Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 17 November 2015
Oroville Man Pleads Guilty to Aggravated Identity Theft While on Federal Supervised ReleaseRead the Press Release
SACRAMENTO, Calif. — Melvin Lee Gregory, 32, of Oroville, pleaded guilty on Tuesday to aggravated identity theft and violation the conditions of supervised release, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 2, 2015, Gregory was released from federal prison after serving a four-year sentence for a previous conviction. Between April 2, 2015, and August 22, 2015, while on probation, Gregory opened a bank account and deposited several forged checks. On August 22, 2015, Gregory was observed attempting to break into and steal U.S. Mail from a Roseville mailbox, and minutes later he successfully stole U.S. Mail from a Rocklin mailbox. When Gregory was arrested by Rocklin Police, he was in possession of stolen U.S. Mail, burglary tools, and stolen identification documents.
This case is the product of an investigation of the United States Postal Inspection Service and the Rocklin Police Department, with the assistance of the United States Probation Office in the Eastern District of California. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Gregory is scheduled to be sentenced by United States District Judge John A. Mendez on February 23, 2016. Gregory faces at least two years in prison for his aggravated identity theft conviction and up to an additional year for his violation of conditions of federal release. 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.
Operator of Second-Largest Music Piracy Website in the U.S. Sentenced to 3 Years for Criminal Copyright InfringementRead the Press Release
NORFOLK, Va. – Rocky P. Ouprasith, 23, of Charlotte, North Carolina, was sentenced today to 36 months in prison for reproducing and distributing without permission millions of infringing digital copies of copyrighted works, including copies of popular songs and albums before they were commercially available. Ouprasith was also sentenced to two years of supervised release, and ordered to pay restitution in the amount of $45,288.62, and forfeit $50,851.05.
This case represents the first criminal copyright infringement sentence imposed for a cyberlocker operator in the United States.
“Ouprasith operated the second largest online file sharing site in the United States, averaging nearly 4.5 million visits per month and resulting in an estimated collective loss of more than $10 million per month to the rightful owners,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “I believe this sentence reflects the seriousness of the crime and will promote greater respect for the law and property rights of others. I want to thank my prosecutors and our investigative partners for their outstanding work in this case.”
“HSI is responsible for enforcing federal regulations that exist to protect American businesses from unfair trade practices and intellectual property theft,” said Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). “Online piracy has a serious financial impact to business, which is felt at every level of a transaction – from the producer to the point-of-sales clerk.”
Ouprasith pleaded guilty on Aug. 21, 2015. According to court documents, between May 2011 and October 2014, Ouprasith operated RockDizMusic.com, a website originally hosted on servers in France and later in Canada, from which Internet users could find and download infringing digital copies of popular copyrighted songs and albums. Ouprasith admitted that he obtained digital copies of copyrighted songs and albums from online sources, and that he encouraged and solicited others, referred to as “affiliates,” to upload digital copies of copyrighted songs and albums to websites, including RockDizFile.com, that were hosted on servers in Russia, France and the Netherlands, and that hosted hyperlinks to content being offered for download on RockDizMusic.com. Ouprasith further admitted that to encourage such activity, he agreed to pay the affiliates based on the number of downloads from his website.
According to the Recording Industry Association of America, in 2013, RockDizFile.com was the second-largest online file sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music in the United States. Ouprasith admitted that in 2013 and 2014, he either ignored or pretended to take remedial action in response to complaints from copyright holders and their representatives that the website contained links to infringing copies protected songs and albums.
In October 2014, federal law enforcement authorities shut down RockDizMusic.com and RockDizFile.com, and law enforcement authorities in the Netherlands and France seized file-hosting servers utilized by Ouprasith.
According to court documents, the market value of Ouprasith’s illegally pirated material was more than $6 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Clark E. Settles, Special Agent in Charge of HSI Washington, D.C., made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. The case was prosecuted by Randy Stoker, Assistant U.S. Attorney for the Eastern District of Virginia, and John H. Zacharia, Assistant Deputy Chief for Litigation of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). The CCIPS Cyber Crime Lab, the Criminal Division’s Office of International Affairs, as well as Dutch, French and Canadian law enforcement officials have provided significant assistance.
The sentencing today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-95.
###
Operator of Second-Largest Music Piracy Cyberlocker in United States Sentenced to 36 Months in Prison for Criminal Copyright InfringementRead the Press Release
First Criminal Copyright Infringement Sentence Imposed for a Cyberlocker Operator
The operator of the RockDizMusic.com music piracy website and cyberlocker was sentenced today to serve 36 months in prison, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.
Rocky P. Ouprasith, 23, of Charlotte, North Carolina, was sentenced by Chief U.S. District Judge Rebecca Beach Smith of the Eastern District of Virginia. In addition to his prison term, Ouprasith was sentenced to serve two years of supervised release and was ordered to forfeit $50,851.05 and pay $48,288.62 in restitution. On Aug. 21, 2015, Ouprasith pleaded guilty to one count of criminal copyright infringement.
According to admissions made in connection with his guilty plea, between May 2011 and October 2014, Ouprasith operated RockDizMusic.com, a website originally hosted on servers in France and later in Canada, from which Internet users could find and download infringing digital copies of popular, copyrighted songs and albums. Ouprasith admitted that he obtained digital copies of copyrighted songs and albums – including “pre-release” songs that were not yet commercially available to consumers – from online sources and encouraged and solicited others, referred to as “affiliates,” to upload digital copies of copyrighted songs and albums to websites, including RockDizFile.com, that were hosted on servers in Russia, France and the Netherlands, and that hosted hyperlinks to content being offered for download on RockDizMusic.com. Ouprasith further admitted that to encourage such activity, he agreed to pay the affiliates based on the number of downloads from his website.
According to the Recording Industry Association of America, in 2013, RockDizFile.com was the second-largest online file-sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music in the United States. Ouprasith admitted that in 2013 and 2014, he either ignored or pretended to take remedial action in response to complaints from copyright holders and their representatives that the website contained links to infringing copies protected songs and albums.
In October 2014, federal law enforcement authorities shut down RockDizMusic.com and RockDizFile.com, and law enforcement authorities in the Netherlands and France seized file-hosting servers utilized by Ouprasith.
According to court documents, the market value of Ouprasith’s illegally-pirated material was more than $6 million.
This case is being investigated by HSI. The case is being prosecuted by Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Randy Stoker of the Eastern District of Virginia. The CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs, as well as Dutch, French and Canadian law enforcement officials have provided significant assistance.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
Nine Men Arrested in Binghamton Area Drug InvestigationRead the Press Release
BINGHAMTON, NEW YORK – Nine (9) Binghamton area men were arrested today on federal drug conspiracy charges following an investigation by the Federal Bureau of Investigation (“FBI”), the New York State Police and the Broome County Special Investigations Unit Task Force, announced United States Attorney Richard S. Hartunian. The charges filed in federal court allege that the nine (9) men were engaged in a conspiracy to possess with intent to distribute and distribute cocaine powder, crack cocaine, heroin, marijuana and prescription drugs as part of a drug trafficking organization known as “the Eddie Block Gang.” The criminal complaint alleges that the conspiracy operated from January 2014 to present.
The defendants are:
IZABIVONE L. HUGHES, aka “Zay” and “Baby Boy,” age 22, of Johnson City, New York
ANTHONY E. BOYD, JR., aka “Height,” age 24, of Endicott, New York
TERRILL S. COLLINS, aka “LI” and “Neva Curve,” age 23, of Binghamton, New York
JOHN P. ABBADESSA, age 21, of Binghamton, New York
JALON T. PARKER, aka “Flex” and “Slizzy” age 23, of Binghamton, New York
ANTHONY J. RANDOLPH, JR., aka “Bleach,” age 29, of Binghamton, New York
RASHAWN C. CAUTHEN, aka “Tego,” age 24, of Binghamton, New York
AALIM M. SHABAZZ, aka “Hash,” age 23, of Binghamton, New York
and THEODORE J. COOK, aka “Tato,” age 27, of Binghamton, New YorkIf convicted of drug conspiracy, the defendants face maximum sentences of up to life imprisonment, minimum sentences of at least ten (10) years imprisonment, a term of supervised release of at least five (5) years following imprisonment and a fine of up to $10 million.
Anthony J. Randolph, Jr., aka “Bleach” is also charged with possession of a firearm by a convicted felon and faces a maximum sentence of up to ten (10) years imprisonment, a term of supervised release of three (3) years following imprisonment, and a fine of up to $250,000.
The defendants were arraigned today in Binghamton, New York, before United States Magistrate Judge Therese Wiley-Dancks
The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.
This case was investigated by The FBI, The New York State Police and the Broome County Special Investigations Unit Task Force, which is comprised of officers and detectives of the City of Binghamton Police Department, the Broome County Sheriff’s Office, the Johnson City Police Department and the Endicott Police Department, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Nez Perce Man Pleads Guilty to TheftRead the Press Release
COEUR D'ALENE - Daniel Wayne Winslow, 32, of Clarkston, Washington, pleaded guilty today to theft from a tribal organization, U.S. Attorney Wendy J. Olson announced. Winslow was charged by the U.S. Attorney on October 29, 2015.
According to the plea agreement, Winslow admitted that he was a cashier at the Nez Perce Express, which is owned by the Nez Perce Tribal Enterprises, an organization of the Nez Perce Tribe, a federally recognized Indian Tribe. During the defendant’s employment, he would sell cigarettes to customers and take cash in payment. The defendant then used his cash register to void the sale and converted the money the customer paid for the cigarettes to his own use. This practice of voiding the sales allowed the defendant to show a balanced cash drawer at the end of his shift. An audit revealed the defendant has stolen approximately $199,000 of tribal funds over several years during his employment at the Nez Perce Express.
The charge of theft from a tribal organization is punishable by up to five years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for January 26, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Federal Bureau of Investigation (FBI) and Nez Perce Tribal Police.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
New Mexico Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Albuquerque, New Mexico, man pleaded guilty in federal court today to transporting a 13-year-old victim from Henry County, Mo., across state lines to engage in illicit sexual activity.
Raymond C. Vallia, III, 56, of Albuquerque, pleaded guilty before U.S. District Judge Beth Phillips to transporting a minor across state lines with the intent to engage in sexual activity.
On March 29, 2015, deputies with Henry County, Mo., Sheriff’s Department responded to a Montrose, Mo., residence regarding the report of a missing 13-year-old female, identified in court documents as MV. During the course of the investigation law enforcement agents determined that MV met Vallia through a social networking Web site and that he had picked up MV at her home with the intent that they would live in an apartment in New Mexico.
New Mexico State Police saw a vehicle matching the description of Vallia’s vehicle on Interstate 40 in New Mexico on March 30, 2015. At that time the vehicle was pulled over, MV was recovered and Vallia was arrested.
MV told investigators that she and Vallia had sent nude images of themselves to each other and had sexually explicit conversations via Internet chat services. They intended to live together in his apartment; she planned to present Vallia as her father and to attend Cibola High School.
According to today’s plea agreement, Vallia picked up MV at her home at 2 a.m. Sunday, March 29, 2015. They drove to Amarillo, Texas, where they spent the night in a motel. Vallia and MV showered together and engaged in sexual activity. The next morning, after Vallia returned from a doctor’s appointment, they left the hotel and drove towards Vallia’s apartment in Albuquerque.
Under the terms of today’s plea agreement, Vallia will be sentenced to 20 years in federal prison without parole, followed by a 10-year term of supervised release, and must pay restitution to his victim. Vallia will be required under the federal Sex Offender Registration and Notification Act (SORNA) to register as a sex offender and keep the registration current in each of the jurisdictions where he resides, is employed and is a student. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI, the Henry County, Mo., Sheriff’s Department, the New Mexico State Police and the Amarillo, Texas, Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Morris County, New Jersey, Couple Admit Falsifying Thousands of Medical Diagnostic Reports as Part of $4.3 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A Rockaway, New Jersey, husband and wife who owned a mobile diagnostic testing company today admitted receiving more than $4.3 million from Medicare and private insurance companies for diagnostic testing and reports that were never interpreted by a licensed physician, U.S. Attorney Paul J. Fishman announced.
Nita K. Patel, 53, and Kirtish N. Patel, 53, pleaded guilty today before U.S. District Judge William H. Walls in Newark federal court to separate informations charging them each with one count of health care fraud.
According to the documents filed in the case and statements made in Court:
From 2006 through June 2014, Nita and Kirtish Patel owned and operated Biosound Medical Services Inc. and Heart Solutions (collectively, “Biosound”), of Parsippany, New Jersey, which were mobile diagnostic companies and approved Medicare providers. The companies provided mobile diagnostic testing, including ultrasounds, echocardiograms and nerve conduction studies that were used to diagnose heart defects, blood clots, abdominal aortic aneurysms and other serious medical conditions.
Biosound technicians would travel to the office of a primary care physician in the New York and New Jersey area to conduct diagnostic testing. Biosound was responsible for sending the tests to a “reading physician” – an appropriate specialist who would interpret the results. After the reading physician prepared a report, Biosound was responsible for providing it to the referring physician. Biosound was paid millions of dollars by Medicare and other payors for the diagnostic testing, the reading physician’s interpretation of the results and the reports.
Kirtish Patel admitted to, from October 2008 through June 2014, fraudulently interpreting and writing diagnostic reports produced by Biosound despite having no medical license and knowing that the reports would be used by the referring physicians to make important patient treatment decisions. Nita Patel admitted assisting her husband in forging physician signatures on the fraudulently produced reports to make them appear legitimate. Nita and Kirtish Patel also admitted falsely representing to Medicare that the neurological testing performed by Biosound was being supervised by a licensed neurologist.
According to the informations, more than half of the diagnostic reports generated by Biosound between October 2008 and June 2014 were never actually reviewed or interpreted by a physician. Nita and Kirtish Patel were paid more than $4,386,133.75 by Medicare and private insurance companies for the fraudulent reports, which they used for personal expenses, including multiple residences and luxury vehicles.
The health care fraud charge to which Nita and Kirtish Patel pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for March 15, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s pleas.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Defense counsel:
Kirtish Patel: Anthony Fusco Jr. Esq., Passaic, New Jersey
Nita Patel: Frank Arleo Esq., West Orange, New Jersey
Monroe County Man Pleads Guilty to Federal Heroin Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today before United States Magistrate Judge Karoline Mehalchick to a federal heroin trafficking charge.
According to United States Attorney Peter J. Smith, Sal DiPalma, age 45, of East Stroudsburg, Monroe County, admitted to the charge of aiding and abetting the distribution of heroin. DiPalma was indicted by a grand jury in April 2015.
The charges stem from an incident in which DiPalma helped to arrange for a sale of heroin between Eric Rabb, age 45, of East Stroudsburg, and another individual who was working for police investigators. On October 23, 2013, Rabb and DiPalma were arrested by investigators as they were about to distribute the heroin to the other individual.
The investigation was conducted by the Lackawanna County Drug Task Force, the Drug Enforcement Administration, the Lackawanna County District Attorney’s Office and the Wayne County District Attorney’s Office.
Eric Rabb previously pleaded guilty to the charge of conspiracy to distribute heroin and is awaiting sentencing.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
###
Methuen Executive Convicted in Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A Methuen business executive pleaded guilty today to participating in a conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in the Merrimack Valley of Massachusetts.
Dahianara Moran, 40, pleaded guilty to one count of conspiracy to commit bank fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for Feb. 17, 2016.
Moran conspired with others – including a Methuen loan officer and a Haverhill real estate agent who were not identified in the charging document – to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen. A short sale is a sale of real estate for less than the value of any mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender, and that generally result in the lender absorbing a loss on the loan and releasing the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater,” with their homes worth less than the mortgage debt they owed. As part of the scheme, Moran and her co-conspirators submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales – and thereby to release the purported sellers from their unpaid mortgage debts – while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in the homes, with their debt substantially reduced. In some cases, the conspirators then re-sold the properties in genuine arms-length transactions for a profit. Meanwhile, the short-selling banks lost millions of dollars.
As part of the conspiracy:
-
The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties, when in fact, the transactions were not arms-length, and the sellers retained control of (and frequently continued to live in) the properties after the sale. For example, Moran purported to sell two properties she owned to third parties who were, in fact, her close relatives, while actually maintaining control of both properties.
-
The conspirators submitted phony earnings statements that Moran prepared in support of loan applications that they submitted to banks in order to obtain financing for the purported sales.
-
The conspirators submitted phony HUD-1 Settlement Statements to banks, as well as to the Federal Housing Administration, that did not accurately reflect the disbursement of funds in the transactions. (A HUD-1 Settlement Statement is a standard form, developed by the U.S. Department of Housing and Urban Development, that is used to document the flow of funds in real estate transactions.HUD-1 Settlement Statements are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
Hayacinth Bellerose, a real estate attorney from Dunstable, Mass., pleaded guilty last month to the same charge and is scheduled to be sentenced on Feb. 4, 2016.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $1 million. 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; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, the Special Inspector General of the Troubled Asset Relief Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
-
Martinsburg, WV man convicted of cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Theron Eugene Cobb, 32, of Martinsburg, was convicted of cocaine trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Cobb, also known as “Miami,” was discovered in possession of cocaine in Berkeley County, West Virginia. He pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney Stephanie Taylor prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Who Set Fire to CVS During Baltimore Unrest Sentenced to Four Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Raymon Carter, age 24, of Baltimore, Maryland, today to four years in prison, followed by three years of supervised release, for the federal crime of rioting on April 27, 2015, including the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore. Judge Hollander also entered an order requiring Carter to pay restitution of $500,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.
“Ordinary citizens concerned about their neighborhood helped to catch Raymon Carter after he participated in the riot on April 27, 2015,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, on April 27, 2015, Carter used a telephone to discuss his plans to go to the scene of the riots that erupted across Baltimore following the funeral of Freddie Gray. Carter walked to the area of North and Pennsylvania Avenues, in the vicinity of the CVS Pharmacy located at 2509 Pennsylvania Avenue, where he was captured on video watching the rioting activity around him, including rioters setting small fires.
Looters broke through the main doors of the CVS and began removing merchandise and pharmaceuticals. Surveillance video shows Carter entering the CVS at 5:28 p.m. Carter used an open flame to illuminate the pharmaceuticals on the shelves. At 5:30 p.m. the video shows Carter unsuccessfully attempting first to move, and then to open, the pharmaceutical safe.
Carter is then seen on surveillance video going to and from the southeast corner of the sales floor – which the investigation showed was the area of origin of the fire - three separate times between 6:15 p.m. and 6:19 p.m. Carter admitted that his intent was to start a fire and that he used paper products from that area of the store to set the fire. At 6:19:34 p.m., the third time Carter is seen going to that corner of the store, he moves out of camera view, behind the shelves. Carter’s efforts to light a fire were successful and at 6:19:57 p.m. a flash of light can be seen on the video. After the flash of light, Carter reappears on the surveillance video from behind the shelves and is seen running away from the area toward the CVS exit. Flames in the southeast corner of the store become visible on the surveillance video at 6:22:19 p.m. Fourteen seconds later Carter is seen walking towards the exit while looking back at the fire, and the looters are seen running toward the exit. No other individual is seen on the surveillance video in the area of the fire from the time of the flash of light until Carter exits the store.
The Baltimore Fire Department was called to the CVS at 6:28 p.m. When firefighters arrived at the store, heavy smoke was seen venting from the main entry doors and the roof. The Baltimore Police Department established riot lines in an attempt to control the crowds while the firefighters worked to extinguish the fire.
Carter was subsequently identified by citizens after the ATF released two still photographs from the surveillance videos to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction. On June 29, 2015, the ATF released a wanted poster for Carter and received a hotline tip on July 1, 2015 concerning Carter’s location. ATF agents located, and after a foot chase, arrested Carter. At the time of his arrest, Carter had little in his pockets except two black lighters. The total loss for the building alone as a result of the fire is estimated at $1.1 million.
The federal crime of rioting, governed by Section 2101 and 2102 of Title 18 of the United States Code, applies when a defendant travels across a state line or uses a facility of interstate commerce, including a telephone, to participate in a civil disturbance involving acts of violence.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson, who prosecuted the case.
Man Convicted for Selling Counterfeit CigarettesRead the Press Release
Man pled guilty to trafficking in counterfeit cigarettes before U.S. District Court Judge William P. Dimitrouleas in Fort Lauderdale.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert J. West, Acting Special Agent in Charge, Miami Field Office, and U.S. Food & Drug Administration, Office of Criminal Investigations (FDA/OCI), made the announcement.
On November 13, 2015, Gaurav Joseph Jayaseelan, 25, a citizen of India, pled guilty to selling and dispensing and causing the sale and dispensing of a counterfeit tobacco product, cigarettes, the labeling of which bore the trade name of Newport cigarettes, a tobacco product listed with the FDA under Title 21, United States Code, Section 387(e)(i)(1), in violation of Title 21, United States Code, Sections 331(qq)(3) and 333(a)(2), and Title 18, United States Code, Section 2; and trafficking in 53,740 cartons of cigarettes, while knowingly using a counterfeit mark on and in connection with such cigarettes, the use of which was likely to cause confusion, cause mistake, and deceive. The counterfeit marks were false marks identical to and substantially indistinguishable from the marks of the legitimate manufacturer of Newport brand cigarettes, which were in use by and registered to the manufacturer on the principal register of the U.S. Patent and Trademark Office, in violation of Title 18, United States Code, Sections 2320(a) and 2.
Jayaseelan faces maximum statutory sentence of up to three years in prison, a fine of up to $250,000, and supervised release of up to three years for selling the counterfeit cigarettes. The defendant faces up to ten years in prison, a fine of up to $2,000,000, and a three year term of supervised release, for the trafficking of the cigarette cartons. The defendant is scheduled to be sentenced on January 22, 2016 at 1:15 pm.
According to the court record, including the a jointly filed factual statement, the investigation began in January 28, 2013, when a FDA/OCI undercover agent met with a third-party in Kingston, Jamaica to discuss the sale of counterfeit Marlboro brand cigarettes. Thereafter, negotiating by email, a deal to sell and ship 1,100 “master cases” of counterfeit Marlboro Reds, for a total cost of $377,300.00 was reached. To pursue the deal, agents made an initial a wire transfer in the amount of $133,190 to an account located in Dubai, United Arab Emirates for the purchase of the counterfeit cigarettes.
In August 2013, FDA/OCI undercover agents met with Jayaseelan, who travelled to Miami, FL from Dubai, as a representative of the producer, to discuss the pending sale. During the recorded meeting, Jayaseelan told the agents that he and his father, Joseph Jayaseelan were in the cigarette and alcohol business in the Middle East and India. He also claimed they owned and operated their own tobacco manufacturing plant which could manufacture any tobacco brand.
In December 2013, Jayaseelan sent an email advising they had to temporarily shut down their counterfeit Marlboro plant to avoid detection by law enforcement and offered in the interim to provide counterfeit Newport cigarettes. Subsequently, at Jayaseelan’s request, two cartons of Newport cigarettes to be used as samples for the manufacturing of the counterfeits were provided to an address in India.
In January 2014, an undercover agent was advised by Jayaseelan that the defendant would send 1,030 master cases of Newport cigarettes, for a total value of: $450,625. Later, Jayaseelan by email advised that the counterfeit Newport cigarettes had been shipped on April 7 to Port Everglades, Florida. The shipment was seized in Fort Lauderdale by Customs and Border Protection officers, in coordination with FDA/OCI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) agents. The counterfeit cigarettes had an estimated United States street value of more than $1 million. Jayaseelan was arrested in August 2015 when he traveled to the United States in order to secure further payment on the counterfeit cigarette deal.
“This case represents our relentless commitment to stopping international rings of counterfeiters from jeopardizing products used by American consumers,” stated U.S. Attorney Ferrer.
"A key part of FDA's mission is to protect consumers from counterfeit products -- including cigarettes -- that the agency regulates," said Robert J. West, Acting Special Agent in Charge, FDA Office of Criminal Investigations' Miami Field Office. "We will continue to focus our efforts and resources on removing harmful counterfeit products from the US marketplace."
Mr. Ferrer commended the investigative efforts of the FDA/OCI, Miami Field Office, U.S. Customs and Border Protection (CBP), Port Everglades Office, ICE-HSI, Fort Lauderdale Office, and Broward Sheriff’s Office (BSO) for their assistance in the development of the case. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Local officials discuss substance abuse, leadership with Jefferson County studentsRead the Press Release
HARPERS FERRY, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II and United States Senator Shelley Moore Capito (R-W.Va.) visited C.W. Shipley Elementary School in Harpers Ferry on Monday to speak with the school’s fifth grade class about current trends impacting young people in the Mountain State.
Ihlenfeld spoke with students about substance abuse and addiction, highlighting the power that young people have to control the trajectory of their futures by choosing to be drug free. Capito shared tips for avoiding drug encounters and reporting suspected drug abuse while also discussing the importance of leadership and community engagement.
“Addiction has established a fierce grip in our region,” noted Ihlenfeld. “We are always looking for creative ways to reduce the demand for illegal drugs in our communities. That begins with prevention efforts targeted at young people. It is important to have honest and informed conversation with our children about the science of addiction while highlighting how quickly and powerfully drugs can change their lives. We look forward to future opportunities to engage with local youth.”
“I enjoyed the opportunity to talk with our youth – the future of West Virginia – about the devastating effects of drug abuse. Today’s program is an example of the comprehensive outreach our state is undertaking to address this growing epidemic,” said Senator Capito. “Communities throughout West Virginia need to be prepared to educate our youth about the dangers of drug abuse, while we also work to address our treatment and enforcement needs.”
Students also had the opportunity to interact with local law enforcement officials. Jefferson County Sheriff Peter Dougherty joined Ihlenfeld and Capito at C.W. Shipley Elementary School to discuss his role as Sheriff with the students.
Individuals interested in scheduling presentations or interactive forums on substance abuse trends or other topics for students and community groups in the Northern District of West Virginia are encouraged to contact the United States Attorney’s Office by calling (304) 234-0100 or emailing [email protected].
C.W. Shipley Elementary School Princiapl Ian Hillman along with several students greet United States Senator Shelley Moore Capito, Jefferson County Sheriff Pete Dougherty, and United States Attorney William J. Ihlenfeld, II.
Local Musician Pleads Guilty to Stolen Identity Tax Refund SchemeRead the Press Release
St. Louis, MO – OLUFUNSHO ADESHINA, a native of Nigeria residing in St. Louis, pled guilty to charges involving his participation in a stolen identity tax fraud scheme.
According to court documents, Adeshina received $753,063 from more than fifty refunds by filing false tax returns in the name of various individuals. The refunds were sent to various financial accounts: some were in Adeshina’s name, some were in the names of businesses he controlled and some were in the names of identity theft victims whose information Adeshina used to establish additional accounts. Adeshina admitted he sought more than $3.5 million dollars in refunds, but most of the false returns were caught and not honored by the IRS.
Adeshina pled guilty to one felony count of theft of government funds before United States District Judge Rodney W. Sippel. Sentencing has been set for February 26, 2016. Adeshina will remain in federal custody until his sentencing. Adeshina has been in federal custody since April, when he was arrested at Atlanta-Hartsfield Airport returning to the United States from Nigeria.
"Investigating refund fraud and identity theft is a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," said Tonya L. Martin, Acting Special Agent in Charge of IRS Criminal Investigation.
Theft of government funds carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. In addition to the criminal penalties he faces, Adeshina acknowledged this conviction may subject him to removal from the United States, as he is not a U.S. citizen.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Local Man Heads to Prison for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 32-year old Corpus Christi man has been ordered to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. James Parrott pleaded guilty July 29, 2015.
Today, Senior U.S. District Judge John D. Rainey handed Parrott a term of 108 months in federal prison. The sentence will be immediately followed by a term of five years on supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.
At the time of his guilty plea, the court heard that detectives with the Corpus Christi Police Department, while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Parrott. As a result of this information, the FBI office in Corpus Christi was contacted to assist in the investigation.
In January 2015, agents executed a search warrant at Parrott’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 1,000 images and more than 120 videos of child pornography. Parrott admitted to using the peer-to-peer software to download child pornography.
Parrott was arrested on the federal charges in June 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated with the assistance of the Corpus Christi Police Department.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lisbon man indicted for child pornography crimesRead the Press Release
Charles Lee Davis, Jr., 49, of Lisbon, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about November 7, 2013, through on or about January 28, 2014, Davis knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on July 23, 2014, Davis possessed a computer containing child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Youngstown Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
KC Man Sentenced to 30 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., was sentenced in federal court today for producing child pornography after recording videos of two minor victims, including a teenager who responded to his online advertisement for modeling and a minor who was secretly filmed in the shower.
Marcus S. Clarke, 43, a citizen of Jamaica residing in Kansas City, was sentenced by U.S. District Judge Dean Whipple to 30 years in federal prison without parole. The court also ordered Clarke to serve a 10-year term of supervised release following incarceration.
On June 1, 2015, Clarke pleaded guilty to one count of producing child pornography and one count of attempting to produce child pornography.
According to court documents, a 15-year-old girl, identified as Jane Doe #1, had been sending and receiving text messages on a borrowed cell phone. The cell phone’s owner notified a Prairie Village, Kan., police detective when she noticed a text conversation about a modeling photo shoot.
Jane Doe #1 told law enforcement officers that she responded to a Craigslist advertisement for models for a photo shoot. Clarke picked her up at a park in Prairie Village on Oct. 3, 2014, and drove her to his apartment in the Northland. When they arrived at the apartment, Clarke put a flash drive in his television to display photos of nude females to Jane Doe #1. MV described the images to law enforcement officers as “disturbing” because the women were nude and engaged in sexual activity. Clarke took both nude and non-nude photos and videos of Jane Doe #1 using a digital camera and digital recorder. During one of the video recordings Clarke engaged in sexual activity with Jane Doe #1.
According to court documents, Clarke had been advertising online for lingerie and nude modeling as far back as September 2012.
An FBI agent used the same cell phone that Jane Doe #1 had used to contact Clarke. Several text messages were exchanged in which Clarke made arrangements to meet Jane Doe #1 again for another photo shoot. When Clarke arrived at the Prairie Village park to meet Jane Doe #1 on Oct. 22, 2014, he was placed under arrest. Law enforcement officers executed a search warrant at Clarke’s residence and seized computers and computer storage devices that contained sexually explicit videos of Jane Doe #1.
Clarke also admitted that he secretly recorded video of a second victim, identified as Jane Doe #2, to produce child pornography between Jan. 1, 2007, and Dec. 13, 2010. According to court documents, investigators discovered an SD card in Clarke’s apartment that contained video recordings in which Clarke appeared to secretly film the 13-year-old female while she took a shower.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI and the Prairie Village, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Indicted for Armed Bank Robbery, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was arrested last week after being tackled by a security guard was indicted by a federal grand jury today for armed bank robbery and illegally possessing a firearm.
Sidney A. Williams, 62, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Williams on Nov. 12, 2015.
The federal indictment alleges that Williams used a firearm to steal $5,493 from Bank Midwest, 7904 Ward Parkway, Kansas City, Mo., on Nov. 10, 2015.
According to an affidavit filed in support of the original criminal complaint, Williams was wearing a black ski mask and pointing a handgun at bank employees, including the security guard. When Williams ran out the door of the bank after the robbery, the affidavit says, the security guard chased Williams, tackled him across the street from the bank and a struggle ensued. Williams allegedly pointed the revolver at the security guard before he was able to disarm him. The security guard received assistance from a passerby in subduing Williams. Law enforcement officers recovered a blue canvas bag of cash, a handgun and a black ski mask from the area where Williams was taken into custody.
Williams is also charged with brandishing a firearm – an Iver Johnson .38-caliber revolver – during a crime of violence.
The indictment also charges Williams with being a felon in possession of a firearm. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has prior federal felony convictions for armed bank robbery and for being a felon in possession of a firearm; he has prior state felony convictions for robbery, burglary and assault.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Jeff Q. McCarther. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department and Federal Partners Announce Enforcement Actions of Dietary Supplement CasesRead the Press Release
Criminal Charges Brought against Bestselling Supplement Manufacturer
As part of a nationwide sweep, the Department of Justice and its federal partners have pursued civil and criminal cases against more than 100 makers and marketers of dietary supplements. The actions discussed today resulted from a year-long effort, beginning in November 2014, to focus enforcement resources in an area of the dietary supplement market that is causing increasing concern among health officials nationwide. In each case, the department or one of its federal partners allege the sale of supplements that contain ingredients other than those listed on the product label or the sale of products that make health or disease treatment claims that are unsupported by adequate scientific evidence.
Among the cases announced today is a criminal case charging USPlabs LLC and several of its corporate officers. USPlabs was known for its widely popular workout and weight loss supplements, which it sold under names such as Jack3d and OxyElite Pro.
The sweep includes federal court cases in 18 states and was announced today by Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division; Deputy Commissioner for Global Regulatory Operations and Policy Howard Sklamberg J.D. of the Food and Drug Administration (FDA); Acting Deputy Director J. Reilly Dolan of the Federal Trade Commission (FTC)’s Bureau of Consumer Protection; Acting Deputy Chief Inspector Gary Barksdale of the U.S. Postal Inspection Service (USPIS); and Chief Richard Weber of the Internal Revenue Service’s (IRS) Criminal Investigation (CI) Division. The Department of Defense (DoD) and the U.S. Anti-Doping Agency (USADA) are also participating in the sweep to unveil new tools to increase awareness of the risks unlawful dietary supplements pose to consumers and, in particular, to assist service members targeted by illegitimate athletic performance supplements.
“The Justice Department and its federal partners have joined forces to bringing to justice companies and individuals who profit from products that threaten consumer health,” said Principal Deputy Assistant Attorney General Mizer. “The USPlabs case and others brought as part of this sweep illustrate alarming practices the department found—practices that must be brought to the public’s attention so consumers know the serious health risks of untested products.”
During the period of the sweep, 117 individuals and entities were pursued through criminal and civil enforcement actions. Of these, 89 were the subject of cases filed since November 2014.
Criminal Matters
An 11-count indictment was unsealed earlier today against USPlabs LLC, a Dallas firm, which formerly manufactured highly popular workout and weight loss supplements. The indictment charges USPlabs, S.K. Laboratories Inc., based in Anaheim, California, and their operators with a variety of charges related to the sale of those products. Jacobo Geissler, 39, of University Park, Texas, the CEO of USPlabs; Jonathan Doyle, 37, of Dallas, the president of USPlabs; Matthew Hebert, 37, of Dallas, responsible for product packaging design at USPlabs; Kenneth Miles, 69, of Panama City, Florida, the quality assurance executive in charge of compliance at USPlabs; S.K. Laboratories Inc.; Sitesh Patel, 32, of Irvine, California, the vice president of S.K. Laboratories; and Cyril Willson, 34, of Gretna, Nebraska, a consultant to USPlabs, are charged with various counts associated with the unlawful sale of dietary supplements. Additionally, USPlabs, Geissler, Doyle and Hebert are charged with obstruction of an FDA proceeding and conspiracy to commit money laundering.
Four of the defendants were arrested earlier today and the other two will self-surrender. Along with the arrests, FDA and IRS-CI special agents seized assets in dozens of investment accounts, real estate in Texas and a number of luxury and sports cars.
The indictment alleges that USPlabs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USPlabs told some of its retailers and wholesalers that it used natural plant extracts in products called Jack3d and OxyElite Pro, when in fact it was using a synthetic stimulant manufactured in a Chinese chemical factory.
The indictment also alleges that the defendants sold some of their products without determining whether they would be safe to use. In fact, as the indictment notes, the defendants knew of studies that linked the products to liver toxicity.
The indictment also alleges that in October 2013, USPlabs and its principals told the FDA that it would stop distribution of OxyElite Pro after the product had been implicated in an outbreak of liver injuries. The indictment alleges that, despite this promise, USPlabs engaged in a surreptitious, all-hands-on-deck effort to sell as much OxyElite Pro as it could as quickly as possible. It was sold at dietary supplement stores across the nation.
“This joint agency effort is a testament to our commitment to protecting consumers from potentially unsafe dietary supplements and products falsely marketed as dietary supplements,” said Deputy Commissioner Sklamberg. “The criminal charges against USPlabs should serve as notice to industry that if products are a threat to public health, the FDA will exercise its full authority under the law to bring justice.”
Today’s criminal charges are among 14 criminal cases prosecuted by the Civil Division’s Consumer Protection Branch and U.S. Attorney’s Offices across the country from November 2014 to November 2015. See this chart. Of the 14 criminal cases prosecuted during this timeframe, 11 cases against 29 individuals and entities have been filed since November 2014.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Civil Cases
The Department of Justice also filed in the past week five civil cases seeking injunctive relief against a number of businesses and individuals that allegedly sold supplements as disease cures or that were otherwise in violation of the law. These matters, investigated by USPIS and the FDA, include the following:
- United States v. Clifford Woods LLC, doing business as Vibrant Life, and Clifford Woods. A complaint, filed in the U.S. District Court for the Central District of California, alleges that the defendants unlawfully sold Taheebo Life Tea, Life Glow Plus, Germanium and Organic Sulfur (identified as methyl sulfonyl methane) as treatments for various diseases including Alzheimer’s disease and cancer. The complaint alleges that the defendants’ conduct defrauded consumers through the sale of unapproved new and misbranded drugs.
- United States v. James R. Hill, doing business as Viruxo. A complaint, filed in the U.S. District Court for the Middle District of Florida, alleges that the defendants unlawfully sold a dietary supplement called Viruxo as a treatment for herpes. The complaint alleges that the defendants’ conduct defrauded consumers through the sale of unapproved new and misbranded drugs.
- United States v. Lehan Enterprises, Inc., doing business as Optimum Health, and Lesa Sverid. A complaint, filed in the U.S. District Court for the District of Massachusetts, alleges that the defendants unlawfully sold products called DMSO Cream, DMSO Cream with Aloe and DMSO Roll On as treatments for conditions and diseases including arthritis and cancer. The complaint alleges that defendants sold unapproved new and misbranded drugs.
- United States v. Bethel Nutritional Consulting, Felix Ramirez, and Kariny Ramirez. A complaint, filed in U.S. District Court for the District of New Jersey, alleges that the defendants distribute dietary supplements in a manner that does not conform to current good manufacturing practice for dietary supplements and that they are making claims about the uses for many of the products that render them unapproved and misbranded drugs. Furthermore, FDA testing has revealed that some of defendants’ products contain active pharmaceutical ingredients that are not listed on the products’ labels, including one ingredient that was withdrawn from the market in 2010 because of safety concerns. The defendants in this matter have agreed to be bound by a consent decree of permanent injunction banning them from selling dietary supplements until they come into compliance with the law.
- United States v. VivaCeuticals, Inc., doing business as Regeneca Worldwide, and Matthew Nicosia. A complaint filed in U.S. District Court for the Central District of California alleges that dietary supplements sold by the defendants are adulterated because they are not manufactured in accordance with the FDA’s current good manufacturing practice regulations. One of the dietary supplements, a product called RegeneSlim Appetite Control (RegeneSlim), contains the ingredient 1, 3 dimethylamylamine (DMAA), an unsafe food additive under the federal Food, Drug and Cosmetic Act, but does not declare DMAA as an ingredient. In addition, the defendants market RegeneSlim to be used as a disease cure.
“Postal Inspectors have a long history of effectively enforcing the mail fraud statute to halt snake oil salesmen and medical quacks from using the mails to purvey their wares upon unsuspecting citizens,” said Acting Deputy Chief Postal Inspector Barksdale. “We look at these latest misrepresentations and frauds as ‘old wine in a new bottle.’ Working with our law enforcement and regulatory partners, we hope to protect American consumers by keeping these scams ‘bottled up’.”
Civil actions brought by the FTC as part of the sweep to combat unsubstantiated supplement claims include the following:
- Sunrise Nutraceuticals, LLC. According to the FTC’s complaint, Sunrise, based in Boca Raton, Florida, deceptively claims that its dietary supplement Elimidrol, a “proprietary blend” of herbs and other compounds, alleviates opiate withdrawal symptoms and increases a user’s likelihood of overcoming opiate addiction. The FTC’s complaint alleges, however, that Sunrise’s ads for Elimidrol are deceptive because they are false or unsubstantiated.
- Health Nutrition Products. The FTC’s complaint charged Crystal Ewing, five other individuals and five companies with making false and misleading health and efficacy claims in direct mail ads and on a website owned by Ewing. In ads for W8-B-Gone, CITRI-SLIM 4 and Quick & Easy diet pills, the defendants featured bogus weight-loss experts. Citing fake scientific studies, the defendants also deceptively claimed to have clinical proof that consumers would experience a “RAPID FAT meltdown diet program” that lets them shed five pounds in four days with one pill, or up to 20 pounds in 16 days with four pills. The proposed court orders announced today will settle the FTC’s charges against three defendants involved in the scheme. The order against repeat offender Ewing and her company Classic Productions LLC requires them to admit liability in the case, bans them from selling weight-loss programs, products and services, and imposes a non-suspended judgment of $2.7 million.
- NPB Advertising, Inc. According to the FTC’s complaint filed in the U.S. District Court for the Middle District of Florida’s Tampa Division, Florida-based NPB and others capitalized on the green coffee bean diet fad by using false weight-loss claims and fake news websites to market a dietary supplement called Pure Green Coffee. The proposed court order announced today settles the FTC’s charges, bars the defendants from the deceptive acts and practices described in the complaint and imposes a $30 million judgment that will be suspended upon the sale of certain assets, payment of $160,800, and the collection and turnover of an additional $155,760 that was lent to a third party.
“People looking for a dietary supplement to improve their health have to wade through a swamp of misleading ads,” said Director Jessica Rich of the FTC’s Bureau of Consumer Protection. “Be skeptical of ads for supplements that claim to cure diseases, reverse the signs of aging or cause weight loss without diet or exercise.”
Today’s cases are among 25 civil actions pursued by the Civil Division’s Consumer Protection Branch, U.S. Attorney’s Offices and the FTC from November 2014 to November 2015. Of the 25 actions, 22 civil cases against 60 individuals and entities have been filed since November 2014. To date, courts have entered judicial orders in 11 cases, requiring dietary supplement makers to change their business practices to ensure that they are selling their products in compliance with the law.
Educational materials
As part of today’s sweep, the Uniformed Services University of the Health Sciences’ Consortium for Health and Military Performance partnered, through its Human Performance Resource Center (HPRC), with the USADA to develop educational resources for service members to protect them from risky dietary supplements. Through this partnership, the organizations will jointly launch an online interactive educational module called “Get the Scoop on Supplements: Realize, Recognize, and Reduce Your Risk.” Also launching today are two mobile applications: the HPRC’s Operation Supplement Safety (OPSS) High-Risk Supplement List mobile application for Service members and USADA’s Supplement 411 mobile application for athletes (both accessible via the Google Play and Apple App stores and available to the general public).
These educational products will augment the important information available on USADA’s Supplement411.org website and the OPSS website, including the OPSS High-Risk Supplement List which was launched in February 2015. To access more information available to service members, consult the OPSS website and a recently released video at http://hprc-online.org/blog/decoding-the-dietary-supplement-industry. To access the educational resources USADA provides for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products visit USADA’s website http://www.supplement411.org.
“Ensuring readiness of the force is one of the Department of Defense’s top goals,” said Deputy Assistant Secretary of Defense for Health Affairs Dr. Dave Smith of DoD’s Military Health System. “Unsafe dietary supplements are a threat to readiness in DoD.”
“A combined effort like this is vitally important to protecting the health and safety of athletes at every level,” said USADA CEO Travis T. Tygart. “We work to educate athletes on the risks associated with choosing to use supplements, and we will continue to support further action at a national level to prevent dangerous substances and products from being allowed in the marketplace where they can easily be attained by unsuspecting athletes and other consumers.”
To promote today’s joint sweep, the FTC created an infographic to help consumers understand the range of dietary supplement products and claims, the potential risks of taking supplements and questions to ask a health professional before taking any supplements. The FTC also published blogs for consumers and businesses, and has articles and videos with more information at ftc.gov/dietary supplements.
The FDA continues to warn consumers about the risks associated with some over-the-counter products, falsely marketed as dietary supplements, which contain hidden active ingredients that could be harmful. In the last year, the agency has warned of more than 100 products found to contain hidden active ingredients. These products are most frequently marketed for sexual enhancement, weight loss and body building.
Within the last year, the FDA also sent warning letters to manufacturers selling dietary supplements that contain BMPEA and DMBA, two ingredients that do not meet the statutory definition of a dietary ingredient as well as to several companies selling pure powdered caffeine products that the agency determined to be dangerous and present a significant or unreasonable risk of illness or injury to consumers.
Justice Department Settles with McLennan County, Texas, Regarding Accessibility of County Services Under the Americans with Disabilities ActRead the Press Release
The Justice Department announced today an agreement with McLennan County, Texas, to improve access to all aspects of civic life for people with disabilities. McLennan County and the Department of Justice reached an agreement 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). Under the agreement, the county is required to ensure that people with disabilities can take full advantage of the county’s services, programs and activities. This year, as we celebrate the 25th anniversary of the ADA, it is an ideal time to highlight the impact that the enforcement of this statute has made in the lives of people with disabilities.
“Twenty-five years after the passage of the ADA, we have seen tremendous strides in accessibility nationwide,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Because of the ADA, local governments like McLennan County are taking responsibility to provide citizens with access to programs, services and activities. Agreements such as this one will have a remarkable impact on the everyday lives of individuals with disabilities and allow them to fully participate as citizens of McLennan County.”
Under the agreement, McLennan County will develop and implement a new county website that is compliant with the web content accessibility guidelines (WCAG) version 2.0; the county will also designate a web accessibility coordinator who will be responsible for coordinating the county’s web accessibility compliance. The county will also ensure that its polling locations are accessible to persons with disabilities. In addition, the county will modify its emergency operations plan to ensure that it is accessible to all persons with disabilities in the event of an emergency. McLennan County will also adopt and implement its Sheriff’s Department Effective Communication Policy for People Who are Deaf or Hard of Hearing. Finally, the agreement requires the county to ensure that its courthouses, buildings, parking lots, parks and toilet rooms are accessible to persons with disabilities.
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The three-year agreement will remain in effect until Nov. 16, 2018. The department will actively monitor compliance with the agreement.
For more information about the ADA, today’s agreement, the Project Civic Access initiative or the ADA Best Practices Tool Kit for state and local governments, individuals may access the ADA Web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
McLennan County Settlement Agreement
Justice Department Settles Americans with Disabilities Act Employment Discrimination Case Against Bolivar County, MississippiRead the Press Release
The Justice Department filed a proposed consent decree today with Bolivar County, Mississippi, resolving claims that the county violated Title I of the Americans with Disabilities Act (ADA). The complaint, also filed today, alleges that the county violated the ADA by terminating a correctional officer with the Bolivar County Regional Correctional Facility one day after he disclosed in a post-hire physical examination that he previously had diabetes. The county terminated the employee, who had nearly 20 years of prior experience as a correctional officer and was qualified to perform the position, because he had a record of a disability and/or was regarded as having a disability.
The consent decree, which must be approved by the court, requires the county to pay the employee nearly $100,000 in back pay and compensatory damages, offer to reinstate him to the correctional officer position, provide training on the ADA and file reports on its compliance with the decree and ADA with the Justice Department.
“Employers may not terminate employees based on erroneous assumptions about individuals with diabetes or other disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This agreement is another step towards eliminating employment barriers for people with disabilities, and we applaud the county for working cooperatively with the department to resolve this matter.”
Title I of the ADA prohibits employers from discriminating against a qualified individual on the basis of disability in regard to job application procedures, the hiring, advancement or discharge of employees, employee compensation, job training and other terms, conditions and privileges of employment. An employer may also not deny employment opportunities to a job applicant or employee who is otherwise qualified if the denial is based on the need to make reasonable accommodations for the applicant or employee. This matter was based on a referral from the Jackson, Mississippi, Area Office of the Equal Employment Opportunity Commission who completed the initial investigation of the facts.
Those interested in finding out more about federal disability rights statutes can call the Justice Department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access the ADA website at www.ada.gov.
Bolivar County Complaint
Bolivar Consent Decree
Justice Department Announces Maerki Baumann & Co. AG Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Maerki Baumann & Co. AG (Maerki Baumann) reached a resolution under the department’s Swiss Bank Program. Maerki Baumann will pay a penalty of more than $23 million.
“Maerki Baumann willfully and actively helped U.S. taxpayers evade their tax obligations and cheat the American public,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Today’s agreement reveals the extent of such conduct and holds Maerki Baumann accountable, requiring the bank to make a detailed disclosure of its cross-border activities, pay an appropriate penalty, and provide continuing and extensive cooperation against its representatives, accountholders and other institutions.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
-
Make a complete disclosure of their cross-border activities;
-
Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
-
Cooperate in treaty requests for account information;
-
Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
-
Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Maerki Baumann agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
Maerki Baumann is a family-owned private bank organized under the laws of Switzerland. It is headquartered in Zurich, Switzerland, and has a branch office in Lugano, Switzerland. In the 1990s, Maerki Baumann developed a relationship with a Swiss referral source that introduced clients to Maerki Baumann primarily from the United States. This source was affiliated with an insurance company that also deposited with Maerki Baumann pooled assets from its insurance customers. Maerki Baumann understood that most were U.S. persons. At some point in the late 1990s or early 2000s, Maerki Baumann also began receiving referrals of U.S. clients from an external asset manager based in the United States. These referrals included clients with undeclared accounts.
Although Maerki Baumann had long had U.S. clients, it had no formal U.S. desk or team until 2001, when it consolidated responsibility for U.S. clients into what had been the “Swiss team” and renamed it the “Swiss/U.S. team.” Maerki Baumann increased its focus on its U.S. cross-border business from 2003 to 2005. In 2003, Maerki Baumann hired a relationship manager (RM-1) from the U.S./Canada desk at another bank.
RM-1 introduced Maerki Baumann to another relationship manager (RM-2), with whom RM-1 had previously worked at another bank and who had significant experience servicing U.S. accounts. Maerki Baumann hired RM-2 in 2005 with the expectation that RM-2 would provide expertise to the U.S. side of Maerki Baumann’s Swiss/U.S. team and actively recruit additional U.S. clients. By the end of 2005, in addition to the head of the Swiss/U.S. team, the U.S. component of Maerki Baumann’s Swiss/U.S. team consisted of three relationship managers, including RM-1 and RM-2. The client base of these relationship managers consisted largely of U.S. clients. Later, these relationship managers were assisted by three junior members of the Swiss/U.S. team. On approximately 35 occasions, relationship managers traveled to the United States to meet with U.S. clients for the purpose of building and maintaining relationships with these clients.
Maerki Baumann terminated RM-2’s employment in 2008. In 2011, RM-2 was charged in a federal court in the United States with conspiring to impede and impair the Internal Revenue Service (IRS) in the ascertainment, computation, assessment and collection of U.S. income taxes, in connection with RM-2’s activities at a bank other than Maerki Baumann.
Maerki Baumann opened, maintained and serviced accounts for U.S. persons that it knew or had reason to know were likely not declared as required by U.S. law. Maerki Baumann also offered a variety of traditional Swiss banking services, including hold mail instructions and numbered accounts, that it knew could assist, and did in fact assist, U.S. clients in the concealment of assets and income from the IRS. The combination of hold mail instructions and numbered accounts on undeclared accounts significantly reduced the ability of the IRS to learn the identities of the U.S. persons.
Maerki Baumann also allowed U.S. persons to maintain accounts held in the name of non-operating non-U.S. corporations or other legal entities that were beneficially owned by these U.S. persons. The jurisdictions in which the entities were incorporated or formed included Liechtenstein, Panama and the British Virgin Islands. On at least two occasions, relationship managers met directly with the beneficial owners of the Maerki Baumann accounts held by the entities.
Between 2004 and 2008, on approximately a monthly basis (but sometimes more often), RM-1 received from U.S. clients checks ranging from just under $10,000 to $85,000, which were drawn on U.S. company accounts in California, for deposit into accounts beneficially owned by those U.S. clients or their designees. The correspondence accompanying the checks stated that the checks were for “materials purchased” and instructed the relationship manager to “process the purchase orders as needed,” and many of the checks themselves bore the notation “see purchase order.” However, there were no purchase orders attached, and Maerki Baumann was never provided with any purchase orders. Additionally, RM-1’s notes state that certain checks were for under $10,000 “in order to avoid any unnecessary attention.” Likewise, with respect to at least two U.S.-related accounts, relationship managers knew between 2003 and 2005 that the client was structuring the transactions to avoid currency transaction reporting requirements.
Relationship managers communicated or discussed communicating with U.S. clients by confidential means. For example, in October 2006, one relationship manager advised a client that if there was a need for urgent contact, he would send the client a card stating “Greetings from [relationship manager].” In another instance, in June 2009, a client’s correspondence to a relationship manager stated, “If there are any questions, please phone me on my cell phone or email me with our usual confidentiality.” In some instances, the accountholders had disclosed to relationship managers that their accounts were undeclared.
Maerki Baumann and its relationship managers also:
-
Permitted assets in an account held by a known U.S. person to be transferred in 2006 to a new account held by a life insurance company, known as an “insurance wrapper”;
-
Processed requests from U.S. taxpayers for cash or precious metal withdrawals, thus not triggering any transaction reporting requirements;
-
Permitted a withdrawal of approximately one million Swiss francs from a U.S. client’s account after the client refused to declare money in the account in the United States;
-
Delivered cash withdrawals to U.S. clients in Switzerland; and
- Offered credit, debit or travel cash cards, which facilitated the access to or use of undeclared funds on deposit at Maerki Baumann.
By participating in the Swiss Bank Program, Maerki Baumann has committed to cooperate with the U.S. government in its efforts to identify U.S. persons who engaged in tax evasion and/or fraud. Among other actions, Maerki Baumann has provided full cooperation to allow the United States to be able to request and obtain from Switzerland through the 1996 Convention and the 2009 Protocol, once ratified, the bank files of non-tax compliant U.S. persons. This will result in the United States receiving files identifying U.S. persons who previously held undeclared accounts at Maerki Baumann, directly or through entities.
Since Aug. 1, 2008, Maerki Baumann had 571 U.S.-related accounts, comprising maximum assets under management of approximately $790 million, including assets of declared accounts. Maerki Baumann will pay a penalty of $23.92 million.
In accordance with the terms of the Swiss Bank Program, Maerki Baumann mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at Maerki Baumann who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Maerki Baumann must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s resolution with Maerki Baumann & Co. continues our effort to turn the corner on undisclosed offshore accounts,” said acting Deputy Commissioner International David Horton of the IRS Large Business & International Division. “U.S. taxpayers cannot evade their taxes by hiding their assets in offshore accounts. In partnership with the Department of Justice, we continue to track these taxpayers and their hidden accounts down.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Tracy L. Gostyla and Kimberly M. Shartar, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
-
Joint Statement of the United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for Civil Rights Vanita Gupta and Special Agent in Charge of the Minneapolis Division of the FBI Richard T. ThorntonRead the Press Release
Joint Statement of the United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for Civil Rights Vanita Gupta and Special Agent in Charge of the Minneapolis Division of the FBI Richard T. Thornton:
“The Department received a request yesterday from Minneapolis Mayor Betsy Hodges asking the FBI and Department of Justice to initiate a criminal civil rights investigation into the police-involved shooting of Jamar Clark. This federal investigation will be conducted by the FBI and will be concurrent to the state’s investigation. The United States Attorney’s Office for the District of Minnesota and prosecutors with the Department of Justice’s Civil Rights Division will independently review all evidence to determine if Mr. Clark’s death involved any prosecutable violations of federal criminal civil rights statutes. We ask for cooperation from any witnesses who believe they have information about the shooting and we urge calm throughout our community while investigators seek to determine the facts. As the investigation is ongoing the Department will have no further comment.”
Jamaican National Indicted on Drug Trafficking, Bribery, and False Statement ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a five-count indictment charging Damion Christopher Alexander Brown, 40, of Buffalo, NY, with conspiracy to distribute 1,000 kilograms or more of marijuana, possession with intent to distribute, and distribution of 1,000 kilograms or more of marijuana, maintaining dug involved premises, bribery of a public official, and material false statement. The charges carry a minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment, over a nine month period between 2012 and 2013, Brown trafficked 1,000 kilograms or more of marijuana. In addition the defendant is accused of maintaining a stash house on East Delavan Avenue in Buffalo and bribing a United States postal carrier for help receiving drug shipments. The indictment further states that Brown made false statements regarding his citizenship.
The defendant was arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy. He is being held pending a detention hearing on November 19, 2015, at 2:00 p.m.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the United States Postal Inspection Service, under the direction of Acting Inspector in Charge James Buthorn, the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA, and the Amherst Police Department, under the direction of Chief John Askey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Houston contractor indicted for making false statements about paying prevailing wage on CMHA jobsRead the Press Release
A 61-count indictment was filed charging Marcus Butler, of Houston, with making multiple false statements to the United States Department of Housing and Urban Development and the United States Department of Labor while defrauding the Cuyahoga Metropolitan Housing Authority and several of his former employees, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, announced that.
The indictment alleges that Butler ran an electrical company called LB Electric of Northeast Ohio in the Cleveland area. Butler and his company agreed to work as subcontractors on a number of CMHA construction projects, including projects at the Riverside Park, Union Square and Delaney Village properties.
Butler, as a subcontractor on the CMHA project, agreed to pay his employees a prevailing wage while they worked on these CMHA projects and further agreed to provide certified weekly payrolls to CMHA. Although Butler submitted numerous certified payrolls claiming that he paid a prevailing wage to his employees, he did not in fact make such payments to his employees and instead submitted false certified payrolls to conceal this conduct. As a result of his conduct, Butler overstated the amount of wages paid to his employees, and thus underpaid his employees, by approximately $126,514, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the United States Department of Housing and Urban Development, Office of Inspector General, the United States Department of Labor, Office of Inspector General, and CMHA.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Houston Man Sentenced for Importing MethamphetamineRead the Press Release
BROWNSVILLE, Texas – A 35-year-old Houston man has been ordered to federal prison following his conviction related to the trafficking of 4.99 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in Brownsville convicted Derrick Hargrove on all four counts as charged following a three-day trial in March 2015.
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Hargrove a 180-month sentence to be immediately followed by five years of supervised release.
The jury heard that Hargrove crossed from Mexico into the U.S. on Oct. 9, 2014, at the Gateway Port of Entry pedestrian lane with a suitcase. Upon inspection, a Customs and Border Protection (CBP) officer felt something in the suitcase, x-rayed it and observed two packages inside. A search revealed 4.99 kilograms of pure crystal methamphetamine.
Hargrove initially claimed ownership of the suitcase, but later claimed a stranger in Mexico gave it to him on the streets of Mexico. He claimed the stranger asked him to deliver the suitcase to a person he knew who was helping Hargrove get a liquor license for a nightclub he was allegedly opening in Matamoros.
Hargrove is from Houston but had been living in Matamoros after losing his job.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and CBP. Assistant U.S. Attorneys Karen Betancourt and Justin Dinsdale prosecuted the case.
Houston Man Charged in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A Houston, Texas, man was arrested Friday after a federal grand jury sitting in Houston indicted him for three counts of wire fraud, four counts of theft of public money and seven counts of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
According to the allegations in the indictment, during 2015, Denzel Roberts was part of a stolen identity refund fraud (SIRF) scheme that used stolen personal identification information, including names and social security numbers, to file false federal income tax returns for tax year 2014. Roberts and others used this stolen information to access the Internal Revenue Service’s (IRS) “Get Transcript” web application to obtain tax information of their identity theft victims and filed fraudulent tax returns in those names. Roberts also opened several bank accounts using a fraudulent passport, directed that the fraudulent tax refunds be deposited into those accounts and withdrew the illicit proceeds.
If convicted, Roberts faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, 10 years in prison for each count of theft of public money and a mandatory sentence of two years in prison for aggravated identity theft. He also faces substantial monetary penalties and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Magidson commended special agents of IRS-Criminal Investigation and the FBI’s Houston Cyber Task Force, who investigated the case and Trial Attorneys Michael C. Boteler and Grace E. Albinson of the Tax Division, who are prosecuting this case with assistance from Assistant U.S. Attorney Jimmy Sledge of the Southern District of Texas.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
HCA Settles Allegations of Billing for Unnecessary Lab Tests and Double Billing for Fetal Testing for $2,000,000Read the Press Release
Contact Person: Jennifer Aldrich (803) 929-3000
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina with the State of Florida, settled claims of health care fraud with HCA Holdings, Inc. f/d/b/a HCA, Inc. f/d/b/a HCA – Hospital Corporation of America f/d/b/a Hospital Corporation of America and Parallon Business Solutions, LLC, West Florida Regional Medical Center, Inc. d/b/a West Florida Hospital; HCA Health Services of Florida, Inc. d/b/a Regional Medical Center Bayonet Point; HCA Health Services of Florida, Inc. d/b/a Oak Hill Hospital; and New Port Richey Hospital, Inc. d/b/a Medical Center of Trinity (“HCA”).
The United States and the State of Florida contended that HCA submitted laboratory claims for direct count low density lipids (LDL) when the tests were not ordered and/or not medically necessary at four hospitals in Florida: West Florida Hospital; Oak Hill Hospital; Regional Medical Center Bayonet Point; and Community Hospital of New Port Richie (Trinity Hospital). The United States and the State of Florida also contended that HCA submitted claims for fetal biophysical profiles with non-stress tests (CPT code 76818) and additionally submitted another claim for a standalone non-stress test (CPT code 59025) at Community Hospital of New Port Richie (Trinity Hospital) during the period from January 1, 2007 through September 26, 2014.
The investigation began with the filing of a whistleblower lawsuit called a qui tams lawsuit under the False Claims Act. The suit was filed by an employee of HCA and was captioned United States, the District of Columbia, the States of Florida, California, Colorado, Georgia, Indiana, Louisiana, Nevada, Oklahoma, Tennessee, Texas and Virginia ex rel. Kelly Oxendine v. HCA Holdings, Inc. f/d/b/a HCA, Inc. f/d/b/a HCA-Hospital Corporation of America f/d/b/a Hospital Corporation of America, and Parallon Business Solutions, LLC. The False Claims Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the relator will receive 20% of the funds of the settlement or $400,000 plus she is entitled to her costs and attorney fees.
Mr. Nettles said “This office has made a substantial commitment to combating fraud. Our commitment has made this district one of the leaders on behalf of the whistleblowers. We hope that those who commit fraud will recognize that it is our goal to make the consequences more than just the cost of doing business.”
This case was investigated by agents from U.S. Health and Human Resources Office of the Inspector General and the Defense Criminal Investigative Service.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
#####
Government Files Lawsuit against Hyannis Company Selling Unapproved “Medical Treatments”Read the Press Release
BOSTON – The U.S. Attorney’s Office announced today that it has sued to enjoin Hyannis-based Lehan Enterprises, Inc., doing business as Optimum Health Services, and its principal, Lesa Sverid, for violating the Food, Drug and Cosmetic Act in connection with their marketing and sale of purported medical treatments containing dimethyl sulfoxide (DMSO), a solvent derived from wood pulp.
The injunction is part of a coordinated nationwide sweep by the Department of Justice and federal partners pursuing civil and criminal cases against more than 100 makers and marketers of dietary supplements. The actions are the result of a year-long effort, begun in November 2014, to focus enforcement resources in the dietary supplement market which is causing increasing concern among health officials.
“Marketing products as treatments for disease when those products lack FDA approval presents potential health risks to consumers because the products may not be safe or effective,” said United States Attorney Carmen M. Ortiz. “Consumers seeking relief from diseases and medical conditions should review FDA-approved products with a medical professional to avoid gambling with their health.”
The complaint filed on behalf of the Food and Drug Administration (FDA) in the District of Massachusetts, alleges that Optimum and Sverid have been marketing their products—DMSO Cream, DMSO Cream with Aloe Vera, and DMSO Roll On—as topical treatments for diseases and medical conditions such as arthritis, cancer, herpes, and cataracts, even though the FDA has not approved the products. The government further alleges that the products do not bear adequate instructions for use by consumers.
The Food, Drug and Cosmetic Act authorizes the federal courts to enjoin permanently the introduction of unapproved new drugs or misbranded drugs into the market. The FDA drug approval process and labeling requirements are designed to ensure that drugs are safe and effective and that they bear adequate instructions for health care professionals and patients to use the products and understand the risks.
This case is among 25 civil actions pursued by the Justice Department’s Consumer Protection Branch, U.S. Attorney’s Offices and the Federal Trade Commission between November 2014 and November 2015. To date, courts have entered judicial orders in 11 cases, requiring dietary supplement makers to change their business practices to ensure that they are selling their products in compliance with the law.
For more information for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit the U.S. Anti-Doping Agency’s website. To better understand the range of dietary supplement products and claims, the potential risks of taking supplements and questions to ask a health care professional before taking any supplements, visit the Federal Trade Commission’s website.
U.S. Attorney Ortiz and Antoinette V. Henry, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office, made the announcement today. This case is being handled by Assistant U.S. Attorney Deana El-Mallawany of Ortiz’s Civil Division and Daniel Zytnick of the Justice Department’s Consumer Protection Branch.
Ghanaian man charged with bank fraud and credit card fraudRead the Press Release
A federal grand jury returned a 15-count indictment charging Emmanuel Antwi, a Ghanaian national, with credit card fraud and bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Antwi defrauded Fifth Third Bank, First Merit Bank, and Key Bank through misrepresentations relating to numerous cash advances.
If convicted, the defendants’ sentence will be determined by the court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Federal Bureau of Investigation and the Elyria Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Fresno Man Found Guilty of Filing False Liens on Federal Bankruptcy JudgesRead the Press Release
FRESNO, Calif. — After a one-day bench trial, Barry Halajian, 56, of Fresno, was found guilty of two counts of filing false liens on federal bankruptcy judges, United States Attorney Benjamin B. Wagner announced.
The District and Magistrate Judges in the Eastern District of California were recused and U.S. District Judge Stanley A. Bastian from the Eastern District of Washington heard the case. Halajian waived his right to a jury trial, and after hearing the evidence, Judge Bastian returned his verdict late Tuesday afternoon.
According to court documents and evidence presented at trial, in 2010, Halajian initiated a Chapter 7 bankruptcy proceeding in the U.S. Bankruptcy Court in Fresno. Two years later, he initiated a Chapter 9 bankruptcy proceeding in the same court. On June 29, 2012, the Chapter 9 bankruptcy was dismissed. On July 17, 2012, Halajian filed with the California Secretary of State a series of liens on the personal property of two federal bankruptcy judges in the Eastern District of California, listing them as debtors and himself as the secured party
“Filing bogus liens against federal officials for purposes of harassment is a crime,” said U.S. Attorney Wagner. “Those who commit it are asking to be prosecuted.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Patrick Delahunty and Duce Rice are prosecuting the case.
Halajian will be scheduled for sentencing by Judge Bastian in February or March of 2016. Halajian faces a maximum statutory penalty on each count of 10 years in prison and a $250,000 fine. 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.
Fort Myers Man Pleads Guilty to Check-Kiting Bank Fraud SchemeRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Roger Eugene Hagood (44, Fort Myers) today pleaded guilty to four counts of bank fraud. He faces a maximum penalty of 30 years in federal prison on each count.
According to the plea agreement, Hagood operated Coral Palm Auto Sales, a used car dealership. Coral Palm Autos Sales received financing through a third-party lender to purchase automobiles. Vehicle titles were provided as security to procure the loans, and loan payments were made using proceeds from the vehicle sales. Once each loan was paid in full, the third-party lender would release the vehicle titles used to secure the loan back to Coral Palm Auto Sales.
In November and December 2011, Hagood engaged in a check-kiting scheme by writing 13 checks, totaling $1,592,121.00, on his business checking account, made payable to the third-party lender, knowing that the account lacked sufficient funds to cover the checks. As a result, the third-party lender wrote new loan checks on its account, made payable to Coral Palm Auto Sales, based on Hagood’s worthless checks. According to the plea agreement, Hagood’s scheme caused federally insured financial institutions to suffer significant financial losses.
On March 29, 2015, Hagood attempted to surreptitiously dispose of 20 banker’s boxes of records and documents pertaining to Coral Palm Auto Sales by throwing them in a dumpster located about a mile and a half from his residence. A video surveillance camera partially captured Hagood attempting to dispose of the boxes. These boxes were retrieved by the Lee County Sheriff’s Office and turned over to the FBI. A portion of the records and documents Hagood tried to destroy were responsive to a federal subpoena previously served on him on March 24, 2015.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Fort Campbell, Kentucky, Resident Guilty of First Degree Manslaughter Resulting from Child AbuseRead the Press Release
LOUISVILLE, Ky. – A Fort Campbell, Kentucky, woman pleaded guilty today before Senior United States District Judge Thomas B. Russell to a Superseding Information charging her with first degree manslaughter in the death of an infant whom she was babysitting in December 2013, announced United States Attorney John E. Kuhn, Jr.
Sheilla E. Linares, age 22, is in the custody of the United States Marshals Service and will be sentenced in Louisville on February 24, 2016 at 11:45 a.m.
Linares, pleaded guilty to first degree manslaughter in the December 7, 2013 death of T.R.C., Jr.
According to the Plea Agreement, Linares admitted that on December 3, 2013, while on Fort Campbell Military Base, a special jurisdiction of the United States, located in Christian County, Kentucky, she provided babysitting service for an infant child, T.R.C., Jr. Three other children were also in the residence under Linares’ care that day, her two young children and T.R.C., Jr.’s three-year-old sister, A.C. No other adults were present in the residence during the day.
Between 3:00-3:30 p.m. Linares intentionally caused serious injury to T.R.C., Jr. Linares later admitted to law enforcement that it took her less than a second to realize that what she had done was completely wrong. She admitted to then putting the baby in the swing at which point, the infant became unresponsive. Linares stated that she then called the baby’s mother and 9-1-1.
An ambulance transported T.R.C., Jr. to the emergency room at the Army hospital located on Fort Campbell Military Base. His condition deteriorated and he was transported to Vanderbilt. While being treated at Vanderbilt, medical personnel noticed bruising that appeared on both of his shoulders as well as his left upper arm. Medical tests and examinations revealed bilateral subdural hemorrhage (approximately 25 ml total volume), focal subarachnoid hemorrhage, cerebral edema, bilateral optic nerve sheath hemorrhage, subdural blood throughout the spinal cord, and cervical nerve root hemorrhage. T.R.C., Jr.’s injuries were a result of Linares’ abuse. Those injuries led to his death.
On December 7, 2013, T.R.C., Jr., was determined to have insufficient brain activity to sustain life, and pronounced dead. The amended autopsy report of the Tennessee medical examiner lists the cause of death as blunt force injuries of the head and neck.
According to the Plea Agreement, Linares will be sentenced to 18 years in prison followed by a three-year period of Supervised Release. She faces a fine of up to $250,000.00. There is no parole in the federal system.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Federal Bureau of Investigation, with assistance from the United States Army Criminal Investigation Division, and the Clarksville Tennessee Police Department, conducted the investigation.
Former Teamster Convicted of Extorting Boston BusinessesRead the Press Release
BOSTON – A former member of a Boston Teamsters local was convicted today by a federal jury in connection with extorting businesses in Boston.
James E. Deamicis, a/k/a “Jimmy the Bull,” 52, of Quincy, was convicted following a one-week trial of extortion and conspiracy to commit extortion. Among the extortion victims were Pt. Lighting Systems, the Westin Copley Hotel, and House of Blues, a division of Live Nation. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 23, 2016.
“A jury unanimously found that Deamicis's tactics were not legitimate union organizing, but orchestrated extortion,” said United States Attorney Carmen M. Ortiz. “A union card is not a license to commit a crime; the strong-arm tactics belong in the history books, not on the streets of Boston.”
“Today’s conviction represents the U.S. Department of Labor, Office of Inspector General’s commitment to protect employers and businesses from those who would instill fear and intimidation. James Deamicis and his co-conspirators lied to hotels, non-profits, and other businesses in Boston regarding their obligation to use union labor from the Teamsters in an effort to obtain cash in exchange for labor peace. This office stands committed to working with our law enforcement partners to combat this type of criminal activity,” stated Cheryl Garcia, Special Agent in Charge of the Office of Labor Racketeering and Fraud Investigations, New York Region, U.S. Department of Labor - Office of Inspector General.
Deamicis, a former member of Teamsters Local 82, worked in the trade show and moving industries loading and unloading trucks. Since 2007, Deamicis, and others, extorted various entities in Boston including hotels, event planners, catering companies, pharmaceutical companies, hospitals, music entertainment companies, and non-profit organizations, none of which had collective bargaining agreements with Local 82. Deamicis threatened to picket and disrupt business, sometimes just hours before an event, if the entity did not accede to his demand for unwanted, unnecessary and superfluous jobs. He also demanded payment for these unnecessary Ajobs.@
The charge provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $250,000 on each count. 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.
In November 2014, two Teamster co-defendants, John Perry and Joseph Burhoe, were convicted by a federal jury of RICO and extortion charges. A fourth defendant, Thomas Flaherty, was previously acquitted.
U.S. Attorney Ortiz; Inspector General Dahl; Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor-Management Standards; and Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit.
Former Tallassee, Alabama, Assistant Police Chief Pleads Guilty to Beating Suspect During InterrogationRead the Press Release
Former Tallassee, Alabama, Assistant Police Chief, Chris Miles, 41, pleaded guilty today in a federal court in Montgomery, Alabama, to one count of deprivation of rights and two counts of false statements, for beating a suspect with a phone book-sized packet of paper during an interrogation and then lying about the incident to an FBI agent investigating the matter. Miles also pleaded guilty to one count of possession with intent to distribute for abusing his position as assistant police chief to steal approximately 16 pounds of marijuana from an evidence room, later selling it to a known drug dealer.
During the plea hearing, Miles admitted that in April 2013, while he was on duty as assistant police chief, he beat a prisoner who was serving a sentence at Tallassee Jail while he was interrogating the inmate about uncharged crimes the inmate was suspected of having committed. During the interrogation, Miles grabbed a thick packet of copy paper and used it to strike the victim multiple times across the victim’s face and head. Miles also repeatedly slapped the victim across the face and head with his hand. Miles’ abuse caused the victim to suffer bruising, redness and physical pain.
“The defendant intentionally violated a man’s fundamental civil rights and threatened to weaken the public’s confidence in our criminal justice system when he decided to beat a suspect into a confession, and to further engage in narcotics trafficking,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “His blatant criminal conduct undermines the dedicated efforts of the vast majority of law enforcement officers who serve honorably. The Justice Department will continue to protect the rights of all individuals, including those in custody, to be free from such abuse and criminal conduct.”
“Miles was a maverick, working outside the law,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. “Fortunately the overwhelming majority of our law enforcement officials act reasonably and within the bounds of the Constitution.”
Miles is scheduled to be sentenced before U.S. District Court Judge Myron H. Thompson of the Middle District of Alabama at a date to be determined. He faces up to 10 years in prison and a maximum fine of $250,000 for the deprivation of rights count. For each of the other counts, he faces up to five years in prison and a maximum fine of $250,000.
This case was investigated by the Auburn Resident Agency of the FBI’s Mobile Field Office, with the cooperation of Alabama’s State Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Gabriel Davis of the Civil Rights Division.
Miles Plea Agreement
Former Tallassee Assistant Police Chief Pleads Guilty to Beating Suspect During InterrogationRead the Press Release
Montgomery, Alabama – Former Tallassee, Alabama, Assistant Police Chief, Chris Miles, 41, pleaded guilty today in a federal court in Montgomery, Alabama, to one count of deprivation of rights and two counts of false statements, for beating a suspect with a phone book-sized packet of paper during an interrogation and then lying about it to an FBI agent investigating the matter. Miles also pleaded guilty to one count of possession of a controlled substance with intent to distribute for using his position as assistant police chief to steal approximately 16 pounds of marijuana from an evidence room, and later selling it to a known drug dealer.
During the plea hearing, Miles admitted that in April 2013, while he was on duty as assistant police chief, he beat a prisoner who was serving a sentence at Tallassee Jail while he was interrogating the inmate about uncharged crimes the inmate was suspected of having committed. During the interrogation, Miles grabbed a thick packet of copy paper and used it to strike the victim multiple times across the victim’s face and head. Miles also repeatedly slapped the victim across the face and head with his hand. Miles’ abuse caused the victim to suffer bruising, redness and physical pain.
“The defendant intentionally violated a man’s fundamental civil rights and threatened to weaken the public’s confidence in our criminal justice system when he decided to beat a suspect in order to force a confession and to further engage in narcotics trafficking,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “His blatant criminal conduct undermines the dedicated efforts of the vast majority of law enforcement officers who serve honorably. The Justice Department will continue to protect the rights of all individuals, including those in custody, to be free from such abuse and criminal conduct.”
“Miles was a maverick, working outside the law,” stated U.S. Attorney George Beck. “Fortunately, the overwhelming majority of our law enforcement official’s act reasonably and within the bounds of the Constitution.”
Miles is scheduled to be sentenced before U.S. District Court Judge Myron H. Thompson of the Middle District of Alabama at a date to be determined. He faces up to 10 years in prison and a maximum fine of $250,000, for the deprivation of rights count. For each of the other counts, he faces up to five years in prison and a maximum fine of $250,000.
This case was investigated by the Auburn resident agency of the FBI’s Mobile Field Office, with the cooperation of the Alabama Law Enforcement Agency. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams for the Middle District of Alabama and Trial Attorney Gabriel Davis of the Civil Rights Division.
Former Office Manager of Hobbs Business Sentenced to Prison on Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Connie C. Sims, 44, of Eunice, N.M., was sentenced today in federal court in Las Cruces, N.M., to a year and a day in prison followed by one year of supervised release for violating the federal tax laws, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Ismael Nevarez Jr. of the Phoenix Field Office of IRS Criminal Investigation. Sims also was ordered to pay $169,951.00 in restitution to the IRS in addition to a $100,000.00 fine.
Sims was charged with four counts of federal tax evasion in an indictment filed in Sept. 2014. The indictment charged Sims with evading her federal tax obligations during tax years 2009, 2010, 2011 and 2012 by failing to report her true income. At the time the offenses were committed, Sims was employed as the office manager of a surveillance equipment company located in Hobbs, N.M.
On March 18, 2015, Sims pled guilty to all four counts of the indictment and admitted that she knowingly evaded approximately $120,366.00 in federal taxes by failing to report an aggregate of $482,890.00 in income during tax years 2009, 2010, 2011 and 2012. In her plea agreement, Sims admitted that from 2010 through 2013, she wrote checks to herself on the company’s bank accounts and did not report the money as compensation when she filed her federal tax returns. Sims acknowledged deriving an aggregate amount of $482,890.00 by writing checks to herself, which resulted in a loss of $120,366.00 to the IRS when she failed to report the income in her federal tax returns.
This case was investigated by the Las Cruces office of IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Former MDPD Police Officer, Former Public Service Aide and two Tow Truck Drivers Arrested in Illegal Bribery and Kickback SchemeRead the Press Release
Four individuals arrested, including former Miami Dade Police Officer, for their participation in illegal bribery and kickback scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), made the announcement.
Former MDPD Police Officer Yuri Millan, 39, Oriel Ugardes, 42, and Jose Guim, 34, are charged by criminal complaint with conspiring and participating in a bribery and kickback scheme, in violation of Title 18, United States Code, Section 371. Another alleged participant in the conspiracy, former MDPD Public Service Aide (PSA) Elina Rodriguez was charged by information on October 27, 2015. If convicted, each defendant faces a maximum statutory sentence of five years imprisonment, up to 3 years supervised release, and a maximum fine of $250,000.
According to the facts alleged in the complaint, Miami-Dade County has a rotational wrecker system, which is a process where certain tow truck companies enter into a contract with the county in return for being placed on a rotational wrecker list. When there is an accident within MDPD jurisdiction, if the driver of the disabled vehicle is not able to secure their own tow truck, the responding MDPD employee is required to contact, via dispatch, the rotational tow truck company with responsibility for that geographical area. In return for that business, the rotational tow truck company pays Miami-Dade County a fee for each referred tow.
In 2013, the FBI Task Force became aware of allegations that Oriel Ugardes, the owner of O&U towing, was paying police department employees bribes in return for their assistance in enabling the defendant and his company trucks to circumvent the MDPD rotational wrecker system. During the resulting investigation, investigators documented that Ugardes and one of his drivers, Jose Guim, would pay bribes to MDPD Officer Yuri Millan and MDPD PSA Elina Rodriguez. In return for cash payments, rather than contact the rotational tow truck company, Millan and Rodriguez would permit O&U tow trucks to tow disabled vehicles directly from accident scenes. Millan and Rodriguez would also use their MDPD computers to access police databases and locate accidents that were “holding,” that is, which were not yet assigned a responding officer. Ugardes and Guim would then use this information to respond to the accident scenes before an officer or PSA arrived and solicit business directly from the stranded driver. Once business was obtained, the disabled vehicles would be towed to body shops which themselves participated in the scheme by paying cash kickbacks based upon the anticipated repair cost of the disabled vehicle.
In addition, by May 2014, the FBI had also become aware that Millan was renting his MDPD police encrypted radio to Ugardes and Guim in return for $300 a week. With that radio, Ugardes and Guim could intercept confidential police communications and identify accident locations. On May 14, 2014, investigators recovered Millan’s assigned MDPD radio from Ugardes’s possession after Ugardes was seen picking the radio up at Millan’s residence. Millan subsequently filed a false police report claiming that he had lost his encrypted radio at an unknown location.
On May 2, 2014, investigators interviewed Rodriguez and she allegedly admitted being paid bribes by Ugardes since 2009. Rodriguez admitted being paid between $100 to $300, per accident. Rodriguez has estimated that she personally received at least $35,000 during the course of the conspiracy.
On June 20, 2014, Millan was interviewed and provided a statement in which he allegedly admitted to taking bribes from Guim. Millan admitted that for the five month period preceding his interview, he accepted $500 to $600 and “borrowed” and additional $2,000 to $3,000 in cash from Jose Guim. Millan also admitted providing Guim and Ugardes his encrypted MDPD radio.
“All public officials, including police officials, cannot take money kickbacks in exchange for performing, or in this case for not performing, their official duties,” stated U.S. Attorney Ferrer. “This case, and our ongoing investigation, makes clear that corrupt activity that affects the people of this community will not be tolerated and will be punished to the fullest extent of the law.”
“Every day, thousands of dedicated, able and honorable law enforcement officers take to the streets to protect communities throughout South Florida,” said George L. Piro, Special Agent in Charge, FBI Miami. “It is on behalf of these professionals that the FBI’s Miami Area Corruption Task Force seeks to root out wrongdoing to ensure that the high standards we expect of our police are met and maintained.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Division. To date, the FBI investigation into alleged corruption in the towing industry has resulted in sixteen police department employees and tow truck operators being charged in federal court. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
A criminal complaint, information or indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Former Glock Manager and Wife Sentenced for Taking Bribes, KickbacksRead the Press Release
TOPEKA, KAN. – A former regional manager for the company that makes Glock firearms was sentenced Monday to 18 months in federal prison for conspiring to take bribes and kickbacks, U.S. Attorney Barry Grissom said. The man’s wife was sentenced to a year and a day in federal prison for her part in the scheme.
Welcome D. “Bo” Wood, Jr., 66, Oviedo, Fla., who was the Eastern Regional Manager for Glock, pleaded guilty to one count of conspiracy. His wife, Paula Ann Wood, 65, Oveido, Fla., pleaded guilty one count of conspiracy, too.
Co-defendant John Sullivan Ralph, III, was sentenced to 18 months after pleading guilty to conspiracy. Ralph, who owned Global Guns & Hunting, Inc., of Olathe, doing business as OB Guns, admitted he paid 140 bribes and kickbacks to Glock employees totaling approximately $900,000. Welcome Wood accepted gifts, payments and other things of value from Ralph in return for preferential treatment. Paula Wood received checks made payable to her as part of a plan to conceal the bribes.
Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
District Man Sentenced to Six Years in Prison for Burglary and Assault in Southeast WashingtonRead the Press Release
WASHINGTON – Kenneth Gaines, 51, of Washington, D.C., has been sentenced to a six-year prison term for a violent burglary of a home in Southeast Washington, U.S. Attorney Channing D. Phillips announced today.
Gaines pled guilty in July 2015, in the Superior Court of the District of Columbia, to one count of first-degree burglary, one count of assault with a dangerous weapon, and one count of unlawful possession of a firearm. He was sentenced on Nov. 16, 2015, by the Honorable Juliet McKenna. After his prison term, Gaines will be placed on three years of supervised release.
According to the government’s evidence, on April 4, 2015, at about 11:15 p.m., Gaines entered the apartment of one of the victims, in the 3900 block of Fourth Street SE. While inside, Gaines took out a .40 caliber Glock semi-automatic handgun and a .40 caliber Beretta semi-automatic handgun, and ordered the victim and his two houseguests to give him all their money and car keys. One of the victims was able to wrestle the handguns from Gaines and sustained an injury to the head during the struggle. The victims were able to subdue Gaines shortly before police arrived on scene.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department’s Seventh District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Daphne Nelson and Assistant U.S. Attorneys Sarah C. Santiago and Kondi Kleinman, of the Felony Major Crimes Trial Section, who prosecuted the matter.
Crack Cocaine Lands Local Man in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas - A 34-year-old Corpus Christi resident has been sentenced to prison following his conviction for possession with intent to distribute cocaine base, also known as crack cocaine, announced U.S. Attorney Kenneth Magidson. Shane Lucas Winn pleaded guilty Aug. 31, 2015.
Today, Senior U.S. District Judge Hayden Head sentenced Winn to 36 months in federal prison to be followed by three years of supervised release. In handing down the sentence, the court noted the sincerity of the defendant in wanting to turn his life around for his kids. Winn had noted that he did not want his children to grow up without a father like him and make the same bad choices as he had done.
In April 2013, law enforcement officers with the Texas Department of Public Safety (DPS) conducted a series of narcotics search warrants at residences in Corpus Christi. During the enforcement actions, officers seized approximately 25 grams of crack cocaine and approximately 250 grams of cocaine. Winn admitted to purchasing the powder cocaine and then “cooking” the crack to be sold. Winn was arrested by federal agents on the charge in July 2015.
Winn will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The charge stems from an investigation conducted by Homeland Security Investigations and DPS. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Couple Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Alfred Dasilva, 46, of Greece, NY and Sharon Sexton, 45, of Gates, NY, pleaded guilty to production of child pornography before Chief U.S. District Court Judge Frank P. Geraci. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the investigation began when a school resource officer employed by the Gates Police Department was informed by a school official that Sexton was taking nude photos of a female student. The ensuing investigation determined that Sexton sent these photos to her boyfriend, Alfred Dasilva. Sexton was interviewed by law enforcement and admitted to both taking the photos and then sending them to Dasilva. She told officers that she took the photos and sent them to Dasilva because he asked her to, and that Dasilva used the naked photos to “fantasize.”Federal investigators examined Dasilva’s cellphone and also located a video of a child performing oral sex on Dasilva. Sexton admitted to being the person who took the video. Several online chats were also recovered from the cellphone in which Sexton and Dasilva graphically discussed engaging in sexual conduct with children.
The defendants were also charged in State Court related to sexual activity with a child and endangering the welfare of a child.
The pleas are the culmination of a joint investigation by the Gates Police Department and the Federal Bureau of Investigation Child Exploitation Task Force consisting of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
DaSilva is scheduled to be sentenced on January 7, 2016 at 11:00 a.m., and Sexton is scheduled to be sentenced on February 18, 2016 at 9:30 a.m. both before Judge Geraci. The defendants are being detained pending sentencing.
Collinsville Man Sentenced to Federal Prison for Mail Fraud and Aggravated Identity TheftRead the Press Release
Jeffrey C. Brown, 36, of Collinsville, Illinois, was sentenced to a total of thirty-six months in federal prison for the offenses of Conspiracy to Commit Mail Fraud in a scheme to obtain money and property through the use of unauthorized access devices through the commission of identity theft, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Brown was also ordered to pay $19,505.17 in restitution and serve two years of supervised release following his release from prison.
The convictions are the result of Brown and a co-conspirator stealing mail out of mailboxes. The stolen mail matter contained means of identification of other persons that included names, dates of birth and social security numbers. As part of the conspiracy, Brown used that information to apply for and obtain credit cards. The credit cards were then used to make purchases. Some of the fraudulently obtained items were then shipped or mailed to Brown’s residence. The items fraudulently obtained were often taken to local pawn shops for quick cash. It was ultimately determined that Brown was addicted to methamphetamines and cocaine and also had a gambling addiction.
The prosecution is the result of an investigation conducted by the Collinsville Police Department, the Postal Inspection Service, the Internal Revenue Service/Criminal Investigations, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Civil Rights Settlement Requires Major Real Estate Developer to Make Rental Complexes Accessible to All New YorkersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has reached a settlement that resolves a federal civil rights lawsuit against THE DURST ORGANIZATION, INC. (“DURST”), a major real estate developer based in New York City, and DURST’s affiliates and subsidiaries. The lawsuit alleges that DURST engaged in a pattern and practice of developing rental apartment buildings that are inaccessible to persons with disabilities. Under the settlement, DURST agrees to establish procedures to ensure that its ongoing and future development projects, such as the 2,400-unit Halletts Point development in Queens and the 709-unit VIA 57 West development in Manhattan, will comply with the accessibility requirements of the federal Fair Housing Act (“FHA”). DURST also agrees to make two apartment buildings in Manhattan containing more than 1,000 units – The Helena and The Epic – more accessible to individuals with disabilities. Finally, DURST agrees to provide up to $515,000 to compensate aggrieved persons and pay a civil penalty of $55,000. The settlement was reached after the court denied DURST’s motion to dismiss the government’s lawsuit and was approved yesterday by U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “This is the ninth in a series of lawsuits that this office has brought against real estate developers and architects who fail to design and construct new apartment buildings accessible to people with disabilities. When the government filed this lawsuit, Durst claimed that it should not be held responsible for inaccessible conditions at The Helena and other rental buildings – despite the fact that Durst’s own website trumpets its role in developing those buildings. It was only after the Court rejected Durst’s argument that Durst finally accepted its obligations under the law. Today’s settlement with Durst makes clear that real estate developers cannot hide behind opaque corporate structures to evade their obligation to comply with the Fair Housing Act or avoid liability for violating that Act.”
The FHA’s accessible design and construction provisions require new multi-family housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities. In April 2014, the United States filed this lawsuit against DURST and an architectural firm, alleging that past and ongoing rental projects designed and constructed by DURST and the architect, including The Helena, did not comply with the FHA’s accessibility requirements. Inaccessible features at The Helena were first brought to the attention of the United States by testing performed by the Fair Housing Justice Center.
In September 2014, DURST moved to dismiss the government’s complaint on the grounds that DURST itself could not be held liable under the Fair Housing Act because it was not involved with developing any of the rental buildings at issue. The government opposed that motion, noting that DURST’s public statements on its own website described its executives’ direct involvement with the design and construction of buildings like The Helena. On January 9, 2015, the court denied DURST’s motion to dismiss. Shortly thereafter, DURST pursued settlement discussions with the government.
Under the settlement, DURST agrees that, for every multi-family housing project it constructs in the next three years, it will retain an FHA compliance consultant to ensure that the building, as constructed, will comply with the FHA’s accessibility requirements. For example, the FHA consultant will advise DURST on the selection of fixtures and appliances and whether deviating from the architects’ drawings will affect accessibility. The FHA consultant also will conduct a site visit to identify non-compliant conditions and recommend appropriate solutions prior to the completion of construction. In addition, DURST agrees to institute policies and training to ensure that its own employees and agents will comply with the FHA’s accessibility requirements.
Further, the settlement also requires DURST to make extensive retrofits at The Helena, and to commit to additional retrofits at The Epic once that building has been inspected, to make these buildings accessible.
Finally, the settlement requires DURST to provide up to $515,000 in funds to compensate aggrieved persons. DURST also agrees to pay a civil penalty of $55,000.
The government’s lawsuit also asserted claims against the architect of The Helena, FXFOWLE ARCHITECTS, P.C. Those claims remain pending while FXFOWLE pursues settlement negotiations with the government.
Aggrieved individuals may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who were:
-
Injured by a lack of accessible features at The Helena, The Epic, or the other properties constructed by DURST;
-
Discouraged from living at The Helena, The Epic, or the other properties constructed by DURST because of the lack of accessible features;
-
Required to pay to have an apartment at The Helena, The Epic, or the other properties constructed by DURST made accessible,
-
Prevented from having visitors because of a lack of accessible features at The Helena, The Epic, or the other properties constructed by DURST; or
-
Otherwise injured or discriminated against on the basis of disability as a result of the design or construction of The Helena, The Epic, or the other properties constructed by Durst.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Jessica Jean Hu, and Jacob Lillywhite are in charge of the case.
-
Chesterland man faces child pornography chargesRead the Press Release
A grand jury returned a two-count indictment charging Jeffrey J. Justice, 32, of Chester Township, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and with possessing child pornography, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Cleveland Field Office, Painesville Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
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.
Chesapeake Man Pleads Guilty to Illegally Receiving Silencers from CanadaRead the Press Release
NORFOLK, Va. – Benjamin Lloyd Fisher, 42, of Chesapeake, pleaded guilty today to charges of illegally receiving imported firearms, namely silencers.
In a statement of facts filed with the plea agreement, Fisher admitted that in the spring of 2014 he purchased a homemade .22 caliber suppressor (silencer) from a Canadian source he had met online. The parties arranged that the silencer would be shipped to Fisher in two separate packages, in order to avoid detection by U.S. Customs and Border Patrol. Based on email correspondence between Fisher and his Canadian source, as well as other evidence, in May 2015 ATF agents executed a search warrant on the home in Chesapeake that Fisher shared with his mother. During the search agents recovered 13 firearms, eight silencers, and crates of ammunition. One month later, several additional firearms associated with Fisher were recovered. Fisher is a prohibited person and unable to possess a firearm due to a previous crime of violence.
Fisher was indicted by a federal grand jury on Sept. 16, 2015. Fisher faces a maximum penalty of five years in prison when sentenced on Feb. 29, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr117.
###
Charleston man pleads guilty in Federal court to heroin distributionRead the Press Release
CHARLESTON, W.Va. – Antoine Maurice Brown, 32, of Charleston, West Virginia, pleaded guilty today in federal court in Charleston to distribution of heroin, announced United States Attorney Booth Goodwin. Brown admitted that on June 26, 2013, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in the parking lot of the 7-Eleven on Washington Street, East, in Charleston. Brown faces up to 20 years in federal prison and a $1 million fine when he is sentenced on February 17, 2016.
The investigation of this case was conducted by the Metropolitan Drug Enforcement Network Team.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Charleston man pleads guilty in Federal court to crack and heroin distributionRead the Press Release
CHARLESTON, W.Va. – Anton R. Courts, 40, of Charleston, West Virginia, pleaded guilty today in federal court in Charleston to distribution of both crack and heroin, announced United States Attorney Booth Goodwin. Courts admitted to selling quantities of cocaine base, also known as “crack,” and heroin in April 2015 to a confidential informant working with law enforcement. The drug deals took place in the Wertz Avenue area of Charleston. Courts faces up to 20 years in federal prison and a $1,000,000 fine when he is sentenced on February 18, 2016.
The investigation was conducted by the Charleston Police Department’s Special Enforcement Unit.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Cayuga County Postmaster Convicted of EmbezzlementRead the Press Release
SYRACUSE, NEW YORK –Yesterday Grover Horn, 71, of Cayuga County, New York, pled guilty and was sentenced in federal court for embezzling money orders and cash from the U.S. Post Office in Martville, New York, announced United States Attorney Richard S. Hartunian and Eileen Neff, Special Agent in Charge, United States Postal Service, Office of Inspector General (USPS OIG), Northeast Area Field Office. Following the entry of his guilty plea, Horn was sentenced to a one (1) year term of probation and 50 hours of community service. The defendant was also ordered to pay more than $6,000 in restitution to the United States Postal Service.
The defendant admitted in court that he used his position as Postmaster to embezzle more than $6,000 in money orders and cash over a period of several weeks during July and September 2015. Horn was an employee of the Postal Service for more than 30 years.
This case was investigated by USPS Office of Inspector General and was prosecuted by Assistant United States Attorney Michael F. Perry.
Canfield man charged with child pornography offensesRead the Press Release
Christopher B. Yates, 24, of Canfield, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about September 25, 2013, through on or about October 28, 2013, Yates knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on November 15, 2013, Yates possessed a computer containing child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Youngstown Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.