six alleged gang members from the Greater Boston area have been charged with federal and state firearm and drug charges, including federal RICO conspiracy charges related to an attempted murder. It is alleged that these individuals were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
This morning, more than 400 federal, state and local law enforcement officers carried out the arrests of numerous leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Gang. These individuals operated primarily in East Boston, Chelsea, Brockton, Malden, Revere and Everett. Additional individuals were taken into custody on federal immigration violations.
In 2014, a federal investigation identified a network of street gangs which had created alliances resulting in the trafficking of weapons and drugs throughout the state, and generated violence against rival gang members. The investigation also revealed significant cocaine, crack, and heroin dealing committed by gang members, many of which were supplied though a Brockton-based drug network.
According to court documents, the 18th Street Gang is a multi-national gang that operates throughout the United States and Central America, and whose members in the Boston area have had significant access to firearms in Boston and Chelsea. Over a one year period, investigators seized approximately 37 firearms from 18th Street Gang members alone, including 29 hand guns, three assault rifles, and five sawed-off shotguns, many of which had the serial numbers obliterated.
In total, 53 defendants have been charged in federal court, three of whom were previously arrested. Thirteen defendants have been charged by the Massachusetts Attorney General’s Office in state court. Over two dozen individuals have been detained for administrative deportations.
The charge of RICO conspiracy provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Depending on the drug quantity, the drug trafficking conspiracy and distribution charges provide a sentence of 20 years, 40 years or a lifetime in prison; a minimum of three, four or five years of supervised release; and a fine of $1 million, $5 million or $10 million. The charge of conspiracy to engage in the business of dealing in firearms without a license provides a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm or an alien in possession of a firearm and ammunition provides a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal of the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley, made the announcement today.The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Individuals Charged in Scheme to Defraud Merchants Out of Jewelry and DiamondsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of Federal Bureau of Investigation, (“FBI”), Robert E. Perez, Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), and Julie L. Jones, Secretary of the Florida Department of Corrections (“FDC”) announced that DAVID JENKINS, ANTHONY BROOKS, LAKEATHA COOPER, SHARON LARA, DOMINEK GRANT, and ROBERTO CONCEPCION were taken into federal custody today for participating in a scheme to defraud merchants of diamonds and jewelry in New York, New York, and around the United States. BROOKS was presented this afternoon in Fort Lauderdale, Florida. COOPER and LARA were presented this afternoon in federal court in Fort Pierce, Florida. GRANT was presented this afternoon in federal court in Charleston, South Carolina. JENKINS and CONCEPCION, who were incarcerated in a Florida state correctional institution, have been taken into federal custody and will be presented upon their arrival in the Southern District of New York. The case is assigned to the Honorable Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “The six defendants allegedly tricked merchants around the country, including in New York’s Diamond District, into sending valuable jewelry in exchange for what turned out to be counterfeit checks and bogus money orders. Two of the defendants allegedly engaged in this brazen scheme while incarcerated for other crimes.”
FBI Assistant Director Diego Rodriguez said: “Using a contraband cell phone and a complex network of co-conspirators throughout the United States, an inmate in Florida allegedly defrauded jewelers in New York’s Diamond District out of thousands of dollars’ worth of jewelry pieces. By posing as legitimate jewelry companies, David Jenkins negotiated a cash-on-delivery sale of jewelry with New York jewelers that was eventually paid with counterfeit certified checks and then re-sold. This cross-country scheme was met with cross-country law enforcement efforts, with FBI New York working closely with FBI Miami. We appreciate the assistance with today’s operations by FBI Columbia, FBI Phoenix, and FBI Miami. The FBI will continue to investigate big and small organized crime groups who seek to profit from fraudulent criminal activities.”
CBP New York Director Robert E. Perez said: “U.S. Customs and Border Protection is proud of the expertise we bring to support and assist investigations that result in the takedown of criminal enterprises. It is through interagency partnerships and collaborative efforts, like the one leading to today’s arrests, that law enforcement successfully combats today’s criminal organizations.”
NYPD Commissioner William J. Bratton said: “As alleged, defrauding diamond dealers, while two of the defendants ran this racket from a jail, speaks to the audacity of the crime. Today, this scheme of swindling New York City Diamond District merchants and others is over.”
FDC Secretary Julie L. Jones said: “The apprehension and arrest of the six defendants in this case represents what can be achieved through cooperation and collaboration between law enforcement agencies, regardless of their location. The Department is proud of its investigative contribution and will continue its efforts in ensuring not only the safety of Florida’s citizens, but the freedom to safely and securely conduct business in our state.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
From at least in or about June 2015 to in or about June 2016, JENKINS, BROOKS, COOPER, LARA, GRANT, and CONCEPCION defrauded jewelry merchants in New York City and elsewhere by inducing the merchants to send gemstones, precious metals, and jewelry to them in exchange for counterfeit checks or other fictitious forms of payment.
The defendants contacted jewelry and antiques merchants by telephone, electronic message, and email. In many of these communications, JENKINS masqueraded as representatives of legitimate jewelry companies and, in doing so, often appropriated the names and personal identifying information of real people in order to induce merchants to ship jewelry and precious goods interstate. In the typical scenario, JENKINS, negotiated cash-on-delivery terms of payment from merchants, ensuring both that merchants would not meet any of the defendants in person and that the defendants could pay for the goods by counterfeit and fictitious certified checks. After receiving the merchants’ goods, the defendants typically sold those goods to other jewelry stores.
Contrary to the representations made to the merchants, JENKINS never represented any legitimate jewelry business. In fact, at all relevant times, JENKINS was incarcerated at a Florida state correctional institution, where he was assisted by CONCEPCION, who was also incarcerated at the same institution. BROOKS, COOPER, LARA, and GRANT, who at all relevant times were at liberty in the community, created and delivered counterfeit checks, accepted packages from merchants, and distributed proceeds from the fraud to others in the scheme.
JENKINS, 51 of Indiantown, Florida, BROOKS, 27, of Miramar, Florida; COOPER, 36, of West Palm Beach, Florida; LARA, 41, of Port Saint Lucie, Florida; GRANT, 31, of North Charleston, South Carolina; and CONCEPCION, 46, of Indiantown, Florida, are each charged with one count of conspiring to commit mail and wire fraud, which carries a maximum penalty of 20 years in prison, one count of interstate transportation of stolen property, which carries a maximum penalty of 10 years in prison, and one count of possessing fictitious obligations, which carries a maximum penalty of 25 years in prison. JENKINS is also charged with one count of aggravated identity theft, which carries a mandatory penalty of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
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Mr. Bharara praised the outstanding work of the FBI, the New York FBI’s Eurasian Joint Organized Crime Task Force, CBP, NYPD, and FDC for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Andrew M. Thomas and Karin Portlock are in charge of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Six Individuals Arrested for Carjacking, Hobbs Act, and Firearms OffensesRead the Press Release
SAN JUAN, P.R. – On June 2, 2016, a federal grand jury returned a six-count indictment against six individuals for interference of commerce by threats of violence or Hobbs Act, use of firearms during and in relation to a crime of violence, and carjacking, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The indictment is the result of a joint effort between the United States Attorney’s Office (USAO), the Federal Bureau of Investigation’s Save Our Streets Initiative (SOS) and the Puerto Rico Police Department (PRPD). The FBI’s SOS is one of the various components of the USAO’s Illegal Firearms and Violent Crime Reduction Initiative.
The indictment alleges that on or about April 2, 2016, in the District of Puerto Rico, Joel Miranda-Figueroa, Richard Cruz-Monzón, Felix Tomás Cruz-Carrión, aka “Tomate,” and Jonathan Rodríguez-Díaz, aiding and abetting each other, robbed La Revolución Barber Shop in Arroyo, PR. The defendants, aided and abetted by each other, unlawfully took $705.00, cellular phones, purses and personal belongings threatening employees and clients with firearms in order to commit the robbery.
On April 11, 2016, defendants Miranda-Figueroa, Cruz-Monzón, Bryan Steven Ramos-Marrero, aka “Zurdo,” and Erick Álamo-Rodríguez, aiding and abetting each other, committed carjacking. These four defendants stole a 2000 red Jeep Compass, while using and brandishing a firearm, from the person N.M.M. by threats and violence. On that same day, three of the defendants robbed a Gulf Gas Station/store in Maunabo, PR. The defendants took approximately $3,200 to $3,600, and approximately $66.00 worth in Newport Cigarettes threatening the employees and clients with firearms.
“The investigations by the SOS team of FBI special agents and designated PRPD officers will continue into similar crimes in other areas of Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The collaboration and team work between state and federal law enforcement agencies in the investigation and prompt filing of charges show the immediate results we continue to obtain with this joint initiative.”
“Today’s successful operation should be attributed to the outstanding investigative skills of our partners, the Police of Puerto Rico. Their diligence in tracking down the alleged perpetrators comes not only from a sense of duty, but from their sincere desire to make Puerto Rico a safer place. Regrettably, while these arrests took place, new incidents of carjacking occurred in other parts of the island. Those responsible will soon be brought to justice in the same manner as today’s arrestees. Soon, it will become ever more clear that those who commit or assist in committing a carjacking will have their freedom replaced by a prison cell, for many years,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
The case is being prosecuted by Special Assistant United States Attorney Daynelle M. Álvarez-Lora. If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Shreveport man sentenced to 20 years in prison for methamphetamine chargeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced this week to 240 months in prison for possessing methamphetamine, which he intended to sell.
Lloyd E. Barmore, 34, of Shreveport, was sentenced Monday by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to the January 6, 2016 guilty plea, Louisiana State Police stopped Barmore’s vehicle on July 10, 2014. During a search of the vehicle, 915.2 grams of methamphetamine, a Springfield XD 9 mm handgun, digital scales and $5,914 in cash were found. The methamphetamine belonged to Barmore, and he intended to transfer or deliver it to another person. The driver of the vehicle was 16 years old.
“It is unacceptable that this felon put a child directly in harm’s way to further his continued drug trafficking,” said Finley. “Firearms and drugs are a dangerous combination. Methamphetamine cases are a priority for this office. We will continue to work with our law enforcement partners to investigate and prosecute these cases in an effort to make sure our communities are safe by keeping criminals like Barmore off the street.”
The DEA and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Sex Offender Charged for Failing to Register in MassachusettsRead the Press Release
BOSTON – A Brockton man was charged today in U.S. District Court in Boston for failing to register as a sex offender.
Charles Towers, 52, was indicted on one count of failing to register as a sex offender. In May 2016, Towers was arrested and charged in a criminal complaint.
According to court documents, in October 2009, Towers was convicted in San Diego Superior Court of attempted forcible oral copulation and sentenced to 18 months in jail and ordered to register as a sex offender for life.
Upon release from jail, Towers registered as a sex offender in California. In April 2014, Towers moved from San Diego to Brockton and failed to both notify the San Diego Police Department’s Sex Offender Unit of his change of address and to register as a sex offender with the Massachusetts Sex Offender Registry Board, as he was legally required to do.
The charging statute provides a sentence of no greater than 10 years in prison, a minimum of five years and no longer than a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Serial Fraudster Indicted for Investment Advisor Fraud and Money LaunderingRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging RANDY MILAND, 62, for operating a Ponzi scheme through which he stole or attempted to steal more than $500,000 from purported investors. MILAND made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minn.
“IRS-Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes. We will vigorously pursue those individuals who victimize investors and violate the public trust," said Special Agent in Charge Shea Jones of the IRS-Criminal Investigation Division of the St. Paul Field Office. "The indictment of Randy Miland demonstrates the government's determination to restore and ensure that trust.”
“As the indictment alleges, Randy Miland is a serial scam artist with no regard for his victims,” said Minnesota Commerce Commissioner Mike Rothman. “He used fake investments to steal people’s life savings before, and now he’s done it again. The Commerce Fraud Bureau worked with federal authorities to stop his fraudulent schemes and protect Minnesotans.”
According to the indictment and documents filed in court, in 1999, MILAND was convicted in state court of theft by swindle and ordered to pay more than $1.5 million in restitution to the victims of his scheme. As of May 2016, MILAND still owed to the victims nearly the entire amount.
According to the indictment and documents filed in court, in 2006, MILAND was convicted of fraud in federal court and ordered to pay more than $250,000 in restitution to the victims. As of May 2016, MILAND owed approximately $124,000 in restitution.
According to the indictment and documents filed in court, between 2010 and 2014, MILAND fraudulently solicited approximately $575,000 from investors, telling them that he would use their money to invest in futures and other legitimate investments. Instead, he used their money to pay personal expenses, including court-ordered restitution to victims of his prior scams, and to make Ponzi-type payments to other purported investors.
According to the indictment and documents filed in court, MILAND concealed from the new victims that he had been twice convicted of fraudulent conduct, that he was forbidden by the Minnesota Department of Commerce from offering or selling securities, and that he still owed more than $1.5 million in restitution to victims of prior schemes.
The case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Commerce Fraud Bureau.
Defendant Information:
RANDY MILAND, 62
White Bear Lake, Minn.
Charges:
- Mail fraud, 5 counts
- Money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Sentencings for June 3 - June 7, 2016Read the Press Release
Sean O’Neil, 35, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 3, 2016, for possession of a firearm not registered in the National Firearms Registration and Transfer Record. O’Neil received 12 months and one day imprisonment, to be followed by two years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Herminio Garcia-Reyes, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 3, 2016, for illegal re-entry of a previously deported alien into the United States. Garcia-Reyes was arrested in Cheyenne, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Hilda Mireya Ibarra-Avilez, 43, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Ibarra-Avilez was arrested in Powell, Wyoming. She was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Adrian Diaz-Angeles, 29, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Diaz-Angeles was arrested in Laramie, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Martin Hernandez-Galacias, 32, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Hernandez-Galacias was arrested in Jackson, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Sayre Woman Sentenced to 120 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DIXIE ANN MORPHIS, age 36, of Sayre, Oklahoma, was sentenced to 120 months imprisonment for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A)(viii).
The charge arose from an investigation by the McAlester Police Department and the Drug Enforcement Administration.
The Indictment alleged that on or about December 5, 2015, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of methamphetamine (actual), a Schedule II controlled substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which she will serve her nonparoleable sentence.
Assistant United States Attorney Tim Hammer represented the United States.
Philadelphia Resident Charged with Illegal ReentryRead the Press Release
Jose Alberto Rosario-Morales, a/k/a Miguel Hidalgo-Santos,” a/k/a “Luis Santos,” of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about May 11, 2016, Rosario-Morales, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about November 17, 2010.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a possible fine, a $100 special assessment, and a period of supervised release.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrew J. Schell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Omaha Man Sentenced to 15 Years in Prison for Possession with the Intent to Distribute Methamphetamine while in Possession of a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that Jose Jimenez, 37, of Omaha, Nebraska, was sentenced on June 9, 2016, to 15 years in prison by United States District Judge Joseph F. Bataillon. Jimenez had previously pled guilty to Possession with the Intent to Distribute more than 500 grams of Methamphetamine and Possessing a Firearm in Relation to a Drug Trafficking Crime. Jimenez was arrested and indicted on the charges after Omaha police officers twice utilized a cooperating witness who purchased quantities of methamphetamine from him. On September 29, 2015, officers executed a search warrant at Jimenez’s Omaha residence. Officers found items consistent with the sale of methamphetamine. Jimenez was arrested nearby in his car, a search of which revealed approximately nine pounds of methamphetamine and two firearms.
As a result of possessing more than 500 grams of methamphetamine, Jimenez was sentenced to a mandatory minimum of 10 years in prison, with an additional 5 years for possession of a firearm. After serving his sentence Jimenez will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Omaha Police Department.
Notice of Press ConferenceRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -- United States Attorney Bill Nettles and Fourteenth Circuit Solicitor Duffie Stone will hold a press conference Friday, June 10, 2016 at the Fourteenth Circuit Solicitor’s Office to provide a 6-month update on the partnership between the Fourteenth Circuit Solicitor’s Office and the U.S. Attorney’s Office.
WHEN: Friday, June 10, 2016 TIME: 5:00 PM WHERE:Fourteenth Circuit Solicitor's Office
39 Sheridan Park Circle, Ste. 2
Bluffton, SC 29910NOTE: Press inquiries regarding logistics should be directed to Beth Drake, 803-929-3061. All media must present government-issued photo id (such as a driver’s license). All media should be in place 20 minutes prior to start. Parking will be available behind the building.
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Norway Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Stephen Bean, 55, of Norway, Maine pled guilty yesterday in U.S. District Court to possessing firearms after being convicted of a felony offense.
According to court records, on November 21, 2015, Maine Game Wardens encountered Bean hunting with two other men in the Paris, Maine area. The other men were carrying a shotgun and a rifle both belonging to and provided by Bean. The weapons were seized. A search of Bean’s residence on January 7, 2016 resulted in the seizure of another shotgun and rifle. Bean was prohibited from possessing firearms as the result of a 2005 felony conviction for operating after revocation in Maine state court.
Bean faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Warden Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Newmarket Man Pleads Guilty to Drug Distribution Causing DeathRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced today that Benjamin Rogers, 31, appeared before United States District Court Chief Judge Joseph Laplante and pleaded guilty to distribution of a controlled substance resulting in death.
According to documents that were filed in United States District Court and statements in the plea proceeding, Rogers worked at a restaurant in Portsmouth, New Hampshire with the victim, Cassie Clermont, 30. On October 17, 2014, Rogers arranged to provide a quantity of drugs to Ms. Clermont. Text messages and witness statements showed that Rogers left the restaurant and later returned to the restaurant parking lot, where he met with Ms. Clermont and provided her with a quantity of drugs. Ms. Clermont later left the restaurant and went to her apartment in Portsmouth. She was found dead the next day, with fentanyl and drug paraphernalia near her body.
The New Hampshire Medical Examiner later found that Ms. Clermont died of acute fentanyl intoxication. New Hampshire has the third-highest rate of per capita drug overdose deaths in the United States. More than half of the drug overdose deaths in New Hampshire in 2015 were the result of fentanyl, either alone or in combination with other drugs.
United States Attorney Rice said, “I want to thank the Portsmouth Police Department, the Drug Enforcement Administration, the Newmarket Police Department, the New Hampshire Medical Examiner’s Office and the Rockingham County Attorney’s Office for their work on this case. Fighting the opioid epidemic is a multi-pronged, team effort. One facet of our attack is to prosecute those who are criminally responsible for causing drug overdoses. We will continue to work with law enforcement agencies to identify and prosecute the individuals who distribute drugs that cause overdose deaths. Any drug distribution has the potential to be deadly, regardless of the quantity of drugs involved. When a drug distribution causes an overdose death, my office will seek to hold the distributor accountable.”
In April 2016, the United States Attorney’s Office and the New Hampshire Attorney General’s Office announced the formation of an inter-office team of prosecutors who will work together to prosecute individuals who cause opiate overdoses in New Hampshire. This prosecution, initiated before the creation of the joint team, is an example of the type of case that will be generated by the team.
The case was prosecuted by Assistant United States Attorney John J. Farley.
A sentencing hearing has been scheduled for September 19, 2016.
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New York woman pleads guilty to credit card fraudRead the Press Release
CHARLESTON, W.Va. – A New York City woman pleaded guilty yesterday to credit card fraud, announced Acting United States Attorney Carol Casto. Nayosha Aice, 25, entered her guilty plea to the felony offense of possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered to contain stolen account information that is magnetically re-encoded on the credit card.
Aice admitted that she, along with a codefendant, possessed 78 counterfeit access devices. Aice drove from New York City, using these counterfeit credit cards to buy cartons of Newport cigarettes and other merchandise. She was observed at the St. Albans Go-Mart using multiple counterfeit cards on June 25, 2015, and after noticing the suspicious behavior, store employees contacted law enforcement. Once observed by police, Aice attempted to throw the credit cards away in a nearby store. Officers recovered the credit cards and subsequently confirmed that the credit cards were counterfeit access devices.
Aice faces up to 10 years in federal prison and a $250,000 fine when she is sentenced on September 15, 2016. Her codefendant, Sasha Nelson, is scheduled for trial on June 21, 2016. Nelson is presumed innocent unless and until proven guilty in a court of law.
The St. Albans Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorneys Erik S. Goes and Eric Bacaj are in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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New York Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JORDAN ANATE, also known as “Pills” and “Che Pills,” 25, most recently of the Bronx, N.Y., pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, on March 5, 2015, East Hartford Police encountered an underage girl in a room at a local motel. The victim stated that she had met ANATE in New York and that, beginning in approximately December 2014, she had engaged in acts of prostitution at ANATE’s direction in various locations, including multiple trips to Connecticut.
The investigation revealed that the victim was prostituted by ANATE at hotels in Hartford, Manchester, New Britain and East Hartford. The victim had seen several clients per week, giving all of the money to ANATE.
In pleading guilty, ANATE admitted that he knew the victim was under the age of 18.
“The sex trafficking of minors is a form of modern day slavery,” said U.S. Attorney Daly. “This defendant victimized a young runaway; a girl he knew was under the age of 18. I thank the FBI and East Hartford Police Department for investigating this matter, recovering this victim, and preventing this defendant from victimizing any other girls or women for at least the next 10 years.”
Judge Bryant scheduled sentencing for September 14, 2016, at which time ANATE faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
ANATE has been detained since his arrest on March 5, 2015.
This matter has been investigated by the Federal Bureau of Investigation and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
Navajo Man from Standing Rock, N.M., Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Julius H. Willie, 30, an enrolled member of the Navajo Nation who resides in Standing Rock, N.M., pled guilty this morning in Albuquerque, N.M., to an aggravated sexual abuse charge. Under the terms of his plea agreement, Willie will be sentenced to 21 years in federal prison followed by a term of supervised release to be determined by the court. Willie will also be required to register as a sex offender after he completes his prison sentence.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Director Jesse Delmar of the Navajo Nation Division of Public Safety, and Chief Robert Cron of the Gallup Police Department.
Willie was charged in April 2014, in a five-count indictment with kidnapping, three counts of aggravated sexual abuse, and abusive sexual contact. According to the indictment, Willie committed the crimes on Aug. 26, 2012, on the Navajo Indian Reservation in McKinley County, N.M. He was transferred to federal custody on April 24, 2014, from state custody where he had been held for two years on related state charges.
During today’s proceedings, Willie pled guilty to Count 2 of the indictment charging him with aggravated sexual abuse. In entering the guilty plea, Willie admitted that on Aug. 26, 2012, he forced the victim to engage in a sexual act.
Willie’s sentencing hearing has yet to be scheduled. According to the plea agreement, Willie’s 21-year prison sentence will begin on the date of sentencing.
The Crownpoint office of the Navajo Nation Division of Public Safety, the Gallup office of the FBI and the Gallup Police Department investigated this case.
Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback are prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Multi-Convicted Felon Sentenced to More Than Two Decades in Federal Prison for Trafficking Drugs and Possessing FirearmsRead the Press Release
SAVANNAH, GA: Darius Andre “Arnie” Holmes, 41, of Savannah, Georgia, was sentenced yesterday by U.S. District Judge William T. Moore, Jr. to serve 262 months in federal prison for trafficking heroin and unlawfully possessing firearms. After Holmes completes his nearly 22-year prison term, he will be supervised by the United States Probation Office for an additional five years. Parole has been abolished in the federal system.
According to the evidence presented at trial, Holmes sold heroin to a confidential police informant on multiple occasions in August 2015. After one such sale, Holmes told the informant he wanted to buy firearms. Agents of the Chatham-Savannah Counter Narcotics Team (CNT) and the ATF then organized a sting operation during which Holmes exchanged drugs with an undercover officer for semiautomatic weapons. With assistance from the Savannah-Chatham Metropolitan Police Department SWAT team, Holmes was arrested immediately following the trade.
At sentencing, the Court noted that, Holmes had been convicted of more than 35 felony offenses over the course of nearly 25 years. Many of Holmes’ crimes involved drugs, guns, and violence, and all of them were perpetrated in the Savannah area.
U.S. Attorney Edward Tarver said, “This defendant’s more than two-decade prison sentence is an appropriate response to the offenses he committed and his history of crime in the Savannah community. The Department of Justice will continue to apprehend and prosecute criminals who terrorize our communities with violence, guns and drugs. There should be no doubt that if you’re a felon with a gun or even one bullet; or if you’re pushing poison in our streets, you’ll soon be headed to a federal prison, far, far away and for a very long time.”
The U.S. Attorney’s Office prosecuted Holmes as part of Project Ceasefire, a joint federal, state and local initiative to combat gun violence and ensure that repeat offenders are subjected to stiff federal prison sentences.
Assistant United States Attorneys Joseph D. Newman and Theodore S. Hertzberg prosecuted the case on behalf of the United States. The Georgia Bureau of Investigation and the Chatham County Sheriff’s Office also provided support to the ATF/CNT/SCMPD investigation. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Miami-Dade County Resident Convicted of Distributing and Possessing Child PornographyRead the Press Release
A Miami-Dade County resident was convicted at trial yesterday of distributing and possessing child pornography.
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.
Anthony Daron Johnson, 43, of Miami-Dade, was convicted by United States District Judge Ursula Ungaro of distribution of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1), and possession of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). Johnson is scheduled to be sentenced on September 2, 2016 at 1:30 p.m.
According to court documents and evidence presented at trial, between May 23, 2012 and September 21, 2014, Johnson used a peer-to-peer file-sharing program to download hundreds of child pornography files, including videos and still images. On June 8, 2014, law enforcement downloaded one complete file and one partial file from Johnson, both of which contained images of minors engaged in sexually explicit conduct. On November 20, 2014, law enforcement executed a federal search warrant at Johnson’s residence and recovered a computer containing two hundred still images and three videos of children engaged in sexually explicit conduct.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys Joshua Rothstein and Jonathan Kobrinski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Miami Man Sentenced to 144 Months in Prison for Role in Multimillion-Dollar Scheme to Defraud Commercial Lenders and U.S. Export-Import BankRead the Press Release
A Miami man was sentenced today to 12 years in prison for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM Bank) out of more than $11 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Inspector General Michael McCarthy of EXIM Bank made the announcement.
Guillermo A. Sanchez-Badia, 61, was sentenced today by U.S. District Judge Joan A. Lenard of the Southern District of Florida, who also sentenced Sanchez-Badia to three years of supervised release and ordered him to forfeit $41,924,418 and pay $11,503,068 in restitution, joint with co-conspirators Isabel C. Sanchez and Gustavo Girol. Sanchez-Badia pleaded guilty on March 21, 2016, to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering.
Sanchez-Badia admitted that from 2007 through 2012, he and his co-conspirators utilized companies that they controlled to create fictitious invoices for sales of merchandise that never occurred. These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices. Sanchez-Badia admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices.
Sanchez-Badia admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM. Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez-Badia and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, he admitted. The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing losses of more than $9 million to the lenders and $2 million to the United States.
Five other individuals have been convicted for their roles in this scheme: Sanchez, 36, and Giral, 38, both of Miami, who await sentencing; and Freddy Moreno-Beltran, 43, of Bogota, Colombia. Ricardo Beato, 62, of Miami, and Jorge Amad, 48, of Miramar, Florida, were separately charged, pleaded guilty and have been sentenced for their roles in the scheme.
The EXIM Office of Inspector General investigated the case. Trial Attorney William Bowne and Senior Litigation Counsel Patrick Donley of the Criminal Division’s Fraud Section prosecuted the case.
Miami Man Sentenced to 144 Months in Prison for Role in Multimillion-Dollar Scheme to Defraud Commercial Lenders and U.S. Export-Import BankRead the Press Release
A Miami man was sentenced today to 12 years in prison for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM Bank) out of more than $11 million.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector General Michael McCarthy of EXIM Bank made the announcement.
Guillermo A. Sanchez-Badia, 61, was sentenced today by U.S. District Judge Joan A. Lenard of the Southern District of Florida, who also sentenced Sanchez-Badia to three years of supervised release and ordered him to forfeit $41,924,418 and pay $11,503,068 in restitution, joint with co-conspirators Isabel C. Sanchez and Gustavo Girol. Sanchez-Badia pleaded guilty on March 21, 2016, to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering.
Sanchez-Badia admitted that from 2007 through 2012, he and his co-conspirators utilized companies that they controlled to create fictitious invoices for sales of merchandise that never occurred. These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices. Sanchez-Badia admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices.
Sanchez-Badia admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM. Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez-Badia and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, he admitted. The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing losses of more than $9 million to the lenders and $2 million to the United States.
Five other individuals have been convicted for their roles in this scheme: Sanchez, 36, and Giral, 38, both of Miami, who await sentencing; and Freddy Moreno-Beltran, 43, of Bogota, Colombia. Ricardo Beato, 62, of Miami, and Jorge Amad, 48, of Miramar, Florida, were separately charged, pleaded guilty and have been sentenced for their roles in the scheme.
The EXIM Office of Inspector General investigated the case. Trial Attorney William Bowne and Senior Litigation Counsel Patrick Donley of the Criminal Division’s Fraud Section prosecuted the case.
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
Mexican National Convicted of Operating Methamphetamine Lab in FresnoRead the Press Release
FRESNO, Calif. — On Wednesday, after a two-day trial, a jury found Humberto Bucio Delgado, 41, of Mexico, guilty of conspiracy to distribute methamphetamine and possession with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on September 30, 2014, Delgado was arrested at a methamphetamine conversion lab inside a Fresno residence. Agents recovered over 60 pounds of methamphetamine from the house as well as materials used in the manufacturing and distribution of methamphetamine.
Sentencing is set for August 29, 2016, before Chief United States District Judge Lawrence J. O’Neill. Delgado faces a sentence of 10 years to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Fresno Methamphetamine Task Force, the California Department of Justice, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Kathleen A. Servatius and Daniel J. Griffin are prosecuting the case.
Marathon Petroleum Company to Reduce Air Pollution from Refineries in Five StatesRead the Press Release
The U.S. Environmental Protection Agency (EPA) and the Department of Justice today announced an agreement with Ohio-based Marathon Petroleum Company that will reduce air pollution from the company’s petroleum refineries in Illinois, Kentucky, Louisiana, Michigan and Ohio. Marathon will spend $319 million to install state-of-the-art Flare Gas Recovery Systems (FGRSs), which will capture and recycle gases that would otherwise be sent to combustion devices known as flares. Marathon will also spend $15.55 million on projects to reduce air pollution at three of the facilities and will pay a civil penalty of $326,500 to the United States.
“This agreement continues the significant pollution reductions achieved under our earlier consent decree with Marathon in 2012,” said John C. Cruden, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “All five communities near these refineries will breathe cleaner air as a result of this agreement and Detroit will see a reduction in flaring at the refinery’s fence line.”
“When companies like Marathon install state-of-the-art pollution controls, they reduce air pollution in some of our most vulnerable communities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “By updating this agreement, we are furthering our commitment to protect communities across the Southeast and the Midwest, especially places like Detroit that are overburdened by pollution.”
“This agreement marks significant progress in environmental justice in southwest Detroit,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “It shows that industry can thrive while protecting the environment. By investing in technology, Marathon will improve air quality for all of our residents throughout southeastern Michigan.”
The settlement filed today in the U.S. District Court in Detroit amends a 2012 consent decree involving the company’s flares. A flare is a mechanical device, ordinarily elevated high off the ground, used to combust waste gases.
When fully implemented, today’s agreement is expected to reduce harmful air pollutants like volatile organic compounds (VOCs), sulfur dioxides (SO2) and nitrogen oxides (NOx) by approximately 1,037 tons per year. In 2012, Marathon agreed to reduce air pollution from flares by generating less waste gas and by installing equipment designed to make flares burn more efficiently. The 2012 settlement has reduced emissions of VOCs and SO2 by over 5,200 tons per year.
Under the agreement filed today, Marathon will install seven FGRSs at an estimated cost of $319 million at five of its refineries located in Canton, Ohio; Catlettsburg, Kentucky; Detroit; Garyville, Louisiana; and Robinson, Illinois. Marathon will be required to operate these FGRSs at a higher percentage of time than EPA has ever secured in prior enforcement actions. Marathon will also maintain two duplicates of a critical spare part to be delivered immediately to any of these refineries as necessary, to help make sure the FGRSs have minimal downtime.
Marathon will also spend approximately $6 million to shut down a flare at the fence line of its Detroit refinery and $9.55 million on projects to reduce NOx emissions at its Canton and Garyville refineries.
By installing advanced pollution controls at its refineries, Marathon will help reduce emissions that can cause respiratory and cardiovascular health impacts, which can disproportionately affect low-income and vulnerable populations, including children.
Under the settlement, some of Marathon’s obligations under the 2012 agreement to ensure high flare combustion efficiency will eventually be replaced by Marathon’s obligation to comply with a new, 2015 EPA rule on flare combustion efficiency. At four refineries, compliance with an EPA flare standard related to SO2 will be extended for a limited period. The projected temporary increase in pollution related to those extensions will be more than offset by contemporaneous decreases that will continue indefinitely.
The consent decree – subject to a 30-day public comment period and final court approval – is available at: www.justice.gov/enrd/.
To learn more about the settlement, visit: https://www.epa.gov/enforcement/first-amendment-2012-us-v-marathon-petroleum-co-clean-air-act-consent-decree
To learn more about EPA’s civil enforcement of the Clean Air Act, visit: https://www.epa.gov/enforcement/air-enforcement.
To learn more about EPA’s refinery initiative, visit: https://www.epa.gov/enforcement/petroleum-refinery-national-case-results.
MPC First Amendment to Consent Decree
Manhattan U.S. Attorney Sues New York City Department of Education for Discrimination and Retaliation at Pan American International High SchoolRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a lawsuit against the NEW YORK CITY DEPARTMENT OF EDUCATION (the “DOE”) for engaging in a pattern and practice of discrimination and retaliation in violation of Title VII. The Government alleges that during the 2012-2013 school year, the DOE permitted Principal Minerva Zanca and Superintendent Juan Mendez to discriminate against every black teacher at Pan American International High School (“Pan American”) and retaliate against an assistant principal who spoke out against the discrimination.
Manhattan U.S. Attorney Preet Bharara said: “It is nearly unthinkable that, in this day and age, one of the largest and most diverse school districts in the United States would allow racial discrimination and retaliation to flourish. Yet that is what we allege happened at Pan American International High School. Federal civil rights laws prohibit this misconduct. This suit seeks to remedy the violations that occurred at Pan American and ensure that the New York City Department of Education protects its employees’ civil rights in the future.”
As alleged in the Complaint filed in Manhattan federal court:
In August 2012, Superintendent Mendez selected Minerva Zanca as Pan American’s new principal. During the 2012-2013 school year, Pan American employed 27 teachers, three of whom were black. Throughout that school year, Principal Zanca purposely targeted John Flanagan and Heather Hightower, two untenured black teachers, for unsatisfactory lesson ratings. According to Assistant Principal Anthony Riccardo, Principal Zanca decided to give Mr. Flanagan and Ms. Hightower unsatisfactory ratings before she had seen the lesson she was supposed to evaluate.
In connection with her reviews of Mr. Flanagan and Ms. Hightower, Principal Zanca made derogatory racial comments to Assistant Principal Riccardo. Specifically, Principal Zanca stated that Hightower “looked like a gorilla in a sweater,” asked whether Assistant Principal Riccardo had seen Flanagan’s “big lips quivering” during a meeting, complained that she could “never” have “fucking nappy hair” like Hightower, and stated that she had difficulty not laughing at Flanagan because he reminded her of a Tropicana commercial where a black man “with those same lips” danced down a supermarket aisle.
Principal Zanca also discriminated against Lisa-Erika James, a tenured black teacher, by cutting the highly successful theater program Ms. James oversaw. On multiple occasions during the 2012-2013 school year, Principal Zanca attempted to cancel student productions. First, she refused to pay for expenses associated with a production. When money for the production was obtained from other sources, Principal Zanca then claimed that the school could not pay overtime wages for more than five hours of rehearsal per week. Pan American in fact had sufficient money to pay for more rehearsal, and Principal Zanca simply reallocated that money to other projects. Ultimately, the second student production of the 2012-2013 school year was cancelled.
During the spring of 2013, when Assistant Principal Riccardo refused to give an unsatisfactory rating to a lesson taught by Ms. Hightower, Principal Zanca yelled at Assistant Principal Riccardo, accused him of “sabotaging her plan,” and called school security to have him removed from the building. Subsequently, Principal Zanca initiated two complaints against Assistant Principal Riccardo with the DOE’s internal investigatory offices. Those offices determined that Principal Zanca’s allegations did not warrant any charges against Assistant Principal Riccardo. In June of 2013, Principal Zanca gave Assistant Principal Riccardo, Mr. Flanagan, and Ms. Hightower annual performance ratings of “unsatisfactory.”
The allegations that Principal Zanca engaged in discrimination and retaliation were brought to the attention of Superintendent Mendez, but the DOE did not take any disciplinary action against Principal Zanca. Even after the United States Equal Employment Opportunity Commission found reasonable cause to believe that the DOE had discriminated and retaliated against James, Riccardo, and Hightower, Principal Zanca was allowed to remain in charge of Pan American. Neither Ms. Hightower, Mr. Flanagan, Ms. James, nor Mr. Riccardo worked at Pan American after the 2012-2013 school year.
Title VII authorizes the Department of Justice to commence an action in the United States District Court against the DOE to remedy discrimination and retaliation for opposing discrimination. The Complaint seeks declaratory and injunctive relief, as well as compensatory damages on behalf of Mr. Flanagan, Ms. James, Ms. Hightower, and Assistant Principal Riccardo.
In October of 2013, Mr. Flanagan filed a lawsuit against the DOE, Principal Zanca, Superintendent Mendez, and others. That suit was docketed as Flanagan v. N.Y.C. Dep’t of Educ. et al., No. 13 Civ. 8456. On August 21, 2015, Magistrate Judge James C. Francis IV recommended the denial of Defendants’ motion for summary judgment on Mr. Flanagan’s Title VII claims for discrimination and retaliation. The DOE has not objected to Judge Francis’s recommendation, and the deadline for doing so has expired. The United States anticipates moving to intervene in Flanagan and to consolidate that case with its own.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Caleb Hayes-Deats is in charge of the case.
Manhattan U.S. Attorney Announces Extradition of Defendants Linked to Massive Network Intrusions at U.S. Financial Institutions, U.S. Brokerage Firms, A Major News Publication, and Other Companies in Furtherance of Securities Fraud Scheme and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and David E. Beach, Special Agent in Charge of the U.S. Secret Service New York Field Office (“USSS”), announced today that GERY SHALON, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham,” and ZIV ORENSTEIN, a/k/a “Aviv Stein,” a/k/a “John Avery,” were extradited from Israel. SHALON and ORENSTEIN were arrested in July 2015 for charges arising out of SHALON’s orchestration of massive computer hacking crimes against U.S. financial institutions, brokerage firms, and financial news publishers, including the largest theft of customer data from a U.S. financial institution in history. SHALON is charged with committing these crimes with JOSHUA SAMUEL AARON, a/k/a “Mike Shields,” in furtherance of securities market manipulation schemes that SHALON and AARON perpetrated with defendant ORENSTEIN. SHALON, a Georgian and Israeli citizen, and ORENSTEIN, an Israeli citizen, arrived in the Southern District of New York last night and early this morning, respectively, and will be presented today in Manhattan federal court, before U.S. Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Preet Bharara said: “Gery Shalon and Ziv Orenstein, two of the alleged perpetrators of the cybercrime that we described at the time of their arrests as securities fraud on cyber steroids, have been successfully extradited from Israel to the United States. For the alleged hacks into numerous U.S. companies, including the largest theft of customer data from a U.S. financial institution in history, in furtherance of their securities fraud, Sharon and Orenstein will now face prosecution in a U.S. court.”
SHALON and ORENSTEIN were arrested by Israeli authorities in July 2015, pursuant to a provisional arrest warrant that was issued on the securities fraud charges in this case. AARON, a U.S. citizen, has yet to be arrested by U.S. authorities.
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The charges in the Indictment against SHALON, 31, of Savyon, Israel, AARON, 31, a U.S. citizen who is believed to reside in Moscow, Russia, and ORENSTEIN, 40, of Bat Hefer, Israel, are included in the chart below. The maximum potential sentences listed below are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the United States Secret Service, and expressed his sincere gratitude to the Office of the State Attorney of the Israel Ministry of Justice’s Department of International Affairs and the Israel National Police, including its Cyber Unit - Lahav 433, for their support and assistance with the investigation and the extradition proceedings. He also thanked the Securities and Exchange Commission, Immigration and Customs Enforcement - Homeland Security Investigations, the Financial Industry Regulatory Authority, the National Credit Union Administration, the Office of International Affairs of the U.S. Department of Justice, the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information-sharing among the victim institutions, and the U.S. Marshals Service, for their assistance in the extradition of the defendants.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi and Sarah Lai are in charge of the prosecution. Assistant U.S. Attorney Edward Diskant of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Count
Defendants
Charge
Maximum Prison Term
One
SHALON and AARON
Conspiracy to commit computer hacking
Five years
Two
SHALON and AARON
Computer hacking
Five years
Three
SHALON and AARON
Computer hacking
Five years
Four
SHALON, AARON, and ORENSTEIN
Conspiracy to commit securities fraud
Five years
Five
SHALON, AARON, and ORENSTEIN
Conspiracy to commit wire fraud: Securities Market Manipulation Scheme
20 years
Six
SHALON, AARON, and ORENSTEIN
Securities fraud
20 years
Seven
SHALON, AARON, and ORENSTEIN
Eight
SHALON, AARON, and ORENSTEIN
Nine
SHALON, AARON, and ORENSTEIN
10
SHALON, AARON, and ORENSTEIN
11
SHALON, AARON, and ORENSTEIN
12
SHALON, AARON, and ORENSTEIN
13
SHALON, AARON, and ORENSTEIN
Wire fraud
20 years
14
SHALON, AARON, and ORENSTEIN
Conspiracy to commit identification document fraud
15 years
15
SHALON, AARON, and ORENSTEIN
Aggravated identity theft
Mandatory two years
16
SHALON and ORENSTEIN
Unlawful internet gambling enforcement act conspiracy
Five years
17
SHALON and ORENSTEIN
Unlawful internet gambling enforcement act
Five years
18
SHALON and ORENSTEIN
Operation of illegal gambling business
Five years
19
SHALON and ORENSTEIN
Conspiracy to commit wire fraud: unlawful payment processing
20 years
20
SHALON
Conspiracy to operate an unlicensed money transmitting business
Five years
21
SHALON
Operation of an unlicensed money transmitting business
10 years
22
SHALON, AARON, and ORENSTEIN
Conspiracy to commit money laundering: Securities Market Manipulation Scheme
20 years
23
SHALON and ORENSTEIN
Conspiracy to commit money laundering: Internet Gambling and Payment Processing Schemes
20 years
Manhattan U.S. Attorney Announces $54 Million Settlement Against Salix Pharmaceuticals for Using “Speaker Programs” as Mechanism to Pay Illegal Kickbacks to Doctors to Induce Them to Prescribe Salix ProductsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”), and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today a $54 million settlement in a civil fraud lawsuit against SALIX PHARMACEUTICALS, INC. (“SALIX”), a specialty pharmaceutical company based in Raleigh, North Carolina, that sells products used to treat various gastroenterology conditions. The settlement resolves claims that SALIX violated the federal Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe SALIX drugs and medical devices that were reimbursed by federal health care programs. Specifically, the United States’ Complaint-in-Intervention alleges that SALIX held sham speaker programs, frequently at high-end restaurants, where doctors were paid substantial honoraria purportedly to educate other doctors about a Salix product, but in reality spent little or no time discussing the product. The settlement will also resolve numerous state law civil fraud claims.
Today, U.S. District Court Judge Denise L. Cote approved a settlement stipulation to resolve the Government’s claims against SALIX. Under the settlement, SALIX is required to pay approximately $46.53 million to the United States and has made extensive admissions regarding its conduct. Further, as part of the settlement, SALIX will pay approximately $7.47 million to resolve the state law civil fraud claims.
Manhattan U.S. Attorney Preet Bharara said: “For years, Salix Pharmaceuticals unlawfully sought to increase prescriptions of its products by using its ‘speaker programs’ as a vehicle to pay kickbacks to doctors. Through these ‘speaker programs,’ which were frequently nothing more than social gatherings with little or no educational component, Salix found a way to pay doctors money and treated them to fancy meals to push their drugs. With today’s settlement, Salix has taken responsibility for its conduct and agreed to pay a significant financial penalty. This action and settlement is part of our continuing effort to pursue health care providers who put their profits ahead of patient safety.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “When Salix Pharmaceuticals paid doctors large sums of money to speak at programs that were primarily social events, the goal was to induce the doctors to prescribe Salix products and enhance the company’s bottom line. We will continue to investigate such illegal arrangements that undermine impartial medical judgment and place company interests above those of patients.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Salix used high priced meals at swanky restaurants to get doctors to push its products. Whether those doctors actually prescribed those medications, the simple idea behind the pitch eats away at the faith patients have in their doctors to put their health and wellbeing above the interests of a corporation. The FBI and our partners will do all that we can to keep these practices from doing more harm than good.”
As alleged in the Complaint-in-Intervention filed in Manhattan federal court:
During the period January 2009 through December 2013 (the “Covered Period”), many of SALIX’s speaker programs for Xifaxan, Apriso, Relistor, MoviPrep, OsmoPrep, Solesta, and Deflux (the “Covered Products”) were nothing more than social events at which SALIX wined and dined doctors to induce them to write prescriptions for these products. These speaker programs included both in-person events (at which both the speaker and the attendees were present in person and the speaker was paid to provide an educational talk on a Covered Product to the attendees using a slide presentation), as well as pre-recorded events (at which a SALIX employee was supposed to use a laptop or other device to play for the attendees a pre-recorded video of a doctor delivering a slide presentation, and then call the paid speaker, who was to be available to answer any questions by telephone).
The speaker programs, which were typically held in restaurants, were supposed to be educational in nature and the cost of the meal was supposed to be modest. But in practice, SALIX held many speaker programs that were primarily social in nature, including events where it repeatedly invited the same doctors, who frequently were from the same practice or otherwise knew each other, to attend the same exact program on the same exact topic. With respect to the pre-recorded programs – which SALIX personnel internally referred to as “doc-in-the-box programs” – the pre-recorded video frequently was not played or was intentionally played in a manner so it could be ignored. SALIX also held many speaker programs at very expensive, high-end restaurants.
The doctors whom SALIX paid to be speakers and whom SALIX invited to its events were often the high prescribers of its products or were viewed as having the potential to be high prescribers. Many of these doctors increased their prescription-writing for the Covered Products after becoming speakers and/or repeatedly attending sham speaker programs. During the Covered Period, SALIX spent approximately $25 million on speaker payments and meals.
As part of the settlement, SALIX admitted, acknowledged, and accepted responsibility for the following conduct:
-
Throughout the Covered Period, speaker programs were an important part of SALIX’s strategy for increasing sales of the Covered Products.SALIX conducted approximately 10,000 speaker programs for the Covered Products, including approximately 8,000 programs alone for Xifaxan, Apriso, and Relistor.
-
Speaker honoraria payments for a program ranged from $250 (for a doctor available on call to answer questions associated with a pre-recorded program) to $4,500 (for a doctor who spoke at an in-person program and had a specified level of experience and certain credentials).During the Covered Period, SALIX paid over 500 physicians honoraria for serving as speakers on the Covered Products, with dozens of physicians earning more than $50,000, and several earning more than $100,000.
-
Throughout the Covered Period, SALIX did not have effective mechanisms in place to monitor adequately its speaker programs to ensure compliance with internal policies. For example, there were no effective mechanisms in place to audit speaker programs and insufficient efforts were made to review data and other information on speaker programs to ensure compliance with the company’s internal policies.
-
Throughout the Covered Period, numerous SALIX employees held speaker programs for the Covered Products that were primarily social in nature and/or otherwise did not comply with the company’s internal policies.For example, there were programs where:
-
the designated speaker spent little or no time discussing the Covered Product;
-
the required slide presentation was not shown in its entirety or not at all;
-
doctors attended multiple programs on the same topic (at which the same slide presentation was supposed to have been shown) within a short period of time;
-
the programs were held in the main dining rooms of restaurants or other locations that were not conducive to an educational program;
-
the programs were held at high-end restaurants (such as Nobu and Le Bernardin in New York City), with per-person costs exceeding $200 and even $300;
-
the SALIX sales representative responsible for a program reported that certain physicians had attended the event even though they had not, in order to make the per-person cost of the event appear lower than it actually was;
-
attendees included individuals other than healthcare professionals with a legitimate interest in the scheduled topic, such as a physician’s spouse; and/or
-
the programs were used as an opportunity to provide a physician’s practice (in some cases including administrative staff) with a meal or a happy hour.
-
-
Additionally, with respect to the pre-recorded speaker programs, there were numerous instances where:(1) the SALIX sales representative did not play the pre-recorded presentation; (2) the SALIX sales representative played the pre-recorded presentation but placed the laptop or other viewing device in a location where it could not readily be seen or at a volume at which it could not readily be heard; and/or (3) the designated approved speaker was not called at the end of the pre-recorded presentation but still received an honorarium payment.
In connection with the filing of the lawsuit and settlement, the Government joined two private whistleblower lawsuits that had previously been filed under seal pursuant to the False Claims Act.
* * *
Mr. Bharara thanked HHS’s Office of the Inspector General, the FBI, and the Medicaid Fraud Control Units for Ohio and New York for their investigative efforts and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Christopher B. Harwood are in charge of the case.
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Madison Business Owner and His Brother Sentenced to Prison for Participating in Stolen Property Fraud RingRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that yesterday, James D. Litchfield, 59, owner of Big Jim’s Autorama in Madison, IL, and his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, were both sentenced to prison for their participation in a large stolen property ring. James Litchfield was sentenced to 3 years in prison, while Ryan Litchfield was sentenced to 1 year and 1 day in prison.
The charges arise from an indictment that was returned by a federal grand jury in East St. Louis, IL, on October 20, 2015. The indictment alleges that the leader of this fraud ring, Jason J. Parmeley, 42, formerly of O’Fallon, MO, conducted this fraud scheme from Mexico. According to the indictment, Parmeley used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names of, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, computers, expensive tools, and construction equipment. The indictment charges that, after he placed the orders, Parmeley dispatched drivers to go to the stores and pick up the items. According to the indictment, the items were then sold at prices substantially below retail. The profits were then wire transferred to Parmeley in Mexico.
When he pled guilty on February 11, 2016, James Litchfield admitted that he received numerous truckloads of items which he knew had been obtained by fraud. This fraudulently obtained property included construction equipment, such as Skid Steer Loaders, appliances, such as washing machines, dryers, and refrigerators, and assorted other merchandise, including paint, flooring, and siding. These items were delivered to Big Jim’s Autorama in Madison, IL. James Litchfield admitted that he kept some of these items for his own personal use, but sold other items at prices far below their retail value. He also admitted that he provided two trucks that were used by the co-conspirators to pick up fraudulently ordered items. Finally, James Litchfield admitted that he engaged in money laundering by wire transferring payments for the merchandise to Parmeley in Mexico under fake names. At the sentencing hearing yesterday afternoon, the court found that the amount of stolen property James Litchfield received exceeded $150,000.
Ryan Litchfield also pled guilty on February 11, 2016. During his plea hearing, Ryan Litchfield admitted that he received approximately 20 to 25 truckloads of property and merchandise that had been obtained by fraud. He sold the majority of that merchandise to his friends and business associates. On occasion, Ryan Litchfield sold the items by placing advertisements on websites such as Craig’s List. He also occasionally allowed Parmeley to store items that had been obtained by fraud at his house and rented storage lockers that were used to store property obtained by fraud. The court found that the amount of stolen property received by Ryan Litchfield was approximately $80,000.
The charges contained in the indictment include conspiracy to commit wire fraud, conspiracy to transport property obtained by fraud in interstate commerce, wire fraud, interstate transportation of property obtained by fraud, possession of property obtained by fraud, money laundering, and aggravated identity theft.
In late August of this year, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley is currently in federal custody and is awaiting trial.
In addition to Parmeley and the Litchfields, the indictment charges 12 other individuals with participating in this fraud scheme. Four of those individuals have pled guilty and are awaiting sentencing. The individuals who have pled guilty are: Benedict G. Pellerito, 55, of Troy, MO; Tony G. Robertson, 44, of O’Fallon, MO; Alice J. Hembree, 43, of Moscow Mills, MO; and Nicholas A. Brockman, 20, of Wentzville, MO. The trial of Parmeley and the remaining eight defendants is currently scheduled to begin on August 22, 2016. Those eight defendants are: Angel Speed, 25, formerly of O’Fallon, MO; Sean A. Shields, 47, of Ozark, MO; Shannan Flora, 41, of Vienna, IL; Steven J. Belcher, 44, of Wentzville, MO; Jesse S. Urias, 36, of Los Angeles, CA; Rigoberto Gutierrez, 26, of Compton, CA; Russell J. Witt, 33, of New Baltimore, MI; and Bryce E. Atkinson, 21, of Lake Saint Louis, MO.
Note: As to those defendants who are awaiting trial, the law presumes them to be innocent unless they are proven guilty beyond a reasonable doubt.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force and the California Highway Patrol. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Lovington Man Sentenced to 84 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jose Antonio Rodriguez, 42, of Lovington, N.M., was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to 84 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Rodriguez was arrested in Sept. 2015, and charged in a criminal complaint with conspiracy and possession of methamphetamine with intent to distribute. According to the complaint, Rodriguez was arrested on Sept. 3, 2015, in Doña Ana County, N.M., after U.S. Border Patrol agents at the Border Patrol Checkpoint on Interstate 10 in Las Cruces found 44.6 grams of methamphetamine in his vehicle during a routine inspection.
On Dec. 18, 2015, Rodriguez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and admitted possessing 44.6 grams of methamphetamine. Rodriguez acknowledged that he intended to sell the methamphetamine to others.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Selesia L. Winston prosecuted the case.
Lindenhurst Man Detained in Federal Custody for Allegedly Constructing Potentially Destructive Pipe BombsRead the Press Release
CHICAGO — A man who allegedly manufactured explosive devices and kept them in the bedroom of his Lindenhurst home was ordered detained in federal custody today.
U.S. Magistrate Judge Sidney Schenkier ordered MICHAEL SUOPYS, 28, held without bond on a charge of knowingly possessing an unregistered destructive device. A detention hearing is scheduled for June 15, 2016, at 10:30 a.m.
A federal criminal complaint alleges that Suopys built two pipe bombs by filling a metal pipe with Nitrocellulose and adding a wick. Suopys was also charged in Lake County Circuit Court with possessing bombs containing an explosive substance, which is a Class 3 felony. The state charge was dismissed this morning.
“Thankfully, law enforcement at the federal, state and local level was able to identify and safely interrupt the threat described in the complaint,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “The Federal Bureau of Investigation, Lake County State’s Attorney’s Office and Lindenhurst Police Department are to be commended for their diligence and collaboration in this investigation.”
The federal complaint was announced by Mr. Fardon, along with Michael J. Anderson, Special Agent in Charge of the Chicago office of the FBI; Michael G. Nerheim, Lake County State’s Attorney; and Tom Jones, Chief of the Lindenhurst Police Department.
The federal charge carries a maximum sentence of ten years in prison and a fine of up to $250,000.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Matthew Hiller.
Leander Doctor Pleads Guilty to Illegal Prescription Drug DistributionRead the Press Release
In Austin this afternoon, Leander physician 47–year-old Ronald Michael Mansolo pleaded guilty to writing prescriptions for controlled substances without a legitimate medical purpose announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Appearing before United States Magistrate Judge Mark Lane, Dr. Mansolo pleaded guilty to one count of unlawful dispensing of controlled substances. By pleading guilty, Dr. Mansolo admitted that from January 2009 to August 2013, he knowingly dispensed controlled substances including brand name and generic Ritalin, Adderall and Focalin as well as hydrocodone, Carispodol and Xanax without a legitimate medical purpose and outside the usual course of professional practice.
According to the court records, Dr. Mansolo operates Leander Primary Care and used to operate RapidCare, an afterhours pain management clinic in Cedar Park, TX. Throughout the time of the offense, Dr. Mansolo wrote and issued numerous unlawful prescriptions knowing that such practice could result in dependence and addiction. Dr. Mansolo prescribed excessive amounts to certain patients knowing that they would either abuse the controlled substances personally or subsequently distribute the controlled substances to other individuals. Contrary to accepted medical practice, Dr. Mansolo prescribed controlled substances to patients without first conducting a physical examination in order to verify the patient’s claimed illness or condition; without reviewing patients’ drug screen tests; or, despite obvious indications that the patients were abusing, misusing, or distributing the controlled substances he prescribed.
Dr. Mansolo faces up to two years in federal prison. He remains on bond pending sentencing later this year before United States District Judge Lee Yeakel in Austin.
This investigation is being conducted by the Drug Enforcement Administration Diversion Unit. Assistant United States Attorney Douglas Gardner is prosecuting this case on behalf of the Government.
Leader of Washington, D.C. Metro Area Drug Trafficking Organization Sentenced to over 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Marvin Taaff, age 29, of Takoma Park, Maryland, today to 140 months years in prison followed by five years of supervised release for conspiring to possess with intent to distribute five kilograms or more of cocaine, cocaine base and 100 kilograms or more of marijuana.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from April to October 2013, Taaff distributed cocaine base (crack cocaine) during several controlled purchases with a law enforcement source. Further investigation revealed that Taaff was a significant local distributor of marijuana, cocaine and cocaine base. Taaff, who was a leader of the drug operation in Maryland, coordinated the shipments of controlled substances from sources within and outside Maryland, including Arizona. He directed other members of his drug trafficking organization to provide locations to store and distribute drugs.
On December 5, 2013, search warrants were executed at several locations in and around Prince George’s and Montgomery Counties, and in Tucson, Arizona, including Taaff’s residence and the residences of his co-conspirators. Narcotics, drug paraphernalia, shipping materials, cash, and firearms were seized from locations associated with the conspiracy. Law enforcement seized a .38 caliber revolver with an obliterated serial number and a loaded 9mm pistol; ammunition; a quarter ounce of suspected powder cocaine; and drug paraphernalia, from Taaff’s residence.
The investigation revealed that Taaff conspired with members of his drug trafficking organization to distribute over five kilograms of cocaine, between 196 and 280 grams of cocaine base, and at least 100 kilograms of marijuana.
Phillip Bingham, age 56, of Tucson, Arizona; Mahmood Hussain, age 31, of Laurel, Maryland; Fernando Gastellum-Rivas, age 43, of Tucson; and Annis Attar, age 30, of Largo, Maryland, previously pleaded guilty to their roles in the conspiracy and were sentenced to 11 years in prison, 10 years in prison, 42 months in prison, and 40 months in prison, respectively.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department, Maryland National Capital Park Police and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Lindsay Eyler Kaplan, who prosecuted the case.
Keshena Man Indicted on Assault ChargeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 7, 2016, a federal grand jury returned a one-count indictment against Jeremy M. Peters (age: 29) of Keshena, Wisconsin, charging him with a count of Assault Resulting in Serious Bodily Injury in violation of 18 United States Code, Sections 113(a)(6) and 1153(a). If convicted of the offense, the defendant faces a sentence of up to 10 years imprisonment, a two hundred and fifty thousand dollar fine, and up to 3 years of supervised release.
According to the indictment, Peters, who is an enrolled member of the Menominee Indian Tribe of Wisconsin, assaulted another member of the tribe, causing serious injury including a broken facial bone.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Andrew J. Maier.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
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KC Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing Commerce Bank.
David E. Clark, 37, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to five years in federal prison without parole. The court also ordered Clark to pay $3,037 in restitution.
On Dec. 8, 2015, Clark was convicted following a bench trial of stealing $3,037 from Commerce Bank, 118 W. 47th Street, Kansas City.
Clark was wearing an orange construction-type vest when he entered the bank on July 28, 2014. He walked directly towards a teller station and grabbed a note from his pocket. The teller refused to look at the note and asked Clark if he needed help. Clark told the teller to pull out his drawers. When the teller told him the teller drawers were locked, Clark instructed him to get the keys. The teller returned to his teller station, and Clark told him to “give me 100’s, 50’s and 20’s.” The teller grabbed the requested denominations from his teller drawer and gave the money to Clark, who walked swiftly out of the bank’s front door and then ran up Wyandotte Street.
Another bank employee saw Clark go around the corner and then exit a parking garage in a white truck with a concrete company’s sign on the side. Less than half an hour later, police officers located Clark and arrested him after a brief car chase. The stolen money was not recovered at the time of Clark’s arrest.
According to court documents, the owner of the truck told law enforcement investigators that he had driven the vehicle to a meeting earlier that day and offered a ride to Clark, who had done work as an independent contractor for his company. After his meeting he was supposed to take Clark to another location, but when he returned to the parking lot after his meeting, both Clark and his truck were gone.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI and the Kansas City, Mo., Police Department.
KC Man Charged with Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with possessing nearly five kilograms of methamphetamine to distribute. During the law enforcement operation, another individual was fatally shot.
Michael J. Wilkins, 25, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., with possessing methamphetamine with the intent to distribute.
According to an affidavit filed in support of today’s criminal complaint, DEA task force officers were conducting a multi-jurisdictional operation on Wednesday, June 8, 2016. Wilkins, a suspected methamphetamine distributer, was seen leaving his residence in a red 1995 Ford Mustang. Investigators followed Wilkins to a residence in the 300 block of S. Bellefontaine Ave., Kansas City, Mo. Wilkins, the only occupant of the vehicle, was seen carrying a black bag as he walked into the residence.
After a short time, the affidavit says, Wilkins left the residence, carrying the black bag as well as a large white box. Wilkins placed both items in the passenger seat of the Ford Mustang and walked around the rear of the vehicle to the driver’s side door. When law enforcement officers approached him, the affidavit says, Wilkins fled on foot. He was subsequently taken into custody and placed under arrest for fleeing/resisting law enforcement.
During the foot chase of Wilkins, law enforcement officers executed a search warrant at the Bellefontaine residence. That operation led to an hours-long standoff when persons inside the house fired shots at law enforcement officers. When an individual who had fired several shots at officers ran from the house with his rifle aimed at the officers, he was fatally shot.
Officers searched the route where Wilkins had fled, the affidavit says, and found a Citadel M1911-A1 CS handgun. Officers also searched Wilkins’s Ford Mustang and found a white Corona beer box, which contained five gallon-sized plastic bags of methamphetamine. A black backpack contained $12,363 and a plastic baggie with methamphetamine. A tool bag also contained methamphetamine. In total, officers found 4.764 kilograms of methamphetamine in the vehicle.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez and Special Assistant U.S. Attorney Matthew Moeder. It was investigated by the Independence, Mo., Police Department, the Jackson County Drug Task Force and the Drug Enforcement Administration.