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Friday 14 November 2014
Army Sergeant Pleads Guilty to Theft of Military EquipmentRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III, announces that Luis Rafael Infantes (21, Elizabethtown, KY) has pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Infantes’s father, Pedro Luis Infantes, previously entered a guilty plea to the same charge on October 21, 2014. His sentencing date has been scheduled for January 22, 2015.
According to the plea agreement, on July 11, 2014, Infantes and his father unwittingly met with a confidential source who was working in cooperation with law enforcement. Infantes and his father believed that the source had connections to potential buyers affiliated with Mexican drug trafficking organizations. Ultimately, Infantes and his father negotiated a sale price of $153,500 for 17 military-grade, thermal- imaging monoculars, rifle cleaning kits, and other assorted military equipment that had been stolen from the government.
When the father later attempted to complete the transaction, he was arrested and interviewed by the FBI. The father provided false statements to agents about how he had acquired the military items and how the serial numbers on the items had been removed. Pedro Luis Infantes stated that he had purchased the equipment in that condition at assorted gun shows. In reality, Luis Rafael Infantes, an active-duty supply sergeant for the United States Army, had stolen the items from the Fort Knox military installation.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Alton Man Sentenced for Distribution of CocaineRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Demarcus O. Johnson, 30, of Alton, Illinois, was sentenced on Friday, November 14, 2014, to 151 months in federal prison for distribution of cocaine.
Johnson pled guilty on August 13, 2014, at which time he admitted selling cocaine to a police informant in Alton on September 23, 2013.
At Johnson’s sentence hearing, Judge Reagan noted that Johnson was a “career offender” under applicable federal sentencing guidelines, because Johnson had prior felony convictions for drug trafficking and aggravated fleeing from police. Judge Reagan stated that “your sentence is being determined in large part by your extensive criminal history.”
The investigation which resulted in Johnson’s arrest and conviction was conducted by the Alton Police Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Alton Man Pleads Guilty in Heroin Overdose DeathRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that on Thursday, November 13, 2014, Glenn P. Lowers pled guilty in U.S. District Court in East St. Louis, Illinois to a federal charge of Distribution of Heroin Resulting In Death.
At his change of plea hearing, Lowers, 21, of Alton, Illinois, admitted that he had sold heroin to his friend Joshua S. Shelton on September 3, 2013. Shelton’s grandfather discovered Shelton’s body at Shelton’s Alton residence a few hours after the heroin sale occurred. An autopsy established that Shelton had died from injecting heroin. Shelton was 21years old when he died.
Lowers’ sentence hearing is scheduled for February 5, 2015. Lowers will be confined until he is sentenced. Lowers faces a maximum possible sentence of 20 years in federal prison.
The investigation which resulted in the successful prosecution of Lowers was conducted by the Alton Police Department.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Alien Smuggler and 6 Others Indicted on Immigration-related ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned seven (7) indictments arising from an investigation into the transportation of illegal aliens.
Sabino Guerrero-Estrada, age 27, of Mexico, was indicted yesterday for transporting illegal aliens within the United States for commercial or private financial gain. According to the indictment, on October 17, 2014, the defendant was driving a sports utility vehicle on Interstate 12 in Baton Rouge containing numerous illegal aliens, including six individuals who allegedly had previously been deported from the United States. Those six individuals have been indicted for illegal re-entry by a previously removed alien and include Maria E. Ixtlilco-Barreto, Osvaldo Rosas-Valencia, Lorenzo Hernandez-Fabian, Daniel Hernandez-Fabian, Mario Mata-Cigarrero, and Dimas Rodriguez-Uriostegui.
U.S. Attorney Green stated: “The integrity of a nation’s borders and its immigration laws – to control who and what comes into and out of the country – is fundamental to any nation’s security. This is why Congress has passed numerous acts related to border security, immigration, and work-site enforcement. For the same reason, my office, together with our partners at the U.S. Department of Homeland Security, Homeland Security Investigations (HIS) and the U.S. Border Patrol, recognize the importance of enforcing the immigration laws.”
New Orleans HSI Special Agent-in-Charge Raymond R. Parmer, Jr., stated: “Human smugglers routinely treat people as little more than cargo and place aliens at great risk of harm all in the name of illegal profits. HSI’s excellent partnership with U.S. Border Patrol sends a strong message that the U.S. border is not open to illegal migration and individuals who place their fates into the hands of coyotes face significant risks during the journey along with prosecution and removal from the country once caught.”
New Orleans Sector Border Patrol Chief Jonathan Richards stated: “The New Orleans Border Patrol Sector’s efforts with its DHS partners reduces the ability of criminal organizations to exploit transportation routes within the area and degrades their ability to conduct criminal acts.”
This matter was investigated by the Baton Rouge offices of the U.S. Border Patrol and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). These matters are being prosecuted by Special Assistant U.S. Attorney J. Brad Casey.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Albuquerque Man Sentenced to 151 Months in Prison for Robbing Bank in January 2012Read the Press Release
Prior Felon Prosecuted Under Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Abran Felipe Armijo, 46, of Albuquerque, N.M., was sentenced yesterday to 151 months in federal prison followed by three years of supervised release for his bank robbery conviction. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Albuquerque Police Chief Gorden Eden, Jr.
Armijo was arrested on Jan. 4, 2012, and charged by criminal complaint with robbing the BBVA Compass Bank branch located at 13140 Central Avenue SE in Albuquerque on that day. Armijo subsequently was indicted on that same charge.
Court filings reflect that on Jan. 4, 2012, Armijo entered the bank, verbally demanded money from a bank teller, and threatened the teller to comply with his demand. After the bank teller gave money to Armijo, he fled from the bank on foot. Acting on a tip, officers of the Albuquerque Police Department located Armijo in an apartment in southeast Albuquerque where he was hiding in a closet with a plastic bag containing money. Armijo was arrested after a witness positively identified him as the bank robber.
On July 25, 2013, Armijo pled guilty to the indictment without the benefit of a plea agreement.
Armijo’s sentence in this case was enhanced because of his status as a career offender. He was convicted of a crime of violence after having been previously convicted of at least two crimes of violence, two controlled substances crimes or a combination of the two types of offenses.
Armijo was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was prosecuted by Assistant U.S. Attorney Louis E. Valencia based on an investigation by the Albuquerque office of the FBI and the Albuquerque Police Department.Akron Doctor Charged for Illegally Distributing Prescription PainkillersRead the Press Release
A criminal information was filed charging an Akron physician with illegally distributing tens of thousands of doses of prescription painkillers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Brian Heim, age 56, was charged with one count of conspiracy to distribute controlled substances and 20 counts of distribution of controlled substances.
“Our region is awash in opioids that have brought heartbreak and suffering to countless families,” Dettelbach said. “We will continue to work with the DEA to identify and prosecute physicians who illegally divert pills.”
Heim is registered with the State of Ohio Medical Board as a medical doctor specializing in family medicine, obstetrics and gynecology. From August 2011 through October 2012, Heim and others agreed to illegally distribute thousands of doses of prescription painkillers to customers from Heim’s office at 3562 Ridge Park Drive, Suite A, in Akron, according to the information.
Heim distributed and dispensed more than 30,000 tablets of Oxycodone, Oxycontin and Opana to various individuals for which there was not a legitimate medical purpose. He did this by one or more of the following manners: without adequate verification of the patient’s identity or medical complaint; without adequate and reliable patient medical history; without performance of a complete or adequate examination; without establishment of a true diagnosis; without the use of appropriate diagnostic or laboratory testing, and others, according to the information.
Heim and others did this by using pre-signed blank prescription forms upon which Heim’s staff would fill in the controlled substance and dosage to be prescribed, according to the information.
The case was prosecuted by Assistant U.S. Attorney Vasilie C. Katsaros following an investigation by the Drug Enforcement Administration.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge 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.Abilene, Texas, Man Sentenced to 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Justin Turcheck, 29, of Abilene, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 78 months in federal prison, following his guilty plea in August 2014 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Turcheck is currently in federal custody. Judge Cummings revoked his pre-trial release last month, finding that Turcheck had violated his conditions of release.
Turcheck admitted that in mid-June 2012, he possessed an external hard drive that contained numerous images of child pornography.
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), the Abilene Police Department, and the Air Force Office of Special Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
3 Men Pled Guilty to Operating Heroin Conspiracy in New Orleans EastRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL DAVID SORINA, JR., age 35, resident of Slidell, Louisiana, LARRY HARDY, age 48, resident of New Orleans, Louisiana, and TERRELL CARNEY, age 33, resident of New Orleans, pled guilty today to conspiracy to distribute and conspiracy to possess with intent to distribute heroin.
On July 25, 2014, SORINA, HARDY, and CARNEY were three of 12 defendants charged in a 23-count indictment. According to court documents, this investigation targeted a heroin trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in New Orleans. Agents seized approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry and real property) from members of this drug trafficking organization that were acquired with proceeds made from the sale of heroin.
U.S. District Judge Carl J. Barbier will sentence SORINA, HARDY, and CARNEY on February 19, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
Thursday 13 November 2014
- “El Gallo” and Others Sentenced
Woodbridge Man Admits Stealing More Than $1 Million from Milford CompanyRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GIOVANNI MASUCCI, also known as John Masucci, 46, of Woodbridge, pleaded guilty today in Bridgeport federal court to one count of wire fraud related to his theft of more than $1 million from a Connecticut company.
According to court documents and statements made in court, MASUCCI operated a financial consulting business in North Haven. As part of his business, he provided financial consulting services to a company located in Milford and had access to the company’s checkbooks and financial ledgers. From approximately September 2011 to February 2014, MASUCCI defrauded the Milford company by diverting company funds to his own bank account. He also wrote checks from the company’s bank account to pay his personal credit card bills and the credit card bills of a personal acquaintance. As part of the scheme, MASUCCI created false entries in the corporate check ledger that falsely indicated the checks were written for legitimate business purposes, and he typically forged the signature of the authorized company representative on the checks. In order to conceal his crime, MASUCCI took the company’s check book.
The investigation revealed that MASUCCI used the stolen funds to pay for domestic and international travel, lodging, and to make purchases at several high-end retailers.
MASUCCI is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on February 12, 2015, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Connecticut Financial Crimes Task Force, the United States Secret Service and the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
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[email protected]Wheeling Woman Convicted of Cocaine TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Marisol Rodriguez, 34, of Wheeling, West Virginia, was convicted of distributing crack cocaine, United States Attorney William J. Ihlenfeld, II, announced today.
Rodriguez admitted to selling crack cocaine when she pled guilty to one count of "Conspiracy to Possess with Intent and to Distribute Cocaine Base” after an investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative
Assistant U.S. Attorney Randy Bernard is prosecuting the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Wetlands Determination in Miner County Upheld in District CourtRead the Press Release
United States Attorney Brendan V. Johnson announced that a 2011 wetlands determination made by the United States Department of Agriculture (USDA), Natural Resources Conservation Service (NRCS) was affirmed by U.S. District Judge Karen E. Schreier on October 31, 2014.
In 1985, Congress enacted what are commonly referred to as “Swampbuster” provisions in order to combat the disappearance of wetlands through their conversions into crop lands. The Swampbuster provisions do not make the conversion of wetlands illegal, but provide that agricultural production on a converted wetland would cause a farmer to forfeit eligibility for a number of federal farm-assistance programs.
Under Swampbuster provisions, the NRCS, an agency within the USDA, is charged with determining and certifying wetlands. In order for a site to be classified as a wetland, the NRCS must establish that three criteria have been met: (1) that the land has a predominance of hydric soils; (2) the presence of wetland hydrology (defined as sufficient surface water or groundwater at a frequency and duration sufficient to support a prevalence of hydrophyic vegetation); and (3) that under normal circumstances the land supports a prevalence of hydrophyic vegetation.
In 2013, Arlen and Cindy Foster from Miner County, South Dakota, sued the USDA seeking to overturn a 2011 wetlands determination by the NRCS. The wetland status had been appealed to the National Appeals Division, an agency independent from the USDA, which affirmed the NRCS determination in 2012. The Fosters then filed a lawsuit in District Court challenging the basis for the NRCS's determination of the wetland status as being arbitrary, capricious, or otherwise not in accordance with the law.
The NRCS determined that 0.8 acres of the Fosters’ property was a wetland. The Fosters challenged the NRCS’s use of aerial photography and a wetlands reference site, but the District Court concluded that the NRCS properly followed their established wetlands determination procedures and criteria. Ultimately, the Court held that the agency made a rational connection between the facts and the wetland determination made, and thus, the NRCS did not act arbitrarily or capriciously.
The agency determination was defended by Assistant U.S. Attorney Cheryl Schrempp DuPris and the USDA, Office of the General Counsel.
Virginia Man Indicted for Receiving Reimbursement by Submitting Forged Government ContractsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (MPFU), announce that Brian Charles Tolley, 39, of Bedford, Virginia, has been indicted for wire fraud, identity theft, aggravated identity theft, possession of counterfeit government seals, and money laundering.
According to the allegations in the indictment, Tolley was employed by PartsBase, Inc., which is located in Boca Raton, Florida, as Vice President from 2001 through 2001, as Chief Information Office from 2001 through January 2014, and President from 2010 until January 2014. Between June 2007 and September 2013, he submitted to PartsBase forged documentation from various branches of the U.S. military and other government agencies. These documents purported to acknowledge Tolley’s orders of procurement data on PartsBase’s behalf. Tolley then requested reimbursement from PartsBase for charges he had purportedly incurred from the government agencies. In total, PartsBase paid Tolley approximately $1.6 million in fraudulent reimbursements based on this scheme. Tolley used the money, in part, to purchase a 2011 Buick Enclave, a 2011 Lincoln Navigator, and real estate in Bedford, Virginia.
U.S. Attorney Wifredo Ferrer stated “Today’s charges evidence the U.S. Attorney’s Office’s commitment to pursue those who abuse their corporate positions for their own financial gain.”
John F. Khin, Special Agent in Charge, Southeast Field Office, DCIS, stated, “Individuals who commit fraud and deceit undermine the integrity of the Federal procurement process. DCIS will use all available law enforcement resources to bring violators to justice to combat fraud and corruption affecting Defense programs, to include the seizing of personal assets gained through illegal means.”
“We are very gratified to see this indictment and that the allegations against Mr. Tolley will soon be presented in a court of law where a judge and jury can view the evidence,” said Director Frank Robey. “We are confident the hard work of our Army Special Agents, the prosecutor, and our fellow law enforcement officials will pay dividends to the American taxpayer.”
If convicted, Tolley faces maximum statutory sentences of 20 years imprisonment on each count of wire fraud, 15 years imprisonment on each count of identity theft, five years imprisonment on each count of possession of counterfeit government seals, and 10 years imprisonment on each count of money laundering. Tolley faces a mandatory sentence of two years imprisonment on each count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Defense Criminal Investigative Service and the Army Criminal Investigation Command. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Video Gambling Company Pleads Guilty to Federal Money LaunderingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Pennsylvania Coin, LLC, a Scranton-based company, pleaded guilty yesterday in U.S. District Court to a charge of conspiracy to commit money laundering. The guilty plea was entered before U.S. District Court Judge Malachy E. Mannion.
Attorneys representing the company put into the record a corporate resolution signed by the members of the corporation, setting out the terms of the plea agreement with the government. The terms include:
- Entry of a plea of guilty;
- Forfeiture of $77,866 and 288 gambling devices to the government;
- Payment of restitution in the amount of $1,050,000 to the U.S. Treasury and payment of $300,000 to the Pennsylvania State Police.
According to United States Attorney Peter Smith and as presented to the Court by Assistant U.S. Attorney Wayne P. Samuelson, the company was charged in a one-count criminal Information filed on October 22, 2014 with conspiracy to commit money laundering between January 2007 and October 2012.
The company maintained and operated approximately 288 video gambling machines throughout Lackawanna, Susquehanna, Wayne and Wyoming Counties. The machines were placed in establishments, including bars, restaurants and clubs. The Pennsylvania State Police (PSP) began an investigation in 2007. PSP undercover agents visited those establishments and placed controlled bets and received payouts from establishment owners, and/or observed patrons receiving payouts after playing the video gaming machines. Agents also observed over 100 machines with switches used to erase accumulated credits from the game played, an indication that the machines were being used for unlawful gambling and not solely for amusement.
The IRS joined the investigation in 2012. Surveillance revealed that supplies of illegal gambling devices were stored in warehouses owned by the defendant.
In October 2012 search warrants were executed by the IRS at three business locations of the company. The Pennsylvania State Police-Bureau of Liquor Control Enforcement searched approximately 180 bars and other non-liquor licensed establishments and seized 288 illegal gambling machines. U.S. currency totaling $77,866.15 was also seized.
Further investigation revealed that the defendant split with the site or establishment owners (approximately 100) the proceeds of the money generated by patrons of the establishments playing the illegal video games. The defendant maintained an account at a financial institution, and comingled the illegal funds with funds generated by the defendant’s legitimate business income-producing machines, such as pool tables and juke boxes. The comingled funds were used to pay employees who collected funds from the site owners and employees who maintained the video gambling devices in working order. A review of the defendant’s bank account showed approximately $1,700,000 was deposited as proceeds from the split of the illegal gambling funds. The co-mingling of the illegal gambling funds through a bank account constituted the violation of the federal money laundering statute.
A plea agreement containing the terms set out in the corporate resolution was filed at the same time the criminal Information was filed.
No sentencing date has been scheduled.
Assistant United States Attorney Wayne P. Samuelson prosecuted the case.
Vascular Solutions Inc. and its CEO Charged with Selling Unapproved Medical Devices and Conspiring to Defraud the United StatesRead the Press Release
UPDATE
The defendants in this case, Howard Root and Vascular Solutions Inc., were acquitted of the charges alleged in the indictment described in the press release below.
An indictment was filed today charging Vascular Solutions Inc. (VSI) and its chief executive officer, Howard Root, with selling medical devices without U.S. Food and Drug Administration (FDA) approval and conspiring to defraud the United States by concealing the illegal sales activity. The announcement was made today by Acting Assistant Attorney General Joyce R. Branda for the U.S. Department of Justice’s Civil Division, U.S. Attorney Robert Pitman for the Western District of Texas and Special Agent in Charge Antoinette V. Henry of the U.S. Food and Drug Administration (FDA)’s Office of Criminal Investigations, Metro Washington Field Office. The devices at issue are from VSI's “Vari-Lase” product line, a system designed to treat varicose veins by burning or “ablating” them with laser energy.
Root and VSI are each charged with one count of conspiracy and eight counts of introducing adulterated and misbranded medical devices into interstate commerce. The case is pending in the U.S. District Court for the Western District of Texas.
“These charges involve a deceptive sales campaign led by the CEO of a public company,” said Acting Assistant Attorney General Branda. “The indictment charges that the sales campaign persisted in the face of FDA warnings, a whistleblower’s complaint to the CEO and a failed clinical trial showing that the device was less safe and less effective than a product that had already been approved. We will take action to hold corporations and their leaders responsible when they violate laws intended to protect public health.”
According to the indictment, the Vari-Lase products were cleared by the FDA only for the treatment of superficial veins, but Root and VSI sold them for the ablation, or removal, of “perforator” veins, which connect the superficial vein system to the deep vein system. Because perforator veins come into direct contact with deep veins, treating them with lasers was a more difficult and risky procedure.
Root is charged with leading the illegal sales campaign, which lasted from 2007 until 2014, and conspiring with others to hide it from the FDA. The indictment alleges that Root authorized the campaign after VSI failed to obtain FDA authorization to sell the Vari-Lase system for ablation of perforator veins. The sales campaign is alleged to have ignored FDA concerns about the safety and effectiveness of the procedure and specific warnings from the FDA not to sell Vari-Lase products for treatment of perforator veins. The indictment alleges that, with Root’s approval, the sales continued even after the company sponsored an unsuccessful clinical trial that showed that the Vari-Lase system was less safe and effective than a competing device that the FDA had cleared for perforator vein treatment. According to the indictment, the sales continued even after a whistleblower complained to Root in 2009 and the government told the company about its investigation in 2011.
The indictment also charges VSI and Root with deceiving the FDA. In late 2007, Root decided to launch a special “Short Kit” designed for perforator vein treatment, despite the lack of FDA marketing authorization, by claiming that the product was intended for “short vein segments” or “short veins.” At the same time, the government alleged that internal company documents approved by Root taught the sales force that these terms included perforator veins and urged salespeople to suggest to health care providers that Vari-Lase devices could be used to treat perforator veins. After learning about the government’s investigation, members of the sales force began using the term “short vein segments” in field trip reports to disguise that they were still selling Vari-Lase devices for perforator vein treatment, according to the indictment. Two other members of the sales force are alleged to have misled investigators; in addition, the indictment charges that one member falsely denied his conduct and another tried to scapegoat a low-level salesman.
In July 2014, VSI agreed to pay $520,000 to resolve allegations that it caused false claims to be submitted to federal health programs by marketing the Vari-Lase devices for treating perforator veins. In that civil action, the government alleged that VSI knowingly caused physicians and other purchasers of the Short Kit to submit false claims to federal health care programs for uses of the Short Kit that were not reimbursable.
“FDA is committed to protecting the public health and the integrity of the regulatory system,” said Special Agent in Charge Henry.
The case is being prosecuted by Trial Attorney Timothy Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bud Paulissen of the Western District of Texas. The case was investigated by the FDA’s Office of Criminal Investigations and the U.S. Department of Health and Human Services’ Office of the Inspector General.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Vascular Solutions Inc. and Its CEO Charged with Selling Unapproved Medical Devices and Conspiring to Defraud the United StatesRead the Press Release
UPDATE - The defendants in this case, Howard Root and Vascular Solutions Inc., were acquitted of the charges alleged in the indictment described in the press release below.
An indictment was filed today charging Vascular Solutions Inc. (VSI) and its chief executive officer, Howard Root, with selling medical devices without U.S. Food and Drug Administration (FDA) approval and conspiring to defraud the United States by concealing the illegal sales activity. The announcement was made today by Acting Assistant Attorney General Joyce R. Branda for the U.S. Department of Justice’s Civil Division, U.S. Attorney Robert Pitman for the Western District of Texas and Special Agent in Charge Antoinette V. Henry of the U.S. Food and Drug Administration (FDA)’s Office of Criminal Investigations, Metro Washington Field Office. The devices at issue are from VSI's “Vari-Lase” product line, a system designed to treat varicose veins by burning or “ablating” them with laser energy.
Root and VSI are each charged with one count of conspiracy and eight counts of introducing adulterated and misbranded medical devices into interstate commerce. The case is pending in the U.S. District Court for the Western District of Texas.
“These charges involve a deceptive sales campaign led by the CEO of a public company,” said Acting Assistant Attorney General Branda. “The indictment charges that the sales campaign persisted in the face of FDA warnings, a whistleblower’s complaint to the CEO and a failed clinical trial showing that the device was less safe and less effective than a product that had already been approved. We will take action to hold corporations and their leaders responsible when they violate laws intended to protect public health.”
According to the indictment, the Vari-Lase products were cleared by the FDA only for the treatment of superficial veins, but Root and VSI sold them for the ablation, or removal, of “perforator” veins, which connect the superficial vein system to the deep vein system. Because perforator veins come into direct contact with deep veins, treating them with lasers was a more difficult and risky procedure.
Root is charged with leading the illegal sales campaign, which lasted from 2007 until 2014, and conspiring with others to hide it from the FDA. The indictment alleges that Root authorized the campaign after VSI failed to obtain FDA authorization to sell the Vari-Lase system for ablation of perforator veins. The sales campaign is alleged to have ignored FDA concerns about the safety and effectiveness of the procedure and specific warnings from the FDA not to sell Vari-Lase products for treatment of perforator veins. The indictment alleges that, with Root’s approval, the sales continued even after the company sponsored an unsuccessful clinical trial that showed that the Vari-Lase system was less safe and effective than a competing device that the FDA had cleared for perforator vein treatment. According to the indictment, the sales continued even after a whistleblower complained to Root in 2009 and the government told the company about its investigation in 2011.
The indictment also charges VSI and Root with deceiving the FDA. In late 2007, Root decided to launch a special “Short Kit” designed for perforator vein treatment, despite the lack of FDA marketing authorization, by claiming that the product was intended for “short vein segments” or “short veins.” At the same time, the government alleged that internal company documents approved by Root taught the sales force that these terms included perforator veins and urged salespeople to suggest to health care providers that Vari-Lase devices could be used to treat perforator veins. After learning about the government’s investigation, members of the sales force began using the term “short vein segments” in field trip reports to disguise that they were still selling Vari-Lase devices for perforator vein treatment, according to the indictment. Two other members of the sales force are alleged to have misled investigators; in addition, the indictment charges that one member falsely denied his conduct and another tried to scapegoat a low-level salesman.
In July 2014, VSI agreed to pay $520,000 to resolve allegations that it caused false claims to be submitted to federal health programs by marketing the Vari-Lase devices for treating perforator veins. In that civil action, the government alleged that VSI knowingly caused physicians and other purchasers of the Short Kit to submit false claims to federal health care programs for uses of the Short Kit that were not reimbursable.
“FDA is committed to protecting the public health and the integrity of the regulatory system,” said Special Agent in Charge Henry.
The case is being prosecuted by Trial Attorney Timothy Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bud Paulissen of the Western District of Texas. The case was investigated by the FDA’s Office of Criminal Investigations and the U.S. Department of Health and Human Services’ Office of the Inspector General.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
United States Announces Court Approval of Historic $5.15 Billion Environmental and Tort Settlement with Anadarko Petroleum Corp.Read the Press Release
Additional Payments for Individual Tort Victims
Largest Litigation Recovery for the Clean-Up of Environmental Contamination in Government’s History
Preet Bharara, the United States Attorney for the Southern District of New York, Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division (“ENRD”), and Cynthia Giles, Assistant Administrator of the U.S. Environmental Protection Agency, announced today that the United States District Court in Manhattan has approved the historic settlement of fraudulent conveyance claims brought by the United States and co-plaintiff Anadarko Litigation Trust (the “Trust”) against the Kerr-McGee Corporation and certain of its affiliates, including Andarko Petroleum Corporation, in the bankruptcy of Tronox Inc. and its subsidiaries (“Tronox”). Pursuant to the settlement agreement, the defendants must pay $5.15 billion, of which approximately $4.4 billion will be paid to fund environmental clean-up and for environmental claims, plus interest from April 3, 2014. This settlement will result in the largest payment for the clean-up of environmental contamination ever obtained in a lawsuit brought by the Department of Justice.
Manhattan U.S. Attorney Preet Bharara said: “Corporations may not pursue profit at the expense of public health. They may not hide from their responsibilities through corporate shell-games. And they may not rely on bankruptcy to push the cost of their misconduct onto the American taxpayer. This settlement will require the defendants to pay billions to make up for a legacy of environmental contamination and ruination left across the nation. ”
Acting Assistant Attorney General Sam Hirsch said: “The court’s approval of this settlement marks a significant victory for environmental justice by holding Kerr-McGee fully accountable for its attempts to defraud American taxpayers and escape a toxic legacy. Thanks to this settlement, billions of dollars will be made available to clean up contaminated sites across the United States.”
EPA Assistant Administrator Cynthia Giles said: “At EPA, we stand by the principle that if you make a mess, you clean it up. This decision means that soon more than $4 billion will be put to work in American communities, cleaning up water supplies and removing dangerous contamination.”
Settlement Approval
On April 3, 2014, the United States announced this settlement, which was then subject to a period of public comment and judicial approval. After receiving and considering comments from the public, the United States sought approval of the settlement agreement. On May 30, 2014, the United States Bankruptcy Court issued a decision recommending that the District Court approve the settlement. Now, the District Court has followed the Bankruptcy Court’s recommendation and approved the agreement.
In her decision, United States District Judge Katherine B. Forrest recognized that this case arises from a “series of transactions [by the Kerr-McGee Corporation] that resulted in the spin-off of Tronox, which Kerr-McGee left saddled with the massive environmental and tort liabilities it had accumulated over the course of decades of operating in the chemical, mining, and oil and gas industries, but without sufficient assets with which to address these liabilities.” For this reason, as the District Court explained, both the United States and the Tronox estate (now represented by the Trust) brought fraudulent conveyance claims against the defendants, which the settlement resolves.
In approving the settlement, the District Court concluded:
- “The settlement is historic” and provides the “largest [clean-up] recovery in American history.”
- “The Settlement Agreement promotes federal environmental law’s objectives of ‘encourag[ing] prompt and effective responses to hazardous waste releases,’ ‘impos[ing] liability on responsible parties,’ and ‘reduc[ing] the inefficient expenditure of public funds on lengthy litigation.’”
- The settlement is a “fair and reasonable” consent decree resolving the Government’s claims against the defendants.
The District Court issued its opinion on Monday, November 10, 2014.
The District Court’s approval is subject to appeal. If no timely appeal (or other further review specified in the settlement agreement) is filed, the settlement will go into effect. Two days later, the defendants’ payment will be due.
Mr. Bharara again thanked the many federal, state, and tribal officials who worked tirelessly on this matter, as well as the Trust, its trustee, and its counsel, for their critical work on this case.
This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of SDNY’s Civil Division. Assistant U.S. Attorney Robert William Yalen is in charge of the case, which he handled along with Assistant U.S. Attorney Joseph Pantoja and Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of ENRD.
Tronox Approval
Two Sentenced for Roles in Bribery and Money Laundering Scheme Involving Former Ohio Deputy TreasurerRead the Press Release
A former lobbyist and a former securities broker have been sentenced for their roles in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division and Ohio Attorney General Mike DeWine made the announcement after sentencing by U.S. District Judge Michael H. Watson of the Southern District of Ohio.
Douglas E. Hampton, 40, of Uniontown, Ohio, was sentenced today to serve 45 months in prison and ordered to forfeit $2,202,259. Mohammed Noure Alo, 35, of Columbus, Ohio, was sentenced yesterday to serve 48 months in prison and ordered to forfeit $123,622. Last year, Alo pleaded guilty to aiding and abetting honest services wire fraud, and Hampton pleaded guilty to conspiracy to commit honest services wire fraud, federal program bribery and money laundering. The former Deputy Treasurer for Ohio, Amer Ahmad, fled after pleading guilty to federal program bribery and conspiracy to commit honest services wire fraud, federal program bribery, and money laundering, and is currently in Pakistani custody pending an extradition request from the United States government.
Joseph Chiavaroli, 34, of Chicago, pleaded guilty to money laundering and is scheduled for sentencing on Dec. 1, 2014.
According to the defendants’ admissions in connection with their guilty pleas, from approximately January 2009 through January 2011, Ahmad, Alo, Hampton and Chiavaroli conspired to use Ahmad’s position as deputy treasurer to direct official state of Ohio business to Hampton in return for bribes from Hampton. Ahmad and Chiavaroli concealed the payments received from Hampton by passing them through the accounts of their landscaping business. Hampton also funneled more than $123,000 to Alo, an attorney and lobbyist who was Ahmad’s close personal friend and business associate. During the course of the scheme, Hampton paid in excess of $500,000 in bribes, and received, in exchange, approximately $3.2 million in commissions for 360 securities trades on behalf of the Ohio Treasurer’s Office.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorneys Eric L. Gibson and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio.
Two Sentenced for Distributing Heroin Near Local SchoolRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Marcel D. Weaver, 30, of East Liverpool, Ohio, and Holly D. Keyes, 26, of Chester, West Virginia, were sentenced for distributing heroin near a local elementary school, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Hancock, Brooke, and Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Weaver and Keyes sold heroin near Allison Elementary School in Chester, West Virginia. They each pled guilty in June 2014 to one count of "Aiding and Abetting the Distribution of Heroin Within 1,000 Feet of a protected Location."
Weaver was sentenced to 51 months in prison. Keyes was sentenced to 21months in prison.
Assistant U.S. Steve Vogrin prosecuted the cases on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Two Charlotte Men Plead Guilty to Selling Misbranded DrugsRead the Press Release
The Defendants Falsely Claimed on Company Websites the Drugs Were Sold for “Research Purposes” Only
CHARLOTTE, N.C. – Joseph Marsala, 35, and Brent Bumgarner, 33, both of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to selling misbranded drugs, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A criminal bill of information charging the two men with one count of introducing and distributing misbranded drugs into interstate commerce and aiding and abetting was filed on October 28, 2014.
David W. Bourne, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service, join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and today’s plea hearing, from 2010 to January 2014, the defendants owned and operated two companies, first “Osta-Gain” and later “Spectrum Peptides,” through which they illegally distributed drugs, including “peptides,” and compounds containing the active ingredients of FDA-approved prescription drugs to customers, primarily bodybuilders, for human consumption. Court records indicate that there is an illegal market for peptides, prescription drugs, and compounds containing the active ingredients of FDA-approved prescription drugs among bodybuilders and weight lifters, since it is believed that these substances enhance muscle development. The FDA regulates these products as drugs when they are marketed for human use. According to court records, to avoid detection by the FDA, the defendants made numerous false representations on their companies’ websites, www.osta-gain.com and www.spectrumpeptide.com, claiming that, “ALL products and services offered are for RESEARCH purposes ONLY.” In reality, court records indicate, the products the defendants sold were intended for human consumption, by individuals seeking to build body mass and to counter the side effects of such muscle building drugs. In addition to the illegal drugs, Marsala and Bumgarner also sold the necessary “laboratory supplies” (e.g., pipettes) for bodybuilders to administer the products and distributed dosing information to consumers, court records show.
In connection with today’s guilty plea, the court was also advised that even though the defendants claimed the products sold on their websites were for research purposes only, Marsala and Bumgarner held promotional events such as Black Friday sales, Christmas sales, and free T-shirt promotions. The defendants also specifically targeted the bodybuilding community by advertising on websites catering to bodybuilders. According to filed court documents, in April 2013 Osta-Gain was named in a national newspaper article about the illegal marketing of research chemicals to bodybuilders. As a result of that article, the defendants shut down the Osta-Gain website, created Spectrum Peptides and began selling identical products through the new company’s website. During the relevant time period, Marsala and Bumgarner advertised and sold through the two websites approximately $800,000 of misbranded drugs to customers across the United States.
During the course of the investigation, law enforcement agents seized approximately $34,012.43 in funds. Marsala and Bumgarner have agreed to forfeit these assets as part of their plea agreement and to pay full restitution, the amount of which will be determined by the Court at sentencing.
The defendants have been released on bond. The penalty for introducing misbranded drugs into interstate commerce and aiding and abetting carries a maximum prison term of three years and a $10,000. A sentencing date has not been set yet.
The investigation was conducted by FDA-OCI and USPIS. The prosecution is handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The FDA has made available a consumer-friendly form for reporting to the agency adverse events and other serious safety problems with FDA-regulated products, including products catering to bodybuilders for the increase of muscle mass. That form is available at http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm354560.htm.
Two Charged in Superseding Bill of Information for Violations of the Lacey ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HON KIT LAU, age 34, from Hong Kong, and LAWRENCE TREIGLE, age 44, from Covington, Louisiana, were charged today in a one-count superseding bill of information with conspiring to smuggle a threatened species of turtles out of the United States and in violation of the Lacey Act.
According to the superseding bill of information, LAU and TREIGLE were part of a group of individuals involved in capturing North American Wood turtles from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong.
If convicted, LAU and TREIGLE, face a maximum term of five years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the superseding bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
(Download Superseding Bill of Information )
Tulsa Man Pleads Guilty to Aiming A Laser Pointer Multiple Times in the Flight Path of A Tulsa Police Department HelicopterRead the Press Release
TULSA, Okla. — A Tulsa man pleaded guilty today before United States District Court Judge Claire V. Eagan to aiming the beam of a laser pointer in the flight path of a Tulsa Police Department helicopter, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
At the change of plea hearing, Carl Don Floyd, 43, of Tulsa, admitted that on February 15, 2014, he aimed a laser pointer three times in the flight path of a Tulsa Police Department helicopter that was travelling near his residence. Floyd was charged by a grand jury on March 5, 2014.
According to court documents, the first laser struck the front-left side of the aircraft. As the crew flew the helicopter towards the source of the laser a second laser struck an officer in both eyes. After the third laser strike, the crew was able to determine the source location. As a result of the laser strikes, the flight officer experienced flash blindness.
Sentencing is scheduled on February 20, 2015. Floyd faces the statutory maximum penalty of five years in prison and a fine up to $250,000.
In February 2012, President Obama signed into law a statute making it a federal crime to knowingly aim the beam of a laser pointer at or in the flight path of an aircraft. According to the Federal Aviation Administration, there were 3,960 reports of laser strikes in the United States in 2013.
Floyd was charged with the crime following a joint investigation conducted by the Tulsa Police Department and Federal Bureau of Investigation. Assistant United States Attorney Joel-lyn A. McCormick prosecuted the case on behalf of the United States.
U.S. v. Carl Don Floyd
Three Brothers Convicted of 1994 MurderRead the Press Release
Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Brian Gill, David Gill and Samuel McIntosh for their participation in the drug-related murder of Michael Dawson on June 22, 1994. Brian Gill and David Gill were also convicted of a narcotics trafficking conspiracy between 2011 and 2013. The charges arose out of the defendants’ long-time control of a drug trafficking organization that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island. When sentenced by United States Chief District Judge Carol B. Amon, Brian Gill faces a mandatory minimum sentence of life imprisonment; David Gill and Samuel McIntosh each face a mandatory minimum sentence of 20 years’ imprisonment and a maximum sentence of life imprisonment.
The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For years, these defendants made drug dealing and violence a daily reality for the law-abiding residents of Park Hill,” stated United States Attorney Lynch. “Today, these three men have been held accountable for the lives they have destroyed and the harm they have done to one of our communities. As a result of the extraordinary efforts of law enforcement, Park Hill is a safer place.” Ms. Lynch extended her grateful appreciation to the FBI, New York City Police Department, and the Richmond County District Attorney for their outstanding assistance in this case.
Over the course of two decades, the defendants intermittently operated a lucrative drug distribution business in Park Hill, Staten Island. On June 22, 1994, in connection with that business and in retaliation for selling crack cocaine on the defendants’ turf, the defendants brazenly murdered Michael Dawson in broad daylight in the street outside of 160 Park Hill Avenue, a profitable building for crack dealing in Park Hill. Shortly thereafter, Brian Gill fled Staten Island. In 2011, when Brian Gill returned to Park Hill after 17 years away, he launched another crack dealing business in Park Hill from his residence at 160 Park Hill Avenue. David Gill participated in and helped Brian Gill with that business.
The convictions of these defendants are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of violent narcotics trafficking organizations operating in Brooklyn and Staten Island. This year alone, in five separate trials, this Office has obtained trial convictions for seven defendants for carrying out ten different murders.
The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata and Alicyn Cooley.
The Defendants:
BRIAN GILL
Age: 46 years
Staten Island, New York
DAVID GILL
Age: 43 years
Staten Island, New York
SAMUEL MCINTOSH
Age: 40 years
Staten Island, New York
E.D.N.Y. Docket No. 13-CR-487
Three Alleged Gang Members Charged with July 2014 MurderRead the Press Release
SAN FRANCISCO – Miguel Ortiz, Antonio Castillo, and Marvin Cortez were arraigned in federal court this morning after being arrested yesterday on charges that included racketeering conspiracy, firearms violations, and the commission of a July 19, 2014, gang-related murder in San Francisco, announced United States Attorney Melinda Haag, Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) San Francisco, and Police Chief Gregory P. Suhr of the San Francisco Police Department.
These charges were part of a superseding indictment returned by a federal grand jury on Nov. 6, 2014, which the court unsealed earlier today.
According to the superseding indictment, Ortiz, 27, of San Francisco, Castillo, 26, of San Bruno, and Cortez, 24, of San Francisco, conspired to conduct the affairs of the 19th Street Sureños street gang through a pattern of racketeering activity that included murder, drug trafficking, witness tampering and obstruction of justice. The 19th Street Sureños is a Hispanic street gang that claimed part of the Mission District of San Francisco as its territory. As a Sureño gang, the 19th Street Sureños warred against rival gangs, notably the various Norteño gangs in San Francisco.
In addition to conspiring to conduct the affairs of the 19th Street Sureños, all three defendants are also charged with conspiring to commit murder in aid of racketeering; conspiring to commit assault with a dangerous weapon in aid of racketeering; committing a gang-related murder on July 19, 2014; possessing, carrying, and using a firearm in furtherance of or during and in relation to a crime of violence; and using a firearm in furtherance of a crime of violence resulting in murder.
The superseding indictment also sets forth the various racketeering and firearms charges, originally returned by the grand jury on March 6, 2014, against fourteen other members of the 19th Street Sureños criminal enterprise.
The investigation of Ortiz, Castillo, and Cortez involved officers and agents from the San Francisco Police Department (SFPD) Homicide Detail, the SFPD Gang Task Force, and the Department of Homeland Security, Homeland Security Investigations.
Ortiz, Castillo and Cortez and made their initial appearances before the Honorable Jacqueline Scott Corley, United States Magistrate Court Judge, today. All three are currently in custody pending a detention hearing. They are scheduled to appear for an ID of Counsel hearing before the Honorable Jacqueline S. Corley, United States Magistrate Court Judge, on Nov. 20, 2014.
The maximum statutory penalty for each of the charged offenses is:
- racketeering conspiracy, in violation of Title 18, United States Code, Section 1962(d): life imprisonment, five years of supervised release, a fine of $250,000; and restitution, if appropriate;
- murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(1): death or life imprisonment; a fine of $250,000; and restitution if appropriate;
- possessing, carrying and using a firearm in furtherance of, or during and in relation to, a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A): life imprisonment; five years of supervised release; a fine of $250,000;
- possessing, carrying and using a firearm in furtherance of, or during and in relation to, a crime of violence, resulting in murder, in violation of Title 18, United States Code, Section 924(j)(1): death or life imprisonment; a fine of $250,000; and restitution if appropriate;
- conspiracy to commit murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(5): 10 years imprisonment; three years of supervised release; a fine of $250,000; and restitution if appropriate;
- conspiracy to commit assault with a deadly weapon in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(6): 3 years imprisonment; one year of supervised release; a fine of $250,000; and restitution if appropriate;
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Andrew M. Scoble, Kimberly Hopkins, and Laurie K. Gray are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Christine Tian and Ponly Tu. The prosecution is the result of an investigation by HSI and the SFPD.
Please note, an indictment contains only allegations and, as with all defendants, Miguel Ortiz, Antonio Castillo, and Marvin Cortez must be presumed innocent unless and until proven guilty.
(19th Sureños superseding indictment )
Texas Man Arrested in Thomas County Sentenced on Federal Drug ChargeRead the Press Release
WICHITA, KAN. - A Texas man was sentenced Wednesday to 75 months in federal prison for drug trafficking, U.S. Attorney Barry Grissom said.
Felipe Balleza, 49, Dallas, Texas, pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted the Kansas Highway Patrol stopped him Oct. 28, 2013, in Thomas County, Kan. Investigators found 4.9 pounds of methamphetamine hidden in the dash behind the glove compartment of the 2005 Dodge Ram Balleza was driving.
Co-defendant Alberto Vergara-Manzo of Lynwood, Calif.,was sentenced to 108 months.
Grissom commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Smith County Bank Officer Sentenced for Embezzling FundsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 59-year-old Lindale, Texas woman has been sentenced to federal prison for embezzling bank funds in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mary Jane Haxton pleaded guilty on July 18, 2014, to misapplication of funds by a bank employee and was sentenced to 30 months in federal prison by U.S. District Judge Leonard Davis on Nov. 12, 2014. Haxton was also ordered to pay restitution in the amount of $446,344.66.
According to information presented in court, Haxton worked as a cashier at Lindale State Bank from 1984 until early 2014. In 2004, Haxton began embezzling funds totaling $445,940.66 by misapplying the funds to personal accounts which she owned or controlled. In December 2013, Lindale State Bank merged with Texas Bank and Trust and became an official branch of Texas Bank and Trust. After the merger, the accounting department was in the process of reconciling accounts and discovered the funds had been misapplied.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jim Noble.
Shreveport Man Sentenced to 60 Months in Prison for Failing to Update his Sex Offender RegistrationRead the Press Release
SHREVEPORT, La. –United StatesAttorney Stephanie A. Finley announced that a Shreveport man was sentenced on Wednesday to 60 months in prison for failing to update his sex offender registration.
Michael Thomas Cupp, 60, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks, for one count of failure to update his sex offender registration. He was also sentenced to 10 years of supervised release. According to evidence presented at the July 28 2014 guilty plea, starting in April 2009, Cupp listed his sex offender registration as being in Texas. However, upon investigation, it was determined that Cupp had never lived in Texas. Cupp was originally convicted of forcible rape, incest, carnal knowledge of a juvenile and indecent behavior with a juvenile in state district court in Baton Rouge in 1992. After completion of his prison sentence, he began living in Shreveport in 1998. Cupp then registered his address in Panola County (Texas) with the Sheriff’s Office in April of 2009, but after a compliance check of sex offenders in 2012, he was found to have been living and working continuously in Shreveport.The U.S. Marshal’s Service, Panola County Sheriff’s Office in Texas, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Seven Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering ConspiracyRead the Press Release
Seven Aryan Brotherhood of Texas (ABT) gang members from Houston and Dallas were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Today, Stephen Tobin Mullen, 45, of Dallas, and James Erik Sharron, 40, of Houston, were sentenced to respective terms of 156 months and 72 months in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas. Yesterday, Larry Max Bryan, 52, of Houston, and Terry Ross Blake, 56, of Corpus Christi, both high-ranking leaders of the ABT, were sentenced to 300 months and 180 months in federal prison, respectively. Jamie Grant Loveall, 38, of Houston; Kelly Ray Elley, 37, of Houston; and Ronald Lee Prince, 44, of Dallas, were also sentenced to respective terms of 390 months, 270 months and 120 months in federal prison.
According to information presented in court, the seven defendants were admitted members of ABT, a powerful race-based, statewide organization that operates inside and outside of state and federal prisons throughout Texas and the United States. Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang.
The ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.
In order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things. Members were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
The defendants sentenced this week are seven of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.
- Seven More Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracyl Gallo” and Others Sentenced
Sentencings for November 7 - November 12, 2014Read the Press Release
Zachary G. Knigge, 23, of Casper, Wyoming, was sentenced by Chief Federal District Court Nancy D. Freudenthal on November 12, 2014, for unlawful user of a controlled substance in possession of a firearm. Knigge was arrested in Casper, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mario Alberto Ramirez-Contreras, 41, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 12, 2014, for possession of child pornography. Ramirez-Contreras was arrested in Rock Springs, Wyoming. He received 24 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
James L. Brown, 51, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 7, 2014, for conspiracy to possess with intent to distribute, and to distribute at least 500 grams of a mixture or substance containing a detectable amount of methamphetamine. Brown was arrested in Casper, Wyoming. He received 130 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Daphne C. Watkins, 53, of Bowden, West Virginia, was sentenced by Federal District Court Scott W. Skavdahl on November 7, 2014, for possession with intent to distribute approximately 118 kilograms of marijuana and aiding and abetting. Watkins was arrested in Yellowstone National Park. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the National Park Service and the U.S. Drug Enforcement Administration.
Seffner Man Sentenced to More Than 15 Years for Unlawfully Possessing A Firearm and AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Shon Erik Scott (29, Seffner) to 15 years and 8 months in federal prison for being a felon in possession of a firearm and ammunition. Scott pleaded guilty on June 10, 2014.
According to court documents, on October 12, 2013, officers from the Tampa Police Department arrested Scott at an apartment complex in Tampa. During their encounter, Scott resisted arrest and threw a loaded firearm that had been concealed in his waistband. Incident to his arrest, a distribution amount of 3,4-Methylenedioxymethcathinone, a controlled substance, was found in his possession. At the time, Scott was a previously convicted felon, and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with ATF Special Agent in Charge Regina Lombardo, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to prevent violent crime in communities.
San Diego Man Who Ran Scam That Offered Investments in ‘Reverse Life Insurance’ Policies Convicted of Federal Fraud ChargesRead the Press Release
SANTA ANA, California – The founder and chief executive officer of a firm that solicited more than $5 million from victims who thought they were investing in “reverse life insurance” policies has been found guilty of federal fraud charges.
Daniel Christian Stanley Powell, 33, of San Diego, was convicted Monday afternoon of five counts of mail fraud and five counts of wire fraud, as well as three counts of obstruction of justice. The verdicts followed a three-week trial and prompted United States District Judge Josephine L. Staton to remand Powell into custody pending sentencing.
According to the evidence presented at trial, Powell told investors in Christian Stanley that he would use their money to purchase life insurance policies from insured individuals, at which point the company would pay the monthly premiums and become the beneficiaries to the policies. Powell claimed that Christian Stanley would profit by collecting the death benefits when the insureds died or by selling the policies on the life settlement market. Powell, who started the Los Angeles-based Christian Stanley, Inc., trademarked the term “reverse life insurance” and sought to take his company public by filing documents with the Securities and Exchange Commission.
Powell, who also told some victims that their money would be invested in gold mines, claimed that investments were safe because his company already owned $1.9 billion in reverse life insurance policies in a mutual fund. Contrary to his promises, however, the evidence demonstrated that Christian Stanley did not own any life insurance policies or any working mines and had earned only $31,250 in revenue since its inception.
In total, approximately 50 victims invested a total of approximately $5.2 million. The victims, who were located throughout the United States, invested directly through Powell, other representatives of Christian Stanley, or their own financial advisors. Victims lost approximately $4 million as a result of the scheme, which included funds that had been invested through individual retirement accounts.
Powell used victims’ money to make Ponzi-scheme payments to some investors, to pay commissions to representatives who recruited investors, and to create promotional materials, which gave the appearance that Christian Stanley was a legitimate and successful business. Powell also spent victims’ funds on a luxury apartment on the west side of Los Angeles, Ferrari and Porsche automobiles, and a $35,000 donation to Usher’s New Look foundation, which got him a photograph with former President Bill Clinton that was used as part of Christian Stanley’s promotional materials.
On September 2, 2011, the U.S. Securities and Exchange Commission filed a civil complaint against Powell and Christian Stanley (Securities and Exchange Commission v. Christian Stanley, Inc., et al., CV11-7147-GHK). The evidence at the criminal trial showed that Powell knowingly drafted false affidavits to use in his defense to the SEC case and that he lied to the victims about his assets and promised to return their money if they signed the false affidavits. This criminal conduct led to the convictions on the obstruction of justice charges.
Powell is scheduled to be sentenced by Judge Staton on March 13, 2015, at which time the defendant will face a statutory maximum sentence of 260 years in federal prison.
The case against Powell is the result of an investigation by the Federal Bureau of Investigation.
Release No. 14-150
Rutherford Co. Man Pleads Guilty to Securities FraudRead the Press Release
Defendant Stole more than $2 Million from over 30 Victim Investors
CHARLOTTE, N.C. – Chuckie Beaver, 51, of Ellenboro, N.C. appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to one count of securities fraud for defrauding more than 30 investors of over $2 million dollars, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and today’s plea hearing, from June 2012 to April 2014, Beaver induced over 30 victims to invest in his fraudulent scheme, falsely claiming that their money would be invested in “Best Services, Inc.,” a company owned by Beaver and specializing in the repair of industrial electronic equipment. Court records indicate that Beaver solicited friends, neighbors, and fellow church members to invest with his company, by claiming that his company needed additional capital to purchase materials to complete a large number of outstanding repair orders from major corporations. To further the scheme, court records show that Beaver created and showed his investors bogus documents, including false repair orders indicating significant work activity, fake customer checks, and fake customer emails, giving a false impression he had strong relationships with major corporations.
According court records, Beaver provided his investor victims with promissory note investment contracts, stating that the investors would receive the principal invested plus interest - as high as 100% - within a specified period of time, typically 30 days. Court records indicate that, at the time of investment, Beaver would provide his investor victims a post-dated check for the full amount of the promised investment plus interest. As filed documents show, in most instances, when the investors deposited Beaver’s checks they would be returned for insufficient funds. According to court records, when investor victims questioned Beaver about the returned checks, Beaver made up a number of excuses, and in some instances he was able to lull investors into investing even more money with the promise of even greater returns. Court records indicate that contrary to his claims, Beaver used the investors’ money to pay for personal expenses and to make payments to previous investors, commonly referred to as Ponzi-payments. In total, over the course of the scheme, Beaver defrauded more than 30 individuals from Mecklenburg, Gaston and Cleveland counties of more than $2 million.
Beaver was released on bond following his plea hearing. He faces a maximum prison term of 20 years and a $250,000 fine, or both, and has agreed to pay restitution, the amount of which will be determined by the Court at sentencing. A sentencing date for the defendant has not been set yet.
The investigation was handled by the Secret Service. Assistant United States Attorney Kevin Zolot, of the U.S. Attorney’s Office in Charlotte is handling the prosecution.
Ringleader in Multimillion-Dollar Bank Fraud Scheme Found Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MAHABUBUZ ZAMAN, a/k/a “Mahabub Zaman,” a/k/a “Faisal Ahmed,” was found guilty yesterday of participating in an elaborate bank fraud scheme which yielded millions of dollars in ill-gotten gains. Following a two-week trial before U.S. District Judge Alison J. Nathan, the jury found ZAMAN, one of the leaders of the scheme, guilty of conspiracy to commit bank fraud, conspiracy to commit identification document fraud, and use of a false passport. As part of the scheme, ZAMAN and his co-conspirators used fake companies, phony identification documents and hundreds of counterfeit checks to withdraw millions of dollars in stolen funds from more than a dozen banks.
Manhattan U.S. Attorney Preet Bharara said: “With the jury’s swift verdict, a 16th defendant, Mahabubuz Zaman, now stands convicted for his role in this multimillion-dollar bank fraud scheme. And we’re all the more close to bringing this case to a just and fitting conclusion, where each and every perpetrator of this fraud is made to answer for his or her crimes.”
According to the Superseding Indictment filed October 7, 2014, other court documents, and the evidence presented at trial:
From approximately 2008 through November 2012, ZAMAN and his co-conspirators engaged in a bank fraud scheme in which they created hundreds of counterfeit checks, deposited those counterfeit checks into bank accounts they had opened in the names of sham companies in order to fraudulently inflate the balances in those accounts, and then withdrew funds from those bank accounts before the financial institutions were able to determine the fraudulent nature of the checks. In addition to the check fraud, the defendant and his co-conspirators also obtained fraudulent mortgages and ran up credit card debt using false identities. The scheme victimized approximately 15 different banks, resulting in millions of dollars in losses to the banks.
As part of the scheme, the conspirators incorporated sham companies and then opened bank accounts in the names of those sham companies. The individuals opening the accounts (the “accountholders”) often used false identities, including names and social security numbers, and presented false identification documents, including false Bangladeshi passports and forged United States visas. The accountholders were generally instructed to make small legitimate deposits at first, so that the banks would make funds immediately available upon future fraudulent deposits.
The defendant and his co-conspirators obtained copies of legitimate checks and then used the payor account information that appeared on those checks to create counterfeit checks made payable to the sham companies they had incorporated as part of the scheme. The accountholders deposited the counterfeit checks into the sham company bank accounts at various banks. The accountholders often made deposits at numerous branches of the same bank on the same day. These deposits often were made on a Thursday or Friday so that the defendant and his co-conspirators could withdraw the illegal proceeds over the weekend when the banks were closed and were less likely to determine that the checks were counterfeit.
Once the defendant and his co-conspirators confirmed that funds from the counterfeit checks were available for withdrawal, the accountholders were directed to withdraw the funds from the counterfeit checks, typically over the weekend. The defendant and his co-conspirators often withdrew the funds from global cash access machines at casinos in Atlantic City, New Jersey, which did not have daily withdrawal limits. The accountholders often used false identification documents, including false Bangladeshi passports and fake United States visas, when making the withdrawals.
ZAMAN was one of the leaders of the scheme. Among other things, he recruited accountholders, directed both accountholders and higher-ranking members of the crew in the scheme’s operations, and collected a large share of the illicit profits. In addition, ZAMAN was primarily responsible for the crew’s fraudulent mortgage operations.
ZAMAN, 42, of Queens, New York, faces a maximum sentence of 30 years in prison for conspiring to commit bank fraud, 15 years in prison for conspiring to commit identification document fraud, and 10 years in prison for using a false passport. 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. ZAMAN is scheduled to be sentenced by Judge Nathan on February 27, 2015.
In addition to the verdict yesterday, 15 of ZAMAN’s co-conspirators have previously pled guilty in connection with the bank fraud and fraudulent identity document conspiracy. A chart listing the date of conviction and charges of conviction for each of the 16 convicted defendants is attached. Four charged co-conspirators – Hamid Khan, Akther Rahman, Abdur Razzak, and Khairul Islam – are still at large.
U.S. Attorney Bharara praised the investigative work of ICE HSI. He also thanked United States Citizenship and Immigration Services, Queens County District Attorney’s office, the New Jersey State Police, the New York City Police Department, the New York State Police, the United States Secret Service, and the New York City Taxi and Limousine Commission for their assistance in the matter.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Lisa Korologos and Alexander Wilson are in charge of the prosecution.
Click here to view chart(s)
U.S. v. Mahabubuz Zaman S4 Indictment
RTD Supervisor Appears in Court for Accepting Bribes in Connection with His Official DutiesRead the Press Release
DENVER – Kenneth P. Hardin, age 60, of Aurora, Colorado, was indicted by a federal grand jury last week on charges of accepting bribes, United States Attorney John Walsh, FBI Special Agent in Charge Thomas P. Ravenelle, and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Hardin appeared in court yesterday for his initial appearance before U.S. Magistrate Tafoya, where he was advised of his rights and the charges pending against him.
According to the indictment, Hardin was an employee of the Regional Transportation District in Colorado (“RTD”), holding the position of Senior Manager of RTD’s Civil Rights Division. In that position, Hardin’s duties at RTD included directing and managing the operations of RTD’s Civil Rights Division, which was responsible for furthering civil rights goals through regulatory compliance, complaint investigation, community outreach, and programmatic strategy development. The Disadvantaged Business Enterprise program is one of the programs that fell under the umbrella of RTD’s Civil Rights Division. As the Senior Manager of the Civil Rights Division, Hardin also served as RTD’s Diversity Officer, and his duties included taking a leadership role in developing diversity initiatives. RTD receives money from federal grants.
On or about the dates listed below, Hardin corruptly solicited and accepted money from a person intending to be influenced and rewarded in connection with RTD business involving more than $5,000.
Date
Amount of Bribe
April 30, 2014
$1,100
May 15, 2014
$1,000
June 26, 2014
$1,000
September 15, 2014
$2,000
Hardin was charged with four counts of bribery concerning programs receiving Federal funds each of which carries a penalty of not more than 10 years in federal prison and a fine of up to $250,000.
“Colorado is rightly proud of its long, successful tradition of government free of bribes and corruption,” said U.S. Attorney John Walsh. “When we identify public corruption and bribery, the United States Attorney’s Office and federal law enforcement will pursue it tirelessly and prosecute it forcefully under the law.”
“The charges against Hardin illustrate the FBI’s commitment to investigate officials who use their positions of trust for personal gain,” said FBI Special Agent in Charge Thomas P. Ravenelle. “This type of criminal activity undermines the public’s confidence in government activities that should be fair and transparent. To ensure these matters are fully addressed, we strongly encourage anyone who has information about corrupt activities at any level of government to call the FBI at 888-232-3270.”
“A senior official in government holds a position of trust in the eyes of the public and that trust was violated by accepting bribes,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “This successful investigation was due to the cooperative efforts of our law enforcement partners – US Attorney’s Office and the FBI.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Pittsburgh-area Man Gets 6-Year Prison Term for Violating Federal Gun and Drug LawsRead the Press Release
PITTSBURGH – Dustin Petry, an Allegheny County resident, was sentenced to 72 months in prison for conspiring to distribute heroin and for possessing a firearm in furtherance of a drug trafficking crime, United States Attorney David J. Hickton announced today.
Petry, 27, was sentenced by United States District Judge David S. Cercone. Judge Cercone also imposed a three-year term of supervised release to follow the prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Police Department, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
Pittsburgh Man Sentenced to 6 Years in Prison for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - A Beechview resident has been sentenced in federal court to 72 months imprisonment, to be followed by six years supervised release, on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Brandon L. Johnson, 32.
According to information presented to the court, in November 2011, Johnson conspired with others to distribute and possess with the intent to distribute heroin.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Johnson.
Pawtucket Man Sentenced to 8 Years in Federal Prison for Manufacturing and Distributing Meth from Newport Motel RoomRead the Press Release
PROVIDENCE, R.I. – Sean Costigan, 51, of Pawtucket, was sentenced on Wednesday to 96 months in federal prison for manufacturing and distributing methamphetamine. Costigan was arrested in January 2014, when DEA Drug Task Force agents and detectives from the Warwick and Newport Police Departments executed a court authorized search of a Newport motel room rented by Costigan and seized materials being used to manufacture and distribute methamphetamine.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Costigan to serve 3 years supervised release upon completion of his prison term. Costigan pleaded guilty in July 2014 to one count of manufacturing methamphetamine and four counts of distribution of methamphetamine.
Costigan’s sentence is announced by United States Attorney Peter F. Neronha; Michael Ferguson, Acting Special Agent in Charge of the DEA’s New England field division; Warwick Police Chief Colonel Stephen M. McCartney; and Newport Police Chief Gary T. Silva.
“Among the panoply of dangerous, indeed, life-threatening illegal drugs, meth may top the list. Meth labs are notorious for exploding without warning, and it has devastating health effects on those who use it,” said United States Attorney Peter F. Neronha. “The defendant here manufactured and sold meth with impunity, without any concern whatsoever for the buyers of his product or those residing literally footsteps away. His lengthy sentence is more than well-deserved. I want to thank all of our law enforcement partners, who worked so diligently to eliminate the threat posed by this defendant.”
“Methamphetamine is a highly addictive and dangerous drug. Clandestine labs used to produce this poison are extremely dangerous, unstable, very flammable, and can contaminate the locations in which they are found,” said NEFD DEA Acting Special Agent in Charge Ferguson. “We are committed to working with our law enforcement partners in combatting this threat and have highly specialized trained DEA agents assigned to the DEA Clandestine Laboratory Enforcement Team (CLET), not only working these types of investigations, but providing training to our state and local first responders.”
At the time of his guilty plea, Costigan admitted to the court that on four occasions between October 25 and December 6, 2013, he sold methamphetamine to a Warwick undercover police officer. Three of the transactions occurred in the parking lot of a hotel in Warwick. The fourth transaction occurred in a hotel room in North Smithfield.According to information presented to the court, on January 16, 2014, DEA and DEA Drug Task Force agents, and Warwick and Newport Police detectives executed a court authorized search of a Newport motel room rented by Costigan. Inside the room, law enforcement discovered materials being used to manufacture and distribution of methamphetamine. Members of the DEA CLET dismantled the operation and seized multiple items associated with a methamphetamine manufacturing operation.
Warwick Deputy Police Chief Michael Babula noted, “The initial investigator on this case was Detective David Verity of the Warwick Police Department, our assigned member to the Drug Task Force sponsored by the DEA. The information was initially obtained by the Warwick Police Special Operations Group. This investigation was continued and brought to completion with the assistance of the task force as a whole. We strongly believe that these multi-agency task forces are the only practical way to deal with multi-jurisdictional drug trafficking. We are particularly pleased that this effort was able to take down a lab manufacturing meth, a drug which has destroyed so many lives, and in many cases, whole communities.”
Costigan has been detained since his arrest on January 16, 2014.
The case was prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The DEA Drug Task Force is comprised of law enforcement agents and officers from the DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Owner of Miami Home Health Company Pleads Guilty for Role in $30 Million Health Care Fraud SchemeRead the Press Release
An owner of a Miami home health care company pleaded guilty today for his role in a $30 million home health Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement
Ramon Regueira, 66, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Jan. 21, 2015.
According to his plea agreement, Regueira was an owner of Nation’s Best Care Home Health Corp. (Nation’s Best), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Regueira admitted that he and his co-conspirators operated Nation’s Best for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or were not provided.
Specifically, Regueira admitted that he and his co-conspirators paid kickbacks and bribes to patient recruiters who provided patients to Nation’s Best, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services. Regueira and his co-conspirators then used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care services.
From January 2007 through November 2012, Nation’s Best submitted approximately $35 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $21 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Miami Home Health Company Pleads Guilty for Role in $30 Million Health Care Fraud SchemeRead the Press Release
An owner of a Miami home health care company pleaded guilty today for his role in a $30 million home health Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ramon Regueira, 66, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Jan. 21, 2015.
According to his plea agreement, Regueira was an owner of Nation’s Best Care Home Health Corp. (Nation’s Best), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Regueira admitted that he and his co-conspirators operated Nation’s Best for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or were not provided.
Specifically, Regueira admitted that he and his co-conspirators paid kickbacks and bribes to patient recruiters who provided patients to Nation’s Best, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services. Regueira and his co-conspirators then used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care services.
From January 2007 through November 2012, Nation’s Best submitted approximately $35 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $21 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Oroville Man Indicted for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Jan Alan Shafer, 63, of Oroville, charging him with receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, for more than two years, Shafer engaged in conversations of a sexual nature via email and an Internet instant messenger service with an adult who was posing as a 10-year-old boy. During their email exchanges, Shafer received images of child pornography, including sexually explicit images of prepubescent children.
This case is the product of an investigation by the Federal Bureau of Investigation and the Butte County Sheriff’s Office. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Shafer was arrested on October 30, 2014, and remains in custody. He is scheduled to be arraigned before U.S. Magistrate Judge Edmund F. Brennan on November 14, 2014.
If convicted, Shafer faces a maximum statutory penalty of 40 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Omaha Man Sentenced to 90 Months for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Jonathan M. Vidlak, 22, was sentenced in the United States District Court in Omaha, Nebraska for receiving child pornography. The Honorable John M. Gerrard sentenced Vidlak to ninety (90) months of imprisonment. There is no parole in the federal system. After his release from prison Vidlak will begin a 15 year term of supervised release.
A computer used by Vidlak was observed by law enforcement in October and November 2011 to be offering videos of child pornography on a file sharing network. The videos involved children between the ages of five and ten engaged in sexual acts.
On March 22, 2012, a search warrant was executed at Vidlak’s residence. During an interview with a Douglas County Sheriff Investigator, Vidlak admitted to downloading child pornography on the internet. He admitted searching for child pornography two or three times a week and deleting the images. Although no child pornography was found on the computer, forensic analysis revealed evidence consistent with searching for child pornography. In addition agents had successfully downloaded a partial video of child pornography from Vidlak’s computer as it was being offered to the public through the file sharing program.
This case was brought as a 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.
This matter was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF), of which the Douglas County Sheriff’s Office, is a partner. The Omaha CCTF is a multi-jurisdictional task force consisting of eleven federal, state and local law enforcement agencies from Nebraska and Iowa. The mission of the Omaha CCTF is to investigate and apprehend high technology criminals and to protect our communities by preventing high technology crime and national security threats involving computers and computer networks. The Omaha CCTF was established on the premise that the capabilities of law enforcement agencies to investigate computer and high technology related crimes are enhanced in a task force setting involving the sharing of resources and expertise.
Ohio Woman Pleads Guilty to Importing Drugs into U.S.Read the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Leeann Corley, 29, of Dayton, Ohio, pleaded guilty to importing 32,767 pills containing methamphetamine, MDMA and BZP into the United States from Canada before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison, a fine of $10,000,000 or both.
Assistant U.S Attorney Mary Catherine Baumgarten, who is handling the case, stated that on March 3, 2011, the defendant attempted to enter the United States from Canada at the Peace Bridge as a passenger on a Greyhound bus. During a secondary inspection of the bus and its passengers, Corley was sent for a pat-down search after several inconsistencies were found in her statements to Customs and Border Protection Officers. During the search, officers located 33 ziplock bags containing multi-colored pills concealed in a bodysuit that the defendant was wearing.
A forensic analysis determined there were approximately 32,767 tablets containing methamphetamine, 3,4 methylene-dioxymethamphetamine, and benzylpiperazine, all controlled substances.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
Sentencing is scheduled for February 25, 2015 at 1:00 p.m. before Judge Arcara.Ohatchee Man Sentenced to 20 Years in Prison for Child ExploitationRead the Press Release
BIRMINGHAM -- A federal judge today sentenced an Ohatchee man to 20 years in prison for receiving, possessing and distributing child pornography, announced U.S. Attorney Joyce White Vance and the Alabama Law Enforcement Agency.
U.S. District Judge Abdul K. Kallon sentenced KENDALL ADAM HESTER, 29, on the child pornography charges. A federal jury convicted Hester in August. He has remained in custody since his conviction. Judge Kallon ordered Hester to remain on supervised release for 20 years following completion of his prison term.
Hester searched the Internet and downloaded child pornography using peer-to-peer computer software, according to court records. In December 2012, law enforcement agents found 342 videos of child pornography on a computer and compact disks at Hester's home. The videos showed graphic sexual acts involving children under age 12, some as young as 2 or 3 years old, and included sadistic sexual acts involving bondage, according court documents.
The Alabama Law Enforcement Agency investigated the case, which Assistant U.S. Attorneys Chinelo Dike-Minor and Daniel J. Fortune prosecuted.
Ocala Man Pleads Guilty to Receipt and Distribution of Child PornographyRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Terry Scott Hilliard II (29, Ocala) has pleaded guilty to receipt and distribution of child pornography. He faces a minimum mandatory sentence of 5 years, up to a maximum sentence of 20 years, in federal prison. A sentencing hearing has not yet been set.
According to the plea agreement, Hilliard was arrested by federal agents on July 8, 2014, during the execution of a search warrant at his Ocala residence. The search warrant was executed in connection with an online investigation into persons receiving and distributing images of children engaged in sexually explicit conduct. Hilliard admitted to the agents that he had been receiving and distributing these types of images for at least a year. A review of his email account revealed numerous videos and photographs of children under the age of 12 engaged in sexually explicit conduct.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
The 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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New York Woman Admits Role in Business Loan Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARIAME ROBINSON-COWAN, 66, of Yonkers, N.Y., waived her right to indictment and pleaded guilty yesterday in New Haven federal court to one count of conspriacy related to her participation in an advance fee fraud scheme.
According to court documents and statements made in court, between approximately March 2010 and October 2014, a co-conspirator of ROBINSON-COWAN’s operated Jalin Realty Capital Advisors, LLC, (Jalin) and American Capital Holdings, LLC, (ACH). Using these businesses, the co-conspirator defrauded individuals, including Connecticut residents, who wired funds to him in anticipation of receiving large business loans. The upfront fees were alternately described as “application fees,” “collateral fees” or “commitment fees.” The victims were promised a refund of the upfront fees if their loan transactions were not completed.
In order to convince victim-borrowers that the loans were legitimate and Jalin and ACH had successfully secured loans in the past, the co-conspirator provided victims and potential victims ROBINSON-COWAN’s name and phone number and told them that they could contact ROBINSON-COWAN for a reference. ROBINSON-COWAN then falsely represented to victims and potential victims that she had, in fact, received funding from her co-conspirator for a construction loan, and that she had successfully done a project financed with her co-conspirator and Jalin.
Through this scheme, the government believes that more than 20 individuals provided ROBINSON-COWAN’s co-conspirator with a total of more than $3 million in advance fees for business loans that were never provided. A few individuals received a partial refund of advance fees they had provided, but the refunds were made using fees that had been paid by other victims.
ROBINSON-COWAN is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on May 20, 2015, at which time she faces a maximum term of imprisonment of five years.
This matter is being investigated by the Federal Bureau of Investigation and the Ansonia Police Department, and is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Michael McGarry.
Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]New York Man Charged with Identity Theft and Tax SchemeRead the Press Release
PHILADELPHIA - Brandon Morrison, 25, of New York City, was arraigned today on an indictment charging him with five counts of wire fraud, five counts of making a false claim against the United States, and four counts of identity theft, announced United States Attorney Zane David Memeger. The indictment alleges that from January 2011 to May 2011, Morrison sold the stolen identities of a number of people for use in fraudulently prepared tax returns which directed that the tax refund checks be deposited to bank accounts opened and controlled by a co-conspirator.
If convicted the defendant faces a maximum possible sentence of 145 years of imprisonment, three years of supervised release, a $3,500,000 fine, and a special assessment of $1,400.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the indictment.
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PATTY HARTMAN, Media Contact, 215-861-8525New Orleans Man, Corey D. Wilson, Sentenced to 10 Years in Heroin Distribution ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that COREY D. WILSON, age 37, of New Orleans, was sentenced today for his role in a conspiracy to possess with the intent to distribute 100 grams or more of heroin.
U.S. District Judge Jane Triche Milazzo sentenced WILSON to 124 months imprisonment, 8 years of supervised release, and a special assessment of $100.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, a High Intensity Drug Trafficking Area group (“HIDTA group”) consisting of DEA in New Orleans and Houston, NOPD and ATF agents, the West Bank Major Crimes Task Force, the Louisiana State Police, and the United States Postal Inspection Service in investigating this matter. This was an Organized Crime Drug Enforcement Task Force case. Assistant U.S. Attorneys Sharan Lieberman and Collin Sims are in charge of the prosecution.
New Martinsville Man Sentenced for Possession of Child PornographyRead the Press Release
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(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Jonathan Harman, 26, of New Martinsville, West Virginia, was sentenced for possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Federal Bureau of Investigation revealed that Harman utilized the internet and peer-to-peer file sharing networks to access and download images and videos containing child pornography.
Harman pled guilty in July 2014 to a criminal Information charging him with one count of "Possession of Child Pornography," including at least one image involving a prepubescent minor and a minor who had not attained 12 years of age. He was sentenced to five years of probation.
Assistant U.S. Attorney Steve Vogrin prosecuted the case on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
New Haven Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROMELL BROWN, 36, of New Haven, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for his role in a gang-related narcotics distribution ring.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. The investigation revealed that BROWN, who is not a member of the Grape Street Crips, regularly supplied cocaine to the leader of organization, Donald Ogman, who then converted the cocaine into crack for sale. At times, BROWN also sold crack cocaine.
BROWN has been detained since his arrest on March 29, 2012. On March 11, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
A total of 18 individuals were charged as a result of this investigation, and all have pleaded guilty. Ogman and several other defendants await sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]