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9 June 2016
Trio Charged in Conspiracy to Illegally Sell Authentic Driver's Licenses to Undocumented IndividualsRead the Press Release
PHILADELPHIA - An indictment was filed today charging three people in a conspiracy to sell illegally obtained driver’s licenses to undocumented aliens, announced United States Attorney Zane David Memeger. Jose Altagracia Morales Santiago, 57, of Philadelphia, PA, Jose Jhonkellyn Castillo-Henriquez, 28, of New York, NY, and Hiram Mojica, 49, of Philadelphia, PA, are each charged with one count of conspiracy, aggravated identity theft, and producing an identification document.
According to the indictment, between February and May of 2016, the defendants obtained the identifying information of Puerto Rican citizens, which they then sold to undocumented aliens. The defendants allegedly obtained through unlawful means both learner’s permits and driver’s licenses from Pennsylvania Department of Transportation (PennDOT) Department of Motor Vehicles (DMV) locations in and around Philadelphia, which defendants Morales Santiago and Castillo-Hernandez sold to undocumented aliens. It is further alleged that defendant Morales Santiago paid individuals to take the written knowledge test portion of the driving test using Puerto Rican identities, fraudulent utility bills, and fraudulent medical reports, all of which defendant Morales Santiago provided. Defendant Mojica allegedly instructed undocumented aliens how to use and drive an automobile, provided undocumented aliens with a car to use during driving tests, drove undocumented aliens to DMVs located in and around Philadelphia, chaperoned undocumented aliens through the DMV procedures, and directed undocumented aliens to falsify documentation supporting their driver’s license applications
If convicted, each defendant faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 22 years, a possible fine, a period of supervised release, and a $300 special assessment. The indictment also contains a notice of forfeiture.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kevin Brenner.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three People Arrested in FBI OperationRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -------- Sherif Abdelwahab Alkassar, age 36, of Myrtle Beach, South Carolina; Lesley Amanda Alkassar, age 38, of Blacksburg, South Carolina, and Katie Leighanne Polson, age 29, of Myrtle Beach, South Carolina; were arrested June 9, 2016,on charges of Electronic Benefits Transfer (EBT card) fraud, a violation of Title 7 United States Code, Section 2024.
Sherif Abdelwahab Alkassar, was also charged with Mail Fraud, a violation of Title 18 USC 1341, and making False Statements relating to Naturalization/Citizenship, a violation of Title 18 USC 1015.
William Nettles, U.S. Attorney for the District of South Carolina, made the announcement after the Defendants’ initial appearances before U.S. Magistrate Judge Kaymani D. West, Florence, South Carolina.
Each faces a maximum possible penalty of not more than twenty years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Each Defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being investigated by agents of the Federal Bureau of investigation (FBI), the Department of Homeland Security/Immigration and Customs Enforcement (DHS/ICE),and the United State Department of Agriculture USDA (USDA). The case is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
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St. Louis County Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Charles Hicks, Fenton, Missouri, was indicted Wednesday afternoon on mail fraud charges in connection with a fraud and embezzlement scheme that spanned three years and involved two employers.
According to the indictment, Hicks submitted false invoices to his ex-employers, RockTenn and MarChem, both with offices in St. Louis County, for equipment not delivered and services not rendered. The invoices were payable to two shell companies created and controlled by Hicks.
If convicted, Hicks faces up to 20 years imprisonment and/or a fine of $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution to the victims is also mandatory.
This case was investigated by the FBI and the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sixty-Six Gang Members Facing Federal Rico, Firearm and Drug Trafficking ChargesRead the Press Release
BOSTON – Sixty-six alleged gang members from the Greater Boston area have been charged with federal and state firearm and drug charges, including federal RICO conspiracy charges related to an attempted murder. It is alleged that these individuals were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
This morning, more than 400 federal, state and local law enforcement officers carried out the arrests of numerous leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Gang. These individuals operated primarily in East Boston, Chelsea, Brockton, Malden, Revere and Everett. Additional individuals were taken into custody on federal immigration violations.
In 2014, a federal investigation identified a network of street gangs which had created alliances resulting in the trafficking of weapons and drugs throughout the state, and generated violence against rival gang members. The investigation also revealed significant cocaine, crack, and heroin dealing committed by gang members, many of which were supplied though a Brockton-based drug network.
According to court documents, the 18th Street Gang is a multi-national gang that operates throughout the United States and Central America, and whose members in the Boston area have had significant access to firearms in Boston and Chelsea. Over a one year period, investigators seized approximately 37 firearms from 18th Street Gang members alone, including 29 hand guns, three assault rifles, and five sawed-off shotguns, many of which had the serial numbers obliterated.
In total, 53 defendants have been charged in federal court, three of whom were previously arrested. Thirteen defendants have been charged by the Massachusetts Attorney General’s Office in state court. Over two dozen individuals have been detained for administrative deportations.
The charge of RICO conspiracy provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Depending on the drug quantity, the drug trafficking conspiracy and distribution charges provide a sentence of 20 years, 40 years or a lifetime in prison; a minimum of three, four or five years of supervised release; and a fine of $1 million, $5 million or $10 million. The charge of conspiracy to engage in the business of dealing in firearms without a license provides a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm or an alien in possession of a firearm and ammunition provides a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal of the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley, made the announcement today.The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Individuals Charged in Scheme to Defraud Merchants Out of Jewelry and DiamondsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of Federal Bureau of Investigation, (“FBI”), Robert E. Perez, Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), and Julie L. Jones, Secretary of the Florida Department of Corrections (“FDC”) announced that DAVID JENKINS, ANTHONY BROOKS, LAKEATHA COOPER, SHARON LARA, DOMINEK GRANT, and ROBERTO CONCEPCION were taken into federal custody today for participating in a scheme to defraud merchants of diamonds and jewelry in New York, New York, and around the United States. BROOKS was presented this afternoon in Fort Lauderdale, Florida. COOPER and LARA were presented this afternoon in federal court in Fort Pierce, Florida. GRANT was presented this afternoon in federal court in Charleston, South Carolina. JENKINS and CONCEPCION, who were incarcerated in a Florida state correctional institution, have been taken into federal custody and will be presented upon their arrival in the Southern District of New York. The case is assigned to the Honorable Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “The six defendants allegedly tricked merchants around the country, including in New York’s Diamond District, into sending valuable jewelry in exchange for what turned out to be counterfeit checks and bogus money orders. Two of the defendants allegedly engaged in this brazen scheme while incarcerated for other crimes.”
FBI Assistant Director Diego Rodriguez said: “Using a contraband cell phone and a complex network of co-conspirators throughout the United States, an inmate in Florida allegedly defrauded jewelers in New York’s Diamond District out of thousands of dollars’ worth of jewelry pieces. By posing as legitimate jewelry companies, David Jenkins negotiated a cash-on-delivery sale of jewelry with New York jewelers that was eventually paid with counterfeit certified checks and then re-sold. This cross-country scheme was met with cross-country law enforcement efforts, with FBI New York working closely with FBI Miami. We appreciate the assistance with today’s operations by FBI Columbia, FBI Phoenix, and FBI Miami. The FBI will continue to investigate big and small organized crime groups who seek to profit from fraudulent criminal activities.”
CBP New York Director Robert E. Perez said: “U.S. Customs and Border Protection is proud of the expertise we bring to support and assist investigations that result in the takedown of criminal enterprises. It is through interagency partnerships and collaborative efforts, like the one leading to today’s arrests, that law enforcement successfully combats today’s criminal organizations.”
NYPD Commissioner William J. Bratton said: “As alleged, defrauding diamond dealers, while two of the defendants ran this racket from a jail, speaks to the audacity of the crime. Today, this scheme of swindling New York City Diamond District merchants and others is over.”
FDC Secretary Julie L. Jones said: “The apprehension and arrest of the six defendants in this case represents what can be achieved through cooperation and collaboration between law enforcement agencies, regardless of their location. The Department is proud of its investigative contribution and will continue its efforts in ensuring not only the safety of Florida’s citizens, but the freedom to safely and securely conduct business in our state.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
From at least in or about June 2015 to in or about June 2016, JENKINS, BROOKS, COOPER, LARA, GRANT, and CONCEPCION defrauded jewelry merchants in New York City and elsewhere by inducing the merchants to send gemstones, precious metals, and jewelry to them in exchange for counterfeit checks or other fictitious forms of payment.
The defendants contacted jewelry and antiques merchants by telephone, electronic message, and email. In many of these communications, JENKINS masqueraded as representatives of legitimate jewelry companies and, in doing so, often appropriated the names and personal identifying information of real people in order to induce merchants to ship jewelry and precious goods interstate. In the typical scenario, JENKINS, negotiated cash-on-delivery terms of payment from merchants, ensuring both that merchants would not meet any of the defendants in person and that the defendants could pay for the goods by counterfeit and fictitious certified checks. After receiving the merchants’ goods, the defendants typically sold those goods to other jewelry stores.
Contrary to the representations made to the merchants, JENKINS never represented any legitimate jewelry business. In fact, at all relevant times, JENKINS was incarcerated at a Florida state correctional institution, where he was assisted by CONCEPCION, who was also incarcerated at the same institution. BROOKS, COOPER, LARA, and GRANT, who at all relevant times were at liberty in the community, created and delivered counterfeit checks, accepted packages from merchants, and distributed proceeds from the fraud to others in the scheme.
JENKINS, 51 of Indiantown, Florida, BROOKS, 27, of Miramar, Florida; COOPER, 36, of West Palm Beach, Florida; LARA, 41, of Port Saint Lucie, Florida; GRANT, 31, of North Charleston, South Carolina; and CONCEPCION, 46, of Indiantown, Florida, are each charged with one count of conspiring to commit mail and wire fraud, which carries a maximum penalty of 20 years in prison, one count of interstate transportation of stolen property, which carries a maximum penalty of 10 years in prison, and one count of possessing fictitious obligations, which carries a maximum penalty of 25 years in prison. JENKINS is also charged with one count of aggravated identity theft, which carries a mandatory penalty of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
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Mr. Bharara praised the outstanding work of the FBI, the New York FBI’s Eurasian Joint Organized Crime Task Force, CBP, NYPD, and FDC for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Andrew M. Thomas and Karin Portlock are in charge of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Six Individuals Arrested for Carjacking, Hobbs Act, and Firearms OffensesRead the Press Release
SAN JUAN, P.R. – On June 2, 2016, a federal grand jury returned a six-count indictment against six individuals for interference of commerce by threats of violence or Hobbs Act, use of firearms during and in relation to a crime of violence, and carjacking, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The indictment is the result of a joint effort between the United States Attorney’s Office (USAO), the Federal Bureau of Investigation’s Save Our Streets Initiative (SOS) and the Puerto Rico Police Department (PRPD). The FBI’s SOS is one of the various components of the USAO’s Illegal Firearms and Violent Crime Reduction Initiative.
The indictment alleges that on or about April 2, 2016, in the District of Puerto Rico, Joel Miranda-Figueroa, Richard Cruz-Monzón, Felix Tomás Cruz-Carrión, aka “Tomate,” and Jonathan Rodríguez-Díaz, aiding and abetting each other, robbed La Revolución Barber Shop in Arroyo, PR. The defendants, aided and abetted by each other, unlawfully took $705.00, cellular phones, purses and personal belongings threatening employees and clients with firearms in order to commit the robbery.
On April 11, 2016, defendants Miranda-Figueroa, Cruz-Monzón, Bryan Steven Ramos-Marrero, aka “Zurdo,” and Erick Álamo-Rodríguez, aiding and abetting each other, committed carjacking. These four defendants stole a 2000 red Jeep Compass, while using and brandishing a firearm, from the person N.M.M. by threats and violence. On that same day, three of the defendants robbed a Gulf Gas Station/store in Maunabo, PR. The defendants took approximately $3,200 to $3,600, and approximately $66.00 worth in Newport Cigarettes threatening the employees and clients with firearms.
“The investigations by the SOS team of FBI special agents and designated PRPD officers will continue into similar crimes in other areas of Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The collaboration and team work between state and federal law enforcement agencies in the investigation and prompt filing of charges show the immediate results we continue to obtain with this joint initiative.”
“Today’s successful operation should be attributed to the outstanding investigative skills of our partners, the Police of Puerto Rico. Their diligence in tracking down the alleged perpetrators comes not only from a sense of duty, but from their sincere desire to make Puerto Rico a safer place. Regrettably, while these arrests took place, new incidents of carjacking occurred in other parts of the island. Those responsible will soon be brought to justice in the same manner as today’s arrestees. Soon, it will become ever more clear that those who commit or assist in committing a carjacking will have their freedom replaced by a prison cell, for many years,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
The case is being prosecuted by Special Assistant United States Attorney Daynelle M. Álvarez-Lora. If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Shreveport man sentenced to 20 years in prison for methamphetamine chargeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced this week to 240 months in prison for possessing methamphetamine, which he intended to sell.
Lloyd E. Barmore, 34, of Shreveport, was sentenced Monday by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to the January 6, 2016 guilty plea, Louisiana State Police stopped Barmore’s vehicle on July 10, 2014. During a search of the vehicle, 915.2 grams of methamphetamine, a Springfield XD 9 mm handgun, digital scales and $5,914 in cash were found. The methamphetamine belonged to Barmore, and he intended to transfer or deliver it to another person. The driver of the vehicle was 16 years old.
“It is unacceptable that this felon put a child directly in harm’s way to further his continued drug trafficking,” said Finley. “Firearms and drugs are a dangerous combination. Methamphetamine cases are a priority for this office. We will continue to work with our law enforcement partners to investigate and prosecute these cases in an effort to make sure our communities are safe by keeping criminals like Barmore off the street.”
The DEA and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Sex Offender Charged for Failing to Register in MassachusettsRead the Press Release
BOSTON – A Brockton man was charged today in U.S. District Court in Boston for failing to register as a sex offender.
Charles Towers, 52, was indicted on one count of failing to register as a sex offender. In May 2016, Towers was arrested and charged in a criminal complaint.
According to court documents, in October 2009, Towers was convicted in San Diego Superior Court of attempted forcible oral copulation and sentenced to 18 months in jail and ordered to register as a sex offender for life.
Upon release from jail, Towers registered as a sex offender in California. In April 2014, Towers moved from San Diego to Brockton and failed to both notify the San Diego Police Department’s Sex Offender Unit of his change of address and to register as a sex offender with the Massachusetts Sex Offender Registry Board, as he was legally required to do.
The charging statute provides a sentence of no greater than 10 years in prison, a minimum of five years and no longer than a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Serial Fraudster Indicted for Investment Advisor Fraud and Money LaunderingRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging RANDY MILAND, 62, for operating a Ponzi scheme through which he stole or attempted to steal more than $500,000 from purported investors. MILAND made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minn.
“IRS-Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes. We will vigorously pursue those individuals who victimize investors and violate the public trust," said Special Agent in Charge Shea Jones of the IRS-Criminal Investigation Division of the St. Paul Field Office. "The indictment of Randy Miland demonstrates the government's determination to restore and ensure that trust.”
“As the indictment alleges, Randy Miland is a serial scam artist with no regard for his victims,” said Minnesota Commerce Commissioner Mike Rothman. “He used fake investments to steal people’s life savings before, and now he’s done it again. The Commerce Fraud Bureau worked with federal authorities to stop his fraudulent schemes and protect Minnesotans.”
According to the indictment and documents filed in court, in 1999, MILAND was convicted in state court of theft by swindle and ordered to pay more than $1.5 million in restitution to the victims of his scheme. As of May 2016, MILAND still owed to the victims nearly the entire amount.
According to the indictment and documents filed in court, in 2006, MILAND was convicted of fraud in federal court and ordered to pay more than $250,000 in restitution to the victims. As of May 2016, MILAND owed approximately $124,000 in restitution.
According to the indictment and documents filed in court, between 2010 and 2014, MILAND fraudulently solicited approximately $575,000 from investors, telling them that he would use their money to invest in futures and other legitimate investments. Instead, he used their money to pay personal expenses, including court-ordered restitution to victims of his prior scams, and to make Ponzi-type payments to other purported investors.
According to the indictment and documents filed in court, MILAND concealed from the new victims that he had been twice convicted of fraudulent conduct, that he was forbidden by the Minnesota Department of Commerce from offering or selling securities, and that he still owed more than $1.5 million in restitution to victims of prior schemes.
The case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Commerce Fraud Bureau.
Defendant Information:
RANDY MILAND, 62
White Bear Lake, Minn.
Charges:
- Mail fraud, 5 counts
- Money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Sentencings for June 3 - June 7, 2016Read the Press Release
Sean O’Neil, 35, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 3, 2016, for possession of a firearm not registered in the National Firearms Registration and Transfer Record. O’Neil received 12 months and one day imprisonment, to be followed by two years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Herminio Garcia-Reyes, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 3, 2016, for illegal re-entry of a previously deported alien into the United States. Garcia-Reyes was arrested in Cheyenne, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Hilda Mireya Ibarra-Avilez, 43, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Ibarra-Avilez was arrested in Powell, Wyoming. She was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Adrian Diaz-Angeles, 29, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Diaz-Angeles was arrested in Laramie, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Martin Hernandez-Galacias, 32, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 7, 2016, for illegal re-entry of a previously deported alien into the United States. Hernandez-Galacias was arrested in Jackson, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Sayre Woman Sentenced to 120 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DIXIE ANN MORPHIS, age 36, of Sayre, Oklahoma, was sentenced to 120 months imprisonment for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A)(viii).
The charge arose from an investigation by the McAlester Police Department and the Drug Enforcement Administration.
The Indictment alleged that on or about December 5, 2015, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of methamphetamine (actual), a Schedule II controlled substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which she will serve her nonparoleable sentence.
Assistant United States Attorney Tim Hammer represented the United States.
Philadelphia Resident Charged with Illegal ReentryRead the Press Release
Jose Alberto Rosario-Morales, a/k/a Miguel Hidalgo-Santos,” a/k/a “Luis Santos,” of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about May 11, 2016, Rosario-Morales, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about November 17, 2010.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a possible fine, a $100 special assessment, and a period of supervised release.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrew J. Schell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Omaha Man Sentenced to 15 Years in Prison for Possession with the Intent to Distribute Methamphetamine while in Possession of a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that Jose Jimenez, 37, of Omaha, Nebraska, was sentenced on June 9, 2016, to 15 years in prison by United States District Judge Joseph F. Bataillon. Jimenez had previously pled guilty to Possession with the Intent to Distribute more than 500 grams of Methamphetamine and Possessing a Firearm in Relation to a Drug Trafficking Crime. Jimenez was arrested and indicted on the charges after Omaha police officers twice utilized a cooperating witness who purchased quantities of methamphetamine from him. On September 29, 2015, officers executed a search warrant at Jimenez’s Omaha residence. Officers found items consistent with the sale of methamphetamine. Jimenez was arrested nearby in his car, a search of which revealed approximately nine pounds of methamphetamine and two firearms.
As a result of possessing more than 500 grams of methamphetamine, Jimenez was sentenced to a mandatory minimum of 10 years in prison, with an additional 5 years for possession of a firearm. After serving his sentence Jimenez will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Omaha Police Department.
Notice of Press ConferenceRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -- United States Attorney Bill Nettles and Fourteenth Circuit Solicitor Duffie Stone will hold a press conference Friday, June 10, 2016 at the Fourteenth Circuit Solicitor’s Office to provide a 6-month update on the partnership between the Fourteenth Circuit Solicitor’s Office and the U.S. Attorney’s Office.
WHEN: Friday, June 10, 2016 TIME: 5:00 PM WHERE:Fourteenth Circuit Solicitor's Office
39 Sheridan Park Circle, Ste. 2
Bluffton, SC 29910NOTE: Press inquiries regarding logistics should be directed to Beth Drake, 803-929-3061. All media must present government-issued photo id (such as a driver’s license). All media should be in place 20 minutes prior to start. Parking will be available behind the building.
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Norway Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Stephen Bean, 55, of Norway, Maine pled guilty yesterday in U.S. District Court to possessing firearms after being convicted of a felony offense.
According to court records, on November 21, 2015, Maine Game Wardens encountered Bean hunting with two other men in the Paris, Maine area. The other men were carrying a shotgun and a rifle both belonging to and provided by Bean. The weapons were seized. A search of Bean’s residence on January 7, 2016 resulted in the seizure of another shotgun and rifle. Bean was prohibited from possessing firearms as the result of a 2005 felony conviction for operating after revocation in Maine state court.
Bean faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Warden Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Newmarket Man Pleads Guilty to Drug Distribution Causing DeathRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced today that Benjamin Rogers, 31, appeared before United States District Court Chief Judge Joseph Laplante and pleaded guilty to distribution of a controlled substance resulting in death.
According to documents that were filed in United States District Court and statements in the plea proceeding, Rogers worked at a restaurant in Portsmouth, New Hampshire with the victim, Cassie Clermont, 30. On October 17, 2014, Rogers arranged to provide a quantity of drugs to Ms. Clermont. Text messages and witness statements showed that Rogers left the restaurant and later returned to the restaurant parking lot, where he met with Ms. Clermont and provided her with a quantity of drugs. Ms. Clermont later left the restaurant and went to her apartment in Portsmouth. She was found dead the next day, with fentanyl and drug paraphernalia near her body.
The New Hampshire Medical Examiner later found that Ms. Clermont died of acute fentanyl intoxication. New Hampshire has the third-highest rate of per capita drug overdose deaths in the United States. More than half of the drug overdose deaths in New Hampshire in 2015 were the result of fentanyl, either alone or in combination with other drugs.
United States Attorney Rice said, “I want to thank the Portsmouth Police Department, the Drug Enforcement Administration, the Newmarket Police Department, the New Hampshire Medical Examiner’s Office and the Rockingham County Attorney’s Office for their work on this case. Fighting the opioid epidemic is a multi-pronged, team effort. One facet of our attack is to prosecute those who are criminally responsible for causing drug overdoses. We will continue to work with law enforcement agencies to identify and prosecute the individuals who distribute drugs that cause overdose deaths. Any drug distribution has the potential to be deadly, regardless of the quantity of drugs involved. When a drug distribution causes an overdose death, my office will seek to hold the distributor accountable.”
In April 2016, the United States Attorney’s Office and the New Hampshire Attorney General’s Office announced the formation of an inter-office team of prosecutors who will work together to prosecute individuals who cause opiate overdoses in New Hampshire. This prosecution, initiated before the creation of the joint team, is an example of the type of case that will be generated by the team.
The case was prosecuted by Assistant United States Attorney John J. Farley.
A sentencing hearing has been scheduled for September 19, 2016.
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New York woman pleads guilty to credit card fraudRead the Press Release
CHARLESTON, W.Va. – A New York City woman pleaded guilty yesterday to credit card fraud, announced Acting United States Attorney Carol Casto. Nayosha Aice, 25, entered her guilty plea to the felony offense of possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered to contain stolen account information that is magnetically re-encoded on the credit card.
Aice admitted that she, along with a codefendant, possessed 78 counterfeit access devices. Aice drove from New York City, using these counterfeit credit cards to buy cartons of Newport cigarettes and other merchandise. She was observed at the St. Albans Go-Mart using multiple counterfeit cards on June 25, 2015, and after noticing the suspicious behavior, store employees contacted law enforcement. Once observed by police, Aice attempted to throw the credit cards away in a nearby store. Officers recovered the credit cards and subsequently confirmed that the credit cards were counterfeit access devices.
Aice faces up to 10 years in federal prison and a $250,000 fine when she is sentenced on September 15, 2016. Her codefendant, Sasha Nelson, is scheduled for trial on June 21, 2016. Nelson is presumed innocent unless and until proven guilty in a court of law.
The St. Albans Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorneys Erik S. Goes and Eric Bacaj are in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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New York Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JORDAN ANATE, also known as “Pills” and “Che Pills,” 25, most recently of the Bronx, N.Y., pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, on March 5, 2015, East Hartford Police encountered an underage girl in a room at a local motel. The victim stated that she had met ANATE in New York and that, beginning in approximately December 2014, she had engaged in acts of prostitution at ANATE’s direction in various locations, including multiple trips to Connecticut.
The investigation revealed that the victim was prostituted by ANATE at hotels in Hartford, Manchester, New Britain and East Hartford. The victim had seen several clients per week, giving all of the money to ANATE.
In pleading guilty, ANATE admitted that he knew the victim was under the age of 18.
“The sex trafficking of minors is a form of modern day slavery,” said U.S. Attorney Daly. “This defendant victimized a young runaway; a girl he knew was under the age of 18. I thank the FBI and East Hartford Police Department for investigating this matter, recovering this victim, and preventing this defendant from victimizing any other girls or women for at least the next 10 years.”
Judge Bryant scheduled sentencing for September 14, 2016, at which time ANATE faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
ANATE has been detained since his arrest on March 5, 2015.
This matter has been investigated by the Federal Bureau of Investigation and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
Navajo Man from Standing Rock, N.M., Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Julius H. Willie, 30, an enrolled member of the Navajo Nation who resides in Standing Rock, N.M., pled guilty this morning in Albuquerque, N.M., to an aggravated sexual abuse charge. Under the terms of his plea agreement, Willie will be sentenced to 21 years in federal prison followed by a term of supervised release to be determined by the court. Willie will also be required to register as a sex offender after he completes his prison sentence.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Director Jesse Delmar of the Navajo Nation Division of Public Safety, and Chief Robert Cron of the Gallup Police Department.
Willie was charged in April 2014, in a five-count indictment with kidnapping, three counts of aggravated sexual abuse, and abusive sexual contact. According to the indictment, Willie committed the crimes on Aug. 26, 2012, on the Navajo Indian Reservation in McKinley County, N.M. He was transferred to federal custody on April 24, 2014, from state custody where he had been held for two years on related state charges.
During today’s proceedings, Willie pled guilty to Count 2 of the indictment charging him with aggravated sexual abuse. In entering the guilty plea, Willie admitted that on Aug. 26, 2012, he forced the victim to engage in a sexual act.
Willie’s sentencing hearing has yet to be scheduled. According to the plea agreement, Willie’s 21-year prison sentence will begin on the date of sentencing.
The Crownpoint office of the Navajo Nation Division of Public Safety, the Gallup office of the FBI and the Gallup Police Department investigated this case.
Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback are prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Multi-Convicted Felon Sentenced to More Than Two Decades in Federal Prison for Trafficking Drugs and Possessing FirearmsRead the Press Release
SAVANNAH, GA: Darius Andre “Arnie” Holmes, 41, of Savannah, Georgia, was sentenced yesterday by U.S. District Judge William T. Moore, Jr. to serve 262 months in federal prison for trafficking heroin and unlawfully possessing firearms. After Holmes completes his nearly 22-year prison term, he will be supervised by the United States Probation Office for an additional five years. Parole has been abolished in the federal system.
According to the evidence presented at trial, Holmes sold heroin to a confidential police informant on multiple occasions in August 2015. After one such sale, Holmes told the informant he wanted to buy firearms. Agents of the Chatham-Savannah Counter Narcotics Team (CNT) and the ATF then organized a sting operation during which Holmes exchanged drugs with an undercover officer for semiautomatic weapons. With assistance from the Savannah-Chatham Metropolitan Police Department SWAT team, Holmes was arrested immediately following the trade.
At sentencing, the Court noted that, Holmes had been convicted of more than 35 felony offenses over the course of nearly 25 years. Many of Holmes’ crimes involved drugs, guns, and violence, and all of them were perpetrated in the Savannah area.
U.S. Attorney Edward Tarver said, “This defendant’s more than two-decade prison sentence is an appropriate response to the offenses he committed and his history of crime in the Savannah community. The Department of Justice will continue to apprehend and prosecute criminals who terrorize our communities with violence, guns and drugs. There should be no doubt that if you’re a felon with a gun or even one bullet; or if you’re pushing poison in our streets, you’ll soon be headed to a federal prison, far, far away and for a very long time.”
The U.S. Attorney’s Office prosecuted Holmes as part of Project Ceasefire, a joint federal, state and local initiative to combat gun violence and ensure that repeat offenders are subjected to stiff federal prison sentences.
Assistant United States Attorneys Joseph D. Newman and Theodore S. Hertzberg prosecuted the case on behalf of the United States. The Georgia Bureau of Investigation and the Chatham County Sheriff’s Office also provided support to the ATF/CNT/SCMPD investigation. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Miami-Dade County Resident Convicted of Distributing and Possessing Child PornographyRead the Press Release
A Miami-Dade County resident was convicted at trial yesterday of distributing and possessing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Anthony Daron Johnson, 43, of Miami-Dade, was convicted by United States District Judge Ursula Ungaro of distribution of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1), and possession of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). Johnson is scheduled to be sentenced on September 2, 2016 at 1:30 p.m.
According to court documents and evidence presented at trial, between May 23, 2012 and September 21, 2014, Johnson used a peer-to-peer file-sharing program to download hundreds of child pornography files, including videos and still images. On June 8, 2014, law enforcement downloaded one complete file and one partial file from Johnson, both of which contained images of minors engaged in sexually explicit conduct. On November 20, 2014, law enforcement executed a federal search warrant at Johnson’s residence and recovered a computer containing two hundred still images and three videos of children engaged in sexually explicit conduct.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys Joshua Rothstein and Jonathan Kobrinski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Sentenced to 144 Months in Prison for Role in Multimillion-Dollar Scheme to Defraud Commercial Lenders and U.S. Export-Import BankRead the Press Release
A Miami man was sentenced today to 12 years in prison for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM Bank) out of more than $11 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Inspector General Michael McCarthy of EXIM Bank made the announcement.
Guillermo A. Sanchez-Badia, 61, was sentenced today by U.S. District Judge Joan A. Lenard of the Southern District of Florida, who also sentenced Sanchez-Badia to three years of supervised release and ordered him to forfeit $41,924,418 and pay $11,503,068 in restitution, joint with co-conspirators Isabel C. Sanchez and Gustavo Girol. Sanchez-Badia pleaded guilty on March 21, 2016, to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering.
Sanchez-Badia admitted that from 2007 through 2012, he and his co-conspirators utilized companies that they controlled to create fictitious invoices for sales of merchandise that never occurred. These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices. Sanchez-Badia admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices.
Sanchez-Badia admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM. Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez-Badia and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, he admitted. The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing losses of more than $9 million to the lenders and $2 million to the United States.
Five other individuals have been convicted for their roles in this scheme: Sanchez, 36, and Giral, 38, both of Miami, who await sentencing; and Freddy Moreno-Beltran, 43, of Bogota, Colombia. Ricardo Beato, 62, of Miami, and Jorge Amad, 48, of Miramar, Florida, were separately charged, pleaded guilty and have been sentenced for their roles in the scheme.
The EXIM Office of Inspector General investigated the case. Trial Attorney William Bowne and Senior Litigation Counsel Patrick Donley of the Criminal Division’s Fraud Section prosecuted the case.
Miami Man Sentenced to 144 Months in Prison for Role in Multimillion-Dollar Scheme to Defraud Commercial Lenders and U.S. Export-Import BankRead the Press Release
A Miami man was sentenced today to 12 years in prison for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM Bank) out of more than $11 million.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector General Michael McCarthy of EXIM Bank made the announcement.
Guillermo A. Sanchez-Badia, 61, was sentenced today by U.S. District Judge Joan A. Lenard of the Southern District of Florida, who also sentenced Sanchez-Badia to three years of supervised release and ordered him to forfeit $41,924,418 and pay $11,503,068 in restitution, joint with co-conspirators Isabel C. Sanchez and Gustavo Girol. Sanchez-Badia pleaded guilty on March 21, 2016, to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering.
Sanchez-Badia admitted that from 2007 through 2012, he and his co-conspirators utilized companies that they controlled to create fictitious invoices for sales of merchandise that never occurred. These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices. Sanchez-Badia admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices.
Sanchez-Badia admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM. Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez-Badia and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, he admitted. The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing losses of more than $9 million to the lenders and $2 million to the United States.
Five other individuals have been convicted for their roles in this scheme: Sanchez, 36, and Giral, 38, both of Miami, who await sentencing; and Freddy Moreno-Beltran, 43, of Bogota, Colombia. Ricardo Beato, 62, of Miami, and Jorge Amad, 48, of Miramar, Florida, were separately charged, pleaded guilty and have been sentenced for their roles in the scheme.
The EXIM Office of Inspector General investigated the case. Trial Attorney William Bowne and Senior Litigation Counsel Patrick Donley of the Criminal Division’s Fraud Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Mexican National Convicted of Operating Methamphetamine Lab in FresnoRead the Press Release
FRESNO, Calif. — On Wednesday, after a two-day trial, a jury found Humberto Bucio Delgado, 41, of Mexico, guilty of conspiracy to distribute methamphetamine and possession with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on September 30, 2014, Delgado was arrested at a methamphetamine conversion lab inside a Fresno residence. Agents recovered over 60 pounds of methamphetamine from the house as well as materials used in the manufacturing and distribution of methamphetamine.
Sentencing is set for August 29, 2016, before Chief United States District Judge Lawrence J. O’Neill. Delgado faces a sentence of 10 years to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Fresno Methamphetamine Task Force, the California Department of Justice, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Kathleen A. Servatius and Daniel J. Griffin are prosecuting the case.
Marathon Petroleum Company to Reduce Air Pollution from Refineries in Five StatesRead the Press Release
The U.S. Environmental Protection Agency (EPA) and the Department of Justice today announced an agreement with Ohio-based Marathon Petroleum Company that will reduce air pollution from the company’s petroleum refineries in Illinois, Kentucky, Louisiana, Michigan and Ohio. Marathon will spend $319 million to install state-of-the-art Flare Gas Recovery Systems (FGRSs), which will capture and recycle gases that would otherwise be sent to combustion devices known as flares. Marathon will also spend $15.55 million on projects to reduce air pollution at three of the facilities and will pay a civil penalty of $326,500 to the United States.
“This agreement continues the significant pollution reductions achieved under our earlier consent decree with Marathon in 2012,” said John C. Cruden, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “All five communities near these refineries will breathe cleaner air as a result of this agreement and Detroit will see a reduction in flaring at the refinery’s fence line.”
“When companies like Marathon install state-of-the-art pollution controls, they reduce air pollution in some of our most vulnerable communities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “By updating this agreement, we are furthering our commitment to protect communities across the Southeast and the Midwest, especially places like Detroit that are overburdened by pollution.”
“This agreement marks significant progress in environmental justice in southwest Detroit,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “It shows that industry can thrive while protecting the environment. By investing in technology, Marathon will improve air quality for all of our residents throughout southeastern Michigan.”
The settlement filed today in the U.S. District Court in Detroit amends a 2012 consent decree involving the company’s flares. A flare is a mechanical device, ordinarily elevated high off the ground, used to combust waste gases.
When fully implemented, today’s agreement is expected to reduce harmful air pollutants like volatile organic compounds (VOCs), sulfur dioxides (SO2) and nitrogen oxides (NOx) by approximately 1,037 tons per year. In 2012, Marathon agreed to reduce air pollution from flares by generating less waste gas and by installing equipment designed to make flares burn more efficiently. The 2012 settlement has reduced emissions of VOCs and SO2 by over 5,200 tons per year.
Under the agreement filed today, Marathon will install seven FGRSs at an estimated cost of $319 million at five of its refineries located in Canton, Ohio; Catlettsburg, Kentucky; Detroit; Garyville, Louisiana; and Robinson, Illinois. Marathon will be required to operate these FGRSs at a higher percentage of time than EPA has ever secured in prior enforcement actions. Marathon will also maintain two duplicates of a critical spare part to be delivered immediately to any of these refineries as necessary, to help make sure the FGRSs have minimal downtime.
Marathon will also spend approximately $6 million to shut down a flare at the fence line of its Detroit refinery and $9.55 million on projects to reduce NOx emissions at its Canton and Garyville refineries.
By installing advanced pollution controls at its refineries, Marathon will help reduce emissions that can cause respiratory and cardiovascular health impacts, which can disproportionately affect low-income and vulnerable populations, including children.
Under the settlement, some of Marathon’s obligations under the 2012 agreement to ensure high flare combustion efficiency will eventually be replaced by Marathon’s obligation to comply with a new, 2015 EPA rule on flare combustion efficiency. At four refineries, compliance with an EPA flare standard related to SO2 will be extended for a limited period. The projected temporary increase in pollution related to those extensions will be more than offset by contemporaneous decreases that will continue indefinitely.
The consent decree – subject to a 30-day public comment period and final court approval – is available at: www.justice.gov/enrd/.
To learn more about the settlement, visit: https://www.epa.gov/enforcement/first-amendment-2012-us-v-marathon-petroleum-co-clean-air-act-consent-decree
To learn more about EPA’s civil enforcement of the Clean Air Act, visit: https://www.epa.gov/enforcement/air-enforcement.
To learn more about EPA’s refinery initiative, visit: https://www.epa.gov/enforcement/petroleum-refinery-national-case-results.
MPC First Amendment to Consent Decree
Manhattan U.S. Attorney Sues New York City Department of Education for Discrimination and Retaliation at Pan American International High SchoolRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a lawsuit against the NEW YORK CITY DEPARTMENT OF EDUCATION (the “DOE”) for engaging in a pattern and practice of discrimination and retaliation in violation of Title VII. The Government alleges that during the 2012-2013 school year, the DOE permitted Principal Minerva Zanca and Superintendent Juan Mendez to discriminate against every black teacher at Pan American International High School (“Pan American”) and retaliate against an assistant principal who spoke out against the discrimination.
Manhattan U.S. Attorney Preet Bharara said: “It is nearly unthinkable that, in this day and age, one of the largest and most diverse school districts in the United States would allow racial discrimination and retaliation to flourish. Yet that is what we allege happened at Pan American International High School. Federal civil rights laws prohibit this misconduct. This suit seeks to remedy the violations that occurred at Pan American and ensure that the New York City Department of Education protects its employees’ civil rights in the future.”
As alleged in the Complaint filed in Manhattan federal court:
In August 2012, Superintendent Mendez selected Minerva Zanca as Pan American’s new principal. During the 2012-2013 school year, Pan American employed 27 teachers, three of whom were black. Throughout that school year, Principal Zanca purposely targeted John Flanagan and Heather Hightower, two untenured black teachers, for unsatisfactory lesson ratings. According to Assistant Principal Anthony Riccardo, Principal Zanca decided to give Mr. Flanagan and Ms. Hightower unsatisfactory ratings before she had seen the lesson she was supposed to evaluate.
In connection with her reviews of Mr. Flanagan and Ms. Hightower, Principal Zanca made derogatory racial comments to Assistant Principal Riccardo. Specifically, Principal Zanca stated that Hightower “looked like a gorilla in a sweater,” asked whether Assistant Principal Riccardo had seen Flanagan’s “big lips quivering” during a meeting, complained that she could “never” have “fucking nappy hair” like Hightower, and stated that she had difficulty not laughing at Flanagan because he reminded her of a Tropicana commercial where a black man “with those same lips” danced down a supermarket aisle.
Principal Zanca also discriminated against Lisa-Erika James, a tenured black teacher, by cutting the highly successful theater program Ms. James oversaw. On multiple occasions during the 2012-2013 school year, Principal Zanca attempted to cancel student productions. First, she refused to pay for expenses associated with a production. When money for the production was obtained from other sources, Principal Zanca then claimed that the school could not pay overtime wages for more than five hours of rehearsal per week. Pan American in fact had sufficient money to pay for more rehearsal, and Principal Zanca simply reallocated that money to other projects. Ultimately, the second student production of the 2012-2013 school year was cancelled.
During the spring of 2013, when Assistant Principal Riccardo refused to give an unsatisfactory rating to a lesson taught by Ms. Hightower, Principal Zanca yelled at Assistant Principal Riccardo, accused him of “sabotaging her plan,” and called school security to have him removed from the building. Subsequently, Principal Zanca initiated two complaints against Assistant Principal Riccardo with the DOE’s internal investigatory offices. Those offices determined that Principal Zanca’s allegations did not warrant any charges against Assistant Principal Riccardo. In June of 2013, Principal Zanca gave Assistant Principal Riccardo, Mr. Flanagan, and Ms. Hightower annual performance ratings of “unsatisfactory.”
The allegations that Principal Zanca engaged in discrimination and retaliation were brought to the attention of Superintendent Mendez, but the DOE did not take any disciplinary action against Principal Zanca. Even after the United States Equal Employment Opportunity Commission found reasonable cause to believe that the DOE had discriminated and retaliated against James, Riccardo, and Hightower, Principal Zanca was allowed to remain in charge of Pan American. Neither Ms. Hightower, Mr. Flanagan, Ms. James, nor Mr. Riccardo worked at Pan American after the 2012-2013 school year.
Title VII authorizes the Department of Justice to commence an action in the United States District Court against the DOE to remedy discrimination and retaliation for opposing discrimination. The Complaint seeks declaratory and injunctive relief, as well as compensatory damages on behalf of Mr. Flanagan, Ms. James, Ms. Hightower, and Assistant Principal Riccardo.
In October of 2013, Mr. Flanagan filed a lawsuit against the DOE, Principal Zanca, Superintendent Mendez, and others. That suit was docketed as Flanagan v. N.Y.C. Dep’t of Educ. et al., No. 13 Civ. 8456. On August 21, 2015, Magistrate Judge James C. Francis IV recommended the denial of Defendants’ motion for summary judgment on Mr. Flanagan’s Title VII claims for discrimination and retaliation. The DOE has not objected to Judge Francis’s recommendation, and the deadline for doing so has expired. The United States anticipates moving to intervene in Flanagan and to consolidate that case with its own.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Caleb Hayes-Deats is in charge of the case.
Manhattan U.S. Attorney Announces Extradition of Defendants Linked to Massive Network Intrusions at U.S. Financial Institutions, U.S. Brokerage Firms, A Major News Publication, and Other Companies in Furtherance of Securities Fraud Scheme and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and David E. Beach, Special Agent in Charge of the U.S. Secret Service New York Field Office (“USSS”), announced today that GERY SHALON, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham,” and ZIV ORENSTEIN, a/k/a “Aviv Stein,” a/k/a “John Avery,” were extradited from Israel. SHALON and ORENSTEIN were arrested in July 2015 for charges arising out of SHALON’s orchestration of massive computer hacking crimes against U.S. financial institutions, brokerage firms, and financial news publishers, including the largest theft of customer data from a U.S. financial institution in history. SHALON is charged with committing these crimes with JOSHUA SAMUEL AARON, a/k/a “Mike Shields,” in furtherance of securities market manipulation schemes that SHALON and AARON perpetrated with defendant ORENSTEIN. SHALON, a Georgian and Israeli citizen, and ORENSTEIN, an Israeli citizen, arrived in the Southern District of New York last night and early this morning, respectively, and will be presented today in Manhattan federal court, before U.S. Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Preet Bharara said: “Gery Shalon and Ziv Orenstein, two of the alleged perpetrators of the cybercrime that we described at the time of their arrests as securities fraud on cyber steroids, have been successfully extradited from Israel to the United States. For the alleged hacks into numerous U.S. companies, including the largest theft of customer data from a U.S. financial institution in history, in furtherance of their securities fraud, Sharon and Orenstein will now face prosecution in a U.S. court.”
SHALON and ORENSTEIN were arrested by Israeli authorities in July 2015, pursuant to a provisional arrest warrant that was issued on the securities fraud charges in this case. AARON, a U.S. citizen, has yet to be arrested by U.S. authorities.
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The charges in the Indictment against SHALON, 31, of Savyon, Israel, AARON, 31, a U.S. citizen who is believed to reside in Moscow, Russia, and ORENSTEIN, 40, of Bat Hefer, Israel, are included in the chart below. The maximum potential sentences listed below are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the United States Secret Service, and expressed his sincere gratitude to the Office of the State Attorney of the Israel Ministry of Justice’s Department of International Affairs and the Israel National Police, including its Cyber Unit - Lahav 433, for their support and assistance with the investigation and the extradition proceedings. He also thanked the Securities and Exchange Commission, Immigration and Customs Enforcement - Homeland Security Investigations, the Financial Industry Regulatory Authority, the National Credit Union Administration, the Office of International Affairs of the U.S. Department of Justice, the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information-sharing among the victim institutions, and the U.S. Marshals Service, for their assistance in the extradition of the defendants.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi and Sarah Lai are in charge of the prosecution. Assistant U.S. Attorney Edward Diskant of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Count
Defendants
Charge
Maximum Prison Term
One
SHALON and AARON
Conspiracy to commit computer hacking
Five years
Two
SHALON and AARON
Computer hacking
Five years
Three
SHALON and AARON
Computer hacking
Five years
Four
SHALON, AARON, and ORENSTEIN
Conspiracy to commit securities fraud
Five years
Five
SHALON, AARON, and ORENSTEIN
Conspiracy to commit wire fraud: Securities Market Manipulation Scheme
20 years
Six
SHALON, AARON, and ORENSTEIN
Securities fraud
20 years
Seven
SHALON, AARON, and ORENSTEIN
Eight
SHALON, AARON, and ORENSTEIN
Nine
SHALON, AARON, and ORENSTEIN
10
SHALON, AARON, and ORENSTEIN
11
SHALON, AARON, and ORENSTEIN
12
SHALON, AARON, and ORENSTEIN
13
SHALON, AARON, and ORENSTEIN
Wire fraud
20 years
14
SHALON, AARON, and ORENSTEIN
Conspiracy to commit identification document fraud
15 years
15
SHALON, AARON, and ORENSTEIN
Aggravated identity theft
Mandatory two years
16
SHALON and ORENSTEIN
Unlawful internet gambling enforcement act conspiracy
Five years
17
SHALON and ORENSTEIN
Unlawful internet gambling enforcement act
Five years
18
SHALON and ORENSTEIN
Operation of illegal gambling business
Five years
19
SHALON and ORENSTEIN
Conspiracy to commit wire fraud: unlawful payment processing
20 years
20
SHALON
Conspiracy to operate an unlicensed money transmitting business
Five years
21
SHALON
Operation of an unlicensed money transmitting business
10 years
22
SHALON, AARON, and ORENSTEIN
Conspiracy to commit money laundering: Securities Market Manipulation Scheme
20 years
23
SHALON and ORENSTEIN
Conspiracy to commit money laundering: Internet Gambling and Payment Processing Schemes
20 years
Manhattan U.S. Attorney Announces $54 Million Settlement Against Salix Pharmaceuticals for Using “Speaker Programs” as Mechanism to Pay Illegal Kickbacks to Doctors to Induce Them to Prescribe Salix ProductsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”), and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today a $54 million settlement in a civil fraud lawsuit against SALIX PHARMACEUTICALS, INC. (“SALIX”), a specialty pharmaceutical company based in Raleigh, North Carolina, that sells products used to treat various gastroenterology conditions. The settlement resolves claims that SALIX violated the federal Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe SALIX drugs and medical devices that were reimbursed by federal health care programs. Specifically, the United States’ Complaint-in-Intervention alleges that SALIX held sham speaker programs, frequently at high-end restaurants, where doctors were paid substantial honoraria purportedly to educate other doctors about a Salix product, but in reality spent little or no time discussing the product. The settlement will also resolve numerous state law civil fraud claims.
Today, U.S. District Court Judge Denise L. Cote approved a settlement stipulation to resolve the Government’s claims against SALIX. Under the settlement, SALIX is required to pay approximately $46.53 million to the United States and has made extensive admissions regarding its conduct. Further, as part of the settlement, SALIX will pay approximately $7.47 million to resolve the state law civil fraud claims.
Manhattan U.S. Attorney Preet Bharara said: “For years, Salix Pharmaceuticals unlawfully sought to increase prescriptions of its products by using its ‘speaker programs’ as a vehicle to pay kickbacks to doctors. Through these ‘speaker programs,’ which were frequently nothing more than social gatherings with little or no educational component, Salix found a way to pay doctors money and treated them to fancy meals to push their drugs. With today’s settlement, Salix has taken responsibility for its conduct and agreed to pay a significant financial penalty. This action and settlement is part of our continuing effort to pursue health care providers who put their profits ahead of patient safety.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “When Salix Pharmaceuticals paid doctors large sums of money to speak at programs that were primarily social events, the goal was to induce the doctors to prescribe Salix products and enhance the company’s bottom line. We will continue to investigate such illegal arrangements that undermine impartial medical judgment and place company interests above those of patients.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Salix used high priced meals at swanky restaurants to get doctors to push its products. Whether those doctors actually prescribed those medications, the simple idea behind the pitch eats away at the faith patients have in their doctors to put their health and wellbeing above the interests of a corporation. The FBI and our partners will do all that we can to keep these practices from doing more harm than good.”
As alleged in the Complaint-in-Intervention filed in Manhattan federal court:
During the period January 2009 through December 2013 (the “Covered Period”), many of SALIX’s speaker programs for Xifaxan, Apriso, Relistor, MoviPrep, OsmoPrep, Solesta, and Deflux (the “Covered Products”) were nothing more than social events at which SALIX wined and dined doctors to induce them to write prescriptions for these products. These speaker programs included both in-person events (at which both the speaker and the attendees were present in person and the speaker was paid to provide an educational talk on a Covered Product to the attendees using a slide presentation), as well as pre-recorded events (at which a SALIX employee was supposed to use a laptop or other device to play for the attendees a pre-recorded video of a doctor delivering a slide presentation, and then call the paid speaker, who was to be available to answer any questions by telephone).
The speaker programs, which were typically held in restaurants, were supposed to be educational in nature and the cost of the meal was supposed to be modest. But in practice, SALIX held many speaker programs that were primarily social in nature, including events where it repeatedly invited the same doctors, who frequently were from the same practice or otherwise knew each other, to attend the same exact program on the same exact topic. With respect to the pre-recorded programs – which SALIX personnel internally referred to as “doc-in-the-box programs” – the pre-recorded video frequently was not played or was intentionally played in a manner so it could be ignored. SALIX also held many speaker programs at very expensive, high-end restaurants.
The doctors whom SALIX paid to be speakers and whom SALIX invited to its events were often the high prescribers of its products or were viewed as having the potential to be high prescribers. Many of these doctors increased their prescription-writing for the Covered Products after becoming speakers and/or repeatedly attending sham speaker programs. During the Covered Period, SALIX spent approximately $25 million on speaker payments and meals.
As part of the settlement, SALIX admitted, acknowledged, and accepted responsibility for the following conduct:
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Throughout the Covered Period, speaker programs were an important part of SALIX’s strategy for increasing sales of the Covered Products.SALIX conducted approximately 10,000 speaker programs for the Covered Products, including approximately 8,000 programs alone for Xifaxan, Apriso, and Relistor.
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Speaker honoraria payments for a program ranged from $250 (for a doctor available on call to answer questions associated with a pre-recorded program) to $4,500 (for a doctor who spoke at an in-person program and had a specified level of experience and certain credentials).During the Covered Period, SALIX paid over 500 physicians honoraria for serving as speakers on the Covered Products, with dozens of physicians earning more than $50,000, and several earning more than $100,000.
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Throughout the Covered Period, SALIX did not have effective mechanisms in place to monitor adequately its speaker programs to ensure compliance with internal policies. For example, there were no effective mechanisms in place to audit speaker programs and insufficient efforts were made to review data and other information on speaker programs to ensure compliance with the company’s internal policies.
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Throughout the Covered Period, numerous SALIX employees held speaker programs for the Covered Products that were primarily social in nature and/or otherwise did not comply with the company’s internal policies.For example, there were programs where:
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the designated speaker spent little or no time discussing the Covered Product;
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the required slide presentation was not shown in its entirety or not at all;
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doctors attended multiple programs on the same topic (at which the same slide presentation was supposed to have been shown) within a short period of time;
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the programs were held in the main dining rooms of restaurants or other locations that were not conducive to an educational program;
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the programs were held at high-end restaurants (such as Nobu and Le Bernardin in New York City), with per-person costs exceeding $200 and even $300;
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the SALIX sales representative responsible for a program reported that certain physicians had attended the event even though they had not, in order to make the per-person cost of the event appear lower than it actually was;
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attendees included individuals other than healthcare professionals with a legitimate interest in the scheduled topic, such as a physician’s spouse; and/or
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the programs were used as an opportunity to provide a physician’s practice (in some cases including administrative staff) with a meal or a happy hour.
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Additionally, with respect to the pre-recorded speaker programs, there were numerous instances where:(1) the SALIX sales representative did not play the pre-recorded presentation; (2) the SALIX sales representative played the pre-recorded presentation but placed the laptop or other viewing device in a location where it could not readily be seen or at a volume at which it could not readily be heard; and/or (3) the designated approved speaker was not called at the end of the pre-recorded presentation but still received an honorarium payment.
In connection with the filing of the lawsuit and settlement, the Government joined two private whistleblower lawsuits that had previously been filed under seal pursuant to the False Claims Act.
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Mr. Bharara thanked HHS’s Office of the Inspector General, the FBI, and the Medicaid Fraud Control Units for Ohio and New York for their investigative efforts and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Christopher B. Harwood are in charge of the case.
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Madison Business Owner and His Brother Sentenced to Prison for Participating in Stolen Property Fraud RingRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that yesterday, James D. Litchfield, 59, owner of Big Jim’s Autorama in Madison, IL, and his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, were both sentenced to prison for their participation in a large stolen property ring. James Litchfield was sentenced to 3 years in prison, while Ryan Litchfield was sentenced to 1 year and 1 day in prison.
The charges arise from an indictment that was returned by a federal grand jury in East St. Louis, IL, on October 20, 2015. The indictment alleges that the leader of this fraud ring, Jason J. Parmeley, 42, formerly of O’Fallon, MO, conducted this fraud scheme from Mexico. According to the indictment, Parmeley used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names of, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, computers, expensive tools, and construction equipment. The indictment charges that, after he placed the orders, Parmeley dispatched drivers to go to the stores and pick up the items. According to the indictment, the items were then sold at prices substantially below retail. The profits were then wire transferred to Parmeley in Mexico.
When he pled guilty on February 11, 2016, James Litchfield admitted that he received numerous truckloads of items which he knew had been obtained by fraud. This fraudulently obtained property included construction equipment, such as Skid Steer Loaders, appliances, such as washing machines, dryers, and refrigerators, and assorted other merchandise, including paint, flooring, and siding. These items were delivered to Big Jim’s Autorama in Madison, IL. James Litchfield admitted that he kept some of these items for his own personal use, but sold other items at prices far below their retail value. He also admitted that he provided two trucks that were used by the co-conspirators to pick up fraudulently ordered items. Finally, James Litchfield admitted that he engaged in money laundering by wire transferring payments for the merchandise to Parmeley in Mexico under fake names. At the sentencing hearing yesterday afternoon, the court found that the amount of stolen property James Litchfield received exceeded $150,000.
Ryan Litchfield also pled guilty on February 11, 2016. During his plea hearing, Ryan Litchfield admitted that he received approximately 20 to 25 truckloads of property and merchandise that had been obtained by fraud. He sold the majority of that merchandise to his friends and business associates. On occasion, Ryan Litchfield sold the items by placing advertisements on websites such as Craig’s List. He also occasionally allowed Parmeley to store items that had been obtained by fraud at his house and rented storage lockers that were used to store property obtained by fraud. The court found that the amount of stolen property received by Ryan Litchfield was approximately $80,000.
The charges contained in the indictment include conspiracy to commit wire fraud, conspiracy to transport property obtained by fraud in interstate commerce, wire fraud, interstate transportation of property obtained by fraud, possession of property obtained by fraud, money laundering, and aggravated identity theft.
In late August of this year, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley is currently in federal custody and is awaiting trial.
In addition to Parmeley and the Litchfields, the indictment charges 12 other individuals with participating in this fraud scheme. Four of those individuals have pled guilty and are awaiting sentencing. The individuals who have pled guilty are: Benedict G. Pellerito, 55, of Troy, MO; Tony G. Robertson, 44, of O’Fallon, MO; Alice J. Hembree, 43, of Moscow Mills, MO; and Nicholas A. Brockman, 20, of Wentzville, MO. The trial of Parmeley and the remaining eight defendants is currently scheduled to begin on August 22, 2016. Those eight defendants are: Angel Speed, 25, formerly of O’Fallon, MO; Sean A. Shields, 47, of Ozark, MO; Shannan Flora, 41, of Vienna, IL; Steven J. Belcher, 44, of Wentzville, MO; Jesse S. Urias, 36, of Los Angeles, CA; Rigoberto Gutierrez, 26, of Compton, CA; Russell J. Witt, 33, of New Baltimore, MI; and Bryce E. Atkinson, 21, of Lake Saint Louis, MO.
Note: As to those defendants who are awaiting trial, the law presumes them to be innocent unless they are proven guilty beyond a reasonable doubt.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force and the California Highway Patrol. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Lovington Man Sentenced to 84 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jose Antonio Rodriguez, 42, of Lovington, N.M., was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to 84 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Rodriguez was arrested in Sept. 2015, and charged in a criminal complaint with conspiracy and possession of methamphetamine with intent to distribute. According to the complaint, Rodriguez was arrested on Sept. 3, 2015, in Doña Ana County, N.M., after U.S. Border Patrol agents at the Border Patrol Checkpoint on Interstate 10 in Las Cruces found 44.6 grams of methamphetamine in his vehicle during a routine inspection.
On Dec. 18, 2015, Rodriguez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and admitted possessing 44.6 grams of methamphetamine. Rodriguez acknowledged that he intended to sell the methamphetamine to others.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Selesia L. Winston prosecuted the case.
Lindenhurst Man Detained in Federal Custody for Allegedly Constructing Potentially Destructive Pipe BombsRead the Press Release
CHICAGO — A man who allegedly manufactured explosive devices and kept them in the bedroom of his Lindenhurst home was ordered detained in federal custody today.
U.S. Magistrate Judge Sidney Schenkier ordered MICHAEL SUOPYS, 28, held without bond on a charge of knowingly possessing an unregistered destructive device. A detention hearing is scheduled for June 15, 2016, at 10:30 a.m.
A federal criminal complaint alleges that Suopys built two pipe bombs by filling a metal pipe with Nitrocellulose and adding a wick. Suopys was also charged in Lake County Circuit Court with possessing bombs containing an explosive substance, which is a Class 3 felony. The state charge was dismissed this morning.
“Thankfully, law enforcement at the federal, state and local level was able to identify and safely interrupt the threat described in the complaint,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “The Federal Bureau of Investigation, Lake County State’s Attorney’s Office and Lindenhurst Police Department are to be commended for their diligence and collaboration in this investigation.”
The federal complaint was announced by Mr. Fardon, along with Michael J. Anderson, Special Agent in Charge of the Chicago office of the FBI; Michael G. Nerheim, Lake County State’s Attorney; and Tom Jones, Chief of the Lindenhurst Police Department.
The federal charge carries a maximum sentence of ten years in prison and a fine of up to $250,000.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Matthew Hiller.
Leander Doctor Pleads Guilty to Illegal Prescription Drug DistributionRead the Press Release
In Austin this afternoon, Leander physician 47–year-old Ronald Michael Mansolo pleaded guilty to writing prescriptions for controlled substances without a legitimate medical purpose announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Appearing before United States Magistrate Judge Mark Lane, Dr. Mansolo pleaded guilty to one count of unlawful dispensing of controlled substances. By pleading guilty, Dr. Mansolo admitted that from January 2009 to August 2013, he knowingly dispensed controlled substances including brand name and generic Ritalin, Adderall and Focalin as well as hydrocodone, Carispodol and Xanax without a legitimate medical purpose and outside the usual course of professional practice.
According to the court records, Dr. Mansolo operates Leander Primary Care and used to operate RapidCare, an afterhours pain management clinic in Cedar Park, TX. Throughout the time of the offense, Dr. Mansolo wrote and issued numerous unlawful prescriptions knowing that such practice could result in dependence and addiction. Dr. Mansolo prescribed excessive amounts to certain patients knowing that they would either abuse the controlled substances personally or subsequently distribute the controlled substances to other individuals. Contrary to accepted medical practice, Dr. Mansolo prescribed controlled substances to patients without first conducting a physical examination in order to verify the patient’s claimed illness or condition; without reviewing patients’ drug screen tests; or, despite obvious indications that the patients were abusing, misusing, or distributing the controlled substances he prescribed.
Dr. Mansolo faces up to two years in federal prison. He remains on bond pending sentencing later this year before United States District Judge Lee Yeakel in Austin.
This investigation is being conducted by the Drug Enforcement Administration Diversion Unit. Assistant United States Attorney Douglas Gardner is prosecuting this case on behalf of the Government.
Leader of Washington, D.C. Metro Area Drug Trafficking Organization Sentenced to over 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Marvin Taaff, age 29, of Takoma Park, Maryland, today to 140 months years in prison followed by five years of supervised release for conspiring to possess with intent to distribute five kilograms or more of cocaine, cocaine base and 100 kilograms or more of marijuana.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from April to October 2013, Taaff distributed cocaine base (crack cocaine) during several controlled purchases with a law enforcement source. Further investigation revealed that Taaff was a significant local distributor of marijuana, cocaine and cocaine base. Taaff, who was a leader of the drug operation in Maryland, coordinated the shipments of controlled substances from sources within and outside Maryland, including Arizona. He directed other members of his drug trafficking organization to provide locations to store and distribute drugs.
On December 5, 2013, search warrants were executed at several locations in and around Prince George’s and Montgomery Counties, and in Tucson, Arizona, including Taaff’s residence and the residences of his co-conspirators. Narcotics, drug paraphernalia, shipping materials, cash, and firearms were seized from locations associated with the conspiracy. Law enforcement seized a .38 caliber revolver with an obliterated serial number and a loaded 9mm pistol; ammunition; a quarter ounce of suspected powder cocaine; and drug paraphernalia, from Taaff’s residence.
The investigation revealed that Taaff conspired with members of his drug trafficking organization to distribute over five kilograms of cocaine, between 196 and 280 grams of cocaine base, and at least 100 kilograms of marijuana.
Phillip Bingham, age 56, of Tucson, Arizona; Mahmood Hussain, age 31, of Laurel, Maryland; Fernando Gastellum-Rivas, age 43, of Tucson; and Annis Attar, age 30, of Largo, Maryland, previously pleaded guilty to their roles in the conspiracy and were sentenced to 11 years in prison, 10 years in prison, 42 months in prison, and 40 months in prison, respectively.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department, Maryland National Capital Park Police and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Lindsay Eyler Kaplan, who prosecuted the case.
Keshena Man Indicted on Assault ChargeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 7, 2016, a federal grand jury returned a one-count indictment against Jeremy M. Peters (age: 29) of Keshena, Wisconsin, charging him with a count of Assault Resulting in Serious Bodily Injury in violation of 18 United States Code, Sections 113(a)(6) and 1153(a). If convicted of the offense, the defendant faces a sentence of up to 10 years imprisonment, a two hundred and fifty thousand dollar fine, and up to 3 years of supervised release.
According to the indictment, Peters, who is an enrolled member of the Menominee Indian Tribe of Wisconsin, assaulted another member of the tribe, causing serious injury including a broken facial bone.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Andrew J. Maier.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
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KC Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing Commerce Bank.
David E. Clark, 37, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to five years in federal prison without parole. The court also ordered Clark to pay $3,037 in restitution.
On Dec. 8, 2015, Clark was convicted following a bench trial of stealing $3,037 from Commerce Bank, 118 W. 47th Street, Kansas City.
Clark was wearing an orange construction-type vest when he entered the bank on July 28, 2014. He walked directly towards a teller station and grabbed a note from his pocket. The teller refused to look at the note and asked Clark if he needed help. Clark told the teller to pull out his drawers. When the teller told him the teller drawers were locked, Clark instructed him to get the keys. The teller returned to his teller station, and Clark told him to “give me 100’s, 50’s and 20’s.” The teller grabbed the requested denominations from his teller drawer and gave the money to Clark, who walked swiftly out of the bank’s front door and then ran up Wyandotte Street.
Another bank employee saw Clark go around the corner and then exit a parking garage in a white truck with a concrete company’s sign on the side. Less than half an hour later, police officers located Clark and arrested him after a brief car chase. The stolen money was not recovered at the time of Clark’s arrest.
According to court documents, the owner of the truck told law enforcement investigators that he had driven the vehicle to a meeting earlier that day and offered a ride to Clark, who had done work as an independent contractor for his company. After his meeting he was supposed to take Clark to another location, but when he returned to the parking lot after his meeting, both Clark and his truck were gone.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI and the Kansas City, Mo., Police Department.
KC Man Charged with Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with possessing nearly five kilograms of methamphetamine to distribute. During the law enforcement operation, another individual was fatally shot.
Michael J. Wilkins, 25, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., with possessing methamphetamine with the intent to distribute.
According to an affidavit filed in support of today’s criminal complaint, DEA task force officers were conducting a multi-jurisdictional operation on Wednesday, June 8, 2016. Wilkins, a suspected methamphetamine distributer, was seen leaving his residence in a red 1995 Ford Mustang. Investigators followed Wilkins to a residence in the 300 block of S. Bellefontaine Ave., Kansas City, Mo. Wilkins, the only occupant of the vehicle, was seen carrying a black bag as he walked into the residence.
After a short time, the affidavit says, Wilkins left the residence, carrying the black bag as well as a large white box. Wilkins placed both items in the passenger seat of the Ford Mustang and walked around the rear of the vehicle to the driver’s side door. When law enforcement officers approached him, the affidavit says, Wilkins fled on foot. He was subsequently taken into custody and placed under arrest for fleeing/resisting law enforcement.
During the foot chase of Wilkins, law enforcement officers executed a search warrant at the Bellefontaine residence. That operation led to an hours-long standoff when persons inside the house fired shots at law enforcement officers. When an individual who had fired several shots at officers ran from the house with his rifle aimed at the officers, he was fatally shot.
Officers searched the route where Wilkins had fled, the affidavit says, and found a Citadel M1911-A1 CS handgun. Officers also searched Wilkins’s Ford Mustang and found a white Corona beer box, which contained five gallon-sized plastic bags of methamphetamine. A black backpack contained $12,363 and a plastic baggie with methamphetamine. A tool bag also contained methamphetamine. In total, officers found 4.764 kilograms of methamphetamine in the vehicle.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez and Special Assistant U.S. Attorney Matthew Moeder. It was investigated by the Independence, Mo., Police Department, the Jackson County Drug Task Force and the Drug Enforcement Administration.
Justice Department and North Carolina Sue Carolinas Healthcare System to Eliminate Unlawful Steering RestrictionsRead the Press Release
Anticompetitive Restrictions Bar Insurers from Steering Patients to Lower-Cost Competing Providers
The Department of Justice today filed a civil antitrust lawsuit against Carolinas HealthCare System (CHS), challenging CHS’s practice of imposing steering restrictions in its contracts with commercial health insurers in the Charlotte, North Carolina, area.
The Antitrust Division and the state of North Carolina filed the lawsuit in the U.S. District Court for the Western District of North Carolina. The complaint alleges that CHS, with its approximately 50 percent share in the sale of acute inpatient hospital services to health insurers in the Charlotte area, has used its market power to require steering restrictions in its contracts with every major insurer. These provisions have prevented insurers from, among other things, introducing health plans that encourage patients to use medical providers that offer lower priced, higher-quality services.
“Americans should be able to choose a healthcare provider that gives them and their families the most cost-effective and appropriate treatment,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division. “This lawsuit will stop a dominant hospital from using its market power to undermine its smaller competitors’ efforts to attract patients by competing on the price and quality of their services.”
“Today’s enforcement action seeks to ensure that consumers in the Charlotte area will benefit by identifying the more cost-efficient, quality providers when making the critically important decision of selecting a doctor or hospital,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “In these times of escalating health care costs, vigilant antitrust enforcement in local healthcare markets such as the Charlotte area is essential to protecting the interests of consumers.”
CHS is the largest healthcare system in North Carolina and one of the largest not-for-profit healthcare systems in the United States. In 2014, CHS had net operating revenue of about $8.7 billion.
Justice Department Reaches Agreement with Milwaukee to Ensure Civic Access for People with DisabilitiesRead the Press Release
The Justice Department reached an agreement today with the city of Milwaukee to improve access to all aspects of civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The agreement requires the actions to be completed within three years and the department will actively monitor compliance with the agreement throughout this timeframe.
“Cities and towns must comply with the ADA so that people with disabilities can use public entities and participate fully in their community – from enjoying parks and libraries, to accessing polling places and courthouses,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We applaud Milwaukee’s commitment to ensuring that its entire population can access the city’s public resources and look forward to seeing these critical reforms become a reality.”
The agreement requires the city to modify facilities surveyed by the department so that they are accessible and to retain an independent licensed architect to survey facilities and programs that were not surveyed by the department. The agreement also requires that Milwaukee certify that all remedial actions are compliant with the ADA, provide auxiliary aids and services necessary to ensure effective communication, ensure accessibility of polling places, provide accessible curb ramps throughout the city and ensure that the city’s website will conform with the Website Content Accessibility Guidelines Level 2.0 Level AA.
PCA ensures that people with disabilities have an equal opportunity to participate in civic life. As part of PCA, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify changes needed in order to comply with the ADA. The agreements detail the actions that a public entity must take to improve access.
People interested in finding out more about the ADA, this agreement with Milwaukee, PCA or the ADA Best Practices Tool Kit for State and Local Governments may access the ADA web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Milwaukee Settlement Agreement
Justice Department and North Carolina Sue Carolinas Healthcare System to Eliminate Unlawful Steering RestrictionsRead the Press Release
CHARLOTTE, N.C. – The Department of Justice today filed a civil antitrust lawsuit against Carolinas HealthCare System (CHS), challenging CHS’s practice of imposing steering restrictions in its contracts with commercial health insurers in the Charlotte, North Carolina, area.
The Antitrust Division and the state of North Carolina filed the lawsuit in the U.S. District Court for the Western District of North Carolina. The complaint alleges that CHS, with its approximately 50 percent share in the sale of acute inpatient hospital services to health insurers in the Charlotte area, has used its market power to require steering restrictions in its contracts with every major insurer. These provisions have prevented insurers from, among other things, introducing health plans that encourage patients to use medical providers that offer lower priced, higher-quality services.
“Americans should be able to choose a healthcare provider that gives them and their families the most cost-effective and appropriate treatment,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division. “This lawsuit will stop a dominant hospital from using its market power to undermine its smaller competitors’ efforts to attract patients by competing on the price and quality of their services.”
“Today’s enforcement action seeks to ensure that consumers in the Charlotte area will benefit by identifying the more cost-efficient, quality providers when making the critically important decision of selecting a doctor or hospital,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “In these times of escalating health care costs, vigilant antitrust enforcement in local healthcare markets such as the Charlotte area is essential to protecting the interests of consumers.”
CHS is the largest healthcare system in North Carolina and one of the largest not-for-profit healthcare systems in the United States.In 2014, CHS had net operating revenue of about $8.7 billion.
Jury Convicts St. Croix Man of Conspiracy and Bank Robbery OffensesRead the Press Release
St. Croix, USVI – After a six-day trial, on June 8, 2016, a federal jury on St. Croix convicted Damian Lang, Sr., 37, of conspiracy to commit bank robbery and bank robbery, United States Attorney Ronald W. Sharpe announced.
Lang faces a maximum penalty of five years in prison for conspiracy and a maximum penalty of twenty years in prison for bank robbery. Lang was immediately remanded. No sentencing date has been set.
Evidence presented at trial established that on September 2, 2014, Lang and another individual entered the Bank of St. Croix in Gallows Bay, Christiansted, St. Croix, Virgin Islands, wearing hoodies and masks. Lang jumped the teller counter with a plastic bag and took cash from the till of several tellers. The other individual stood guard at the door with a gun pointed at the employees. They both ran out of the bank and into a stolen Chevy Equinox that they abandoned in a nearby lot. The evidence also established that Lang was under house arrest with electronic monitoring in a pending Superior Court case. GPS tracking placed Lang in the bank at the time of the robbery.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Rhonda Williams-Henry and Alphonso Andrews.
Jury Convicts Columbus Gang Members of Racketeering, MurderRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted five Short North Posse gang members of racketeering and murder today following a two-month trial.
Robert B. Ledbetter, 37, Christopher A. Harris, 28, Rashad A. Liston, 26, Deounte Ussury, 31, and Clifford L. Robinson, 38, all of Columbus, were convicted on all counts, which accounted for 10 of 14 previously unsolved homicides. Each defendant faces up to life in prison.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the verdict reached today.
The defendants are five of 20 individuals who were indicted in October 2014 in a racketeering case, with charges that include murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery.
Of the 20 total defendants, nine have pleaded guilty and one has died. The remaining five defendants are scheduled for trials on July 11 and September 26.
“These five men had perpetuated a multi-generational tradition of terrorizing Columbus neighborhoods through violence and intimidation,” Acting U.S. Attorney Glassman said. “The verdict today has sent a clear message that their reign has ended and such behavior will not go unpunished.”
Acting U.S. Attorney Glassman commended the two-year investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are representing the United States in this and the related cases.
Indictment: Former Guard Took $200,000 in Bribes for Smuggling Tobacco into Leavenworth PrisonRead the Press Release
KANSAS CITY, KAN. - A former prison guard was indicted Wednesday on federal charges alleging he received more than $200,000 in bribes for smuggling tobacco to prisoners in Leavenworth Penitentiary, Acting U.S. Attorney Tom Beall said.
Marc Buckner, 46, Kansas City, Kan., is charged with one count of accepting bribes. The indictment alleges that from 2005 to 2014 while he worked at the prison he accepted more than $200,000 in bribes. He received approximately $750 from inmates each time he smuggled tobacco into the prison.
If convicted, he faces a penalty of up to 15 years in federal prison and a fine up to three times the value of the contraband. The FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
OTHER GRAND JURY INDICTMENTS
Latoya Trent, 34, Kansas City, Mo, is charged with one count of theft of public funds and one count of bank fraud. The crimes are alleged to have occurred from 2012 to 2014 in Johnson County, Kan.
The indictment alleges she was paid more than $43,000 in unemployment benefits that she was not qualified to receive.
If convicted, she faces up to 10 years in federal prison and a fine up to $250,000 on the theft charge, and up to 30 years and a fine up to $1 million on the bank fraud count. The U.S. Department of Labor – Office of Inspector General investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
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Samfin Ondieki Ogega, 36, a citizen of Kenya, is charged with attempting to evade a lawful order for his removal from the United States. The crime is alleged to have occurred May 26, 2016, in Sedgwick County, Kan.
If convicted, he faces a penalty of up to four years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
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Anthony Barajas, 24, is charged with escaping from custody at the Grossman Residential Reentry Center in Leavenworth, Kan., on May 6, 2016.
If convicted, he faces a penalty of up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney David Zabel is prosecuting.
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Ronald Hudson, 58, Mulberry, Kan., is charged with one count of theft of public funds and 11 counts of wire fraud. The crimes are alleged to have occurred from 2008 to 2014 in Crawford County, Kan.
The indictment alleges he received Supplemental Security Income payments to which he was not entitled.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the theft charge, and up to 20 years and a fine up to $250,000 on each wire fraud count. The Social Security Administration – Office of Inspector General investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
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Azar Reed, 56, Kansas City, Kan., is charged with one count of theft of public funds, one count of making a false statement to the Social Security Administration, and 14 counts of mail fraud. The indictment alleges he received benefits to which he was not entitled. The crimes are alleged to have occurred from 2010 to 2013 in Wyandotte County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the theft charge, up to five years and a fine up to $250,000 on the false statement charge, and up to 20 years and a fine up to $250,000 on each count of mail fraud. The Social Security Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
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Kevin Wayne Clark, 51, Parsons, Kan., is charged with one count of theft of public funds, three counts of mail fraud and three counts of wire fraud. The indictment alleges he received benefits to which he was not entitled. The crimes are alleged to have occurred in 2014 in Labette County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the theft charge, up to 20 years and a fine up to $250,000 on each mail fraud count, and up to 20 years and a fine up to $250,000 on each wire fraud count. The Social Security Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Iberia Parish, Louisiana, Sheriff and Two Other Officials Charged with Civil Rights ViolationsRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana announced today that Iberia Parish, Louisiana, Sheriff Louis Ackal, Lieutenant Colonel Gerald Savoy and former Captain Mark Frederick were charged today in a superseding indictment with civil rights violations arising out of the beatings of two men.
The superseding indictment charges Ackal with one count of conspiracy against rights for conspiring in the spring of 2014 to assault a man who had been arrested on battery charges for allegedly assaulting one of Ackal’s relatives. The superseding indictment also charges Savoy and Frederick with one count of deprivation of rights under color of law for allegedly assaulting another man, a pre-trial detainee at the Iberia Parish Jail (IPJ) in September of 2011. Ackal and Savoy had previously been charged related to beatings of pre-trial detainees at the IPJ on April 29, 2011.
Nine former Iberia Parish Sheriff’s Office employees previously entered guilty pleas in related cases before U.S. District Judge Patricia Minaldi of the Western District of Louisiana. The nine officers are former IPJ Warden Wesley Hayes, former IPJ Assistant Warden Jesse Hayes, former Lieutenant Bret Broussard of the Narcotics Unit, former narcotics agent Wade Bergeron, former narcotics agent Jason Comeaux, former narcotics agent David Hines, former narcotics agent Byron Benjamin Lassalle and former K-9 handlers Robert Burns and Jeremy Hatley.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted, Ackal, Savoy and Frederick each face a maximum sentence of 10 years in prison for each of the civil rights violations, as well as a potential $250,000 fine for each count.
The case is being investigated by the FBI’s Lafayette Resident Agency. The case is being prosecuted by Senior Litigation Counsel Joseph G. Jarzabek of the Western District of Louisiana and Special Litigation Counsel Mark Blumberg and Trial Attorney Tona Boyd of the Civil Rights Division’s Criminal Section.
Ackal Superseding Indictment
Houston Man and Woman Plead Guilty in Cocaine Smuggling CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ISAAC FORD, age 38, and LACHELSEA KIRKSEY, age 27, both residents of Houston, pled guilty today to a Bill of Information charging possession with intent to distribute cocaine.
According to court records, FORD and KIRKSEY were driving separate vehicles in tandem on I-10 West near New Orleans on September 5, 2014, when they were stopped by Louisiana State Police Troopers. Troopers searched KIRKSEY’s Chevrolet Camaro with her consent and discovered four vacuum-sealed bags hidden in the wheel wells of the car, each containing one kilogram of powder cocaine. FORD then admitted that he had rented both of the vehicles, concealed the cocaine in the Camaro, and promised KIRKSEY $2,000 to drive the Camaro to New Orleans, where he intended to deliver the cocaine.
Sentencing of both defendants is scheduled before U.S. District Judge Jane Triche Milazzo on September 8, 2016. FORD faces a sentence of 5 to 40 years imprisonment, and KIRKSEY faces a sentence of up to twenty years.
U.S. Attorney Polite praised the work of the New Orleans Field Division of the Drug Enforcement Administration. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Hobbs Man Pleads Guilty to Illegally Possessing an Unregistered Short-Barreled ShotgunRead the Press Release
ALBUQUERQUE – Quinton Spurlock, 50, of Hobbs, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to violating the federal firearms laws by illegally possessing an unregistered short-barreled shotgun.
Spurlock was arrested on April 6, 2016, on a criminal complaint charging him with possession of an unregistered firearm. According to the complaint, on April 15, 2014, Lea County Drug Task Force (LCDTF) agents executed a search warrant at a residence in Hobbs, and found a handgun and shotgun cases inside Spurlock’s vehicle. Further investigations determined that Spurlock had no weapons registered to him and the firearm was also not registered.
During yesterday’s proceedings, Spurlock pled guilty to a felony information charging him with possession of an unregistered short-barreled shotgun. In entering the guilty plea, Spurlock admitted that on April 15, 2014, he was in possession of a shotgun with an overall barrel length of approximately 16 inches that was not registered to him.
At sentencing, Spurlock faces a statutory maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the LCDTF. Assistant U.S. Attorney Terri J. Abernathy is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. 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.
Hazleton Man Sentenced to Six Years in Prison for Distributing Crack CocaineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 56-year-old man who pleaded guilty to distributing crack cocaine in the Hazleton area in September 2013, was sentenced to 72 months in prison yesterday by U.S. District Court Judge Robert D. Mariani in Scranton.
According to United States Attorney Peter Smith, the defendant, Angel Rafael Tejeda-Mejia (also known as “Jose Angeles”), a citizen of the Dominican Republic who resided in the Hazleton area at the time of his arrest, pleaded guilty on November 6, 2015 to distribution of crack cocaine.
Tejeda-Mejia was indicted by a federal grand jury in January 2014, as a result of an investigation by agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and Hazleton Police.
Judge Mariani also ordered the defendant to serve three years on supervised release following his prison sentence. The defendant is also subject to deportation following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Green Cove Springs Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that James Donald Jacola (53, Green Cove Springs) has pleaded guilty in Jacksonville to receiving child pornography over the Internet. He faces a mandatory minimum penalty of not less than 5 years, up to 20 years, in federal prison and a potential life term of supervision. A sentencing hearing has not yet been set.
According to court documents, FBI agents began an online undercover investigation to identify individuals who were using a particular website to access and receive images and videos depicting child pornography over the Internet. The agents determined that Jacola had accessed this website using a particular Internet Protocol (IP) address. Further investigation with the Internet service provider traced the subscriber information to Jacola’s residence in Green Cove Springs, Florida.
On March 10, 2016, law enforcement executed a federal search warrant at Jacola’s residence and seized two computers. Subsequent forensic analyses of the items revealed that Jacola’s computers contained three videos and at least 784 images depicting child pornography. One of the videos had been downloaded the night before the execution of the search warrant and depicted a toddler being sexually abused. Jacola knowingly downloaded the images and videos of child pornography contained on his computer media over the Internet.
This case was investigated by the Federal Bureau of Investigation and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Great Falls Man Sentenced for Possession of Child PornRead the Press Release
GREAT FALLS – Cassidy Winters, 29, of Great Falls was sentenced today to 28 months in prison and 10 years’ supervised release for possession of child pornography. Winters will also be required to pay $12,500 in restitution for six victims. Federal District Court Judge Brian M. Morris issued the sentence.
Winters was charged by superseding information on February 17, 2016. In documents filed with the court, Assistant U.S. Attorney Cyndee Peterson stated that, if required to prove its case at trial, the government was prepared to introduce evidence that Winters possessed multiple files containing child pornography between December 2012 and May 2015.
In March 2015, agents for the U.S. Secret Service and the Montana Internet Crimes Against Children Task Force downloaded files from an IP address as part of an online investigation to identify individuals sharing child porn over the Internet using a peer to peer file sharing network. They identified the registered subscriber of the IP address as Winters and obtained a search warrant for his home.
On May 27, 2015, agents served the warrant and seized several computers and digital devices from Winters’ bedroom. The items were forensically analyzed and contained image and video files depicting children engaged in sexually explicit conduct. The agents also recovered search terms connected to the software that indicated Winters had sought out known images and series of child pornography. At the sentencing, a witness testified that Winters had engaged in this criminal conduct for five or six years.
The case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the United States Secret Service, the Flathead County Sheriff’s Office, and the Montana Internet Crimes Against Children Task Force.
Framingham Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Framingham man was sentenced yesterday in the U.S. District Court in Boston in connection with child pornography offenses.
Stephen John Hallissey, 38, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 11 years in prison and 10 years of supervised release. In November 2015, Hallissey pleaded guilty to possession and receipt of child pornography.
Hallissey was arrested and charged in March 2015 after federal agents executed a search warrant at his home and found over 450,000 images of child pornography on his computer. Many of the images depicted very young children being raped and sexually assaulted. Hallissey also admitted to repeatedly sexually assaulting two young girls, aged two and four, in California a number of years ago. In email messages Hallissey sent to other child pornography collectors, Hallissey said: “I LOVE hurting kids with sex (rape).” In another message, Hallissey wrote that his favorite age for a victim was two years old.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.
The case was investigated by the FBI's Boston Child Exploitation Task Force (CETF), which is comprised of members from the FBI, the Boston Police Department’s Child Abuse and Human Trafficking Units, the Massachusetts State Police, the Massachusetts Department of Correction, the Arlington, Malden and Norwood Police Departments, and the U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney David Tobin of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/
Former Tech Products Operations Manager Pleads Guilty to Embezzling SchemeRead the Press Release
COLUMBUS, Ohio – Cheryl L. Emerson-Chase, 52, of Powell, pleaded guilty in U.S. District Court to one count each of wire fraud and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into before U.S. District Magistrate Judge Smith Terence P. Kemp.
According to the statement of facts presented in this case, Emerson-Chase was employed as the operations manager for PCM, Inc. (formerly known as SARCOM, Inc.), a direct marketer of technology products, services and solutions to businesses, governments, educational institutions and individual consumers.
Emerson-Chase was assigned primarily PCM’s account for Nationwide Mutual Insurance Company and handled the day-to-day operational sales relationship with Nationwide.
The defendant began to steal laptops and tablets from PCM that were intended for delivery to Nationwide and provided fictitious purchase orders to PCM’s employees, instructing them to create false internal sales orders in PCM’s computer system. The two companies identified at least 93 fake purchase orders created in connection with the scheme.
Emerson-Chase then used the ordered computers for her own use or the use of friends and family members, sold them directly to third parties, or delivered them to an associate to sell to third parties.
In total, Emerson-Chase stole more than 600 items of computer hardware having an aggregate value of nearly $597,000.
Wire fraud and money laundering are each crimes punishable by up to 20 years in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.