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9 December 2015
Father and Son Arrested for Tonawanda Bank RobberyRead 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 Brandon Loyd, 19, and his father, Duane Loyd, 44, both of Buffalo, NY, were arrested and charged by criminal complaint with bank robbery and related use and possession of a firearm. The bank robbery charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The firearm charge carries a mandatory minimum penalty of five years, a maximum of life and a $250,000 fine. Any penalty imposed for the firearm charge would be served consecutive to any prison term imposed for the bank robbery.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the complaint, on December 7, 2015, at approximately 11:40 a.m., Brandon Loyd walked into the Key Bank located at 4248 Delaware Avenue in Tonawanda, NY. The defendant put a respirator mask over his face, approached the tellers, and demanded money. As he was demanding money, Loyd displayed a firearm and ordered customers in the bank to raise their hands in the air.
The complaint further states that Loyd subsequently fled the bank with a specific amount of money and entered a vehicle driven by his father, Duane Loyd. A police chase ensued, which resulted in the getaway vehicle and a City of Tonawanda Police vehicle colliding. Both Duane and Brandon Loyd fled on foot but were captured shortly thereafter. Police also recovered a disassembled pistol with a magazine containing 12 rounds of ammunition.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Leslie G. Foschio and are being held in custody pending detention hearings on December 10, 2015 at 10:00 a.m. before U.S. Magistrate Judge Hugh B. Scott.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen; the Town of Tonawanda Police Department, under the direction of Jerome C. Uschold, III; the City of Tonawanda Police Department, under the direction of Chief William Strassburg; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
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.
Defendant in "Operation Open Market" SentencedRead the Press Release
LAS VEGAS, Nev. – A Miami man has been sentenced to nine years in prison, three years of supervised release, and ordered to pay over $50 million in restitution for his guilty pleas to racketeering and identity theft crimes as part of “Operation Open Market,” announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Daniel G. Bogden of the District of Nevada, and Special Agent in Charge Joseph Macias for HSI Los Angeles, which oversees the agency’s efforts in southern Nevada.
Alexander Kostyukov, aka “Temp”, aka “KLBS,” 30, a resident of Miami at the time of arrest, but originally from Russia, was sentenced on Tues., Dec. 8, 2015, by U.S. District Judge Andrew P. Gordon. Kostyukov pleaded guilty to participation in a racketeer influenced corrupt organization (RICO,) conspiracy to engage in a RICO, and three counts of unlawfully trafficking in and production of counterfeit identification documents. Specifically, Kostyukov was a vendor of “cashout services” in the organization and provided members a way to transfer or launder the funds that they had unlawfully obtained from the stolen bank and credit card accounts. Kostyukov received a fee of between 45% and 62% of the total amount laundered for providing cashout services to a member.
“Millions of dollars and countless amounts of data were stolen from the victims by members of this international conspiracy,” said U.S. Attorney Bogden. “We have now convicted 33 persons, most of who are sitting in federal prison. We will continue to work with our federal and international law enforcement partners to arrest, prosecute and bring to justice the remaining defendants, no matter where they are located.”
“This lengthy sentence, and the significant prison terms imposed on others convicted in connection with in this far-reaching scheme, should serve as a sobering warning about the consequences awaiting those engaged in large-scale financial fraud,” said Special Agent in Charge Macias. “The global organization identified in this case was responsible for harming countless innocent victims and stealing tens of millions of dollars. Working with its enforcement partners, HSI will continue to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”
“Operation Open Market” targeted an organization known as “Carder.su” whose members, also known as “carders,” were involved in large scale trafficking of compromised credit card account data and counterfeit identifications and credit cards, as well as money laundering, narcotics trafficking and various types of computer crime. The organization operated an Internet web portal called a forum, where members could purchase the illicitly obtained data and share knowledge of various fraud schemes. A second forum was also created to vet incoming new members. The forums were generally hosted within the former Soviet Union and the upper echelon of the organization resides within the former Soviet Union. In July 2011, the organization had an estimated 5,500 members. A special agent initiated an undercover investigation called Open Market and assumed the identity as a member of the organization when it was in its infancy.
Members of the organization had different roles, including moderators who directed other members in carrying out activities; reviewers who examined and tested products, services and contraband; vendors who advertised and sold products, services and contraband; and members. Members were required to successfully complete a number of security features designed to protect the organization from infiltration by law enforcement or members of rival criminal organizations.
Fifty-six persons were charged in four separate indictments in Operation Open Market. To date, 33 defendants have been convicted, one is pending trial, and the rest are fugitives.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan, and Trial Attorneys Kelly Pearson and Catherine Dick of the U.S. Department of Justice Organized Crime and Gang Section.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
December Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 5 indictments charging 5 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Khalif Alogba, age 29, of Newport, Minnesota, is charged with use of a counterfeit access device on or about September 3, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Oscar Alonzo Batres, age 43, of Omaha, is charged with illegal reentry into the United States on or about November 16, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Brett Booker, age 21, is charged in a six-count Indictment. Count I of the Indictment charges the defendant with distribution and possession with intent to distribute ethylone, Xanax and marijuana from on or about October 27, 2015 to on or about November 24, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Booker with felon in possession of a firearm on or about November 24, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with user in possession of a firearm on or about November 24, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts IV, V, and VI allege that Booker committed the offenses in Count I, II, and III while released on conditions in a separate case. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the allegations in Court I of this Indictment, should be forfeited to the United States.
* Abraham Gamez, age 43, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment alleges that on or about January 30, 2015, the defendant falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges on or about January 30, 2015, Gamez used a Permanent Resident Alien card knowing said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Semiu Shokunbi, age 42, of Kent, United Kingdom, is charged with use of a counterfeit access device on or about October 10, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Chaparral Man Sentenced to Five Years for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Alberto Armendariz, 56, of Chaparral, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in prison followed by four years of supervised release for his heroin trafficking conviction.
Armendariz was arrested in May 2015, and charged by criminal complaint with possessing heroin with intent to distribute in Doña Ana County, N.M., on May 5, 2015. On that day, the DEA found approximately 299.3 grams of heroin and a shotgun in a Chaparral residence where Armendariz was residing. At the time of his arrest, Armendariz was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
On July 22, 2015, Armendariz pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Armendariz admitted that the heroin seized by the DEA on May 5, 2015 belonged to him and that he intended to sell the drugs to others.
This case was investigated by the Las Cruces office of the DEA. Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Campaign Finance Investigation ConcludedRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia announced today that the investigation into corrupt spending in federal and local political campaigns, including the 2010 mayoral election in the District of Columbia, has concluded.
No additional charges are expected to be filed in the investigation related to the federal and local political campaigns, which uncovered evidence of over $3.3 million in illegal contributions to various campaigns between 2006 and 2011. A total of 12 people pled guilty to charges in the investigation, including seven who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election.
In a related action, the U.S. Attorney’s Office today filed motions asking judges to begin setting sentencing dates for the seven people who have pled guilty but have yet to be sentenced in the investigation.
In every criminal trial, the government bears the burden of proving a defendant’s guilt beyond a reasonable doubt. Department of Justice policy provides that no prosecution should be initiated against any person unless the government believes that the person probably will be found guilty beyond a reasonable doubt by a jury, sitting as an unbiased trier of fact, and that the jury’s guilty verdict probably will be sustained by a reviewing court. In this investigation, based on a thorough review of the available evidence and applicable law, the U.S. Attorney’s Office has concluded that the admissible evidence is likely insufficient to obtain and sustain a criminal conviction against any other individuals related to the federal and local political campaigns.
The U.S. Attorney’s Office for the District of Columbia worked with the FBI’s Washington Field Office and the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI) on the investigation, which began in 2011. In addition to campaign-related offenses, the investigation uncovered numerous instances of obstructive conduct by several of the defendants, as described further below, to conceal the extent of the wrongdoing.
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Those who have pleaded guilty to charges involving the mayoral election were the following:
Jeffrey E. Thompson: Thompson pled guilty in March 2014 and admitted taking part in a scheme in which he and his companies, Thompson, Cobb, Bazilio and Associates (TCBA) and D.C. Healthcare Systems, Inc. (DCHSI), secretly channeled more than $3.3 million in illegal contributions to at least 28 political candidates and their campaigns, including candidates for the offices of President of the United States and Mayor of the District of Columbia. In his guilty plea, Thompson admitted, among other things, to secretly channeling more than $668,800 to pay for campaign activities in connection with a mayoral campaign in the 2010 District of Columbia mayoral election.
Eugenia C. Harris: Harris, the owner of two businesses in the District of Columbia, pled guilty in July 2012 and admitted to conspiring to disguise the source of campaign contributions in federal and local elections, including the 2010 District of Columbia mayoral campaign. As part of her guilty plea, she also admitted taking part in steps to conceal the illegal activities, such as causing others to shred and destroy a large volume of paper records maintained by her businesses because they could have revealed the extent of her involvement in the mayoral election.
Vernon Hawkins: Hawkins pled guilty in August 2013 to making a false statement to federal authorities investigating allegations involving the 2010 District of Columbia mayoral campaign. Among other things, Hawkins twice gave cash that he obtained from Harris to persuade a potential witness to leave the area so that he would be unavailable to speak with federal agents.
Mark Long: Long pled guilty in September 2014 to conspiring to defraud the District of Columbia’s Office of Campaign Finance by funding and concealing contributions in excess of those permitted under D.C. campaign finance laws. In his plea, Long admitted that he received payment for campaign-related work during the 2010 District of Columbia mayoral campaign from Harris, who had received the funds from Thompson.
Howard L. Brooks: Brooks pled guilty in May 2012 to making a false statement to federal agents investigating activities in the 2010 District of Columbia mayoral campaign. He was sentenced to probation and community service.
Thomas W. Gore: Gore pled guilty in May 2012 to obstructing justice by destroying records in the federal investigation and making campaign contributions in the name of another person related to the 2010 District of Columbia mayoral campaign. He was sentenced to six months in prison.
Stephanie Reich: Reich pled guilty in August 2015 to a charge of making a false statement to obtain unemployment compensation. The offense involved claims for unemployment compensation that she submitted for a time period in which she was working on the 2010 District of Columbia mayoral campaign. She was sentenced to probation.
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Those who have pleaded guilty in the broader investigation were the following:
Lee A. Calhoun: Calhoun, an executive for one of Thompson’s companies, pled guilty in June 2013 to a federal charge of knowingly and willfully permitting the name of one or more persons to be used to make campaign contributions in the name of another person and aiding and abetting campaign contributions to be made in the name of another. The offense stemmed from a scheme in which he and others helped disguise that Thompson and Thompson’s company were the actual source of more than $150,000 in contributions to federal, District of Columbia, and other political campaign committees and political action committees.
Stanley Straughter: Straughter, the owner of a business based in Philadelphia, Pa., pled guilty in June 2013 to a federal charge of knowingly and willfully making, and aiding and abetting and causing to be made, unlawful corporate campaign contributions to federal campaigns. The offense stemmed from a scheme in which he and others helped conceal the fact that Thompson and one of Thompson’s companies were the actual source of more than $125,000 in contributions to various federal, state and local campaigns.
Troy White: White, the owner of a marketing company based in New York, pled guilty in September 2013 to a federal tax charge stemming from his failure to file corporate income tax returns, including failing to report more than $600,000 his company received for services it provided in support of a 2008 presidential campaign. He was sentenced to probation.
Kelvin Robinson: Robinson, a former candidate for the Council of the District of Columbia, pled guilty in June 2014 to a charge of conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance. The charge involved $33,500 in secret contributions from Thompson to Robinson’s 2010 campaigns for At-Large Member and Ward 6 seats on the Council of the District of Columbia.
Jeff Smith: Smith, a former candidate for the Council of the District of Columbia, pled guilty in June 2014 to filing a false and misleading report with the District of Columbia’s Office of Campaign Finance that concealed campaign contributions in excess of those permitted under D.C. campaign finance laws. The charge involved $140,000 in secret contributions from Thompson to Smith’s 2010 campaign for the Ward 1 seat on the Council of the District of Columbia. Smith was sentenced to 60 days in jail, in addition to community service, probation, and a $10,000 fine.
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The U.S. Attorney’s Office remains committed to investigating alleged violations of federal and District of Columbia laws governing the financing of political campaigns in addition to all matters involving allegations of public corruption within the local government.
Bollinger Shipyards Agrees to Settle False Claims Act SuitRead the Press Release
Bollinger Shipyards will pay the United States $8.5 million and release contract claims to settle a False Claims Act action filed against it in the Eastern District of Louisiana, the Department of Justice announced today. The False Claims Act suit alleges that Bollinger misrepresented the longitudinal strength of patrol boats it delivered to the Coast Guard that resulted in the boats buckling and failing once they were put into service. Bollinger Shipyards is located in Lockport, Louisiana.
“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division. “We expect the utmost integrity and reliability from the contractors that design and build equipment that is essential to public safety and our national defense.”
In 2002, the U.S. Coast Guard contracted to lengthen the Coast Guard’s existing fleet of 110-foot patrol boats to 123 feet and to make other modifications. Bollinger was the subcontractor that performed the 123-foot patrol boat design and conversion work. An essential element of the conversion was that the modified boats have sufficient longitudinal strength to meet the performance requirements set forth in the contract. The United States alleged Bollinger provided the Coast Guard with engineering calculations that falsely represented the longitudinal strength of the boats and was two times greater than their actual longitudinal strength. The United States alleged Bollinger ran the calculations three times and only provided the Coast Guard with the highest and most inaccurate, of the three calculations. The United States further alleged Bollinger also failed to follow the quality control procedures that were mandated by the contract that would have ensured against such engineering miscalculations.
The case was handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Louisiana.
The case is captioned United States v. Bollinger Shipyards, et al. Case No. 2:12cv-00920 (E.D. La.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Bollinger Shipyards Agrees to Settle False Claims Act SuitRead the Press Release
WASHINGTON – Bollinger Shipyards will pay the United States $8.5 million and release contract claims to settle a False Claims Act action filed against it in the Eastern District of Louisiana, the Department of Justice announced today. The False Claims Act suit alleges that Bollinger misrepresented the longitudinal strength of patrol boats it delivered to the Coast Guard that resulted in the boats buckling and failing once they were put into service. Bollinger Shipyards is located in Lockport, Louisiana.
“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division. “We expect the utmost integrity and reliability from the contractors that design and build equipment that is essential to public safety and our national defense.”
In 2002, the U.S. Coast Guard contracted to lengthen the Coast Guard’s existing fleet of 110-foot patrol boats to 123 feet and to make other modifications. Bollinger was the subcontractor that performed the 123-foot patrol boat design and conversion work. An essential element of the conversion was that the modified boats have sufficient longitudinal strength to meet the performance requirements set forth in the contract. The United States alleged Bollinger provided the Coast Guard with engineering calculations that falsely represented the longitudinal strength of the boats and was two times greater than their actual longitudinal strength. The United States alleged Bollinger ran the calculations three times and only provided the Coast Guard with the highest and most inaccurate, of the three calculations. The United States further alleged Bollinger also failed to follow the quality control procedures that were mandated by the contract that would have ensured against such engineering miscalculations.
The case was handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Louisiana.
The case is captioned United States v. Bollinger Shipyards, et al. Case No. 2:12cv-00920 (E.D. La.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Aurora, Illinois, Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
An Aurora, Illinois, man pleaded guilty today to federal charges involving conspiracy to provide material support to a foreign terrorist organization in the Middle East.
Jonas M. Edmonds, 30, pleaded guilty to one count of conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and one count of making a materially false statement to a law enforcement officer regarding an offense involving international terrorism.
The charge was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois and Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division.
Jonas Edmonds has been detained in federal custody since his arrest on March 25, 2015, by members of the FBI’s Chicago Joint Terrorism Task Force. According to the plea agreement, the defendant and his cousin, Hasan Edmonds, had devised a plan for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. Jonas Edmonds admitted that he expressed his support and excitement for Hasan Edmonds’ travel, believing that anyone who supported a mujahid (a fighter) was a mujahid himself.
According to the plea agreement, Jonas Edmonds intended to carry out an act of terrorism in the United States after Hasan Edmonds had departed for the Middle East. Specifically, in March 2015, the cousins devised a plan for Jonas Edmonds to carry out an armed attack at the U.S. Army National Guard base in Joliet, Illinois, during which time Hasan Edmonds was a member of the Army National Guard and had been training at the Joliet installation. According to the plea agreement, the plan called for Hasan Edmonds to provide military uniforms for Jonas Edmonds to wear during the attack, as well as a list of officers for Jonas Edmonds to kill.
Jonas Edmonds’ sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. Jonas Edmonds faces a maximum sentence of 15 years in prison for the material support charge, and up to eight years in prison for the false statement count. U.S. District Judge John Z. Lee of the Northern District of Illinois scheduled a sentencing hearing for Jan. 27, 2016, at 2:00 p.m. CST.
Hasan Edmonds was charged in a superseding information with one count of conspiring to provide material support to a foreign terrorist organization and one count of attempting to provide material support to a foreign terrorist organization. His next court appearance is scheduled for Dec. 14, 2015, at 11:00 a.m. CST before Judge Lee.
The case is being investigated by the FBI’s Chicago Joint Terrorism Task Force. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard also provided significant assistance in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Jonas Edmonds Plea Agreement
Aurora Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
CHICAGO — An Aurora man pleaded guilty today to a federal charge that he conspired to provide material support to a foreign terrorist organization in the Middle East.
JONAS M. EDMONDS, 30, pleaded guilty to one count of conspiring to provide material support to a foreign terrorist organization, and one count of making a materially false statement to a law enforcement officer regarding an offense involving international terrorism. The terrorist organization is identified in a written plea agreement as the Islamic State of Iraq and the Levant, commonly referred to as ISIL, ISIS, or the Islamic State.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Jonas Edmonds has been detained in federal custody since his arrest in March by members of the Chicago Joint Terrorism Task Force. According to the plea agreement, he and his cousin, HASAN EDMONDS, devised a plan for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. Jonas Edmonds expressed his support and excitement for Hasan Edmonds’ travel, believing that anyone who supported a mujahid (a fighter) was a mujahid himself, the plea agreement states.
According to the plea agreement, Jonas Edmonds intended to carry out an act of terrorism in the United States after Hasan Edmonds had departed for the Middle East. In particular, the cousins devised a plan for Jonas Edmonds to carry out an armed attack at the U.S. Army National Guard base in Joliet. At the time the scheme was hatched in March, Hasan Edmonds was a member of the Army National Guard and had been training at the Joliet installation. The plan called for Hasan Edmonds to provide military uniforms for Jonas Edmonds to wear during the attack, as well as a list of officers for Jonas Edmonds to kill, according to the plea agreement.
Jonas Edmonds, a U.S. citizen from west suburban Aurora, faces a maximum sentence of 15 years for the material support charge, and up to eight years for the false statement count. U.S. District Judge John Z. Lee scheduled a sentencing hearing for Jan. 27, 2016, at 2:00 p.m.
Hasan Edmonds, a U.S. citizen from of Aurora, is charged in a superseding information with one count of conspiring to provide material support to a foreign terrorist organization, and one count of attempting to provide material support to a foreign terrorist organization. His next court appearance is scheduled for Dec. 14, 2015, at 11:00 a.m. before Judge Lee.
The Joint Terrorism Task Force is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard provided significant assistance in the investigation.
The government is represented by Assistant United States Attorneys Barry Jonas and John Kness of the Northern District of Illinois; and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Plea Agreement
Armed Robber Admits to Robbing Three Businesses in a WeekRead the Press Release
Baltimore, Maryland – Elbert Darell Crump, age 47, of Towson, Maryland pleaded guilty today to robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on January 14, 2015 Crump entered the Dollar Tree on Joppa Road in Towson, wearing a mask covering part of his face. Crump pointed a semi-automatic handgun at a cashier and demanded money. Crump took cash out of the register drawer, a dollar from a nearby customer, and fled.
On January 20th, Crump entered the Gino’s Burgers and Chicken Restaurant on LaSalle Road in Towson. Crump produced a firearm and demanded money from the employees. When the manager/employee had difficulty opening a cash register, Crump struck the manager in the head with the firearm, knocking him to the ground. Another employee helped the manager open the cash registers and Crump took the cash. A video recording shows Crump pointing the firearm in the direction of some of the customers as well as the employees.
The next day on January 21, 2015, Crump entered the Toys ‘R Us store on Putty Hill Avenue in Towson, wearing a ski mask on his face. Crump pointed a gun at a cashier and demanded money. The cashier ran out the front door. Crump pointed his gun at another employee, forcing the employee to open eight cash registers and put the cash into a bag. During this time, several customers and employees called 911. Police from Baltimore County responded quickly and surrounded the store. Several customers who were inside fled the store and were moved to safety by the police. Crump attempted to leave by the front and then the back of the store, but returned inside once he saw all the police outside.
Baltimore County tactical officers and hostage negotiators arrived. Police were advised by fleeing customers that Crump was armed and that customers remained inside. Crump asked two customers to help him hide and handed them about $400. Crump hid in a large box on a shelf. The customers who received the money left the store, told police where Crump was hiding and gave the police the money. Tactical officers and canine officers subsequently entered the store and located Crump, hiding in a large box on a shelf. A 24 hour search of the store took place before the .380 caliber handgun was located in the baby section inside a bag with $1,650 taken by Crump from all of the registers.
Video recordings of all three robberies identified Crump as the robber. The firearm was registered to Crump’s girlfriend with whom Crump was staying. Clothes worn by Crump during the robberies were found at their residence.
Crump had previously been convicted of at least one crime of violence and one drug offense.
Crump and the government have agreed that if the Court accepts the plea agreement Crump will be sentenced to 20 years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 4, 2016.
United States Attorney Rod J. Rosenstein commended the Baltimore Police Department, FBI and Baltimore County State’s Attorney's Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.
Albuquerque Man Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Randy Martinez, Jr., 20, of Albuquerque, N.M., was arraigned this morning in federal court on an indictment charging him with child pornography offenses. During today’s proceedings, Martinez entered a not guilty plea to the indictment. Martinez was ordered detained pending trial based on a judicial finding that he poses a danger to the community.
Martinez was charged on Nov. 17, 2015, in a five-count indictment with advertisement, receipt and possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Martinez published an advertisement in which he offered to distribute and exchange child pornography from Aug. 9, 2015 through Aug. 17, 2015, and received child pornography on Aug. 9, 2015. The indictment also alleges that Martinez possessed child pornography from Nov. 5, 2014 through Aug. 17, 2015. Martinez allegedly committed the crimes in Bernalillo County, N.M.
According to court filings, the investigation into this case was initiated after the National Center for Missing and Exploited Children (NCMEC) received a cryptic Cybertip on Aug. 17, 2015, in which the sender reported himself for offenses involving the online sexual exploitation of children. After the tip was forwarded to law enforcement authorities in New Mexico, investigation by the Bernalillo County Sheriff’s Office determined the address the tip was sent from and later identified Martinez as the sender of the Cybertip. Thereafter, law enforcement authorities executed a search warrant on Martinez’s phone and allegedly found nearly 3,000 files containing child pornography on the phone. Further investigation allegedly revealed that Martinez also possessed two online cloud storage accounts containing over 5,000 child pornography videos and images.
The search of Martinez’s phone also allegedly revealed that he was an active participant in an online messaging application community devoted to advertising and trading child pornography. Martinez allegedly used this messaging application to receive and share child pornography with other members of the messaging community. The continuing investigation has led to the identification of approximately 70 unique users who allegedly engaged in trading images and videos depicting the sexual exploitation of children, both in the United States and abroad.
Martinez was arrested on Dec. 7, 2015, on the federal warrant. Prior to his arrest, Martinez was in state custody on the related state charges that were dismissed in favor of federal prosecution.
The statutory penalty upon conviction on the advertisement of child pornography charge is a mandatory minimum of 15 years and a maximum of 30 years in federal prison. The penalty upon conviction on the receipt charge is a mandatory minimum of five years and a maximum of 20 years in federal prison, and the penalty upon conviction on the three possession charges is a maximum of 20 years in federal prison. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Bernalillo County Sheriff’s Office, Albuquerque office of the FBI and the New Mexico Office of the Attorney General with assistance from the New Mexico Regional Computer Forensics Laboratory, all of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Akron man indicted for soliciting the murder of members of the U.S. militaryRead the Press Release
A six-count indictment was filed today charging an Akron man for soliciting the murder of members of the U.S. military.
Terrence J. McNeil, 25, was indicted on three counts of solicitation of a crime of violence and three counts of threatening military personnel.
The indictment was announced by Assistant Attorney General John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“According to the indictment, Terrence McNeil solicited the murder of members of our military by disseminating ISIL’s violent rhetoric, circulating detailed U.S. military personnel information and explicitly calling for the killing of American service members in their homes and communities,” said Assistant Attorney General Carlin. “ISIL and its followers continue to use social media in an attempt to incite violence around the world, including in the United States. The National Security Division’s highest priority is counterterrorism and we will use all of our tools to disrupt threats and acts of violence against our military members and their families.”
“We owe it to our servicemen and women to protect their safety at home after they fought abroad to protect our freedom,” said U.S. Attorney Dettelbach. “This defendant is charged with urging harm to our men and women in uniform and will now answer for those threats.”
“While we aggressively defend First Amendment rights, the individual arrested went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “We will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to the indictment:
McNeil maintained social media accounts on several social media web sites, including Facebook, Twitter and Tumblr. He repeatedly professed his support on social media for the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch.
The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
On Oct. 3, 2015, McNeil posted on his Twitter account: “Released - Address of the US Navy Seal [R.O] who killed Sheikh Osama Bin Laden R.A. - #GoForth #RunRobertRun.”
The defendant included in his post an embedded link that when clicked revealed the purported address of R.O. and a link to R.O.’s purported photograph. The link further stated that R.O. “is a mummy’s boy who has been trying to hide yet still lives with his father…and mother…In between going around America to conferences boasting at how his ‘claim to fame’ is killing Sheikh Osama Bin Laden R.A. …I am posting his address to brothers & to Al Qaeda in the U.S. as a number one target.”
On Oct. 3, 2015, McNeil posted the content regarding R.O. and his address and photograph from the embedded link described above onto his Tumblr page. McNeil added the statement, “don’t let this kafir sleep peacefully,” to his Tumblr post.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. Each solicitation count carries a statutory maximum sentence of 20 years in prison, and each threat count carries a statutory maximum sentence of five years in prison.
An indictment is only a charge and not evidence of guilt. It is the government’s burden to prove the case beyond a reasonable doubt, and a defendant is presumed innocent until that time.
The case is being investigated by the FBI. This case is being prosecuted by U.S. Attorney’s Office of the Northern District of Ohio and the National Security Division’s Counterterrorism Section following an investigation by the Cleveland FBI Joint Terrorism Task Force, which is comprised of local, state and Federal agencies from Northeast Ohio. The Cleveland FBI would like to thank the following partners in this investigation: Akron Police Department, University of Akron Police Department, Customs and Border Protection, Greater Cleveland Regional Transit Authority Transit Police, and Immigration and Customs Enforcement - Enforcement and Removal Operations.
Abilene Man Sentenced to Serve 50 Years in Federal Prison on Federal Child Pornography ConvictionsRead the Press Release
ABILENE, Texas — Paul Joseph Koestle, 33, of Abilene, Texas, was sentenced this morning by Chief U.S. District Judge Jorge A. Solis to serve a total of 50 years in federal prison, following his guilty plea in August 2015 to two felony child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Koestle, who has been in custody, pleaded guilty to one count of production of child pornography and one count of receipt of child pornography. Judge Solis sentenced him to the statutory maximum sentence of 360 months on the production count and 240 months on the receipt count, to run consecutively.
According to documents filed in the case, earlier this year the Abilene Police Department (APD) began investigating Koestle based on information they received from the National Center for Missing and Exploited Children (NCMEC) indicating he had uploaded an image of child pornography to a Google account. The APD executed a search warrant at his home in late April 2015.
Koestle, who was home during the execution of the warrant, admitted to downloading child pornography and producing child pornography of a minor child, “Jane Doe.” A forensic evaluation of electronic equipment seized from his residence pursuant to the search revealed hundreds of images of child pornography located on a cellphone, a laptop computer and hard drive. In addition, multiple images of “Jane Doe” engaging in sexually explicit conduct were found.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated. Assistant U.S. Attorney Myria Boehm was in charge of the prosecution.
# # #
Abilene Man Sentenced to 108 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
ABILENE, Texas — David Scott Fikani, 62, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 108 months in federal prison, following his guilty plea in July 2015 to an indictment charging one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Fikani has been in federal custody since September 2015 when U.S. Magistrate Judge E. Scott Frost determined he violated certain terms of his pretrial release and ordered him detained.
According to plea documents filed in the case, Fikani used the computer at his residence to search the Internet for images and videos depicting minors engaging in sexually explicit conduct. In the course of these searches, Fikani located, downloaded, and viewed numerous images and videos constituting child pornography. Some of those images involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
48 Members and Associates of 2 Rival Bronx Street Gangs Charged in Federal Court with Racketeering Offenses, Including 3 Murders, Narcotics Trafficking, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Delano A. Reid, the Special Agent in Charge of the New York Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James J. Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of two Indictments charging a total of 48 members and associates of two Bronx-based street gangs, the Young Gunnaz (“YGz”) and 18 Park, with various racketeering, narcotics, and firearms offenses, including three gang-related murders, and five gang-related attempted murders.
The YGz Indictment charges 22 members and associates of the YGz gang in the case of United States v. Ramel Matthews et al., which has been assigned to U.S. District Judge Valerie E. Caproni. The 18 Park Indictment charges 26 members and associates of the 18 Park gang in the case of United States v. Jonathan Rodriguez et al., which has been assigned to U.S. District Judge Paul A. Engelmayer. Of the 48 defendants charged in both the YGz and 18 Park Indictments, 40 are currently in custody, including 23 defendants who were arrested earlier today as part of a coordinated takedown by ATF, DEA, and NYPD. Most of these defendants will be presented today before United States Magistrate Judge Ronald L. Ellis.
Manhattan U.S. Attorney Preet Bharara said: “Today’s charges incapacitate four dozen alleged gang members who have wreaked havoc on Bronx streets for years. As alleged, these defendants are members of gangs that have engaged in all manner of mayhem – three murders, five attempted murders, racketeering, drug dealing, and gun charges. Thanks to the brave men and women of the ATF, DEA, and NYPD, these alleged criminals must now face justice in federal court.”
ATF Special Agent in Charge Delano A. Reid said: "Today, the ATF along with the NYPD, DEA and HSI, successfully launched a large-scale arrest operation on two, Bronx based, violent street gangs who conducted their illegal narcotics and firearm trafficking operation in and around the Patterson Housing projects for several years. As alleged, the 18th Park and YGz gangs routinely conducted their street level narcotics trafficking of crack cocaine, heroin, and marijuana and in the course of these activities, committed various acts of violence, to include approximately 30 non-fatal shootings, three homicides, assaults and stabbings. With nearly three dozen arrested thus far, I am confident that our efforts today will clearly illustrate that this type of gang activity will not be tolerated and there will be consequences for those who choose to illegally deal in firearms and commit acts of violence. I am hopeful that the residents of this area will wake up to a safer environment no longer plagued by the scourge of senseless gang violence.”
DEA Special Agent in Charge James J. Hunt said: “Drug gangs plague our neighborhoods with gun violence. The bottom line is, when there are gangs competing to sell poison for profit, gunfire, murder and violent crimes are inevitable consequences. I commend law enforcement’s brave efforts to rid the unacceptable risks of violence to our neighborhoods by making these arrests today.”
Commissioner William J. Bratton said: “As alleged, the numerous acts of violence perpetrated by these street gangs demonstrate an egregious and sustained disregard for the law and the safety of our community. This investigation conducted by NYPD detectives and our federal and state partners is to be commended. While the unfortunate correlation between narcotics trafficking and violence is well known, so is our commitment to stop these acts.”
As alleged in the Indictments unsealed today in Manhattan federal court and in other court papers[1]:
United States v. Ramel Matthews, et al.
The YGz was a criminal enterprise that operated mainly in and around several housing developments in the Bronx, New York, from 2005 through December 2015. Members and associates of the YGz enriched themselves by committing robberies and selling drugs, such as crack cocaine, heroin, and marijuana, and engaged in acts of violence, including murder and attempted murder of rival gang members, rival drug traffickers, and innocent bystanders.
For example, on June 27, 2009, YGz members RAMEL MATTHEWS, ANTHONY SCOTT, and HASWANI TYSON attempted to commit a gunpoint robbery near the Mott Haven Houses in the Bronx, and in the course of this attempted robbery, SCOTT shot and killed Darrel Ledgister, who was 21 years old.
More recently, on April 16, 2012, a large group of YGz members, including WENDELL BELLE and WILLIAM BRACEY, stomped to death Moises Lora a/k/a “Noah,” a 16-year-old associate of a rival gang, in a courtyard in the Melrose Houses in the Bronx.
Count One of the YGz Indictment charges RAMEL MATTHEWS, WENDELL BELLE, WILLIAM BRACEY, ANTHONY SCOTT, HASWANI TYSON, RASHAAD CONYERS, PAUL GILBERT, KAREEM LANIER, TERRANCE WILLIAMS, JASON MOYE, MICHAEL BROWN, BRIANT LAMONT MAYNOR, ANDY SEDA, DAVOUN MATTHEWS, JOSEPH ANDERSON, DAVAUGHN BROOKS, JOHN HUGHES, JOSEPH JEFFRIES, DONOVAN REYNOLDS, KYLE HINES, CHANEL LEON, and CHRISTOPHER MORALES with participating in a racketeering conspiracy for criminal involvement in the YGz gang. Count Nine of the YGz Indictment charges 16 of those 22 defendants (namely, RAMEL MATTHEWS, BELLE, BRACEY, SCOTT, CONYERS, GILBERT, LANIER, WILLIAMS, MOYE, BROWN, MAYNOR, SEDA, DAVOUN MATTHEWS, HUGHES, JEFFRIES, REYNOLDS, and MORALES) with a related firearms offense.
Counts Two and Eight of the YGz Indictment charge RAMEL MATTHEWS, ANTHONY SCOTT, and HASWANI TYSON with the murder of Darrel Ledgister in aid of racketeering, and a related firearms offense.
Count Three of the YGz Indictment charges WENDELL BELLE and WILLIAM BRACEY with the murder of Moises Lora in aid of racketeering.
Count Four of the YGz Indictment charges WENDELL BELLE with aiding and abetting an assault with a deadly weapon and attempted murder in connection with a November 2013 shooting aimed at killing rival gang members near Courtlandt Avenue in the Bronx, resulting in a bystander being shot and wounded.
Count Five of the YGz Indictment charges PAUL GILBERT with assault with a deadly weapon and attempted murder in connection with a June 2014 shooting by the Mott Haven Houses in the Bronx aimed at killing an associate of a rival gang in the Bronx, resulting in an individual being shot and wounded.
Count Six of the YGz Indictment charges RASHAAD CONYERS with assault with a deadly weapon and attempted murder in connection with a May 2015 shooting near the Patterson Houses in the Bronx aimed at killing rival gang members in the Bronx.
Count Seven of the YGz Indictment charges RAMEL MATTHEWS, TERRANCE WILLIAMS, MICHAEL BROWN, ANDY SEDA, DAVOUN MATTHEWS, DAVAUGHN BROOKS, JOHN HUGHES, JOSEPH JEFFRIES, KYLE HINES, CHANEL LEON, and CHRISTOPHER MORALES with participating in a conspiracy to distribute crack cocaine, heroin, and marijuana.
United States v. Jonathan Rodriguez, et al.
18 Park was a criminal enterprise that operated mainly in and around the Patterson Houses and Mott Haven Houses in the Bronx, New York, from 2006 through December 2015. Members and associates of 18 Park enriched themselves by selling drugs, such as crack cocaine, heroin, and marijuana, and committed acts of violence, including murder and attempted murder of rival gang members, rival drug traffickers, and innocent bystanders.
For example, on May 29, 2011, 18 Park member KEITH RUIZ and others, murdered Johnny Moore, a 16-year-old associate of a rival gang, in the Patterson Houses in the Bronx.
Count One of the 18 Park Indictment charges JONATHAN RODRIGUEZ, MARQUIS WRIGHT, WALI BURGOS, JASON BENJAMIN, JORDAN RIVERA, WILLIAM AMARAZIN, RAHEEM AMARAZIN, TJON MACOLL, COREY HEYWARD, JONATHAN HARRIS, WILLIAM KNOX, COREY COOKS, DAQUAN McBETH, JAHNOMI BENJAMIN, KEITH RUIZ, RYAN VALENTIN, MIGUEL ROMERO, KAYE ROSADO, ANDREW ECHEVARRIA, NAQUAN SIMMONS, DIQUINN LACEND, WILFREDO RIVERA, KENNETH JENKINS, VINCENT FIELDER, MIA DENTICO, and PAMELA BROWN with participating in a racketeering conspiracy for criminal involvement in the 18 Park gang. Count Six of the 18 Park Indictment also charges 20 of those 26 defendants (RODRIGUEZ, WRIGHT, BURGOS, JASON BENJAMIN, RIVERA, WILLIAM AMARAZIN, RAHEEM AMARAZIN, MACOLL, HEYWARD, HARRIS, KNOX, COOKS, McBETH, JAHNOMI BENJAMIN, VALENTIN, ROMERO, ECHEVARRIA, SIMMONS, LACEND, and DENTICO) with a related firearms offense.
Count Two of the 18 Park Indictment charges KEITH RUIZ with aiding and abetting the murder of Johnny Moore in aid of racketeering.
Count Three of the 18 Park Indictment charges WALI BURGOS, JORDAN RIVERA, and COREY COOKS with assault with a dangerous weapon and attempted murder in connection with an October 2014 shooting in the Patterson Houses aimed at killing a rival gang member.
Count Four of the 18 Park Indictment charges WILLIAM AMARAZIN and TJON MACOLL with assault with a dangerous weapon and attempted murder in connection with a December 2011 shooting aimed at killing an associate of a rival gang.
Count Five of the 18 Park Indictment charges MARQUIS WRIGHT, WALI BURGOS, JASON BENJAMIN, JORDAN RIVERA, WILLIAM AMARAZIN, RAHEEM AMARAZIN, TJON MACOLL, COREY HEYWARD, JONATHAN HARRIS, WILLIAM KNOX, DAQUAN McBETH, JAHNOMI BENJAMIN, MIQUEL ROMERO, KAYE ROSADO, ANDREW ECHEVARRIA, NAQUAN SIMMONS, DIQUINN LACEND, KENNETH JENKINS, VINCENT FIELDER, MIA DENTICO and PAMELA BROWN with conspiring to distribute crack cocaine, heroin, and marijuana.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of ATF, the DEA, and the NYPD. He also thanked the United States Attorney’s Office for the Northern District of New York and Bronx County District Attorney’s Office for their participation and support in this ongoing investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, James McDonald, and Dina McLeod are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
###
15-316
United States v. Ramel Matthews et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
RAMEL MATTHEWS WENDELL BELLE
WILLIAM BRACEY
ANTHONY SCOTT
HASWANI TYSON
RASHAAD CONYERS
PAUL GILBERT
KAREEM LANIER
TERRANCE WILLIAMS
JASON MOYE
MICHAEL BROWN
BRIANT LAMONT MAYNOR
ANDY SEDA
DAVOUN MATTHEWS
JOSEPH ANDERSON
DAVAUGHN BROOKS JOHN HUGHES
JOSEPH JEFFRIES DONOVAN REYNOLDS
KYLE HINES
CHANEL LEON CHRISTOPHER MORALES
Life in prison
2
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
RAMEL MATTHEWS
ANTHONY SCOTT
HASWANI TYSON
Death penalty, or life in prison
3
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
WENDELL BELLE
WILLIAM BRACEY
Death penalty, or life in prison
4
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
WENDELL BELLE
20 years in prison
5
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
PAUL GILBERT
20 years in prison
6
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
RASHAAD CONYERS
20 years in prison
7
Narcotics conspiracy
21 U.S.C. § 846
RAMEL MATTHEWS
TERRANCE WILLIAMS, MICHAEL BROWN
ANDY SEDA
DAVOUN MATTHEWS, DAVAUGHN BROOKS, JOHN HUGHES
JOSEPH JEFFRIES
KYLE HINES
CHANEL LEON CHRISTOPHER MORALES
Life in prison
8
Murder through use of a firearm
18 U.S.C. § 924(j)
RAMEL MATTHEWS
ANTHONY SCOTT
HASWANI TYSON
Death penalty, or life in prison
9
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
924(c)(1)(A)(iii)
RAMEL MATTHEWS
WENDELL BELLE
WILLIAM BRACEY
ANTHONY SCOTT
RASHAAD CONYERS, PAUL GILBERT
KAREEM LANIER
TERRANCE WILLIAMS, JASON MOYE
MICHAEL BROWN
BRIANT LAMONT MAYNOR
ANDY SEDA
DAVOUN MATTHEWS,
JOHN HUGHES
JOSEPH JEFFRIES
DONOVAN REYNOLDS, CHRISTOPHER MORALES
Life in prison
DEFENDANT
AGE
RESIDENCE
RAMEL MATTHEWS,
a/k/a “Rah”
26
Bronx, NY
WENDELL BELLE,
a/k/a “Delly Dell”
23
Bronx, NY
WILLIAM BRACEY,
a/k/a “Rel”
21
Bronx, NY
ANTHONY SCOTT,
a/k/a “Tyson”
22
Bronx, NY
HASWANI TYSON,
a/k/a “Swani”
23
Bronx, NY
RASHAAD CONYERS,
a/k/a “Houle”
25
Bronx, NY
PAUL GILBERT,
a/k/a “Too Fly Tay”
a/k/a “Don Tay”
25
Bronx, NY
KAREEM LANIER,
a/k/a “Black”
24
Bronx, NY
TERRANCE WILLIAMS,
a/k/a “TA”
23
Bronx, NY
JASON MOYE,
a/k/a “Tall Jay”
27
Bronx, NY
MICHAEL BROWN,
a/k/a “Mighty”
27
Bronx, NY
BRIANT LAMONT MAYNOR,
a/k/a “Binky”
27
Bronx, NY
ANDY SEDA,
a/k/a “Ant White”
23
Bronx, NY
DAVOUN MATTHEWS,
a/k/a “Juice”
24
Bronx, NY
JOSEPH ANDERSON,
a/k/a “Jojo”
26
Bronx, NY
DAVAUGHN BROOKS,
a/k/a “Day Day”
a/k/a “Dolla”
23
Bronx, NY
JOHN HUGHES,
a/k/a “Pino”
22
Bronx, NY
JOSEPH JEFFRIES,
a/k/a “Joey”
20
Bronx, NY
DONOVAN REYNOLDS,
a/k/a “Donnie G”
22
Bronx, NY
KYLE HINES
22
Bronx, NY
CHANEL LEON,
a/k/a “Black Gums”
23
Bronx, NY
CHRISTOPHER MORALES,
a/k/a “Yayo”
26
Bronx, NY
United States v. Jonathan Rodriguez, et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
JONATHAN RODRIGUEZ
MARQUIS WRIGHT
WALI BURGOS
JASON BENJAMIN
JORDAN RIVERA
WILLIAM AMARIZAN
RAHEEM AMARIZAN
TJON MACOLL
COREY HEYWARD
JONATHAN HARRIS
WILLIAM KNOX
COREY COOKS
DAQUAN McBETH
JAHNOMI BENJAMIN
KEITH RUIZ
RYAN VALENTIN
MIGUEL ROMERO
KAYE ROSADO
ANDREW ECHEVARRIA
NAQUANN SIMMONS
DIQUINN LACEND
WILFREDO RIVERA KENNETH JENKINS
VINCENT FIELDER
MIA DENTICO
PAMELA BROWN
Life in prison
2
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
KEITH RUIZ
Death penalty, or life in prison
3
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
WALI BURGOS
JORDAN RIVERA
COREY COOKS
20 years in prison
4
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
WILLIAM AMARIZAN
TJON MACOLL
20 years in prison
5
Narcotics conspiracy
21 U.S.C. § 846
MARQUIS WRIGHT
JASON BENJAMIN
JORDAN RIVERA
WILLIAM AMARIZAN
RAHEEM AMARIZAN
TJON MACOLL
COREY HEYWARD
JONATHAN HARRIS
WILLIAM KNOX
DAQUAN McBETH
KAYE ROSADO
ANDREW ECHEVARRIA
NAQUANN SIMMONS
DIQUINN LACEND
WILFREDO RIVERA KENNETH JENKINS
VINCENT FIELDER
MIA DENTICO
PAMELA BROWN
Life in prison
6
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
924(c)(1)(A)(iii)
JONATHAN RODRIGUEZ, MARQUIS WRIGHT WALI BURGOS
JASON BENJAMIN JORDAN RIVERA
WILLIAM AMARIZAN RAHEEM AMARIZAN TJON MACOLL
COREY HEYWARD
JONATHAN HARRIS WILLIAM KNOX
COREY COOKS
DAQUAN McBETH
JAHNOMI BENJAMIN
RYAN VALENTIN
MIGUEL ROMERO
KAYE ROSADO
ANDREW ECHEVARRIA
NAQUANN SIMMONS
DIQUINN LACEND
WILFREDO RIVERA
KENNETH JENKINS VINCENT FIELDER
MIA DENTICO
Life in prison
DEFENDANT
AGE
RESIDENCE
JONATHAN RODRIGUEZ,
a/k/a “Bebo”
27
Bronx, NY
MARQUIS WRIGHT,
a/k/a “Mark”
28
Bronx, NY
WALI BURGOS,
a/k/a “Guy Fisher”
21
Bronx, NY
JASON BENJAMIN,
a/k/a “JC”
25
Bronx, NY
JORDAN RIVERA
20
Bronx, NY
WILLIAM AMARIZAN,
a/k/a “Will Dollars” a/k/a “Will Dollars,”
a/k/a “Spanish Will”
24
Bronx, NY
RAHEEM AMARIZAN,
a/k/a “Rah Rah”
22
Bronx, NY
TJON MACOLL,
a/k/a “TJ”
24
Bronx, NY
COREY HEYWARD
29
Bronx, NY
JONATHAN HARRIS,
a/k/a “Eggy”
20
Bronx, NY
WILLIAM KNOX,
a/k/a “Mills Gunna”
23
Bronx, NY
COREY COOKS
20
Bronx, NY
DAQUAN McBETH,
a/k/a “Day Day”
25
Bronx, NY
JAHNOMI BENJAMIN,
a/k/a “Jamroc”
23
Bronx, NY
KEITH RUIZ,
a/k/a “Keefy”
23
Bronx, NY
RYAN VALENTIN
20
Bronx, NY
MIGUEL ROMERO,
a/k/a “Mikey”
22
Bronx, NY
KAYE ROSADO,
a/k/a “Trippa”
30
Bronx, NY
ANDREW ECHEVARRIA,
a/k/a “Drew”
26
Bronx, NY
NAQUANN SIMMONS,
a/k/a “Young Money”
23
Bronx, NY
DIQUINN LACEND,
a/k/a “Naughty”
21
Bronx, NY
WILFREDO RIVERA,
a/k/a “Cito”
19
Bronx, NY
KENNETH JENKINS,
28
Bronx, NY
VINCENT FIELDER,
a/k/a “DJ”
29
Bronx, NY
MIA DENTICO
48
Bronx, NY
PAMELA BROWN
28
Bronx, NY
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
8 December 2015
eBay Salesman Who Ripped Off Postal Service and His Customers Convicted of Mail FraudRead the Press Release
Assistants U. S. Attorney Christopher P. Tenorio and Emily Keifer (619) 546-8413
NEWS RELEASE SUMMARY – December 8, 2015
SAN DIEGO - Jack Zeljko Pasic pleaded guilty earlier today to defrauding the U.S. Postal Service out of postage due on over 9,000 packages shipped from San Diego to eBay customers throughout the United States between April 2009 and October 2010.
From 2008 through 2010, Pasic ran a company, Diavega, which sold items to customers on eBay. In April 2009, Pasic purchased a postal meter to print postage labels that he would use to ship packages to his Diavega customers. Pasic altered the postage labels, however, to conceal that he had paid only $0.01 in postage when a larger amount of postage was actually owed.
According to his plea agreement, Pasic also labeled the packages to falsely indicate that they were being sent from, and mailed to, the same address in an effort to ensure that the items he shipped would reach their intended destination. In so doing, Pasic ensured the packages were delivered to the customers even when the USPS attempted to return the package to sender for underpayment of postage upon discovering that postage was due. In most cases, the customers were required to pay additional postage fees to the USPS even though they had sent earlier fees to Pasic. In total, Pasic defrauded the USPS out of over $18,000 in unpaid postage.
“The vigilance of the U.S. Postal Service has ensured that the defendant will pay for services unjustly billed to the American public,” said United States Attorney Laura Duffy.
Pasic entered his plea before U.S. Magistrate Judge Nita L. Stormes and is scheduled to be sentenced by U.S. District Judge Cathy Ann Bencivengo on January 8, 2016.
DEFENDANT Case Number 15CR2381-CAB
Jack Zeljko Pasic Age: 51
SUMMARY OF CHARGE
Title 18, United States Code, Sections 1341 (Mail Fraud)
Maximum penalty: 5 years of custody; $250,000 Fine
AGENCY
United States Postal Inspection Service
Youngstown man faces firearms chargeRead the Press Release
A Youngstown man was arrested today to face charges that he illegally possessed a firearm, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Brian K. Bellard, 43, possessed a Smith and Wesson, model SD40VE, .40 caliber pistol, and ammunition in October, despite a previous convictiion for cocaine, trafficking, according to the indictment.
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
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.
Worcester Woman Pleads Guilty in $3.6 Million Food Stamp FraudRead the Press Release
BOSTON – A Worcester woman pleaded guilty today in U.S. District Court in Worcester in connection with a $3.6 million food stamp fraud scheme that she operated out of her Worcester convenience store.
Vida Ofori Causey, 45, pleaded guilty to one count of conspiracy to commit SNAP benefits fraud, one count of SNAP fraud, and one count of money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for March 2, 2016.
The Supplemental Nutritional Assistance Program (SNAP), formerly known as the Food Stamp Program, administered by the U.S. Department of Agriculture (USDA), provides eligible households with government subsidies for certain foodstuffs, and allows holders to exchange their SNAP benefits for food at authorized retail food stores.
Causey was the owner and operator of J&W Aseda Plaza, a convenience store on Main Street in Worcester. From April 2010 to October 2014, Causey conspired with others to commit SNAP fraud by purchasing SNAP benefits from recipients rather than exchanging them for food. Causey purchased the benefits at a discounted value of approximately fifty cents for every SNAP dollar. By so doing, Causey caused the USDA to electronically deposit into a bank account she controlled the full face value of the SNAP benefits fraudulently obtained.
During the course of the four-year conspiracy, Causey defrauded the USDA of approximately $3,638,900 in SNAP funds.
The charge of conspiracy provides for a sentence of no greater than five years in prison and three years of supervised release. The charge of SNAP fraud provides for a sentence of no greater than 20 years in prison and three years of supervised release. The charge of money laundering provides for a sentence of no greater than 10 years in prison and three years of supervised release. Each charge also provides for a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture and restitution. 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; William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Washington County Man Sentenced for Stealing Social Security FundsRead the Press Release
PANAMA CITY, FLORIDA – Lynwood Williams, 53, of Greenhead, Florida, was sentenced yesterday in United States District Court to six months in prison for theft of $63,284 in government funds. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
In October 2006, Williams applied for Supplemental Security Income (SSI) benefits, falsely claiming that he suffered from an organic brain disorder. During interviews with Social Security Administration (SSA) officials, Williams pretended to be mentally disabled, deliberately stuttering and acting as though he had great difficulty forming words. In one interview, Williams was accompanied by a person who, at Williams’ direction, falsely claimed to be Williams’ cousin. His “cousin” falsely claimed that Williams was unable to work due to his mental and speech limitations. In a separate interview, one of Williams’ friends, who was designated as Williams’ representative payee, falsely told SSA officials that Williams was so severely handicapped that he could not take care of his daily needs and had to be supervised like a child.
In 2014, the SSA discovered YouTube videos in which Williams was performing comedy routines that clearly showed Williams did not suffer from a mental or speech impairment. Postings on Facebook indicated that Williams did lawn work, pressure washing, and painting, when he was not working as a comedian.
Williams pled guilty on September 1, 2015. As part of his sentence, he was ordered to pay $56,287 in restitution to the SSA, and $6,997 in restitution to the Florida Agency for Health Care Administration.
This case was investigated by the Social Security Administration - Office of Inspector General, and the Jackson County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Harwin.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Vermont Dairy Farm Agrees to Permanent Injunction Barring Unlawful Administration of Veterinary DrugsRead the Press Release
Farm and Three Individual Defendants Agree to Settle Allegations That Adulterated Food and Drugs Were Introduced Into Interstate Commerce in Violation of the Federal Food, Drug, and Cosmetics Act
The Department of Justice has filed a complaint in the United States District Court for the District of Vermont seeking a permanent injunction against the Correia Farm Limited Partnership d/b/a Wynsum Holsteins, a dairy farm located in West Addison, Vermont, and its co-owners, Anthony and Barbara Correia, and their son and limited partner Stephen Correia, to address alleged violations of the Federal Food, Drug, and Cosmetics Act (“FDCA”).
According to the complaint, which was filed by the United States Attorney’s Office for the District of Vermont and the Department of Justice’s Consumer Protection Branch on behalf of the United States Food and Drug Administration (“FDA”), the farm and individual defendants violated the FDCA by unlawfully administering new animal drugs for uses not approved by the FDA and unlawfully selling livestock for slaughter and human consumption despite the presence of excessive and unsafe drug residues in the animals’ edible tissues. The complaint states that previous inspections of the farm by the FDA and lab tests performed by the United States Department of Agriculture found recurring FDCA violations of the same nature, which the defendants failed to correct despite FDA warnings.
The defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that subjects them to heightened FDA oversight and requires them to, among other things, implement a number of new record-keeping and operational protocols designed to ensure consumer safety. The proposed decree was filed with the district court and is awaiting judicial approval.
“When farms fail to implement and maintain appropriate controls for the administration of antibiotics and other drugs to food-producing animals, they jeopardize public health,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to try to make sure that consumers are getting safe food.”
“Vermonters want to know what is in the food they eat, and they deserve food that is free from harmful drugs. The United States Attorney’s Office will continue to vigorously protect those rights and to hold unscrupulous food producers accountable,” said United States Attorney Eric S. Miller. “I commend the Correias for their willingness to enter into a consent decree that will require them to do their part to protect the safety of our food supply.”
This matter was handled by Trial Attorney Megan Englehart of the Department of Justice’s Consumer Protection Branch and Assistant United States Attorney Ben Weathers-Lowin of the United States Attorney’s Office for the District of Vermont, with assistance from Yen Hoang of the FDA’s Office of the Chief Counsel. The defendants were represented by Amy Menard of Neuse, Duprey & Putnam, P.C.
*A complaint sets forth allegations that the government would need to prove in the event that the case were to proceed to trial.
United States Files Consent Decree of Permanent Injunction Against Vermont Dairy Farm to Stop Distribution of Adulterated Food and Unlawful Administration of Veterinary DrugsRead the Press Release
The Department of Justice filed a complaint in the U.S. District Court for the District of Vermont seeking a permanent injunction against the Correia Farm Limited Partnership d/b/a Wynsum Holsteins, a dairy farm located in West Addison, Vermont, and its co-owners Anthony and Barbara Correia and their son and limited partner Stephen Correia, to prevent violations of the federal Food, Drug and Cosmetic Act (FDCA).
According to the complaint, which was filed by the Department of Justice’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Vermont on behalf of the U.S. Food and Drug Administration (FDA), the farm and individual defendants violated the FDCA by unlawfully administering new animal drugs for uses not approved by the FDA and unlawfully selling livestock for slaughter and human consumption despite the presence of unsafe drug residues in the animals’ edible tissues. The complaint states that previous inspections of the farm by the FDA and lab tests performed by the U.S. Department of Agriculture found recurring FDCA violations of the same nature, which the defendants failed to correct despite FDA warnings.
“When farms fail to implement and maintain appropriate controls for the administration of antibiotics and other drugs to food-producing animals, they jeopardize public health,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to try to make sure that consumers are getting safe food.”
In conjunction with the filing of the complaint, the defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from violating the FDCA. The consent decree subjects the defendants to heightened FDA oversight and requires them to cease all operations until the defendants implement a number of new record-keeping and operational protocols designed to ensure consumer safety. In order for the defendants to resume food production, the FDA first must determine that their manufacturing practices have come into compliance with the law. The proposed decree is currently awaiting judicial approval.
This matter was handled by Trial Attorney Megan Englehart of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ben Weathers-Lowin of the District of Vermont, with assistance from Yen Hoang of the FDA’s Office of the Chief Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
United States Attorney, Department of Justice announces decision on the criminal investigation of the death of Victor White IIIRead the Press Release
WASHINGTON – The Justice Department announced today that there is insufficient evidence to pursue federal criminal civil rights charges against any official with the Iberia Parish Sheriff’s Office in connection with the fatal shooting of Victor White.
Federal officials from the U.S. Attorney’s Office for the Western District of Louisiana, the Justice Department’s Civil Rights Division and the FBI met today with the White family to inform them of this decision.
The U.S. Attorney’s Office (USAO), the Department of Justice’s Civil Rights Division and the FBI reviewed all of the material and evidence generated by the Louisiana State Police, including witness statements, crime scene evidence, dispatch recordings, and video footage taken from police vehicles and forensic reports. Additionally, the Department of Justice asked independent medical experts to review the autopsy performed by the state coroner and to conduct an independent analysis of Mr. White’s death. During the investigation, the U.S. Attorney and the investigative team also met with the White family and their representative to obtain additional information, evidence or witness information relating to the case.
In order to prove a violation of applicable federal criminal civil rights laws, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. After a careful and thorough review of the evidence, federal prosecutors and FBI agents have determined that the evidence here is insufficient to prove beyond a reasonable doubt that any officer fired a weapon at Mr. White.
During the late evening of March 2, 2014, a deputy responding to a 911 call regarding a fight at a local store, stopped Mr. White and his friend who were on their way back from the store. Mr. White was taken into custody after marijuana and cocaine were found in his possession. According to Mr. White’s friend, who was not arrested, the interaction with the officers was non-confrontational. Video from the patrol car camera is consistent with the witness’s account. Mr. White was handcuffed behind his back, placed in the back seat of the patrol car and taken to the patrol center. While Mr. White was in the back seat of the patrol car, which was parked in the patrol center parking lot, a gun fired, causing a fatal gunshot wound to Mr. White.
Ballistics testing confirmed that the gun used in the shooting was a small .25 caliber handgun that was found on the back seat of the patrol car, adjacent to and behind Mr. White after the shooting. A single spent .25 caliber shell casing was also recovered from the rear compartment of the patrol car. The investigation revealed that Mr. White was in possession of a .25 caliber handgun earlier that evening. Experts determined that the .25 caliber handgun was in close proximity to his body when it was discharged. In addition, gunshot residue was found on both of Mr. White’s hands.
Video footage from earlier that night shows Mr. White reaching around to his front pants pocket area while handcuffed behind his back. Both the state coroner and independent federal medical experts concluded that Mr. White fired the shot while handcuffed. The autopsy revealed a gunshot wound to the chest, with the bullet entering on the right side below the right nipple, and exiting on the left side of the chest near the armpit.
After careful examination of all of the evidence, the USAO, the Civil Rights Division and the FBI determined that the tragic incident did not constitute a prosecutable violation of any federal criminal civil rights statutes.
The U.S. Attorney’s Office for the Western District of Louisiana, the Justice Department’s Civil Rights Division and the FBI devoted significant time and resources to complete a thorough analysis of the evidence and facts developed during the investigation.
The Justice Department is committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated.
U.S. Attorney’s Office in San Diego Collects More Than $37 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
For Further Information, Contact: Executive Assistant U.S. Attorney Blair Perez (619) 546-7963
NEWS RELEASE SUMMARY – December 8, 2015
SAN DIEGO – The U.S. Attorney’s office in the Southern District of California collected over $37 million in civil and criminal actions, including forfeitures, in fiscal year 2015, which ended on Sept. 30, 2015. More than $7.7 million was collected in criminal and civil actions handled solely by the U.S. Attorney’s Office, including $4,311,334 million in criminal actions and $3,477,416 in civil actions.
Additionally, the Southern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,041,041 in civil cases pursued jointly with these offices.
The U.S. Attorney’s office in the Southern District of California, working with partner agencies and divisions, also collected $26.3 million in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used for a variety of law enforcement purposes and to restore funds to crime victims.
“Restitution to victims and taxpayers is another way to ensure that justice is served,” said U.S. Attorney Laura Duffy. “The Southern District of California works hard to increase the amount collected each year through the recovery of ill-gotten gains from illegal activity.”
Major recoveries by the U.S. Attorney’s Office for the Southern District of California in civil cases this year included a case that resolved in May, when five ambulance companies entered into civil settlements with the Department of Justice requiring them to collectively pay more than $11.5 million in payments to the United States to resolve kickback allegations.
The settling defendants include three Orange-County based companies - Pacific Ambulance, Inc. and Bowers Companies, Inc., (both of which were subsequently acquired by Rural/Metro Corporation after the alleged misconduct occurred) and Care Ambulance Service, Inc.; and two San Diego-based companies - Balboa Ambulance Service, Inc., and E.R. Ambulance, Inc.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Attorney General Loretta E. Lynch announced last week that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year (FY) ending Sept. 30, 2015. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office Collects $11,466,944.35 in Fiscal Year 2015Read the Press Release
St. Thomas, USVI – U.S. Attorney Ronald W. Sharpe announced today that the District of the Virgin Islands collected $11,466,944.35 in the fiscal year ending September 30, 2015. Of this amount, $11,242,164.77 was collected in criminal cases and $224,779.58 was collected in civil cases.
Additionally, the District of the Virgin Islands worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,172,157.03 in civil cases pursued jointly with those offices.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in the fiscal year ending September 30, 2015. This amount represents more than seven and a half times the approximately $2.93 billion appropriated for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
In measuring collections recovered in FY 2015, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2015.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” Attorney General Loretta Lynch said. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
United States Attorney Sharpe said: “The recoveries announced today demonstrate that the U.S. Attorney's Office will utilize all means at its disposal to disgorge criminals and fraudsters of illegal and dishonest profits. My office is committed to upholding our laws and ensuring that residents of the Virgin Islands who are the unfortunate victims of crime and other misconduct are made whole.”
The District of the Virgin Islands’ largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud, including Food Stamp fraud, or collected fines imposed on individuals and/or the territory for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Agriculture, Internal Revenue Service, Small Business Administration and Department of Education. The largest criminal collection resulted from a tax fraud case.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Two Sentenced for Cocaine and Firearm Sales in LeominsterRead the Press Release
BOSTON – Two men were sentenced yesterday in U.S. District Court in Worcester in connection with selling cocaine on multiple occasions in Leominster.
Jose Rodriguez, 32, of Fitchburg, was sentenced by U.S. District Court Judge Timothy S. Hillman to 63 months in prison and four years of supervised release. Rodriguez pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute cocaine, four counts of distribution of cocaine and one count of being a felon in possession of a firearm. Julio Alicea-Romero, 27, of Webster, Mass., was sentenced to 36 months in prison and three years of supervised release. Alicea-Romero had pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine and two counts of distribution of cocaine.
The charges against Rodriguez and Alicea-Romero arose from a six-month investigation into drug sales around the Mechanic Street area of Leominster. From June through October 2013, Rodriguez and Alicea-Romero conspired to sell and sold crack cocaine on six occasions to an individual cooperating with law enforcement and to an undercover officer. Rodriguez subsequently sold a loaded .45 caliber handgun to the undercover officer in Leominster on Oct.17, 2013. Rodriguez was previously convicted in 2012 for unlawful possession of a firearm and receiving stolen property.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The investigation was investigated by the DEA High Intensity Drug Trafficking Area Task Force with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Leominster Police Department. The case was prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Ortiz’s Worcester Branch Office.
Two Men Charged with Fentanyl OverdoseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a federal grand jury returned an indictment charging Gary Delima, 26, and Sharif Cargo, 26, both of Brooklyn, New York, with Conspiracy to Distribute a Controlled Substance, Resulting in Death. An additional co-conspirator, Tyson Williams, 31, of Brooklyn and Vermont, was charged with conspiring with Delima, Cargo, and others to distribute at least 28 grams of cocaine base.
Delima, Cargo, and others had been federally indicted on March 18, 2015, on charges related to a conspiracy to distribute heroin and cocaine base in Vermont. A grand jury returned another indictment against them on November 17, 2015, accusing them of sex trafficking by force and coercion of two females, and sex trafficking of a third victim, a minor. Today, a federal grand jury in Burlington returned a Fourth Superseding Indictment, adding new charges related to the July 6, 2014 fentanyl overdose death of a person referred to as G.B. in the indictment. Specifically, the conspiracy was enlarged to include conspiracy to distribute fentanyl, and Delima and Cargo are accused of conspiring with each other and others to distribute the fentanyl that killed victim G.B.
If convicted, Cargo and Delima face a mandatory minimum of 20 years of imprisonment, and up to a maximum of life imprisonment for Conspiracy to Distribute a Controlled Substance, Resulting in Death. Cargo and Delima also face a mandatory minimum of 15 years of imprisonment, and up to a maximum of life imprisonment, for Sex Trafficking by Force and Coercion. Delima faces a mandatory minimum of 10 years of imprisonment, and up to life imprisonment, for the Sex Trafficking of a Child. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty.
United States Attorney Eric S. Miller commended the investigative efforts of the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the South Burlington Police Department; and the Burlington Police Department.
The United States is represented in this matter by Assistant U.S. Attorneys Abigail Averbach and Jonathan Ophardt. Sharif Cargo is represented by Thomas J. Sherrer, Esq. Gary Delima is represented by Brooks G. McArthur, Esq. and David J. Williams, Esq. Tyson Williams is represented by Devin McLaughlin, Esq.Two Members of Dockworkers Union Charged in Scheme that Bilked Health Care Plan by Fraudulently Billing for Chiropractic ServicesRead the Press Release
LOS ANGELES – Two members of the International Longshore and Warehouse Union (ILWU), Local 13, have been arrested on federal fraud charges that allege they caused two medical clinics to bill the union’s health care plan for chiropractic services that either were not provided or were not medically necessary.
Sergio Amador, 49, of Downey, and David Gomez, 52, of San Pedro, were arrested yesterday without incident by federal authorities.
At arraignments yesterday afternoon, Amador and Gomez pleaded not guilty to mail fraud charges contained in an indictment that was returned by a federal grand jury on November 18. Both men were freed on bond and were ordered to stand trial on February 2, 2016.
The ILWU represents dockworkers at the ports of Los Angeles and Long Beach. Members of the union receive benefits, including health care benefits, through the International Longshoremen’s and Warehousemen’s Union – Pacific Maritime Association Welfare Plan.
In 2009, Amador and Gomez opened a clinic in Long Beach operating under the name Port Medical that purported to provide general medical and chiropractic care. The next year, they opened a second clinic operating under the same name in San Pedro.
According to the indictment, Amador and Gomez also created medical management companies that they used to receive funds generated by the medical clinics, which were then used to pay themselves and to pay incentives to Welfare Plan members to use the Port Medical clinics and to encourage other Welfare Plan members to use them. The incentives allegedly included cash payments and sponsorships of sports teams.
The indictment alleges that when some Welfare Plan members went to the Port Medical clinics to receive chiropractic treatment, they were asked to sign their names on multiple sign-in stickers, while on other occasions Welfare Plan members’ signatures on sign-in stickers were forged. According to the indictment, Amador and Gomez then caused the sign-in stickers to be used to create chart entries that falsely indicated the Welfare Plan members had received chiropractic services on dates when no such services had been provided.
The indictment also alleges that Amador and Gomez encouraged Welfare Plan members to go to the Port Medical clinics to receive massages, heat and ice treatments and other services that were not medically necessary – while the patients’ medical charts falsely showed “that the services provided were medically necessary, addressed specific conditions of patients that had been properly diagnosed, and were used to support and facilitate chiropractic care.” Those services – and others never provided – then allegedly were billed to the Welfare Plan. Those bills also concealed that patients had been recruited through the use of cash payments or other incentives.
As a result of the fraudulent scheme, the indictment alleges that Port Medical received at least $225,000 from the Welfare Plan.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The indictment charges both defendants with 20 counts of mail fraud. If they are convicted, each would face a statutory maximum sentence of 20 years in federal prison for each count of mail fraud.
The indictment is the product of an investigation by the U.S. Department of Labor – Office of Inspector General, Office of Investigations; the U.S. Department of Labor – Employee Benefits Security Administration; and the Federal Bureau of Investigation.
Two Former Maverick County Officials Plead Guilty to Federal Bribery ChargesRead the Press Release
In Del Rio today, former Maverick County Precinct 3 Commissioner and Eagle Pass ISD teacher Jose Luis Rosales and former Maverick County Justice of the Peace and businessman Cesar Iracheta pleaded guilty to federal charges in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, Rosales pleaded guilty to one count of receiving a bribe; Iracheta, one count of paying a bribe to an agent of an organization receiving federal funds. By pleading guilty, Rosales admitted that during 2012, he manipulated the bidding process to guarantee that individuals he chose would be awarded Maverick County construction contracts. In the scheme, those contractors deposited the checks issued to them by Maverick County and then made cash payments to Rosales. According to court records, the private contractors submitted inflated bids to Maverick County in order for there to be sufficient funds to pay the bribe to Rosales.
By pleading guilty, Iracheta, doing business as C&A Construction in Maverick County, admitted that in 2010, he paid a total of between $8,000 and $10,000 to a Maverick County Commissioner in order to secure two Precinct 2 County construction contracts worth approximately $49,000. According to court records, Iracheta submitted inflated bids to Maverick County in order for there to be sufficient funds to pay bribes to the County commissioner.
Rosales and Iracheta face up to ten years in federal prison. Both men remain on bond pending sentencing. No sentencing dates have been scheduled.
This ongoing investigation is being conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs and the Eagle Pass Independent School District Police Department. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorney Katherine Griffin is prosecuting this case on behalf of the Government.
Title Company Owner Charged with Misusing FundsRead the Press Release
PHILADELPHIA - Anthony R. Angelo, 69, of Philadelphia PA was charged today by Information with wire fraud and bank fraud, announced United States Attorney Zane David Memeger.
The Information alleges that Angelo was the owner of Aracor Search & Abstract Services, Inc., a title company that provided real estate title insurance services and transactions, located in Philadelphia, Pennsylvania. Because Ararcor was in debt, Angelo caused funds from dedicated escrow accounts to be used to pay off other escrow obligations and operating costs, causing a loss of over $1 million to the victims.
If convicted the defendant faces a maximum possible sentence of 70 years in prison, a $1.5 million fine, a five-year period of supervised release and a $300 special assessment.
The case was investigated by Federal Bureau of Invesitgation and is being prosecuted by Assistant United States Attorney Daniel A. Vélez.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Former Civilian Military Employees and One Military Contractor Sentenced for Bribery Scheme at Georgia Military BaseRead the Press Release
Eight Defendants Convicted to Date in Base-Centered Corruption Probe
Three former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one former employee of a military contractor were sentenced to prison following their guilty pleas to bribery and conspiracy offenses arising from their handling of military trucking contracts and theft of surplus military equipment, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Mitchell Potts, 50, of Sylvester, Georgia, the former head of the Defense Logistics Agency (DLA) Transportation Office at the MCLB was sentenced to 10 years in prison for two counts of bribery. Jeffrey Philpot, 38, of Tifton, Georgia, the former lead transportation assistant under Potts in the DLA Transportation Office, was sentenced to seven years in prison for two counts of bribery. Shelby Janes, 69, of Albany, the former inventory control manager of the Distribution Management Center’s Fleet Support Division (FSD) at the MCLB, was sentenced to two years in prison for bribery. Kelli Durham, 35, of Leesburg, Georgia, the former manager of United Logistics (ULOC), an Albany-based trucking company and transportation broker, was sentenced to six months in prison for conspiracy to commit wire fraud. Collectively, the defendants were ordered to pay more than $2 million in forfeiture and restitution.
According to court documents, between 2008 and 2012, Potts and Philpot accepted hundreds of thousands of dollars in bribes from Christopher Whitman, ULOC’s co-owner, to assure that ULOC was awarded commercial trucking contracts from the base. These contracts were loaded with gratuitous requirements, such as expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. At Whitman’s direction, Durham fraudulently re-brokered the loads obtained from DLA to independent truck drivers, but used far fewer trucks without the additional service requirements for which the government paid. To conceal the fraudulent re-brokering, Durham altered government-issued bills of lading and falsified delivery certifications. Durham also submitted false invoices to the government for payment. As a result of these contracts, ULOC grossed more than $37 million over less than four years and cost the government approximately $20 million in overcharges.
Potts and Philpot admitted to participating in a separate bribery scheme in which they accepted bribes from truck drivers and a broker affiliated with another trucking company that did business with DLA at the MCLB. Between the two schemes, Potts took more than $275,000 in bribes, including cash, free rent, home improvements, meals, a hunting trip and other things of value. Philpot accepted a total of nearly $575,000 in bribes, including cash, a casino getaway, home improvements and collector items such as rare coins, a baby grand piano, a Werlitzer jukebox, firearms and a vehicle.
Court documents further show that Janes accepted nearly $100,000 in bribes from Whitman and used his position within FSD to help Whitman steal more than $1 million in surplus military equipment from the base, including bulldozers, cranes and front-end loaders. To accomplish the thefts, Janes removed the surplus items—many of which had returned from conflict theatres abroad and been designated for refurbishment or auction—from Marine Corps inventory lists and arranged for Whitman’s company to transport them off the base. Whitman then arranged to improve the stolen equipment and sell it to private purchasers.
Earlier this year, a jury in the Middle District of Georgia convicted Whitman, Shawn McCarty, a former DLA transportation assistant, and Bradford Newell, a former FSD contractor, of multiple counts of bribery, honest services fraud, theft of government property and obstruction of justice in connection with the schemes. On Sept. 10, 2015, Whitman was sentenced to 22 years, McCarty was sentenced to 10 years and Newell was sentenced to five years. Whitman was ordered to forfeit $18,860,313.75, McCarty was ordered to forfeit $15,410,151.55 and Newell was ordered to forfeit $513,600. Potts, Philpot, Janes and Durham all cooperated with the government’s investigation and testified in the trial. Furthermore, in February 2014, C.W. Smith, who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property and was subsequently sentenced to probation.
The Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General and the Department of Labor Office of the Inspector General investigated the case. Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case. Assistant Deputy Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Danial Bennett of the Middle District of Georgia are handling forfeiture and restitution.
Three Former Civilian Military Employees and One Military Contractor Sentenced for Bribery Scheme at Georgia Military BaseRead the Press Release
WASHINGTON – Three former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one former employee of a military contractor were sentenced to prison following their guilty pleas to bribery and conspiracy offenses arising from their handling of military trucking contracts and theft of surplus military equipment, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Mitchell Potts, 50, of Sylvester, Georgia, the former head of the Defense Logistics Agency (DLA) Transportation Office at the MCLB was sentenced to 10 years in prison for two counts of bribery. Jeffrey Philpot, 38, of Tifton, Georgia, the former lead transportation assistant under Potts in the DLA Transportation Office, was sentenced to seven years in prison for two counts of bribery. Shelby Janes, 69, of Albany, the former inventory control manager of the Distribution Management Center’s Fleet Support Division (FSD) at the MCLB, was sentenced to two years in prison for bribery. Kelli Durham, 35, of Leesburg, Georgia, the former manager of United Logistics (ULOC), an Albany-based trucking company and transportation broker, was sentenced to six months in prison for conspiracy to commit wire fraud. Collectively, the defendants were ordered to pay more than $2 million in forfeiture and restitution.
According to court documents, between 2008 and 2012, Potts and Philpot accepted hundreds of thousands of dollars in bribes from Christopher Whitman, ULOC’s co-owner, to assure that ULOC was awarded commercial trucking contracts from the base. These contracts were loaded with gratuitous requirements, such as expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. At Whitman’s direction, Durham fraudulently re-brokered the loads obtained from DLA to independent truck drivers, but used far fewer trucks without the additional service requirements for which the government paid. To conceal the fraudulent re-brokering, Durham altered government-issued bills of lading and falsified delivery certifications. Durham also submitted false invoices to the government for payment. As a result of these contracts, ULOC grossed more than $37 million over less than four years and cost the government approximately $20 million in overcharges.
Potts and Philpot admitted to participating in a separate bribery scheme in which they accepted bribes from truck drivers and a broker affiliated with another trucking company that did business with DLA at the MCLB. Between the two schemes, Potts took more than $275,000 in bribes, including cash, free rent, home improvements, meals, a hunting trip and other things of value. Philpot accepted a total of nearly $575,000 in bribes, including cash, a casino getaway, home improvements and collector items such as rare coins, a baby grand piano, a Werlitzer jukebox, firearms and a vehicle.
Court documents further show that Janes accepted nearly $100,000 in bribes from Whitman and used his position within FSD to help Whitman steal more than $1 million in surplus military equipment from the base, including bulldozers, cranes and front-end loaders. To accomplish the thefts, Janes removed the surplus items—many of which had returned from conflict theatres abroad and been designated for refurbishment or auction—from Marine Corps inventory lists and arranged for Whitman’s company to transport them off the base. Whitman then arranged to improve the stolen equipment and sell it to private purchasers.
Earlier this year, a jury in the Middle District of Georgia convicted Whitman, Shawn McCarty, a former DLA transportation assistant, and Bradford Newell, a former FSD contractor, of multiple counts of bribery, honest services fraud, theft of government property and obstruction of justice in connection with the schemes. On Sept. 10, 2015, Whitman was sentenced to 22 years, McCarty was sentenced to 10 years and Newell was sentenced to five years. Whitman was ordered to forfeit $18,860,313.75, McCarty was ordered to forfeit $15,410,151.55 and Newell was ordered to forfeit $513,600. Potts, Philpot, Janes and Durham all cooperated with the government’s investigation and testified in the trial. Furthermore, in February 2014, C.W. Smith, who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property and was subsequently sentenced to probation.
The Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General and the Department of Labor Office of the Inspector General investigated the case. Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case. Assistant Deputy Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Danial Bennett of the Middle District of Georgia are handling forfeiture and restitution.
St. Thomas Taxi Driver Pleads Guilty to Transporting Minor for SexRead the Press Release
St. Thomas, USVI- Lennox Phillips, 58, pleaded guilty today in District Court on St. Thomas to one count of transportation of a minor for sex, United States Attorney Ronald W. Sharpe announced. At the conclusion of the hearing, District Court Judge Curtis V. Gomez remanded Phillips into the custody of the United States Marshals Service. Phillips’ sentencing is scheduled for April 7, 2016.
As part of his plea, Phillips admitted that he befriended a 13-year-old female while transporting her to and from school in his taxi van. During the course of that activity, Phillips and the minor became involved in a sexual relationship, and Phillips transported the minor to secluded areas where they engaged in sexual activity. Phillips’ unlawful conduct came to light when an employee at the minor’s school observed Phillips transporting the minor away from the school on numerous occasions when the minor should have been attending school.
“Anyone who targets children for sexual exploitation should consider themselves a target of HSI and our law enforcement partners,” said Angel M. Melendez, special agent in charge of HSI San Juan and USVI. “Our special agents will continue using their investigative authorities to identify, apprehend and prosecute those who, despite all of our efforts, think they can abuse our children and get away with it.”
Phillips faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment. He also faces a maximum fine of $250,000.
Suspected child exploitation or missing children cases should be reported to the National Center for Missing and Exploited Children via its toll-free 24-hour hotline at 202-514-5678, or U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at (340) 693-2250.
This case was investigated by HSI, the Virgin Islands Police Department, and the Virgin Islands Department of Human Services. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Springfield Man Indicted for Stolen Mail, Credit Card FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for possessing stolen mail and for credit card fraud.
Eric David Vancil, 46, of Springfield, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Vancil illegally possessed approximately 200 pieces of stolen mail containing checks and credit cards belonging to approximately 55 different individuals from Oct. 23, 2013, to April 28, 2015.
Vancil is also charged with using his victims’ credit cards and personal identification numbers to conduct financial transactions.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service and the Springfield, Mo., Police Department.
Sea Turtle Egg Smugglers IndictedRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – December 8, 2015
SAN DIEGO – Olga and Jose Jimenez of Hemet were arrested in connection with the smuggling of 911 sea turtle eggs into the United States from Mexico and charged in a four-count indictment.
According to the indictment, on November 23, 2014, in Nayarit, Mexico, defendant Olga Jimenez boarded a bus destined for Tijuana with a large cooler containing approximately nine small plastic bags filled with a total of approximately 911 sea turtle eggs, while defendant Jose Luis Jimenez drove from Hemet, California, to the Mexican border and crossed into Mexico as a pedestrian with two small coolers.
The indictment alleges that at the bus station in Tijuana, the defendants moved the sea turtle eggs from the large cooler to the two small coolers, concealing them under layers of ice, fish and shrimp. The defendants allegedly gave the coolers to the owner of a pickup truck to bring to the United States, telling the driver the coolers contained only fish and shrimp. According to the indictment, the defendants then crossed back into the United States through the pedestrian lanes, after which Olga Jimenez placed a call to one of the occupants of the pickup truck in order to determine whether the sea turtle eggs had successfully entered the United States. The indictment seeks criminal forfeiture of the eggs.
The indictment alleges that the eggs belonged to endangered Olive ridley and Kemp’s ridley sea turtles. Both Olive ridley and Kemp’s ridley sea turtles were initially identified as endangered under the U.S. Endangered Species Act in 1978 and 1973. In 1981, Olive ridley and Kemp’s ridley sea turtles were placed on Appendix I of the Convention on International Trade in Endangered Species (“CITES”). Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in Olive ridley and Kemp’s ridley sea turtles or any part of those sea turtles, including their eggs, without permission from the respective governments.
According to the National Oceanic and Atmospheric Administration, both Olive ridley and Kemp’s ridley sea turtles display one of the most unique synchronized nesting habits in the natural world. Large groups of turtles gather off shore of nesting beaches and then come ashore all at once to nest in what is known as an arribada. Females nest once or twice a year, laying clutches of approximately 100 eggs and burying them in the sand on the beach. The indictment alleges that during the spectacle of the arribada, the nesting sites are vulnerable to poachers, who collect the eggs for sale for human consumption. The eggs are considered a delicacy in Asia, where they are reputed to have aphrodisiac effects.
Olive ridley sea turtles (Lepidochelys olivacea) inhabit a broad range extending in the South Atlantic Ocean from West Africa to South America and in the eastern Pacific Ocean from Southern California to Northern Chile. Adults weigh approximately 100 pounds and have olive/grayish-green heart-shaped shells measuring 22‑31 inches in diameter.
Kemp’s ridley sea turtles (Lepidochelys kempii) are the smallest marine turtle in the world. Their top shell is grayish green and nearly circular, with a pale yellowish bottom shell. Adults weigh approximately 100 pounds and have shells measuring approximately 24-28 inches in diameter. Kemp’s ridley sea turtles are found in the Gulf of Mexico and the Atlantic Ocean from the Yucatan peninsula in Mexico to New England.
Jose Jimenez was ordered to appear before the Hon. Janis L. Sammartino on January 14, 2016 at 1:30 p.m. for a hearing on all motions in the case. Olga Jimenez, who was arrested in the District of Arizona, was ordered to appear in federal court in San Diego on December 16, 2015, at 9:00 a.m. before the duty magistrate.
“The U.S. Fish and Wildlife Service Office of Law Enforcement, along with our agency partners, is committed to investigating people who exploit endangered and protected species to line their own pockets,” said Jill Birchell, Special Agent in Charge of the agency’s California/Nevada office.
“Smuggling wildlife of any kind, especially endangered species, is something we take seriously,” said Eileen Sobeck, assistant administrator for NOAA Fisheries. “We will not tolerate violation of federal and international laws regarding the illegal trade of endangered species, and we will continue to take a hard stance in combating wildlife trafficking.”
*The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Criminal Case No. 15cr2867-JLS
DEFENDANTS
Olga Jimenez Age: 52
Hemet, California
Jose Jimenez Age: 64
Hemet, California
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Smuggling- Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
Importation Contrary to Law- Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
Unlawful Trafficking in Wildlife-Title 16, U.S.C. Sections 3372 and 3373
Maximum penalty: Five years in prison and $250,000 fine
Criminal Forfeiture- Title 16, U.S.C., Section 3374
AGENCIES
U.S. Fish and Wildlife Service, Office of Law Enforcement;
National Oceanic and Atmospheric Administration, Office of Law Enforcement
Rochester Man Sentenced for Sex Crime Against MinorRead 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 Todd Glenn Dean, 51, of Rochester, NY, who was convicted of enticing a minor to engage in illegal sexual activity, was sentenced to 18 years in prison by U.S. District Judge David G. Larimer.Assistant U.S. Attorney John J. Field, who handled the case, stated that in September 2014, a minor male was approached by the defendant. Dean handed the minor a piece of paper with his telephone number on it. The minor then reported the incident to his mother who exchanged text messages with the defendant. Based on the exchanges, the mother notified law enforcement.
In October 2014, a law enforcement officer, posing as a 15 year old male, exchanged texts with Dean. The two arranged to meet in Genesee Valley Park for the purpose of having sex. The defendant was arrested when he arrived at the park.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
River Ridge Man Pleads Guilty to Fraud in Security System ContractsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WAYNE WILLIAMS, age 37, of River Ridge, pled guilty today a two-count Bill of Information charging him with wire fraud.
According to court records, WILLIAMS was responsible for selling security systems and services, and also for negotiating and signing customer contracts on behalf of ADT Security and Protection One. WILLIAMS was compensated by his employers through commissions received on contracts he negotiated.
WILLIAMS forged a customer’s signature on a $466,046.18 ADT Security equipment and installation services contract. Without ADT Security’s knowledge, the defendant secretly executed a separate contract with the customer in which only $109,148.93 was charged. The defendant received approximately $73,576.72 in commissions from ADT Security as a result of the fraudulent contract.
With regard to Protection One, WILLIAMS forged a purported customer’s signature on an $80,240.48 Protection One equipment and installation services contract. The defendant received approximately $2,353.99 in commissions from Protection One as a result of this fraudulent contract.
With respect to each count, WILLIAMS faces a maximum term of imprisonment of twenty years incarceration, three years of supervised release after any term of imprisonment, and a $250,000 fine. U.S. District Judge Jay C. Zainey set sentenced on March 8, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Repeat Offender Convicted in Minnesota of Possession of Child PornographyRead the Press Release
A jury found Frank Russell McCoy, 72, guilty of possession of child pornography after a two-day trial, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
For years, McCoy has written and distributed short stories describing extreme sexual abuse and other acts of violence perpetrated against very young children. In 2013, he was convicted in the Middle District of Georgia of one count of transportation of obscene matters after sending one such story via the Internet to an Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) undercover agent. On Dec. 17, 2013, while McCoy was on bond pending an appeal of his conviction, a U.S. Probation officer observed large numbers of computers and related equipment in McCoy’s home in Minnesota. A search of the computer equipment revealed dozens of videos of child exploitation. Though McCoy had installed forensic wiping software, intended to destroy any evidence of child exploitation images on his computers, the majority of those files had been written onto a portable video player device just before the seizure of the devices.
U.S. District Judge Patrick J. Schiltz of the District of Minnesota presided over the trial. McCoy is scheduled to be sentenced on April 5, 2016.
ICE-HSI investigated this case. Assistant U.S. Attorney Katharine T. Buzicky of the District of Minnesota and Trial Attorney Jeffrey Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Repeat Offender Convicted of Possession of Child Pornography Depicting Sexual Abuse of Young ChildrenRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the trial conviction of FRANK RUSSELL MCCOY, 72, who was indicted on January 22, 2015, in the District of Minnesota. A jury returned a guilty verdict after a two-day trial before U.S. District Judge Patrick J. Schiltz. The defendant is expected to be sentenced on April 5, 2016.
According to documents filed in court, MCCOY wrote and distributed short stories describing extreme sexual abuse and other acts of violence perpetrated against very young children. He was convicted in 2013 in the Middle District of Georgia of one count of transportation of obscene matters after sending one such story via the internet to an undercover Homeland Security Investigations agent.
As proven at trial, on Dec. 17, 2013, while MCCOY was on bond pending an appeal of his conviction from Georgia, a U.S. Probation officer observed large numbers of computers and related equipment in MCCOY’s home in Minnesota. A search of the computer equipment revealed dozens of videos of child exploitation. Though MCCOY had installed forensic wiping software, intended to destroy any evidence of child exploitation images on his computers, the majority of those files had been written onto a portable video player device just before the seizure of the devices.
Approximately one month prior to trial, MCCOY was interrupted in the process of typing a sexually explicit story describing the sexual abuse of a young child by her grandfather while he was on supervised and pretrial release and living in a halfway house in the Twin Cities.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky and Trial Attorney Jeffrey H. Zeeman of the Child Exploitation and Obscenity Section of the Department of Justice.
Defendant Information:
FRANK RUSSELL MCCOY, 72
Ostego, Minn.
Convicted:
- Possession of child pornography involving a prepubescent minor, one count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Previously Convicted Sex Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Charles Henry Crocker, age 45, of Phoenix, Maryland, today to 10 years in prison followed by 25 years of supervised release for possessing child pornography. Judge Bennett ordered that upon his release from prison, Crocker must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on July 18, 2003, Crocker was convicted of possession of child pornography in federal court in Florida, sentenced to 27 months in prison and ordered to register as a sex offender.
On April 25, 2015, an undercover Baltimore County Police detective connected to the internet and downloaded a movie file that was being made available by an internet user. The file contained a visual depiction of a minor engaging in sexually explicit conduct. Further investigation revealed that Crocker had made the file available.
On May 1, 2015, Baltimore County Police officers executed a search warrant at Crocker’s residence and seized a laptop, desktop computer and two external hard drives. Crocker admitted that he began looking at child pornography a couple years after being release from prison from his prior conviction. Previews of the electronic devices revealed several videos. A subsequent forensic review of the devices revealed additional videos. The videos included between 300 and 600 images of child pornography, including those involving prepubescent females.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Baltimore County Police Department, FBI and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney David P. Kehoe, and Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Physician’s Assistant and Husband Charged with Conspiracy to Unlawfully Distribute OxycodoneRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former assistant to a York physician and her husband were charged in U.S. District Court with conspiracy to obtain and distribute up to 20,000 units of oxycodone through fraud and forgery.
According to United States Attorney Peter Smith, Amy Schneider, age 29, and Joseph Schneider, age 29, both of York, were charged in a Criminal Information with conspiracy and distribution of oxycodone. Amy Schneider is also charged with illegally using a Drug Enforcement registration to obtain a controlled substance. Joseph Schneider is charged with acquiring a prescription by fraud or forgery.
The government also filed a plea agreement in the case which recommends that Amy and Joseph Schneider should be held responsible for between 10,000 and 20,000 units (tablets) of oxycodone. The plea agreement is subject to the approval of the Court.
Amy Schneider was the office manager for a physician practicing in York. She was permitted to use pre-signed prescription forms each week. The forms, intended to be used to write prescriptions for refills for patients, were fraudulently used to obtain oxycodone tablets for the Schneiders.
Beginning in approximately January 2014 and continuing until May 2015, Amy Schneider allegedly wrote prescriptions for Joseph Schneider who allegedly took the forms to pharmacies to be filled. The oxycodone tablets were then divided between Amy and Joseph Schneider. Some of the tablets were distributed to others.
The case was investigated by the Drug Enforcement Administration (DEA) and is assigned to Assistant U.S. Attorney Christy H. Fawcett.
The U.S. Attorney’s Office and DEA are continuing to investigate the handling of prescriptions by Defendant Amy Schneider’s employer.
Criminal conspiracy to distribute a controlled substance and distribution and possession with intent to distribute a controlled substance both carry a maximum penalty of 20 years’ imprisonment, a $1 million fine, and a life term of supervised release. The offense of unlawful use of a DEA number is punishable by up to four years’ imprisonment, a $250,000 fine, and three years of supervised release. Acquiring a controlled substance by fraud or forgery is punishable by a maximum sentence of four years’ imprisonment, a $250,000 fine, and three years’ supervised release.
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.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Palmyra Man Sentenced for Possession 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 Noah R. Scribner, 23, of Palmyra, NY, who was convicted of possession of child pornography, was sentenced to time served and 96 months of supervised release by U.S. District Court Judge David G. Larimer. The defendant must also register as a sex offender, and was ordered to forfeit all the digital media used in the commission of the crime.Assistant U.S. Attorney Craig R. Gestring, handled the case, stated that the New York State Police and Federal Bureau of Investigation conducted an online child pornography investigation in December 2013. During that case, they learned that child pornography had been uploaded to a Google cloud drive account. Investigators linked that activity to the defendant, and traced his physical location to a residence in Palmyra. A search warrant was executed and numerous digital items were seized.
During the investigation, Scribner told law enforcement officers that he found the child pornography images and videos online by using certain search terms. The defendant also admitted that he would ask other online users to send him online "links" to other child pornography sites and images. Scribner acknowledged that, in return, he would send those users links with child pornography as well. The defendant estimated that he traded child pornography with others 100 times or more and said that the people he communicated with online (about child pornography) could be from anywhere in the world. At the time he downloaded the images, Scribner believed what he was downloading constituted child pornography.
A forensic review of the digital material seized from Scribner located images of children being sexually abused on several items, including a laptop and Apple iPod. Some of the images depicted prepubescent minors or minors under twelve years old being raped, as well as images which portrayed sadistic or masochistic conduct or other depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation by the New York State Police, under the direction of Major Craig Hanesworth and the Federal Bureau of Investigations Child Exploitation Task Force consisting of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Homeland Security Investigations.
PCP Dealer Convicted of Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – A federal jury convicted George Jack Smith, age 28, of Burtonsville, Maryland, late yesterday for possession with intent to distribute phencyclidine (PCP), illegal possession of a firearm by a previously convicted felon; and using, carrying and discharging a weapon in connection with drug trafficking.
The conviction 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; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to evidence presented at the five day trial, on December 1, 2013, Smith got into a vehicle outside an apartment complex in the 9300 block of Cherry Hill Road in College Park, Maryland, in order to sell PCP to the vehicle’s occupants. One of the vehicle’s occupants pulled out a knife. Smith got out of the car and fired a gun in the direction of the vehicle as it drove away. One of the bullets broke a pane of glass at the entrance to the apartment building.
Witnesses testified that a short time later, Smith got into a taxi, which was stopped by law enforcement at the apartment complex. Smith was ordered out of the cab and taken into custody. Law enforcement recovered the following items from the pockets of Smith’s jacket: a vial containing ¾ ounce of PCP; a loaded .380 caliber pistol, which had been reported stolen; and a .38 caliber revolver with five spent rounds.
Smith had at least two previous felony drug convictions and a conviction for robbery conspiracy, all in Montgomery County Circuit Court, and was therefore prohibited from possessing firearms or ammunition.
Smith faces a maximum of 20 years in prison for possession with intent to distribute PCP, a maximum of 10 years in prison for being a felon in possession of a firearm, and a mandatory minimum of 10 years and up to life in prison for using, carrying and discharging a firearm during a drug trafficking crime. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 1, 2016, at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Nicolas A. Mitchell and Kristi N. O’Malley, who are prosecuting the case.
Owner of Utah-Based Pharmaceutical Wholesale Distributor Charged in Hundred-Million-Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging RANDY CROWELL, a/k/a “Roger,” with fraudulently distributing, through his Utah-based wholesale distribution company, more than $100 million worth of prescription drugs obtained through a nationwide black market – drugs that were then dispensed by pharmacies to unsuspecting customers. This scheme was not only profitable for CROWELL, but also dangerous to the thousands of patients who ultimately took these black market medications not knowing that they had been previously prescribed to others and then resold and trafficked, often in unsafe conditions. CROWELL was arrested at his home in Henderson, Nevada, and will be presented before U.S. Magistrate Judge Cam Ferenbach this afternoon in the U.S. District Court for the District of Nevada. The case has been assigned to Judge Edgardo Ramos in U.S. District Court for the Southern District of New York.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Randy Crowell perverted the system designed to ensure patients receive safe and effective medication, making millions in the process. Crowell’s alleged crime victimized not only benefit programs like Medicaid, but also countless everyday people suffering from illnesses who had no idea their medicine had been diverted from the legitimate stream of commerce and could be dangerous to consume.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The crime alleged today details an insatiable desire to generate revenue at the expense of those in need of true medical care. Targeting the most vulnerable sources of supply, namely Medicaid patients and others with subsidized benefits, scheme participants encouraged sick people with serious illnesses to forego medical treatment in exchange for profit. This put others at risk of unknowingly purchasing mishandled medication. While many social benefit programs are subject to fraud, estimates of fraudulent billings to public health care programs are in the tens of billions. It’s essential that all levels of law enforcement work together as closely as possible in an effort to eradicate drug distribution on the black market and combat fraud to taxpayer-funded programs.”
Police Commissioner William J. Bratton said: “This investigation demonstrates the relentless efforts of the Healthcare Fraud Task Force to bring to justice those who would profit from the distribution of illegal medications. I commend the efforts of the investigators involved in this case whose work resulted in this arrest.”
According to the allegations contained in the indictment[1] unsealed today in Manhattan federal court:
From early 2010 until at least July 2012, CROWELL, who was the owner and operator of a licensed wholesale distributor of prescription medications based in St. George, Utah (“Wholesaler-1”), participated in a sophisticated scheme to defraud health insurance companies and Government programs such as Medicaid out of hundreds of millions of dollars by trafficking prescriptions through a nationwide black market. CROWELL, through Wholesaler-1, purchased, for more than $100 million, prescription medications from this black market at a fraction of the legitimate prices for these drugs, before selling the same as new, legitimate bottles of medication to pharmacies all over the country.
To maximize their profits, CROWELL and his co-conspirators focused on some of the most expensive medications on the market, including those used to treat HIV/AIDS. The scheme was not only profitable but potentially dangerous to the tens of thousands of patients ultimately receiving and taking these prescription drugs. As detailed below, many of the bottles purchased through the underground market and then distributed as safe, legitimate medications by CROWELL and Wholesaler-1 had in fact been previously dispensed to others, including individuals based in the Southern District of New York. To conceal the fact that they had been previously dispensed, the bottles were typically “cleaned” with hazardous chemicals such as lighter fluid before being transported and stored in conditions that were frequently unsanitary and insufficient to ensure the safety and efficacy of the medication.
In total, between 2010 and July 2012, CROWELL and Wholesaler-1 paid more than $100 million to buy medications from illegitimate sources of supply, with CROWELL personally earning, during that time period, nearly $16 million from his operation of Wholesaler-1.
THE SCHEME TO DEFRAUD
The fraudulent scheme charged in the Indictment operated by distorting the legitimate flow of medications from manufacturer to pharmacy. Rather than purchasing medications from manufacturers or legitimate authorized distributors at full price, scheme participants, including CROWELL, created and exploited an underground market for these same prescription drugs. Scheme participants targeted the cheapest possible source of supply for these drugs – Medicaid patients and other individuals who received these prescription drugs on a monthly basis for little or no cost, and who were then willing to sell their medicines rather than taking them as prescribed (the “Insurance Beneficiaries”).
Insurance Beneficiaries had prescriptions filled for medications each month at pharmacies across the country, including in Manhattan and the Bronx, and then sold their medications to low-level participants (“Collectors”) in the scheme who worked on street corners and bodegas and would pay cash – typically as little as $40 or $50 per bottle. Every major health care benefit program, including Medicaid, expressly prohibits a beneficiary from seeking care under such circumstances, and health care benefit programs would not have paid for the medications issued by pharmacies to the Insurance Beneficiaries had these health care benefit programs known that the Insurance Beneficiaries were selling their drugs to others, rather than taking them as prescribed.
Because the ultimate goal of the scheme was to resell these medications as new at full price, Collectors and other scheme participants used lighter fluid and other potentially hazardous chemicals to remove the patient labels affixed when the bottles were initially dispensed to the Insurance Beneficiaries. This process, referred to as “cleaning” the bottles, was dangerous, as these hazardous chemicals could infiltrate the bottles rendering the medication unfit for human consumption.
Collectors then sold these second-hand drugs to higher-level scheme participants (“Aggregators”) who bought dozens, and sometimes hundreds, of bottles at a time from multiple collectors before selling them to higher-level scheme participants with direct access to legitimate distribution channels, including corrupt wholesale companies like Wholesaler-1. The corrupt wholesale companies, including Wholesaler-1, then resold the bottles as new to pharmacies, including potentially the very same pharmacies that initially dispensed these medications, at full price. In so doing, and as described below, CROWELL and other corrupt wholesale companies intentionally misrepresented where these medications were coming from and, in particular, concealed the fact that these prescription drugs had been obtained from an illegal and illegitimate black market.
CROWELL AND WHOLESALER-1
Central to the scheme’s success was the participation of corrupt, licensed wholesale distributors willing to buy the “second hand” medications at a fraction of their legitimate price and then resell them as new to pharmacies that would in turn dispense these medications to unsuspecting patients. CROWELL and Wholesaler-1 were among the largest of these corrupt wholesalers.
Between 2010, when Wholesaler-1 was created by CROWELL, and July 2012, Wholesaler-1 had no legitimate sources of supply. Instead, CROWELL caused Wholesaler-1 to purchase exclusively from illegitimate sources – including the so-called “Aggregators” – who sold to CROWELL at substantially reduced rates, sometimes as much as 50 percent less than the price of acquiring these medications from legitimate sources. Consistent with their illegitimate origins, inbound shipments of prescription drugs frequently arrived at Wholesaler-1 improperly packaged in unsealed, unsecure cardboard boxes. On some occasions, bottles of medication arrived at Wholesaler-1 with the initial patient labels still affixed to them. On other occasions, bottles arrived having already been opened, or containing what appeared to be the wrong medication. At the direction of CROWELL, employees of Wholesaler-1 then inventoried these bottles, attempted to remove any bottles that still had patient labels affixed to them or were otherwise visibly used or damaged, and then arranged for the medications to be shipped out to Wholesaler-1’s customers – i.e., pharmacies all over the country, including pharmacies in Manhattan and the Bronx.
To effectuate the scheme – and, in particular, to convince pharmacies to buy these medications, and health care benefit programs to pay for them, CROWELL and others made false and fraudulent representations about the origins of these medications. Specifically, CROWELL and others acting at his direction created false and fraudulent documents known as “pedigrees” for these medications, which purported to document the legitimate movement of these medications bought and sold by Wholesaler-1 from a manufacturer to the pharmacy. In truth, and as CROWELL well knew, none of the medications purchased or distributed by Wholesaler-1 had come from legitimate sources of supply, and the pedigrees created by Wholesaler-1 and signed by CROWELL were intentionally fabricated so that the medications could be sold, as new, to pharmacies and so that health care benefit programs would be duped into paying for these illegitimate second-hand drugs.
In order to evade detection, CROWELL took additional steps to conceal the unlawful nature of his activities, including using the name “Roger,” frequently changing or “dropping” the phones he used to communicate with co-conspirators, and paying co-conspirators through front or “sham” companies.
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CROWELL is charged with one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years in prison, one count of conspiracy to commit mail and wire fraud, which carries a maximum sentence of 20 years in prison, one count of conspiracy to violate the Food, Drug and Cosmetics Act, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the New York FBI’s Health Care Fraud Task Force, which comprises agents, officers and investigators from the FBI, the NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management's Inspector General, U.S. Food and Drug Administration, U.S. Health and Human Services Office of Inspector General, New York State Office of Medicaid Inspector General, New York Health and Hospitals Corporation Inspector General, and the National Insurance Crime Bureau.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit.Assistant U.S. Attorneys Edward B. Diskant and Matthew Podolsky are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment forth herein constitute only allegations, and every fact described should be treated as an allegation.
Oklahoma City Pimp Sentenced to 92 Months in Prison for Transporting a Juvenile Across State Lines for the Purpose of ProstitutionRead the Press Release
Oklahoma City, Oklahoma – Today, PHILIP GATSON, (aka "Young Selo") 24, of Oklahoma City, was sentenced by United States District Judge Robin J. Cauthron to serve 92 months in federal prison for transporting a child under age 18 across state lines for the purposes of engaging in prostitution, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Following his release from prison, Judge Cauthron ordered that Gatson serve five years of supervised release that includes conditions of registration as a sex offender, computer restrictions, and limitation on being around children under the age of 18 years of age.
Gatson was indicted on December 9, 2014, and pleaded guilty on August 5, 2015, to a Superseding Information alleging that from September 2013 to October 15, 2013 he transported a juvenile across state lines to engage in prostitution. Reference is made to the court record for further information.
This case is the result of an investigation by the Oklahoma City Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Robert Don Gifford, II.
Ohio Man Sentenced to Federal Prison for Mail FraudRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced David Brooks (40, Ohio) to four years in federal prison for mail fraud. The Court ordered that this sentence be served consecutive to a seven-year state sentence in Ohio for a violation of probation, based on the same underlying conduct. As part of his federal sentence, the Court also entered a money judgment in the amount of $792,851, the proceeds of the fraud scheme.
Brooks pleaded guilty on September 17, 2015.
According to court documents, in October 2011, Coastal Orthopedics and Sports Medicine of Southwest Florida (“Coastal”), located in Bradenton, hired Brooks as its Financial Accounting Manager. While working for Coastal, Brooks was convicted of theft, money laundering, and other fraud-related offenses in Ohio. When Coastal discovered this information in June 2013, they fired Brooks and commenced a review of its books and records to which Brooks had access.
Employees for Coastal discovered that between approximately January 2012 and June 19, 2013, Brooks had used company accounts to purchase more than $700,000 worth of American Express gift cards. Brooks then used the giftcards to pay for personal expenses, including multiple hotel stays, plane tickets, legal fees for his Ohio criminal case, and a 2012 Jeep Liberty. A review of Coastal’s financials also revealed that Brooks, without authorization, had diverted payroll funds, which resulted in him receiving double his salary per pay period.
In total, Coastal suffered a loss of $792,851.79 a result of Brooks’s efforts to defraud the medical practice.
This case was investigated by the United States Secret Service and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Ohio Man Indicted for Soliciting the Murder of Members of the U.S. MilitaryRead the Press Release
A six-count indictment was filed today charging an Akron, Ohio, man for soliciting the murder of members of the U.S. military.
Terrence J. McNeil, 25, was indicted on three counts of solicitation of a crime of violence and three counts of threatening military personnel. He was arrested on Nov. 12, 2015, on federal charges that he solicited the murder of members of the U.S. military.
The charge was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“According to the indictment, Terrence McNeil solicited the murder of members of our military by disseminating ISIL’s violent rhetoric, circulating detailed U.S. military personnel information and explicitly calling for the killing of American service members in their homes and communities,” said Assistant Attorney General Carlin. “ISIL and its followers continue to use social media in an attempt to incite violence around the world, including in the United States. The National Security Division's highest priority is counterterrorism and we will use all of our tools to disrupt threats and acts of violence against our military members and their families.”
“We owe it to our servicemen and women to protect their safety at home after they fought abroad to protect our freedom,” said U.S. Attorney Dettelbach. “This defendant is charged with urging harm to our men and women in uniform and will now answer for those threats.”
“While we aggressively defend First Amendment rights, the individual arrested went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “We will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to the indictment:
McNeil maintained social media accounts on several social media web sites, including Facebook, Twitter and Tumblr. He repeatedly professed his support on social media for the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch.
The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
On Oct. 3, 2015, McNeil posted on his Twitter account: “Released - Address of the US Navy Seal [R.O] who killed Sheikh Osama Bin Laden R.A. - #GoForth #RunRobertRun.”
The defendant included in his post an embedded link that when clicked revealed the purported address of R.O. and a link to R.O.’s purported photograph. The link further stated that R.O. “is a mummy’s boy who has been trying to hide yet still lives with his father…and mother…In between going around America to conferences boasting at how his ‘claim to fame’ is killing Sheikh Osama Bin Laden R.A. …I am posting his address to brothers & to Al Qaeda in the U.S. as a number one target.”
On Oct. 3, 2015, McNeil posted the content regarding R.O. and his address and photograph from the embedded link described above onto his Tumblr page. McNeil added the statement, “don’t let this kafir sleep peacefully,” to his Tumblr post.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. Each solicitation count carries a statutory maximum sentence of 20 years in prison, and each threat count carries a statutory maximum sentence of five years in prison.
An indictment is only a charge and not evidence of guilt. It is the government’s burden to prove the case beyond a reasonable doubt, and a defendant is presumed innocent until that time.
The case is being investigated by the FBI’s Joint Terrorism Task Force in Cleveland. This case is being prosecuted by U.S. Attorney’s Office of the Northern District of Ohio and the National Security Division’s Counterterrorism Section.
McNeil Indictment
Ohio County deputies to carry overdose reversal medicationRead the Press Release
WHEELING, WEST VIRGINIA – The Ohio County, West Virginia Sheriff’s Office is adding a new tool to its arsenal in the effort to save the lives of drug overdose victims, United States Attorney William J. Ihlenfeld, II, and Sheriff Pat Butler announced.
Deputies in Ohio County will soon be equipped with Narcan, a medication which reverses overdoses caused by heroin and prescription painkillers and other opioids. Legislation passed earlier this year in West Virginia permits police officers to administer the life-saving drug, and the Ohio County Sheriff’s Office will be one of the only law enforcement agencies in the state where each officer will carry it. Federal funding has been secured to provide for the start-up costs.
“It is important to capitalize on every opportunity we have to make our neighborhoods safer and Narcan is a powerful tool in this effort,” said Ihlenfeld. “I’m excited to be part of a program that will save lives and give individuals struggling with addiction an opportunity to seek treatment, and I commend Sheriff Butler for adopting the policy for his department.”
All deputies with the Sheriff’s office will receive training on how to identify the symptoms of an opioid overdose and how to administer the medication.
Opioid drugs, such as prescription painkillers and heroin, are derived from morphine in the opium poppy plant. The morphine contained in these drugs binds to opioid receptors in the brain and increases the production of dopamine, which generates a euphoric feeling in the user. Opioid drugs can also slow breathing enough to deprive the brain and other vital organs of oxygen, which can lead to overdose or death. Opioid antagonist medications like Narcan, also known as Naloxone, restore normal breathing by blocking the opioid drugs.
Law enforcement agencies and community organizations interested in obtaining more information about opioid antagonist medications or scheduling training sessions regarding the legal framework surrounding these medications are encouraged to contact Tara Tighe at the United States Attorney’s Office at (304) 234-0100.
Notice of Press ConferenceRead the Press Release
Contact Person: First Assistant U.S. Attorney Beth Drake (803) 929-3000
COLUMBIA, SOUTH CAROLINA -- United States Attorney Bill Nettles and Fourteenth Circuit Solicitor Duffie Stone will hold a press conference Thursday, December 10, 2015, at the Fourteenth Circuit Solicitor’s Office to announce a new partnership between the Fourteenth Circuit Solicitor’s Office and the U.S. Attorney’s Office aimed at taking armed career criminals off the streets.
WHEN: Thursday, December 10, 2015 TIME: 10:00 a.m. WHERE:Fourteenth Circuit Solicitor's Office
39 Sheridan Park Circle, Ste. 2
Bluffton, SC 29910NOTE: Press inquiries regarding logistics should be directed to Erinn McGuire at 843-255-5911. All media must present government-issued photo id (such as a driver’s license). All media should be in place 20 minutes prior to start. Parking will be available in front of the Solicitor’s Office.
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Northern District of Indiana U.S. Attorney’s Office Collects Nearly $11,000,000 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
HAMMOND – U.S. Attorney David Capp announced today that the United States Attorney’s Office, Northern District of Indiana collected nearly $11M in criminal and civil actions in Fiscal Year (FY) 2015. This money, U.S. Attorney Capp explained, is returned to the United States Treasury and is substantially in excess of the operating budget for the United States Attorney’s Office. U.S. Attorney Capp stated, “We have a great team of lawyers and support staff, civil and criminal, which focuses regularly on collecting money due to the taxpayers of the United States.”
Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
In addition to our collection efforts, U.S. Attorney Capp also announced that his office, working with partner agencies and divisions, collected $7,721,481.00 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used for crime victims and for a variety of law enforcement purposes.
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Northern District of California U.S. Attorney’S Office Collects $284,894,493 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
SAN FRANCISCO- Acting U.S. Attorney Brian J. Stretch announced today that the Northern District of California collected $284,894,493 in criminal and civil actions in Fiscal Year 2015. Of this amount $255,375,956 was collected in criminal actions and $29,518,537 was collected in civil actions.
Additionally, the U.S. Attorney’s Office worked with other offices and components of the Department of Justice to collect an additional $40,522,904 in cases pursued jointly with these offices. Of this amount, $32,438 was collected in criminal actions and $40,490,465 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ Offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“The recovery of hundreds of millions of dollars from criminal and civil defendants by this Office is a testament to the hard work of our Financial Litigation Unit,” said Acting U.S. Attorney Brian J. Stretch. "Our Office will continue to work tirelessly to recoup victims' losses and to disgorge profits from those who enrich themselves through crime and other violations of federal law.”
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights, and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
In addition to the amounts listed above, the U.S. Attorney’s office in the Northern District of California, working with partner agencies and divisions, collected $5,015,667 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.