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Tuesday 7 June 2016
Los Angeles Man Arrested on Federal Fraud and Identity Theft Charges Related to Lottery Scam that Targeted Elderly VictimsRead the Press Release
LOS ANGELES - A South Los Angeles man was arrested today on federal fraud charges for participating in a lottery scam that allegedly targeted elderly victims with promises of cash prizes and cars – as long as they paid taxes and fees.
Carl Dean Bullock, 65, was arrested at his residence this morning without incident by inspectors with the United States Postal Inspection Service. Bullock is expected to be arraigned on a 20-count indictment this afternoon in United States District Court.
A federal grand jury on June 3 returned an indictment that charges Bullock with 13 counts of mail fraud, three counts of wire fraud and four counts of aggravated identity theft.
Bullock allegedly participated in a scheme to defraud mostly elderly victims in the United States. Using false promises that the victims had won large lottery or sweepstakes prizes, members of the scheme fraudulently told victims that, in order to obtain their “winnings,” they would need to send money to pay for taxes, fees and other expenses. Hoping to collect the winnings, victims sent money to members of the scheme via wire transfer, money orders and cash. The money was sent through the United States mail, as well as through the Western Union and MoneyGram systems.
Bullock allegedly received some of the fraudulently obtained money, and then sent a portion of it to his co-schemers, most of whom were in Jamaica.
The investigation, so far, has uncovered 25 victims – one of whom was 88 years old – who sent nearly $200,000 to obtain their non-existent prizes.
“Fraud schemes like the one charged in this indictment, which promise large rewards in exchange for ‘fees’ and ‘taxes,’ harm vulnerable members of our communities and potentially jeopardize the victims’ ability to make ends meet in retirement,” said United States Attorney Eileen M. Decker. “This defendant’s conduct was particularly egregious because he assisted criminals outside of the United States target elderly victims here.”
“Foreign lottery and sweepstakes fraud cost Americans millions every year,” stated Los Angeles Postal Inspector in Charge Robert Wemyss. “When one family member is harmed, the impact can be felt by all. Losses can be monumental, and entire fortunes, inheritances and retirement security can be wiped-out. This arrest demonstrates the commitment of Postal Inspectors to protect our seniors from these unscrupulous scam artists.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The wire fraud and mail fraud charges each carry a statutory maximum penalty of 20 years in federal prison. The aggravated identity theft charges carry a mandatory consecutive sentence of two years in prison.
The investigation in this case is being conducted by the United States Postal Inspection Service, which received substantial assistance from the Glendale Police Department.
Las Vegas Telemarketer Sentenced to Prison for Defrauding Southern Illinois ResidentsRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that United States District Judge Nancy J. Rosenstengel sentenced Becky S. Marrs, 68, of Las Vegas, NV, to one year and one day in federal prison on her conviction for telemarketing fraud. Marrs was sentenced after pleading guilty to a federal charge of conspiring to commit mail and wire fraud. The fraud scheme that Marrs participated in victimized individuals throughout the United States, including Southern Illinois.
During her plea hearing, Marrs admitted that she worked as a telemarketer for a telemarketing business in Las Vegas. Although the business frequently changed names, the two primary names of the business were Showcase Resorts and Vacation Max. Telemarketers from Showcase Resorts and Vacation Max called timeshare owners throughout the United States and offered to help them sell their timeshares. The telemarketers then falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units and that the victims’ timeshare units could be included in these blocks. In order to participate in this "corporate block," however, the telemarketers told the victims that they had to pay upfront fees, which usually ranged from $2,000 to $3,000. The telemarketers falsely told the victims that these fees were needed to pay closing costs. Instead, the fees were used as revenues for Showcase Resorts and Vacation Max. In addition, the telemarketers were paid a large commission for each fraudulent sale. These commissions typically ranged from 40% to 50%.
Because Showcase Resorts and Vacation Max had no corporate buyers, no timeshares were ever sold to any corporations. Showcase Resorts and Vacation Max employed individuals known as "Updaters" to handle all of the calls from customers who called in to ask why their timeshares had not been sold as had been promised. The job of these Updaters was to provide false excuses to the victims in order to string them along and prevent them from contacting their credit card companies and demanding their money back.
The scheme operated from at least December 5, 2006 until January 24, 2012. The losses caused by the scheme exceeded $11,000,000.
"Telemarketing fraud is rampant in this country," Acting U.S. Attorney Porter stated. "This sentence reinforces the position that I’ve previously stated: Telemarketers who defraud citizens of Southern Illinois are going to be prosecuted and will most likely go to prison."
In May 2013, the owner of Vacation Max, Michael Patrick Sullivan, was indicted. Sullivan pled guilty and on January 9, 2015, was sentenced to 5 years in prison. Three other telemarketers from the scheme (John Nicosia, Robert Kelly Mathews, and Elpenike Eddy-Aldava), as well as one of the Updaters (Patrick Nosack) were also charged. Nicosia, Mathews, and Nosack all pled guilty and were sentenced to prison. On October 9, 2015, after a four-day trial, a federal jury in East St. Louis found Eddy-Aldava guilty of conspiring to commit mail and wire fraud. She is also currently serving a federal prison sentence.
As part of today’s sentence, the court also ordered Marrs to pay $531,416 in restitution to the victims she defrauded. When she completes her prison sentence, Marrs will serve a period of 2 years of supervised release.
The case against Marrs is one of approximately 80 cases prosecuted by the U.S. Attorney's Office for the Southern District of Illinois relating to timeshare resale fraud and part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service.
The prosecution of this case was handled by Assistant United States Attorney Scott Verseman.
Las Cruces Resident Sentenced to Ten Years for Federal Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Eric G. Acosta, 29, a resident of Las Cruces, N.M., was sentenced today in federal court to 120 months in prison followed by five years of supervised release for his conviction on methamphetamine trafficking and firearms charges. Acosta’s conviction was based on his May 14, 2015, guilty plea.
Acosta and co-defendant Christopher J. Cleveland, 36, also of Las Cruces, were arrested in July 2014, on a criminal complaint charging them with methamphetamine trafficking and firearms charges. According to the complaint, during a routine traffic stop on June 23, 2014, officers of the Las Cruces Police Department discovered 889.2 grams of methamphetamine, a firearm and drug paraphernalia inside a vehicle driven by Acosta and in which Cleveland was a passenger. The complaint stated that Cleveland and Acosta had traveled from Arizona, where they obtained the methamphetamine, to Las Cruces in Doña Ana County, N.M., where they intended to distribute the drugs.
In an indictment filed on Oct. 16, 2014, Acosta and Cleveland were charged with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. The indictment also charged each of the two men with being felons in possession of firearms. The two men were charged with committing these crimes on June 23, 2014, in Doña Ana County. At the time, Acosta and Cleveland each was prohibited from possessing firearms or ammunition because each had previously been convicted a felony offense.
On June 9, 2015, Cleveland pled guilty to the two-methamphetamine trafficking charges. At sentencing, Cleveland faces a statutory minimum of ten years and a maximum of life in federal prison followed by not less than five years of supervised release. Cleveland remains detained pending a sentencing hearing which is currently scheduled for June 2016.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and is being prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Jersey City, New Jersey, Man Arrested and Charged with $3.4 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A Jersey City man was arrested today on charges that he defrauded investors using phony contracts he had to sell olive oil to major retailers and then used the money for purchases, U.S. Attorney Paul J. Fishman announced.
Antonio Fasolino, 59, of Jersey City, New Jersey, was arrested by special agents of the FBI and charged by complaint with wire fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the criminal complaint:
Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino allegedly engaged in an investment fraud scheme in which he obtained more than $3.4 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil. In fact, there were never any such contracts and Fasolino spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.
The count of wire fraud with which the defendant is charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the scheme.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to the arrests. He also thanked special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Lakshmi Herman and Zach Intrater of the U.S. Attorney’s Office’s Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Alan Silber Esq., Roseland, New Jersey
Independence Man Indicted for Illegal Firearm After Shooting at Woman, ChildrenRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm after a woman reported that he shot at her and her children.
Senecca T. Spencer, 40, of Independence, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Spencer, who has prior felony convictions, was in possession of a Jimenez Arms 9mm pistol and ammunition on May 25, 2016. The indictment replaces a federal criminal complaint that was filed against Spencer on May 26, 2016. Spencer remains in federal custody.
According to an affidavit filed in support or the original criminal complaint, police officers were called to an Independence residence on a report of a domestic violence disturbance and shots fired at the scene. When they arrived at the residence, the affidavit says, the victim told officers that she and Spencer had been arguing and the argument escalated. When he left the house, allegedly carrying the 9mm pistol, she and her children locked all the doors and windows to prevent his return.
The victim told police that as she and her children were standing in the kitchen area of the residence, Spencer pointed the handgun at her, from the “porch area” of the residence, through a window, and fired the handgun. Investigators later determined that a bullet had shattered the kitchen window, traveled through the house and penetrated an interior wall/trim area.
Spencer was stopped in his vehicle near the intersection of 43rd Street and Phelps and arrested. As he was being placed under arrest, a police officer found a 9mm cartridge in Spencer’s front left pocket. The loaded 9mm pistol was discovered in the center console area of the vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. According to the affidavit, Spencer has at least 11 felony convictions, including seven felony convictions for assault and violent crimes, and convictions related to breaking and entering and possession of controlled substances with the intent to distribute them.
Dickinson cautioned that the charge contained in this indictment 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 Bradley K. Kavanaugh. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Harrisburg Man Pleads Guilty to 14 Bank RobberiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man has pled guilty before United States District Court Judge Sylvia H. Rambo in Harrisburg to committing 14 bank robberies in four central Pennsylvania counties.
According to United States Attorney Peter Smith, Andre Mosley, age 48, of Harrisburg, pled guilty to robbing 14 financial institutions in Dauphin, Cumberland, Franklin and York Counties between late 2014 and February 2015. The total loss is estimated at approximately $52,295. Mosely has agreed to make restitution.
The institutions that were robbed and the amounts stolen are as follows:
$1,540, Members First Federal Credit Union, Strawberry Square, Harrisburg; $2,900, Patriot Federal Credit Union, Chambersburg; $950, Fulton Bank, 200 N. 3rd Street, Harrisburg; $3,495, Fulton Bank, 1429 N. 3rd Street, Harrisburg; $1,930, PNC Bank, Carlisle; $3,000, Members 1st Federal Credit Union, Carlisle; $7,790, Citizens Bank, Highspire; $1,920, M&T Bank, Harrisburg; $14,480, Fulton Bank, Hummelstown; $4,670, Santander Bank, Red Lion; $4,250, Northwest Savings Bank, York; and $5,370, Mid-Penn Bank, Harrisburg.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation’s Violent Crime Task Force, the Harrisburg Police Department, the Pennsylvania State Police and local and municipal police departments in the communities where the financial institutions were located. Assistant United States Attorney William A. Behe prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greene County Man Named in 41-Count Indictment Charging Production, Possession and Distribution of Child PornographyRead the Press Release
PITTSBURGH - A resident of Greene County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of production, distribution, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The 41-count indictment named Eric James Stull, age 48, of Clarksville, Pennsylvania, as the sole defendant.
According to the indictment, from May 8, 2006 to Dec. 26, 2015, Stull produced 41 video and image files of the sexual exploitation of a minor. The indictment further alleges that on or about July 21, 2015, Stull knowingly distributed a video containing material depicting the sexual exploitation of a minor to an undercover Pennsylvania State Police Corporal. The indictment further alleges that on or about April 29, 2016, Stull possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum sentence of life imprisonment for the production of child pornography counts, a maximum sentence of 20 years imprisonment for distribution of child pornography, a maximum sentence of 10 years imprisonment for possession of child pornography, a maximum term of supervised release of life, and a fine of $10,250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Greene County District Attorney’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Georgia Woman Sentenced for Stealing Disabled Son's BenefitsRead the Press Release
ATLANTA - Veronical Joyner has been sentenced to two years in prison following her guilty plea for stealing her disabled son's Supplemental Security Income (“SSI”).
“Joyner lied to get her disabled son’s Social Security benefits,” said U. S. Attorney John Horn. “Those benefits were intended to provide much needed care for him. Instead, Joyner selfishly spent the money on herself.”
“There are few things more egregious than someone that wrongly takes the SSA funds of a disabled child and uses the money for themselves. These investigations demonstrate the seriousness with which Social Security Administration’s Office of the Inspector General (SSA/OIG), responds to allegations of fraud against our agency and its recipients,” said Special Agent-in-Charge Margaret Moore-Jackson, SSA/Office of the Inspector General. “Though SSA has worked diligently over the years to improve the systems to detect the misuse of benefits, SSA/OIG actively pursues the few determined individuals that continue to manipulate the system. We are pleased with the aggressive action by the US Attorney’s Office that resulted in this sentencing.”
According to U.S. Attorney Horn, the charges and other information presented in court: in 2005, the Defendant applied for SSI on her son's behalf. At that time, she swore to the Social Security Administration (“SSA”) that her son lived with her and that she would use the benefits for his care and support. Because of her false statements, she was appointed to be his representative payee, allowing her to receive SSI payments directly. Subsequently, Joyner completed annual reporting forms swearing that her son continued to live with her and that she spent all of the money on him. She often included statements in the reporting forms explaining she was “unable to save” any money for her son because of additional expenses associated with his care. In fact, her son did not live with her and she did not use the money for his care and support. Rather, she spent the money on her own personal expenses. Her fraud continued until March 2014, when the SSA discovered that the child did not, and never had, lived with Joyner.
Veronical Joyner, 43, of Conyers, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, a $100 special assessment, and ordered to pay restitution in the amount of $66,425.20. Joyner was convicted on these charges on March 17, 2016, after she pleaded guilty.
This case was investigated by the Social Security Administration /Office of the Inspector General.
Special Assistant United States Attorney Diane C. Schulman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Garland, Texas, Man Sentenced to 126 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
DALLAS — Sacramento Moon Morales, 34, of Garland, Texas, was sentenced yesterday afternoon by U.S. District Judge Sam A. Lindsay to serve 126 months in federal prison and 20 years of supervised release, following his guilty plea in January 2016 to an indictment charging one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on approximately March 26, 2014, Morales knowingly possessed paper that contained sexually explicit images of prepubescent females, knowing that the images were of actual children.
As noted in the public record, Morales was convicted of kidnapping and indecency with a child in Hidalgo County, Texas, in 2003.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Garland Police Department. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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Fourth Ocean Shipping Executive Indicted for Price Fixing and Bid RiggingRead the Press Release
An ocean freight executive has been indicted for his participation in a long-running conspiracy to restrain trade in international ocean shipments of roll-on, roll-off cargo to and from the Port of Baltimore and elsewhere in the United States, the Department of Justice announced today.
A grand jury in the District of Maryland returned the indictment. Mauricio Javier Garrido Garcia (Garrido), an executive of Compañia Sudamericana de Vapores S.A. (CSAV) and resident of Chile, is charged with allocating customers and routes, rigging bids and fixing prices for international ocean shipments of roll-on, roll-off cargo, including cars, trucks and construction and agriculture equipment. Garrido is accused of participating in the conspiracy from as early as 2000 until at least September 2012. An indictment is a formal charging document, and the defendant is presumed innocent until proven guilty in a court of law.
Garrido is the eighth executive to be charged in the investigation to date. Four individuals have already pleaded guilty and been sentenced to prison and three others have been indicted but remain fugitives from justice. CSAV and two other companies have also pleaded guilty and paid over $136 million in criminal fines.
“This long-running conspiracy restrained trade in one of the main channels of international commerce – the oceans,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Department of Justice’s Antitrust Division. “Today’s indictment further demonstrates the division’s commitment to holding accountable ocean-shipping executives who participated in this scheme.”
“These charges brought today, and for the prior seven executives charged, outline a deceptive scheme to destabilize competition in the marketplace,” said Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division. “Those who engage in this type of criminal activity with the intent on corrupting our economy will be identified and brought to justice. To ensure we don’t erode the public’s trust in the competitive bidding process, the FBI will continue to work with the Antitrust Division to ensure the integrity of competition across all industries.”
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Division, with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Baltimore Division at 410-265-8080.
Garrido Indictment
Fourteen Defendants Charged with Drug Trafficking and Illegal Weapons Possession in the Cypress Hills Houses in BrooklynRead the Press Release
Four indictments and two complaints were unsealed today in United States District Court for the Eastern District of New York charging 14 defendants for their involvement in narcotics trafficking and illegal weapons possession in the Cypress Hills Houses, a New York City Housing Authority complex located in East New York, Brooklyn.
The defendants’ initial appearances and arraignments are scheduled this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“These charges send the message that the United States Attorney’s Office stands fully in support of the residents of the Cypress Hills Houses who have been victimized too long by those who have been flooding their neighborhood with guns and drugs,” stated United States Attorney Capers. Mr. Capers thanked the Kings County District Attorney’s Office for their assistance with the government’s investigation.
“The scope and nature of this investigation reads like something out of a Hollywood movie script, involving a massive drug trafficking network and deadly violence. But the actions of these alleged gang members who have held a community hostage are real and have real consequences that the FBI NY Metro Safe Streets Task Force, the NYPD, and our law enforcement partners won’t allow them to escape,” said FBI Assistant Director-in-Charge Rodriguez.
“As alleged, the members of the Cypress Hills neighborhood have seen drugs and guns pour into our streets. The department targeted the crime with the same precise, targeted policing that has been used in the hundreds of arrests we have made in recent months,” said Police Commissioner Bratton. “This is the latest in our increasing and on-going efforts to arrest gangs and crews who carry weapons, deal drugs, or commit violence. Thanks as always to the FBI and the Eastern District of New York for their continued commitment to making our city safer with today’s enforcement.”
As alleged in the various documents filed in court by the government, the Cypress Hills Houses (“Cypress”) have been besieged in recent years by gang- and drug-related violence, including numerous homicides and a significant number of non-fatal shootings. In response to this criminal activity inflicted on the residents of the more than 1,400 apartments in Cypress, since November 2015, the FBI, the NYPD, and the U.S. Attorney’s Office have been conducting an investigation of a neighborhood-based street gang known as the Back Side crew – the Back Side refers to the section of Cypress that borders Euclid Avenue. The investigation revealed that in recent years, the Back Side crew has closely aligned with members of the Team Side crew – the Team Side refers to the section of Cypress that borders Fountain Avenue – and that some members of the two crews self-identify as members of the Crips criminal street gang.
The government’s investigation included court-authorized wiretaps of telephones used by the defendants, which confirmed the existence of a large-scale drug trafficking operation and in which all of the defendants charged in United States v. Renee Belardo, et al., 16-CR-297 (AMD), one of the indictments unsealed today, were active participants. During just a five-month period, that operation was responsible for the distribution of more than a kilogram of cocaine powder that was cooked into more than 280 grams of crack cocaine and distributed in and around Cypress and upstate New York.
The investigation also revealed that some of the defendants were involved in firearms trafficking, illegal weapons possession, and other criminal conduct, including a large-scale and fraudulent credit card scheme. On May 3, 2016, pursuant to a lawfully-authorized search warrant, the FBI seized and searched a Fed-Ex package that one defendant attempted to ship to a co-conspirator in Georgia containing more than 1,300 fraudulently manufactured credit cards that bore no name or stored information.
The other charging instruments unsealed today include three indictments: United States v. Jason Soto, 16-CR-298 (ILG); United States v. James Young, 16-CR-296 (BMC); United States v. Darnell Clinkscale, 16-CR-299 (ARR); and two criminal complaints: United States v. Guillermina Escobar, 16-M-483; and United States v. Nicholas Medina, 16-M-481.
If convicted of the narcotics charges, Tyriek Hankins, Isiah Sadler, Anthony Keitt, Michael Vailes, Dimas Perez, and Ronald Jackson each face a maximum of life imprisonment.
The charges are all merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret Gandy and Andrey Spektor are in charge of the prosecution.
The Defendants:
RENEE BELARDO
Age: 30
Brooklyn, New YorkDARNELL CLINKSCALE
Age: 28
Brooklyn, New YorkGUILLERMINA ESCOBAR
Age: 26
Brooklyn, New YorkTYRIEK HANKINS
Age: 29
Brooklyn, New YorkRONALD JACKSON
Age: 37
Utica, New YorkANTHONY KEITT
Age: 36
Brooklyn, New YorkNICHOLAS MEDINA
Age: 18
Brooklyn, New YorkDIMAS PEREZ
Age: 38
Brooklyn, New YorkRAFAEL PEREZ
Age: 50
Brooklyn, New YorkISIAH SADLER
Age: 31
Brooklyn, New YorkJASON SOTO
Age: 27
Brooklyn, New YorkCHERENA SWAIN
Age: 29
Brooklyn, New YorkMICHAEL VAILES
Age: 29
Brooklyn, New YorkJAMES YOUNG
Age: 31
Brooklyn, New YorkFormer TDCJ Parole Officer Convicted for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Saralyn Ann Proschko, a former parole officer with the Texas Department of Criminal Justice (TDCJ), has pleaded guilty to sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Proschko, 47, of Victoria, was charged along with her boyfriend - David Ray McGee, 48, of Wallis.
In July 2015, authorities with the Victoria Police Department (VPD) responded to the TDCJ - District Parole Office in Victoria in reference to allegations of possession of child pornography. Officers met with Proschko and discovered an electronic video on her cellular telephone of a juvenile female engaged in a sexual act. Further investigation led to the discovery and charging of McGee in relation to the allegations.
The court heard that McGee had met Proshko on a dating website. During their conversations, he had indicated he had a sexually fantasy. Soon after, Proschko began texting him photos of herself penetrating a young girl with various sexual objects. Eventually, that led to him sexually assaulting the young girl who had begged him to stop during the attack. In at least one instance, Procshko had actually held the toddler down while McGee assaulted her.
Proschko is set for sentencing Sept. 7, 2016, at which time she faces a minimum of 15 and up to 30 years in federal prison.
McGee pleaded guilty in November 2015 and was later sentenced to 27 years in federal prison. Upon his release, McGee will serve five years of supervised release during which he will have to comply with numerous requirements designed to restrict access to children and the Internet. He was also ordered to pay $2,537.60 in restitution and must register as a sex offender.
McGee and Proschko were arrested on the federal charges in July 2015 and have been in custody since that time where both will remain pending further criminal proceedings.
The charges are the result of the investigative efforts of Homeland Security Investigations, Texas Attorney General’s Office - Internet Crimes Against Children (ICAC), Houston-Metro ICAC Task Force and VPD.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Hazle Township Solicitor Charged with Theft of $105,000 Escrow FundRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former Solicitor for Hazle Township, Luzerne County, has been charged with the theft of $105,586.80 from the Township, a local government agency which receives federal funds.
According to United States Attorney Peter Smith, Charles Pedri, age 64, of Hazleton, is charged with theft from a program receiving federal funds in a Criminal Information filed today in United States District Court in Scranton. Pedri was the Solicitor for Hazle Township at the time of the alleged theft.
The government also filed a plea agreement with the defendant which is subject to the approval of the court.
As set forth in the Criminal Information, Hazle Township required a company which was developing a project in the Humboldt Industrial Park in the township to complete certain specific improvements to the property, pursuant to land development ordinances. As security for the completion of the improvements, the company and Hazle Township entered into an escrow agreement.
Pedri, in his capacity as Township Solicitor, signed the agreement as escrow agent. The company then paid to Hazle Township the sum of $105,586.80 to be held in escrow as security for the completion of the improvements. Pedri, as escrow agent, deposited the funds into his law office account. Thereafter, Pedri allegedly began withdrawing the funds held in trust and converted the money to his personal use. The investigation revealed that, between December 2012 and November 2013, Pedri allegedly wrote checks payable to himself, drawn on the Township funds. By November 2013, the funds were gone.
Upon completion of the improvements in May 2014, the company requested that Hazle Township return the escrowed funds. Over a period of approximately eight months, Pedri allegedly made misrepresentations to representatives of the company regarding the status of the funds and failed to make payment. In January 2015, after the company informed Pedri it intended to file a law suit, Pedri allegedly admitted that he had converted the funds to his own use.
Pedri was subsequently terminated from the position of Township Solicitor, restitution was paid and Pedri agreed to a voluntary suspension of his license to practice law for a period of at least five years.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
No date has yet been scheduled for the entry of Pedri’s guilty plea.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty which can be imposed under federal law is ten years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Executive Director of Jersey City Child Development Centers Admits Stealing More Than $250,000Read the Press Release
NEWARK, N.J. - A Jersey City, New Jersey, man today admitted stealing more than $250,000 from the Jersey City Child Development Centers Inc. (“JCCDC”), an organization that provided early childhood development services and education to under-privileged children, U.S. Attorney Paul J. Fishman announced.
Robert E. Mays, 38, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Mays was the executive director of JCCDC from Sept. 2013 to May 2014. Mays admitted that he stole more than $250,000 from JCCDC by unilaterally increasing his annual salary from $96,500 to $155,000 after being employed by JCCDC for only two months. He also admitted that he created false board of director’s minutes to give the impression JCCDC authorized the salary increase.
In addition, Mays admitted he withdrew funds from a JCCDC bank account to pay for unauthorized personal expenses, including a 2007 Maserati Quattroporte and a fur coat worth thousands of dollars.
The wire fraud count to which Mays pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the scheme, as well as mandatory restitution in the full amount of the loss to JCCDC. Sentencing is scheduled for Sept. 20, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s plea. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys José R. Almonte and Mala Ahuja Harker of the U.S. Attorney’s Office’s Special Prosecutions Division and Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Alexander W. Booth Jr., Union City, New Jersey
Felon Charged with Illegally Possessing a Gun and AmmoRead the Press Release
PITTSBURGH – A resident of Pittsburgh has been indicted by a federal grand jury on a charge of a federal firearm violation, United States Attorney David J. Hickton announced today.
The one-count indictment named David Hammond, age 35, as the sole defendant.
According to the indictment, on April 25, 2016, David Hammond, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government. This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Judge Hands Down Lengthy Prison Terms to Three Men Involved in A Crack Cocaine ConspiracyRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down yesterday lengthy prison terms to three individuals involved in a crack cocaine conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. John Fitzgerald “Pumpy” Michaux, 31, of Hickory, N.C., and Terron Juandre “Wordle” Michaux, 29, of Lenoir, N.C. were each sentenced to 168 months in prison followed by five years of supervised release. Jeremy “Tank” Dula, 28, of Lenoir, was sentenced to 80 months in prison and four years of supervised release for his role in the conspiracy.
According to court records and yesterday’s sentencing proceedings, beginning in 2013 and through September 2015 in Caldwell County and elsewhere, the three defendants engaged in a drug trafficking conspiracy involving more than five kilograms of crack cocaine. Court records show that over the course of the investigation, law enforcement seized approximately 400 grams of crack cocaine, three firearms, and approximately $50,000. Each defendant pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute crack cocaine.
In making today’s announcement, U.S. Attorney Rose thanked the FBI, Homeland Security Investigations, the North Carolina State Bureau of Investigation, the Lenoir Police Department, the Caldwell County Sheriff’s Office, the Hickory Police Department, the Mooresville Police Department, the Lincoln County Sheriff’s Office, the Alexander County Sheriff’s Office and the Iredell County Sheriff’s Office for investigating the case.
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In a separate case, Judge Voorhees sentenced yesterday Christopher Rios Rodriguez, 27, of Newton, N.C. to 136 months in prison and three years of supervised release on charges of possession with intent to distribute methamphetamine. According to court records and court proceedings, on August 17, 2015, law enforcement conducted a traffic stop of Rodriguez’s vehicle and recovered 8,900 grams (approximately 10,000 dosage units) of 97% pure methamphetamine. Subsequent investigation revealed that Rodriguez was a source of supply for multiple kilograms of both methamphetamine and cocaine. Rodriguez pleaded guilty to one count of possession with intent to distribute methamphetamine on March 1, 2016.
This case was investigated by Homeland Security Investigations, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the Hickory Police Department and the Burke County Drug Task Force.
Assistant United States Attorney Steven Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the cases.
Farmington Man Arraigned on Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Robert Organ, Sr., 47, of Farmington, N.M., was arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging him with heroin and methamphetamine trafficking offenses. During this morning’s proceedings, Organ entered a not guilty plea to the indictment. He remains in custody pending trial.
The charges against Organ were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division and Commander Kyle Dowdy of the HIDTA Region II Narcotics Task Force.
Organ was arrested on May 2, 2016, on a criminal complaint charging him with possession of heroin and methamphetamine with intent to distribute. Court records reflect that on March 23, 2016, agents of the HIDTA Region II Narcotics Task Force executed a state arrest warrant on Organ for narcotics violations. During a search o incident to arrest, agents allegedly found that Organ was in possession of $1,896, 1.7 grams of methamphetamine, 0.9 grams of heroin and drug paraphernalia. Agents also allegedly found 64 grams of heroin in three different packages, 20 grams of methamphetamine, 13 grams of marijuana, 14 Buprenorphine hydrochloride pills, 5 Alprazolam pills, two cellular phones and drug paraphernalia inside Organ’s vehicle.
Organ was subsequently charged in a two-count indictment with possession of heroin and methamphetamine with intent to distribute on March 23, 2016, in San Juan County, N.M.
If convicted, Organ faces a statutory maximum penalty of 20 years in federal prison. Charges in complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated the Albuquerque office of the DEA and the HIDTA Region II Narcotics Task Force. The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorney Paul H. Spiers is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including San Jan County, N.M., under this initiative.
The case is also being prosecuted under the HOPE Initiative, which was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
FBI Investigation Leads to Indictment of Braddock Man on Drug ChargeRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Jordan Brown, 25, of Braddock, Pa., as the sole defendant.
According to the indictment, on March 3, 2016, Jordan Brown possessed with intent to distribute and distributed a quantity of heroin.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ellsworth Man Pleads Guilty to Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
Contact: Jody Mullis, Andrew McCormack
Assistant United States Attorneys
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jeffrey Barnard, 52, of Ellsworth, Maine, pleaded guilty today in U.S. District Court to being a felon in possession of a firearm and ammunition.
According to court records, on May 31, 2014, Barnard barricaded himself in his home and commenced a stand-off that lasted more than fourteen hours. During the stand-off, Barnard fired a .22-caliber semi-automatic rifle. Barnard had previously been convicted of state felony offenses in California and Maine, including a conviction in U.S. District Court for the District of Maine for being a felon in possession of a firearm.
Barnard faces up to 10 years in prison, a $250,000 fine, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine State Police; the Bangor and Ellsworth Police Departments; the Maine Attorney General’s Office; and the Maine State Police Crime Lab.
El Salvadoran Indicted on Immigration ChargeRead the Press Release
PITTSBURGH - A resident of El Salvador, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Jorge Hernandez-Flores, 29, as the sole defendant.
According to the indictment, Hernandez-Flores, having previously been deported from the United States pursuant to law on Nov. 11, 2009, was present in the Western District of Pennsylvania on May 11, 2016, without having applied for and received permission from the Attorney General of the United States, or her successor, the Secretary of the Department of Homeland Security, for re-application for admission into the United States.
The law provides for a maximum total sentence of not more than two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dallas Man Sentenced to 33 Months in Federal Prison on Conviction Stemming from Drug Activity at Northwest Dallas ClubRead the Press Release
DALLAS — A Dallas man, Hunter Lee Foster, 25, was sentenced on Monday by U.S. District Judge Sam A. Lindsay to 33 months in federal prison following his guilty plea in September 2015 to a felony drug offense stemming from his role in illegal drug activity at a northwest Dallas club, announced U.S. Attorney John Parker of the Northern District of Texas.
Foster pleaded guilty in September 2015 to one count of conspiracy to distribute a controlled substance, specifically, 3,4-methylenedioxy-N-ethylcathinone (ethylone) – a drug also known as “Molly.” Foster is the last of several defendants, who were arrested in December 2014 at various locations, including at and near a club known as Eternal Eden Afterhours at the Jaguars Club on Reeder Road in Dallas, to be sentenced.
Foster admitted selling “Molly” to undercover officers on several occasions from September to November 2014. Others charged and convicted in that first round have pleaded guilty to various charges and most have received federal prison sentences ranging from probation to 120 months.
In October 2015, another group of defendants was arrested on charges related to drug activity at Dallas clubs. Most of those defendants, who were arrested at various locations in North Texas, including at and near the Lizard Lounge on Swiss Avenue and Unlis3d Afterhours on Sovereign Row, in Dallas, have pleaded guilty and are awaiting sentencing.
The Dallas Police Department Narcotics and Homicide Unit, with assistance from the Drug Enforcement Administration, the Allen, Denton and Garland Police Departments, and the Dallas County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Phelesa Guy is in charge of the prosecution.
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Columbus Man Sentenced to more than 16 Years for Central Ohio Armed RobberiesRead the Press Release
COLUMBUS, Ohio – Thomas E. Shaffer, 63, of Columbus, was sentenced in U.S. District Court to 200 months in prison and five years of supervised release for robbery and armed robbery at six locations in Central Ohio.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Columbus Police Chief Kim Jacobs, Delaware County Sheriff Russell L. Martin, Gahanna Police Chief Dennis Murphy and Acting Worthington Police Chief Jerry L. Strait, Jr. announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, Shaffer used a firearm during robberies at five restaurant/bars and one grocery store in Central Ohio. On March 15, 2014, he robbed The Pub on West Johnstown Road in Gahanna, Ohio. On May 3, 2014, he committed armed robbery at Halftime Tavern on Bethel Road in Columbus. Likewise, he took cash during a robbery on August 16, 2014 at Brew-Stirs on 23, located on Dillmont Drive in Columbus. The following month, he robbed the Lazy Chameleon on Presidential Parkway in Powell. On November 23, 2014, he committed armed robbery at Villa Nova on North High Street in Worthington. Finally, on December 7, 2014, Shaffer stole money from Aldi on Orange Center Drive in Lewis Center.
The defendant was indicted by a grand jury on April 16, 2015.
Shaffer pleaded guilty on October 30, 2015 to six counts of interference with interstate commerce by violence and one count of brandishing a firearm during a crime of violence. He also agreed to forfeit his Smith and Wesson pistol.
Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys David DeVillers and Brian J. Martinez, who are representing the United States in this case.
Career Offender Bank Robber Sentenced to 192 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Gregory Wayne Davidson, 53, was sentenced this afternoon by U.S. District Judge Sam A Lindsay to serve a total of 192 months in federal prison, following his guilty plea in October 2015 to two counts of bank robbery, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Davidson robbed the Capital One Bank located at 2015 Northwest Highway in Garland, Texas, on June 8, 2015. Davidson also robbed the Veritex Community Bank, located at 2101 Abrams Road in Dallas, on June 30, 2015. He was arrested in July 2015.
In each robbery, upon entering the bank, Davidson wrote a demand note on a deposit slip that he presented to a teller. The tellers, scared and in fear for their lives, complied with the demand and provided Davidson with cash. Davidson left each bank after he obtained the cash.
Davidson was also convicted in 2002 in the Northern District of Texas on one count of bank robbery and was sentenced in June 2002 to serve 180 months in federal prison. At the time of these June 2015 bank robberies, Davidson was on supervised release on that conviction. Today, Judge Lindsay sentenced Davidson to 168 months on the bank robbery conviction and 24 months for violating his supervised release, to be served consecutively.
The Garland Police Department and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
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California Man Sentenced to 12 Years in Prison for Attempting to Join ISILRead the Press Release
Nicholas Michael Teausant, 22, of Acampo, California, was sentenced today by U.S. District Judge John A. Mendez of the Eastern District of California to 12 years in prison for attempting to provide material support to Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California.
According to court documents, on March 17, 2014, Teausant was arrested traveling to Canada, near the border, with the intent of continuing to travel to Syria to join ISIL. On March 26, 2014, Teausant was indicted on one count of attempting to provide material support or resources to a terrorist organization. He pleaded guilty to the single count in the indictment without a plea agreement. In addition to the prison term, Judge Mendez also sentenced Teausant to 25 years of supervised release.
“With this sentence, Nicholas Michael Teausant will be held accountable for attempting to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”
“Mr. Teausant was fixated on violence as documented by his social media posts, his pre-arrest statements, and the nature of the group he attempted to join,” said Acting U.S. Attorney Talbert. “His conduct was misguided and unacceptable. We appreciate the court’s thoughtful consideration of this case and its recognition of the seriousness of the offense. With the assistance of our investigative partners, we will continue to vigorously prosecute those who seek to provide material support to terrorist organizations.”
This case was the result of an investigation by the FBI; the Modesto, California, Police Department; and the San Joaquin, California, Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorneys Jean M. Hobler and Jason Hitt of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section.
Butler County Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Valencia, Pennsylvania, has been sentenced in federal court to 48 months imprisonment, followed by 15 years supervised release, on a charge of possession of material depicting the sexual exploitation of a minor, United States Hickton announced today.
Senior United States District Judge Terrence F. McVerry imposed the prison sentence on Earl F. Forsythe, 53, of Valencia, Pennsylvania. In addition, Judge McVerry ordered Forsythe to pay $2,500 in restitution to two minor victims.
According to information presented to the court, the court was advised that on Sept. 6, 2013, a search warrant was executed at Forsythe’s residence for the seizure of computers and electronic equipment, following an undercover investigation by the Pennsylvania State Police which revealed that Forsythe had been trading images of child pornography over an on-line chat network. The contents of Forsythe’s computers revealed his possession of hundreds of videos and photographs depicting the sexual exploitation of minors, some of whom were under the age of 12 years.
Assistant United States Attorneys Jessica Lieber Smolar and Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for conducting the investigation leading to the successful prosecution of Forsythe.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Burke Co. Man Handed Down 21-Year Sentence for Producing Child PornographyRead the Press Release
ASHEVILLE, N.C. B Jesse Brison Ollis, aka “Jesse Lequire,” 27, of Valdese, N.C., has been handed down a 21-year prison sentence by a federal judge for producing child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger presided over today’s hearing, ordering the defendant to serve a lifetime of supervised release and to register as a sex offender upon completion of his prison term.
Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Janie Sutton, Special Agent in Charge Alan K. Flora of SBI Computer Crimes Unit and Commander of the North Carolina Internet Crimes Against Children Task Force join U.S. Attorney Rose in making today’s announcement.
According to today’s sentencing hearing and filed court documents, on November 26, 2014, law enforcement received information from Australian authorities that an Australian 14 year old female (victim one) had been engaging in sexually explicit communications over the Internet with an individual later identified as Ollis. According to court documents, victim one informed law enforcement that she had met Ollis in 2011 online when she was 12 years old and she believed him to be 17 years old. A forensic examination of electronic devices seized from Ollis’ residence revealed that Ollis had been communicating with victim one online and had “blogged,” or posted, child pornography images on the Internet. Further forensic investigation revealed that Ollis had additional sexually explicit images and videos of a second minor female (victim two). Court records indicate that law enforcement identified victim two as a minor living in Western North Carolina who Ollis had befriended.
“Ollis is every parent’s worst nightmare coming to life,” said U.S. Attorney Rose. “He targeted impressionable young children and used the Internet in the worst possible way: to share sexually explicit images of victimized underage girls. While no two child pornography cases involving online communications are the same, each one is a stark reminder that the Internet can be used for good and evil. The safety of our children rests upon our vigilant efforts to ensure they are protected from online predators lurking and waiting for an opportunity to strike,” Rose added.
“This case serves as an example to anyone who is involved in the production of child pornography…regardless of where in the world the investigation may lead or how much time may have passed, HSI is committed to holding them accountable,” said Special Agent in Charge Annan. “The child victims of these illegal images often suffer physical and psychological scars for many years, and HSI is committed to aggressively targeting those who engage in child sexual exploitation.”
“Men like Ollis are the reason that the ICAC Task Force exists. The SBI values all of our law enforcement partners and this case signifies the great work that can be accomplished when agencies work together,” said Special Agent in Charge Flora.
In handing down today’s sentence, Judge Reidinger said that harm to victims in cases like these is one of the reasons we have such long sentences.
Ollis 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 investigation was handled by HSI and SBI, which are members of the North Carolina Internet Crimes Against Children Task Force. The U.S. Attorney’s Office in Asheville prosecuted the case.
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
Bronx Woman Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Juana M. Diaz, of Bronx, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute a kilogram or more of heroin, was sentenced by U.S. District Judge Richard J. Arcara to three years in prison.
Assistant U.S. Attorneys Thomas S. Duszkiewicz and Brendan T. Cullinane, who handled the case, stated that on February 6, 2013, the defendant delivered six kilograms of heroin from co-defendant Edison Lantiquato a confidential source working with the Drug Enforcement Administration (DEA). Diaz was given what she believed to be $376,000 in United States currency to return to Lantiqua in the Bronx. While en route to the Bronx, the New York State Police pulled over the defendant and the alleged proceeds were seized.
Edison Lantiqua was convicted and sentenced to 70 months in prison.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in James J. Hunt, New York Field Division.Black Diamond Dog Kennel Owner Indicted for Making False StatementsRead the Press Release
CEDAR RAPIDS, IA - Gerhard L. Felts, aka Gary Felts, age 61, from Kingsley, Iowa, has been charged with three counts of making false statements to the United States in connection with a civil judgment obtained against Felts for Animal Welfare Act violations. The charges are contained in an Indictment unsealed yesterday, in United States District Court in Cedar Rapids.
The Indictment alleges the United States obtained a civil judgment against Gary Felts dba Black Diamond Kennel on March 25, 2011, based upon the conditions of his dog kennel. The Indictment further alleges Felts repeatedly provided false financial information to the United States in connection with the United States’ efforts to collect the debt. In doing so, Felts failed to disclose a checking account opened in April 2011, a savings account opened in April 2013, and his receipt of workers compensation payments in the amount of $25,000 in April 2013.
“The United States takes very seriously its obligation to collect debts from those who violate the Animal Welfare Act. False statements in that process will not be tolerated,” stated United States Attorney Kevin W. Techau.
If convicted on all charges, Felts faces a sentence of up to fifteen years’ imprisonment; a fine of up to $750,000; $300 in special assessments, and three year of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by US Department of Agriculture. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-cr-49.
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Arizona Man Arraigned on Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Rodolfo Rene Ley, 24, of Tucson, Ariz., was arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging him with trafficking heroin in New Mexico.
Ley was arrested at the Amtrak Train Station in Albuquerque on May 13, 2016, after the DEA allegedly found approximately one kilogram of heroin in three clear plastic wrapped bundles under Ley’s clothing during an interdiction search.
Ley was subsequently indicted on May 25, 2016, and charged with possession of heroin with intent to distribute on May 13, 2016, in Bernalillo County, N.M.
If convicted of the charge in the indictment, Ley faces a statutory mandatory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Eva Fontanez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Antiques Dealer Pleads Guilty to Smuggling Elephant IvoryRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of JAY ANTHONY ANDERSON, 66, for smuggling elephant ivory from the United States in violation of the Lacey Act. ANDERSON, who was charged on May 16, 2016, pleaded guilty to knowingly importing and exporting objects made from elephant ivory in violation of the laws and regulations of the United States, including the Lacey Act and the Endangered Species Act. A sentencing date has not yet been set.
According to the defendant’s guilty plea and documents filed in court, on June 10, 2011, ANDERSON, knowingly attempted to export an object made from elephant ivory, described as a “CARVED CHINESE IVORY FIGURE OF A [sic] ELDER FISHERMAN,” to a buyer located in Foshan City, China for approximately $1,356.00. ANDERSON attempted to export the elephant ivory through the United States Postal Service declaring the object as “RESIN CARVINGS” valued at $30.00, when in fact the defendant knew the object was made from elephant ivory and held a much higher monetary value. On June 23, 2011, U.S. Fish and Wildlife Service officials inspected and intercepted the package at an International Mail Facility in Chicago, Ill.
According to the defendant’s guilty plea and documents filed in court, from January 29, 2012 through December 31, 2012, ANDERSON knowingly violated the laws and regulations of the United States by buying and selling an object made from elephant ivory with a market value of more than $350.00. Specifically, on January 29, 2012, ANDERSON purchased an object made from elephant ivory described as “IVORY HANd [sic] CARVED CRUCIFIX circa 1920” from an auction house in Montreal, Canada for approximately $300.00. ANDERSON subsequently sold the elephant ivory object for approximately $700.00, describing it as an “18th/19th CENTURY IVORY & EBONY EUROPEAN CRUCIFIX.” At the time the elephant ivory object was purchased and imported, ANDERSON failed to submit a declaration to USFWS, as required by law.
The fair market value of the illegal elephant ivory products documented in this case was between $40,000 and $95,000.
"Thanks to the diligent interdiction work of our Chicago-based wildlife inspectors, our special agents can build quality cases like these and stop those who try to illegally profit from the tusks of elephants,” said Edward Grace, the Service’s Deputy Assistant Director for Law Enforcement. “We will continue to investigate these crimes until ultimately elephants are brought back from the brink of extinction,” continued Grace.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
This case is the result of an investigation by the U.S. Fish and Wildlife Service and is being prosecuted by Assistant U.S. Attorney Andrew S. Dunne.
Defendant Information:
JAY ANTHONY ANDERSON, 66
Wabasha, Minn.
Convicted:
- Smuggling, 1 count
- Violation of the Lacey Act, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Adrian Man Indicted for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Adrian, Mo., man was indicted by a federal grand jury today no charges related to drug trafficking and illegally possessing firearms.
Jeffrey K. Fisher, 30, of Adrian, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Fisher possessed 50 grams or more of methamphetamine to distribute on Aug. 1, 2015. He is also charged with possessing marijuana to distribute and with making his residence available for the purpose of unlawfully distributing and/or using methamphetamine.
The indictment also charges Fisher will being an unlawful user of a controlled substance while in possession of firearms. Fisher allegedly was in possession of nine rifles, a shotgun and two pistols on Aug. 1, 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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 Jeffrey Q. McCarther. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bates County, Mo., Sheriff’s Department.
Monday 6 June 2016
Winter Park Businessman Pleads Guilty to Federal Tax ChargeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that William Bruce O’Donoghue (61, Winter Park) today pleaded guilty to failure to pay over federal employee payroll taxes. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set. O’Donoghue was indicted on February 3, 2016.
According to court documents, O’Donoghue was the president and majority owner of Control Specialists, a traffic engineering company in Central Florida. As president and majority owner, O’Donoghue exercised control over the company’s business affairs, including approving all payments by the company and controlling all of the company’s bank accounts.
Throughout 2009 and 2010, O’Donoghue caused Control Specialists to withhold payroll taxes from its employees, but failed to pay over those withheld payroll taxes to the IRS. During that same time period, O’Donoghue caused Control Specialists to make thousands of dollars in expenditures for his personal benefit, including approximately $125,000 in cash payments to fund his campaign for Congress. The amount of payroll taxes withheld by Control Specialists and not paid over to the IRS during this period was $219,962.95.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Washington, DC Man Sentenced to over 25 Years in Prison for Armed Robbery and Carjacking ShootingsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 24, of Washington, D.C., today to 308 months in prison followed by five years of supervised release for robbery, discharging a gun during a robbery and carjacking, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“We are pleased with the sentence,” said Chief Alan M. Goldberg of the Takoma Park Police Department. “The defendants in this case were involved in several violent crimes throughout the Washington, D.C. area. They displayed a total disregard for life while committing serious crimes. This sends a clear message to criminals that through a coordinated effort from our regional and federal partners, that this behavior has consequences.”
According to his plea agreement and court documents, on October 26, 2012, Freeman and co-conspirators Anthony Cannon and Tonnie Floyd who were riding in a stolen Jeep, followed an armored transport truck to a store located on University Boulevard East in Takoma Park, Maryland. An employee got out of the armored truck, walked into the store and picked up a bag containing $3,911. As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the defendants picked up the money bag. They ran back to the stolen Jeep. As the defendants drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.
The defendants left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting. They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle. The defendants drove the vehicle into the District of Columbia, where they set it on fire.
Police evidence personnel recovered blood containing DNA of Floyd from the back seat of the Jeep. Floyd went to a hospital that day in the District of Columbia for medical treatment of his gunshot wound. Freeman’s finger and palm prints were found on the money bag left in the Jeep.
Co-conspirator Anthony Terrell Cannon, age 26, of Washington, D.C., was convicted at trial conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle. Judge Chasanow sentenced Cannon on May 27, 2016 to 75 years in prison. Judge Chasanow ordered that 50 years of his sentence is to be served consecutive to the 60 year sentence Cannon previously received in the U.S. District Court for the Eastern District of Virginia for other crimes. Cannon has also been sentenced to life in prison in the Prince George’s County Circuit Court.
Tonnie Floyd, age 23, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking and was sentenced to 222 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County and Montgomery County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who prosecuted the case.
Washington County Couple Sentenced for Using Children to Produce Child PornographyRead the Press Release
GREENEVILLE, Tenn. – Ronnie Lee McCall, 63, of Johnson City, Tenn., was sentenced on June 6, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve life in federal prison. In the unlikely event that he is released from prison, he was ordered to remain under the supervision of U.S. Probation for the remainder of his life. There is no parole in the federal system.
McCall’s wife, Connie Sue Gentry McCall, 41, also of Johnson City, was previously sentenced in February 2016 by Judge Greer to serve 216 months in federal prison. Upon her release from prison, she will remain under the supervision of U.S. Probation for the remainder of her life.
Connie McCall and Ronnie McCall were charged in a federal indictment after state authorities learned that they sold three girls, ages 12, 14, and 16, to a man who raped and produced child pornography of the girls. Connie McCall pled guilty to the production of child pornography by a parent and assisted the United States in the prosecution of Ronnie McCall, who was found guilty by a jury of selling a child for illegal sexual activity, producing child pornography, producing child pornography by a parent, and using a means of interstate commerce to entice, persuade, or coerce a minor to engage in illegal sexual activity. Evidence presented during his trial showed he established a two-year pattern of sexual abuse of three children, 50 to 60 confirmed rapes, and the production of 400 images of child sexual abuse.
During sentencing Judge Greer noted that this was one of the most horrible crimes he had ever seen committed and scolded Mr. McCall for completely and totally abdicating his responsibility as protector of these children.
Agencies involved in this investigation included the Federal Bureau of Investigation, Washington County, Tennessee Sheriff’s Office, Tennessee Division of Child Services, and Johnson City, Tennessee Police Department. Assistant U.S. Attorneys Helen Smith and Corey Shipley represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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USNCB Makes COPS' Dispatch HeadlinesRead the Press Release
"For almost a decade, INTERPOL Washington, the United States National Central Bureau (USNCB), has empowered the nation’s law enforcement to use both national and INTERPOL criminal indices. The process of linking states together to use INTERPOL systems, known as federation, will assist officers across the country in making determinations about persons or items they encounter in the field: suspected fugitives, victims, stolen vehicles, stolen travel documents, etc."
The Office of Community Oriented Policing Services (COPS) puts the USNCB Federation initiative in its DISPATCH Headlines for the June issue of the e-newsletter.
Please see the below link for the full story.
http://cops.usdoj.gov/html/dispatch/06-2016/international_systems.asp
Twenty-Two Year Old Man Sentenced to a Total of Five Years in Prison for Two "Note Job" Robberies and Violating His Supervised ReleasedRead the Press Release
TULSA, Okla.—Dustin Scott Ross, 22, Fort Gibson, Oklahoma, was sentenced to 52 months in prison for robbing the Arvest Bank on 4548 East 51st Street and the CVS Pharmacy on 4107 South Harvard Avenue, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. Chief United States District Court Judge Gregory K. Frizzell also sentenced Ross to three years of supervised release following his prison sentence and ordered him to pay restitution to the victims of his crimes.
On November 4, 2015, Ross robbed the Arvest bank by handing a teller a threatening note. After the bank robbery, Ross was quickly identified because of a tip from Crime Stoppers. On November 19, 2015, Ross robbed the CVS using another threatening note. He was quickly apprehended by the Tulsa Police Department that day.
Judge Frizzell also sentenced Ross to eight months in prison, to be served consecutive to his robbery sentence, for violating the conditions of his supervised release. After release from the Federal Bureau of Prisons, offenders are often placed on supervised release, which imposes certain conditions and restrictions. The primary purpose of supervised release is to help recently released offenders reintegrate back into society. Ross was on supervised release for Bank Fraud when he committed the two robberies.
This case was investigated by the Tulsa Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Neal C. Hong prosecuted the case.
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Three Orangeburg Men Sentenced for Killing Hawks at South Carolina Hunting PreserveRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
Columbia, South Carolina ---- United States Attorney William N. Nettles stated today that three Orangeburg men, Charles Williams, age 66, John Dantzler, age 66, and Jimmie Aiken, age 57, and Alejandro Renteria Noyola, age 56, were sentenced today by United States Magistrate Judge Shiva Hodges, sitting in Charleston, South Carolina. The defendants entered guilty pleas to offenses involving the unlawful trapping and killing of migratory birds at Willcreek, a 1,790-acre tract of land in Orangeburg County owned by Willcreek LLC. Charles Williams, the registered agent for Willcreek LLC, pled guilty to 7 counts of killing Red-tailed or Cooper’s Hawks during 2013 and 2014; the remaining defendants were each named in a single count. Trapping and killing hawks without a permit is a violation of the Migratory Bird Treaty Act under Title 16, United States Code, Section 703, and carried a maximum prison term of six months and a fine of up to $15,000, or both, for each count of conviction.
Judge Hodges fined Williams $75,000, imposed 50 hours of community service at a birds-of-prey center, and banned him from hunting for a year. Aiken and Dantzler were each fined $1,000 and were also banned from hunting for a year.
Luis Santiago, Special Agent-in-Charge, Southeast Region, U.S. Fish and Wildlife Service said of today’s plea and sentencing: “This case is an excellent example of the cooperative investigative efforts between the South Carolina Department of Natural Resources, and the U.S. Fish & Wildlife Service, and each agency’s strong commitment to investigate violations of wildlife laws. Migratory birds are a trust responsibility of the U.S. Fish and Wildlife Service. We greatly appreciate our state and local partners in law enforcement, and the support of the U.S. Attorney's Office in prosecuting those who violate federal wildlife laws and holding them accountable for their actions. The plea and sentencing today is a success in our collective efforts to conserve migratory birds and other wildlife.”
Mr. Nettles stated, “The statute and the indictment in this case recognize that these majestic birds-of-prey are an important link in our ecosystem. Killing these hawks in order to improve sporting conditions for weekend hunters is not only unsportsman-like, it is illegal and comes at the cost of our wildlife resources. The Court’s imposition of a substantial fine is in line with the seriousness of the offense and defendants’ cruel treatment of the birds-of-prey they killed.”
The case was investigated by agents of the United States Fish and Wildlife Service Office of Law Enforcement and the South Carolina Department of Natural Resources. The investigation began in November of 2013 based on a tip from the DNR Operation Game Thief Hotline and culminated with the execution of a search warrant at Willcreek on February 21, 2014. During the course of the investigation, agents seized more than thirty raptor carcasses from Willcreek.
Assistant United States Attorney Eric Klumb of the Charleston office prosecuted the case.#####
Three More Conspirators Plead Guilty in Methamphetamine CaseRead the Press Release
ABINGDON, VIRGINIA – Three more individuals associated with a methamphetamine conspiracy that trafficked large quantities of the drug from Atlanta, Georgia to Southwest Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Jeremey Bartley, 27, pled guilty today to one count of conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime.
Franklin Dee Rose, 37, pled guilty to one count of conspiracy to possess with the intent to distribute methamphetamine and Donna Jenkins pled guilty to one count of misprision of a felony.
“We will continue to work with our law enforcement partners to focus on traffickers like those prosecuted in this case,” United tates Attorney John P. Fishwick Jr. said today.
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, these individuals, and others, were part of a methamphetamine conspiracy that trafficked and distributed multiple pounds of crystal methamphetamine between Atlanta, Georgia, Northeast Tennessee and Southwest Virginia.
To date, more than ten other individuals have pled guilty to conspiring to possess with the intent to distribute methamphetamine as part of the investigation.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Three Black Guerilla Family Gang Members Convicted in Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury convicted Mark Bazemore, a/k/a Uncle Mark, age 31; and Michael Smith, Jr., ak/ka Mikey, Lil Mike and Mik, age 30, both of Baltimore, and Timothy Hurtt, a/k/a Uncle Tim and Tim, age 45, of Baltimore County, today for participating in a racketeering conspiracy and drug conspiracy related to their membership in the Black Guerilla Family (BGF) gang. Bazemore and Hurtt were also convicted of conspiring to use and carry a firearm in relation to a crime of violence and a drug trafficking crime. Bazemore was also convicted of conspiring to commit murder in aid of racketeering; attempted murder in aid of racketeering; and carrying, brandishing and discharging a firearm in relation to a crime of violence.
The convictions were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; Chief Gary Gardner of the Howard County Police Department; Howard County State’s Attorney Dario Broccolino; and Baltimore City State’s Attorney Marilyn Mosby.
"If we want to stop the killing in Baltimore, we need to remove the killers from Baltimore," said U.S. Attorney Rod J. Rosenstein.
“These convictions are significant and are as a result of our on-going local, state and federal effort to combat violence in our communities,” said FBI Baltimore Special Agent in Charge Kevin Perkins. “This investigation and resulting convictions is proof again that the Baltimore Safe Streets Task Force is making a significant difference; there is a lot of work to do, but FBI Baltimore and our partners are committed in the fight against violent crime.”
“This is a verdict for the citizens of Baltimore to show these violent gang members that we will stop at nothing to prosecute them to the fullest extent of the law,” said Baltimore Police Commissioner Kevin Davis. “I hope this guilty verdict sends a message to those who continually harm our communities that we will work collectively to disrupt your illegal activity and organizations.”
According to court documents, the Black Guerilla Family (BGF) is a nationwide gang operating in prisons and on the streets of cities throughout the United States. BGF is involved in criminal activity, including murder, robbery, extortion, narcotics trafficking, obstruction of justice and witness intimidation in Baltimore, in Maryland, and elsewhere. The evidence showed that the defendants and other BGF members regularly paid dues to BGF and discussed gang business at meetings, including: the sanctioning of BGF members; the identities of individuals suspected of cooperating with law enforcement and actions to be taken against them; and the commission of future crimes.
According to trial evidence, Bazemore, who was a BGF leader, issued sanctions on several fellow BGF members, including the attempted murder of one BGF member who was shot on March 10, 2014, and the murder of another member who was killed on June 16, 2014. Between September and December 2013, co-defendant Timothy Gray, who was the Baltimore “city-wide” commander of BGF, sanctioned the murder of a BGF member by Hurtt and a co-conspirator. Also, Hurtt and Gray provide armed protection in a BGF drug deal. Bazemore, Smith and Hurtt collected dues from BGF members who were dealing drugs in the area of Pratt and Payson Streets, a BGF controlled open-air drug shop in Baltimore. In addition to collecting dues, the defendants conspired to operate street-level drug shops throughout Baltimore where they distributed heroin.
The defendants face a maximum penalty of life in prison for the racketeering and drug conspiracies. Bazemore and Hurtt also face a maximum penalty of 20 years in prison for conspiracy to use and carry a firearm in relation to a drug trafficking crime. Bazemore also faces a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering, and life in prison for using, carrying, brandishing and discharging a firearm in relation to a crime of violence. U.S. District Judge James K. Bredar has scheduled sentencing for November 14, 2016 at 10 a.m.
Timothy Michael Gray, a/k/a “Mike Gray,” age 48, of Baltimore, previously pleaded guilty to the racketeering conspiracy and is scheduled to be sentenced on November 16, 2016, at 10:00 a.m. Ten other co-defendants pleaded guilty to their roles in the conspiracies and are scheduled to be sentenced between November 15 and 21, 2016.
United States Attorney Rod J. Rosenstein praised the FBI; Baltimore City and Howard County Police Departments; and Baltimore City and Howard County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Clinton Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Tampa Man Sentenced to Four Years in Federal Prison for Credit Card FraudRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced Kevin Wain (41, Tampa) to four years in federal prison for credit card fraud. The Court also ordered him to pay $585,028.99 to the approximately 48 affected financial institutions. Wain pleaded guilty on October 29, 2015.
According to court documents, from at least September 20, 2012, through and including the date of his arrest in June 2015, Wain engaged in a multi-state scheme to use counterfeit credit cards to buy high-end housewares, which he then sold on eBay for cash. Wain used stolen credit cards from numerous financial institutions, without the account holders’ knowledge or permission.
The investigation revealed that Wain had eBay and PayPal accounts listed in his name and address. Profits from the sales in these accounts were deposited into bank accounts in Wain’s own name. Since opening his account in May 2010, Wain has received approximately $881,143 in payments for selling items online.
The eBay records showed that on or about September 20, 2011, Wain purchased a MSR605 Magnetic Credit Card Reader/Writer, which can read and write magnetic striped cards and is typically used to encode and re-encode credit and debit card numbers onto counterfeit credit and debit cards.
Wain’s eBay sales transactions also showed the following:
a. From September 20, 2012, to February 15, 2015, he sold approximately 755 Vitamix blenders in various models for a total profit of $399,713.08;
b. From March 12, 2013, to February 18, 2015, he sold approximately 197 Roomba Robot vacuums in various models for a total profit of $91,141.25; and
c. From April 13, 2013, to June 1, 2013, he sold approximately 9 Dyson DC41 Animal vacuums for a total profit of $3,456.99.
Wain engaged in this credit card fraud scheme primarily near his home in the Tampa area, but also as far away as Texas and Illinois, primarily using stolen credit and debit card numbers to make purchases at Williams Sonoma. To date, investigators have identified more than $585,000 in purchases by Wain at Williams Sonoma and Bed Bath and Beyond alone, using counterfeit credit cards embedded with the stolen account information of over 125 identity theft victims.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
San Francisco Resident Sentenced to More Than 5 Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
SAN FRANCISCO – Charlyne Basada, AKA Charlyne Melendres, was sentenced today to 65 months of imprisonment for bank fraud and identity theft, announced United States Attorney Brian J. Stretch and Jean Ackerman, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration. The sentence follows Basada’s guilty plea to the charges and her acknowledgement that she helped to defraud four employers collectively of more than a million dollars.
Basada, 38, of San Francisco, pleaded guilty on January 13, 2016, to charges that she fraudulently made payments to herself from her former employers’ checking accounts. Basada worked as a bookkeeper or office manager for four companies from 2009 through 2015. In her position at each company, she obtained access to the payment systems of each company. Basada admitted she devised and executed a scheme to defraud each of her former employers by using the corporate payment systems to initiate fraudulent payments to herself. In so doing, she created the false appearance that she was entitled to funds for wages, reimbursements, and other payments. Her theft diverted money from, among other things, employee pension benefit plans.
Basada also prepared checks that were intended to pay personal vendors of one of her former employers. Her employer signed these checks believing that they would be paid to vendors. However, Basada fraudulently completed the payee portion of the check to “cash” and deposited the checks into her own personal bank account. Basada admitted that the total loss to all four employers from her scheme was $1,085,918.90 and that she abused a position of trust at each employer. Further, Basada acknowledged that she made some repayments to some of her former employers, but the total amount still owed to her former employers is $1,063,975.78.
Basada was indicted by a federal grand jury on September 11, 2015, and was charged with twelve counts of bank fraud, in violation of 18 U.S.C. § 1344; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Pursuant to her plea agreement, Basada pleaded guilty to one count of bank fraud and one count of aggravated identity theft.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. In addition to the prison term, Judge Breyer sentenced the defendant to five years of supervised release. Restitution is to be determined at a later date. Basada was ordered to surrender to begin serving her sentence on September 6, 2016.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Jessica Meegan. The prosecution is the result of an investigation conducted by the San Francisco Regional Office of the United States Department of Labor, Employee Benefits Security Administration.
Roanoke County Woman Pleads Guilty to Gun, Heroin ChargesRead the Press Release
ROANOKE, VIRGINIA – A Roanoke County woman, who police made multiple controlled purchases of heroin from in 2014 and 2015, pled guilty today to federal drug and gun charges, United States Attorney John P. Fishwick Jr. announced.
Abbey Rae Lawhorn, 33, of Roanoke, Virginia, pled guilty today to one count of possession of heroin with the intent to distribute and one count of possession of a short-barreled rifle that was not registered to her in the National Firearms Registration and Transfer Record.
“Illegal guns and drugs make the communities of the Western District of Virginia unsafe and we in law enforcement must do what we can to make our streets safer,” United States Attorney Fishwick said today.
According to evidence presented at today’s hearing by Assistant United States Attorney Andrew Bassford, police made controlled purchases of heroin from Lawhorn in December 2014 and April 2015. As a result of these purchases, police obtained a search warrant for Lawhorn’s address in Roanoke County. On May 1, 2015, a search of the residence occupied by Lawhorn and her juvenile daughter was performed and officials found approximately eight bricks of heroin, an amount consistent with distribution. In addition, police discovered three firearms, one of which was a rifle with a barrel less than 16 inches in length. No such firearm was registered to Lawhorn.
The investigation of the case was conducted by the Roanoke County Police Department, the Roanoke HIDTA Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Rapid City Man Sentenced on Firearm OffensesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession of Firearm by a Prohibited Person and Possession of a Stolen Firearm was sentenced on June 2, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Patrick Harding, age 59, was sentenced to 20 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Harding was charged on November 19, 2014, and was found guilty of both offenses after a three-day federal jury trial in January 2016. The conviction stems from Harding, a previously convicted felon, knowingly possessing a stolen Glock, model 23C, .40 caliber pistol in Rapid City.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 6, 2016, by U.S. District Judge Roberto A. Lange.
Odell Thomas Goodshield, Jr., age 57, was sentenced to 13 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Goodshield was indicted for Failure to Register as a Sex Offender by a federal grand jury on February 17, 2016. He pled guilty on March 29, 2016.
On June 14, 1999, Goodshield was sentenced to 188 months in federal custody for Aggravated Sexual Abuse of a Minor. As a result of his conviction, he is required to register as a sex offender. Between January 6, 2016, and January 28, 2016, Goodshield, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender in Pennington County and elsewhere.
This case was investigated by United States Marshals Service. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Goodshield was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Woman Pleads Guilty in Cross-Country Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - A local resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine, United States Attorney David J. Hickton announced today.
Brittanie Dickerson, 26, of Pittsburgh, PA, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Brittanie Dickerson was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Oct. 6, 2016. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Brittanie Dickerson.
Philadelphia Police Officer Charged with Attempted ExtortionRead the Press Release
PHILADELPHIA - Thomas Vitanovitz, 32, of Philadelphia, PA, was charged by information today, with attempted extortion of an alleged drug dealer while working as a Philadelphia Police Officer, announced United States Attorney Zane David Memeger.
According to the information, on July 21, 2015, while employed as a Philadelphia Police Officer assigned to the 24th District, Vitanovitz seized 50 pills that Vitanovitz believed to be a controlled substance from an individual identified in the indictment as Person 1, under the color of official right.
If convicted of all charges, Vitanovitz faces a statutory maximum sentence of 20 years in prison, a possible fine, supervised release, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmaceutical Companies to Pay $67 Million to Resolve False Claims Act Allegations Relating to TarcevaRead the Press Release
Pharmaceutical companies Genentech Inc. and OSI Pharmaceuticals LLC will pay $67 million to resolve False Claims Act allegations that they made misleading statements about the effectiveness of the drug Tarceva to treat non-small cell lung cancer, the Department of Justice announced today. Genentech, located in South San Francisco, California, and OSI Pharmaceuticals, located in Farmingdale, New York, co-promote Tarceva, which is approved to treat certain patients with non-small cell lung cancer or pancreatic cancer. OSI Pharmaceuticals LLC is the successor to OSI Pharmaceuticals Inc., which was acquired by Astellas Holding US Inc. in 2010 and converted to a limited liability company in 2011.
“Pharmaceutical companies have a responsibility to provide accurate information to patients and health care providers about their prescription drugs,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will hold those companies accountable that mislead the public about the efficacy of their products.”
The settlement resolves allegations that, between January 2006 and December 2011, Genentech and OSI Pharmaceuticals made misleading representations to physicians and other health care providers about the effectiveness of Tarceva to treat certain patients with non-small cell lung cancer, when there was little evidence to show that Tarceva was effective to treat those patients unless they also had never smoked or had a mutation in their epidermal growth factor receptor, which is a protein involved in the growth and spread of cancer cells.
As a result of today’s $67 million settlement, the federal government will receive $62.6 million and state Medicaid programs will receive $4.4 million. The Medicaid program is funded jointly by the state and federal governments.
“This settlement demonstrates the government’s unwavering commitment to pursue violations of the False Claims Act and recover taxpayer dollars spent as a result of misleading marketing campaigns,” said U.S. Attorney Brian Stretch for the Northern District of California.
“Pharmaceutical companies that make misleading or unsubstantiated statements about their products can put patients at risk,” said Deputy Commissioner Howard R. Sklamberg for FDA’s global regulatory operations and policy. “The FDA will continue to work to protect the public's health by ensuring that companies do not mislead healthcare providers about their products.”
“Drug manufacturers that make misleading claims about their product’s effectiveness can jeopardize the health of patients – in this case, cancer patients,” said Special Agent in Charge Steven J. Ryan for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency will continue to protect both patients and taxpayers by holding those who engage in such practices accountable for their actions.”
The settlement resolves allegations filed in a lawsuit by former Genentech employee Brian Shields, in federal court in San Francisco. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Shields will receive approximately $10 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $29.8 billion through False Claims Act cases, with more than $18.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of California, with assistance from the HHS-OIG, the HHS Office of Counsel to the Inspector General, the HHS Office of the General Counsel-CMS Division, the FDA’s Office Chief Counsel, the FDA’s Office of Criminal Investigations, the Office of the Inspector General for the Office of Personnel Management, the FBI, the Department of Defense Office of the Inspector General, the Office of the General Counsel for the Defense Health Agency and the National Association of Medicaid Fraud Control Units.
The case is captioned United States ex rel. Shields v. Genentech, Inc., et al., Case No. CV 11 0822 MEJ (N.D. Ca.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Pharmaceutical Companies to Pay $67 Million to Resolve False Claims Act Allegations Relating to TarcevaRead the Press Release
SAN FRANCISCO- Pharmaceutical companies Genentech, Inc. and OSI Pharmaceuticals, LLC will pay $67 million to resolve False Claims Act allegations that Genentech and OSI Pharmaceuticals, Inc. made misleading statements about the effectiveness of the drug Tarceva to treat non-small cell lung cancer. The announcement was made today by United States Attorney Brian J. Stretch; Principal Deputy Assistant U.S. Attorney General Benjamin C. Mizer; Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General Steven Ryan; and Howard R. Sklamberg, the Federal Food and Drug Administration’s Deputy Commissioner for Global Regulatory Operations and Policy.
Genentech, located in South San Francisco, California, and OSI Pharmaceuticals, located in Farmingdale, New York, co-promote Tarceva, which is approved to treat certain patients with non-small cell lung cancer or pancreatic cancer. OSI Pharmaceuticals LLC is the successor to OSI Pharmaceuticals Inc., which was acquired by Astellas Holding US Inc. in 2010 and converted to a limited liability company in 2011. The settlement resolves allegations that, between January 2006 and December 2011, Genentech and OSI Pharmaceuticals made misleading representations to physicians and other health care providers about the effectiveness of Tarceva to treat certain patients with non-small cell lung cancer, when there was little evidence to show that Tarceva was effective to treat those patients unless they had never smoked or had a mutation in their epidermal growth factor receptor, which is a protein involved in the growth and spread of cancer cells.
As a result of today’s $67 million settlement, the federal government will receive $62.6 million and state Medicaid programs will receive $4.4 million. The Medicaid program is funded jointly by the state and federal governments.
“This settlement demonstrates the government’s unwavering commitment to pursue violations of the False Claims Act and recover taxpayer dollars spent as a result of misleading marketing campaigns,” said U.S. Attorney Brian Stretch for the Northern District of California.
“Pharmaceutical companies have a responsibility to provide accurate information to patients and health care providers about their prescription drugs,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will hold those companies accountable that mislead the public about the efficacy of their products.”
“Pharmaceutical companies that make misleading or unsubstantiated statements about their products can put patients at risk,” said Deputy Commissioner Howard R. Sklamberg for FDA’s global regulatory operations and policy. “The FDA will continue to work to protect the public's health by ensuring that companies do not mislead healthcare providers about their products.”
“Drug manufacturers that make misleading claims about their product’s effectiveness can jeopardize the health of patients -- in this case, cancer patients,” said Special Agent in Charge Steven J. Ryan for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency will continue to protect both patients and taxpayers by holding those who engage in such practices accountable for their actions.”
The settlement resolves allegations filed in a lawsuit by former Genentech employee Brian Shields, in federal court in San Francisco. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Shields will receive approximately $10 million. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $29.8 billion through False Claims Act cases, with more than $18.2 billion of that amount recovered in cases involving fraud against federal health care programs.
Assistant U.S. Attorney Ila C. Deiss and U.S. Department of Justice Civil Division Trial Attorney Jennifer Cihon handled the case with the assistance of Paralegal Jonathan Birch. The settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of California, with assistance from the HHS-OIG, the HHS Office of Counsel to the Inspector General, the HHS Office of the General Counsel-CMS Division, the FDA’s Office of Chief Counsel, the FDA’s Office of Criminal Investigations, the Office of the Inspector General for the Office of Personnel Management, the FBI, the Department of Defense Office of the Inspector General, the Office of the General Counsel for the Defense Health Agency and the National Association of Medicaid Fraud Control Units.
Navajo Man from Farmington Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Ferguson Pierce, 52, an enrolled member of the Navajo Nation who resides in Farmington, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to an aggravated sexual abuse charge. Under the terms of his plea agreement, Pierce will be sentenced within the range of 210 to 262 months in prison followed by not less than five years of supervised release. Pierce 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, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Pierce was arrested in Nov. 2015, on a criminal complaint alleging that he sexually assaulted and raped a Navajo woman in San Juan County, N.M., on the Navajo Indian Reservation, on July 6, 2015. Pierce was indicted on Aug. 25, 2015, and charged with aggravated sexual abuse.
During today’s proceedings, Pierce pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Pierce admitted that on July 6, 2015, he forced the victim to engage in a sexual act. Pierce admitted that he forced his way into the victim’s residence and sexually assaulted the victim.
Pierce has been in federal custody since his arrest, and will remain detained pending sentencing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety.
Assistant U.S. Attorney David Adams is 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.
Midland Man Sentenced to 47+ Years in Federal Prison for Attempted Murder of Border Patrol AgentRead the Press Release
In Del Rio today, 50-year-old Carl Wayne Wiley was sentenced to 571 months in federal prison for attempted murder of a Border Patrol agent announced United States Attorney Richard L. Durbin, Jr., Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol, and Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.
In addition to the prison term, United States District Judge Ivan L.R. Lemelle ordered that Wiley be placed on supervised release for three years after completing his prison term.
In February 2016, a jury convicted Wiley of one count of attempting to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties; one count of assaulting, resisting, opposing, impeding, or interfering with one or more United States Border Patrol Agents using a deadly or dangerous weapon; two counts of using and discharging a .45 caliber Ruger revolver during and in relation to the commission of the aforementioned crimes of violence; and, one count of assaulting, resisting, or impeding United States Border Patrol Agents.
According to court records, in 2014, Wiley was wanted on State charges for Murder and Attempted Murder in Midland, TX, and was fleeing prosecution. In the early morning hours of June 29, 2014, Wiley was spotted by Border Patrol agents in Sanderson, TX. Wiley took the agents on a high speed pursuit before crashing his vehicle. He fled on foot into the brush and avoided arrest by stealing an ATV, then a pickup truck, as well as several firearms from nearby ranches.
On June 30, 2014, an off duty Comstock Border Patrol Agent observed Wiley traveling East on Highway 90 near the Comstock Border Patrol checkpoint. Approximately four miles north of Comstock, an agent attempted to conduct a vehicle stop. When the agent activated the emergency equipment, Wiley crashed through a ranch fence and continued driving across the pasture further into the ranch. The vehicle came to a stop after colliding with a tree and Wiley absconded on foot into the brush.
Wiley led responding agents on a foot pursuit and shot at one agent who was closing in on him. As he continued to evade agents, Wiley fired his weapon again at a group of approaching agents. When the agents were eventually able to surround Wiley, he ultimately dropped his weapon and was arrested.
This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the United States Border Patrol, Val Verde Sheriff’s Office and the Midland Police Department. Assistant United States Attorneys Ralph Paradiso and Katherine Griffin prosecuted this case on behalf of the Government.