LAS VEGAS, Nev. – Three Southern Nevada residents, including two nurse practitioners, have been arrested and charged in a 29-count indictment for unlawful distribution of prescription opioids and Medicare/Medicaid fraud, announced U.S. Attorney Dayle Elieson for the District of Nevada.

The defendants were arrested this morning and had their initial court appearance before U.S. District Magistrate Judge George Foley Jr. A jury trial has been set for July 30, 2018. The defendants and their criminal charges in the indictment are:

• Robert D. Harvey, a surgical technician, 45, of Henderson, is charged with one count of conspiracy to distribute a controlled substance, three counts of distribution of controlled substance, and one count of conspiracy to commit health care fraud;

• Alejandro “Alex” Incera, aka Alexander Jiminez-Incera, an Advance Practice Registered Nurse, 48, of Las Vegas, is charged with one count of conspiracy to distribute a controlled substance, three counts of distribution of controlled substances, eight counts of distribution of controlled substances, one count of conspiracy to commit health care fraud, eight counts of health care fraud, one count of fraudulent concealment involving a federal health care program, and one count of false statements relating to a health benefit program; and

• Leslie Kalyn, aka Leslie Feth, an Advance Practice Registered Nurse, 35, of Las Vegas, is charged with one count of conspiracy to commit health care fraud and six counts of health care fraud.

According to the allegations contained in the indictment, the defendants engaged in a conspiracy to distribute prescription opioids and to commit health care fraud. Incera and Harvey, using a prescription pad belonging to an unnamed physician, distributed Hydrocodone and Oxycodone to patients without a legitimate medical purpose in exchange for cash. Incera and Kalyn further prescribed Lidocaine, Modafinil, and Diclofenac Sodium to patients without a legitimate medical purpose, many of which were billed to Medicare/Medicaid by a pharmacy that filled the prescriptions. Harvey, Incera, and Kalyn were all paid cash kickbacks for their patient referrals to the unnamed pharmacy.

The maximum penalty is five years in prison and a $250,000 for each count of conspiracy to distribute a controlled substance, distribution of a controlled substance, and false statements relating to a health benefit program charges, and the maximum penalty is 10 years in prison and a $250,000 fine for each count of health care fraud and fraudulent concealment involving a federal health care program.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The case is being investigated by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Nevada Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorney Kilby Macfadden is prosecuting the case.

This is the third indictment in Nevada since Attorney General Jeff Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned a prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.

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Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Zerisenay Gebregiorgis, 36, a Washington resident, was sentenced today in Juneau by Chief U.S. District Judge Timothy M. Burgess, to serve 121 months in prison for conspiracy to distribute and to possess with the intent to distribute heroin and methamphetamine.  Gebregiorgis was previously convicted in December 2017, following a five-day jury trial.  

According to evidence presented at trial, between June 1, 2016, and Aug. 16, 2016, Gebregiorgis and others planned to distribute large quantities of heroin and methamphetamine in the communities of Ketchikan and Sitka.  Gebregiorgis supplied drugs to drug couriers, who carried the drugs inside their bodies to other co-conspirators in Ketchikan and Sitka for subsequent distribution.  Drug proceeds were then given to the couriers to be carried back to Seattle to be delivered to Gebregiorgis or deposited into bank accounts controlled by Gebregiorgis. 

According to court documents, Gebregiorgis supplied at least one ounce of methamphetamine and at least 20 ounces of heroin during the course of the conspiracy.  Gebregiorgis directed every aspect of the conspiracy, to include directing the amounts of drugs sent to Alaska, the couriers who carried the drugs, the travel for those couriers, and delivery of drug proceeds back to him via couriers and bank accounts deposits.

The Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the members of the Southeast Alaska Cities Against Drugs Taskforce (SEACAD), specifically the members from the Alaska State Troopers (AST), Ketchikan Police Department (KPD), and the Sitka Police Department (SPD) conducted the investigation leading to the successful prosecution of this case.  This case was prosecuted by Assistant U.S. Attorney Jack Schmidt.

OMAR MIRAMONTES-GRANILLO, 26, of Chihuahua, Mexico was sentenced by Federal District Court Judge Alan B. Johnson on May 29, 2018 for illegal re-entry of a previously deported alien into the United States. Miramontes-Granillo was arrested in Laramie County, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The U.S. Bureau of Immigration and Customs Enforcement investigated this case.

ROBERTO ROMERO-CALVA, 23, of Hidalgo, Mexico was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 31, 2018 for illegal re-entry of a previously deported alien into the United States. Romero-Calva was arrested in Mills, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The U.S. Bureau of Immigration and Customs Enforcement investigated this case.

ANGEL MARTINEZ-GARCIA, 46, of Chihuahua, Mexico was sentenced by Federal District Court Judge Alan B. Johnson on June 1, 2018 for illegal re-entry of a previously deported alien into the United States. Martinez-Garcia was arrested in Johnson County, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The U.S. Bureau of Immigration and Customs Enforcement investigated this case.

St. Thomas, USVI – Former Department of Planning and Natural Resources Officer Gerald Mercer, 43, was found guilty by a jury in federal court on Thursday, May 31, 2018, before District Judge Curtis Gomez of conspiracy to possess with intent to distribute not less than 50 and not more than 150 kilograms of cocaine, United States Attorney Gretchen Shappert announced today.

According to trial testimony provided by a former security officer at the Office of the Governor, Mercer was the mastermind of a large-scale drug trafficking organization that operated in the Virgin Islands from 2011 through 2016. In 2011, Mercer recruited the security officer and convinced him to use his law enforcement credentials to bypass security screening at Cyril E. King Airport in order to smuggle kilogram quantities of cocaine from St. Thomas to Miami and Fort Lauderdale. Once the cocaine arrived in Florida, Mercer directed the security officer to deliver his cocaine to a coconspirator for distribution in the continental United States at $33,000 per kilogram. Trial testimony also indicated that in 2014, the security officer and Florida coconspirator cut Mercer out of the organization, due to Mercer’s nonpayment of a $70,000 debt. Thereafter, members of the conspiracy continued the cocaine smuggling operation using the system Mercer had originally devised in 2011. After being shut out of the drug smuggling organization, Mercer persistently tried to regain membership, but his coconspirators refused. Trial testimony established that Mercer ultimately decided to expose the organization’s smuggling activities to law enforcement.

According to trial testimony, the smuggling operation was interdicted by federal law enforcement on September 3, 2016, after Mercer contacted a Customs and Border Protection (CBP) agent and reported that one of his former colleagues was traveling through the St. Thomas airport on that day with a quantity of cocaine. Witnesses at trial stated that Mercer instructed the CBP agent not to reveal that he (Mercer) was the source of intelligence information which lead to the apprehension of Mercer’s former colleague, the drug courier. At trial, the U.S. Attorney’s Office presented cell phone records to corroborate that Mercer’s call to the CBP agent was made within minutes of the drug courier’s arrest at the airport with cocaine. CBP agents seized 22 kilograms ofcocaine from the courier’scarryon suitcase, and evidence presented at trial showedthat the last person the courier saw, prior to his apprehension, was infact Mercer.

Other members of the conspiracy have already enteredguilty pleas in this case. As a resultof his conviction, Mercer facesimprisonmentof not less than 10 years and not more than life, anda fine of up to $10,000,000. He wasdetained pending sentencing.

This case was investigated by Homeland SecurityInvestigations, Federal Bureau ofInvestigations and Drug Enforcement Administration and was prosecuted by Assistant United States AttorneysDelia Smith and Meredith Edwards.

The Office of the United States Attorney for the District of Vermont stated that Howard Hoisington, age 34, formerly of Berlin, Vermont was sentenced on May 31, 2018 on charges of arson with death resulting and conspiracy to commit robbery stemming from the fatal arson that occurred in Northfield, Vermont in December 2015. United States District Judge Christina Reiss sentenced Hoisington to a 24-year term of incarceration, followed by five years of supervised release. Hoisington was also ordered to pay restitution to the victims of his offenses in the amount of $620,025.92.

As described at Hoisington’s sentencing and in court records, in the fall of 2015, Howard Hoisington, Jonathan Zampieri, Tammy Wilder, Kevin Atwood, and Kim Hoisington committed a series of robberies of drug dealers in the Washington County area of Vermont. Some of these robberies involved a scheme of dousing a person selling drugs with gasoline and threatening them with a lighter to rob them of their drugs. The last of these robberies resulted in a fire that destroyed a building in Northfield and killed innocent bystander Brittany Burt.

As also described at Hoisington’s sentencing and in court records, on December 14, 2015, Howard Hoisington, Zampieri, Tammy Wilder, Kim Hoisington, and Amanda Wilder drove in Zampieri’s vehicle to pick up Atwood in Montpelier. They all drove to the Cumberland Farms in Northfield where Zampieri filled two mason jars with gasoline. From there, the group drove to the apartment of Efren Serrano on Union Street in Northfield, Vermont, from whom they had arranged to purchase crack cocaine. Zampieri, Howard Hoisington, and Atwood went to Serrano’s apartment and kicked in the front door. They found Serrano and Serrano’s girlfriend, Brittany Burt, in the bedroom. Serrano and Burt were doused with gasoline and the men demanded Serrano’s drugs. When Serrano did not respond, Zampieri pulled out a lighter. The lighter went off, igniting the gasoline vapors and causing the room to burst into flames. Zampieri, Howard Hoisington, and Atwood fled the building. At some point, Serrano was able to run from the building on fire. Serrano sustained life threatening injuries, but he survived. Brittany Burt could not escape the building. She died on the bedroom floor.

Howard Hoisington’s co-defendants, Jonathan Zampieri, Tammy Wilder, Kim Hoisington, and Richard Hoisington have all pleaded guilty to various charges. They await sentencing.

This case provides an example of the United States Attorney’s Office Violent Crime Initiative, aimed at pursuing federal prosecutions involving the intersection of drug trafficking and violence. United States Attorney Christina Nolan commended the efforts of Vermont State Police, Vermont Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Northfield Police Department, Barre City Police Department, and Berlin Police Department. The United States Attorney’s Office worked in partnership with the Washington County State’s Attorney Scott William to investigate and resolve this important matter.

United States Attorney Nolan added, “To describe this crime as senseless and abhorrent would be an understatement. It is a stark example of the horrific violence that too often arises from the trafficking of crack cocaine and other dangerous drugs. Federal prosecutors will work tirelessly with our federal, state, and local law enforcement partners to demonstrate zero tolerance for crimes of such depravity. Resolution and justice for the victims and their families was achieved through the collaborative efforts of our federal, state, and local investigators, and through the teamwork of state and federal prosecutors. We will continue to come together to achieve justice for victims, and peace and security for Vermonters. There is no place for such horrific violence in our state and our charging priorities will so reflect.”

ATF Assistant Special Agent in Charge Lawrence Panetta said, “Arson is a crime of extreme violence that puts the lives of the public and first responders in grave danger. ATF is committed with our local, state, and federal public safety partners to ensure our communities remain free from the dangerous acts arsonists commit and utilize all the necessary resources to bring these individuals to justice.”

“Howard Hoisington’s sentencing is an important first step in resolving this case and bringing closure to the Burt family and the other victims of these crimes,” added Lieutenant Todd Baxter of the Vermont State Police. “VSP remains committed to preventing and investigating violent crime throughout the State of Vermont, and bringing those who commit violent crimes to justice.”

Howard Hoisington is represented by Steven Barth and Elizabeth Quinn of the Federal Public Defender’s Office. The United States is represented by AUSAs Paul Van de Graaf and John Boscia.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

HOUSTON – The CEO of Team Work Ready (TWR) has received a significant federal sentence for conspiracy, health care fraud, wire fraud and money laundering, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Christopher Cave of the U.S. Postal Service - Office of Inspector General (USPS-OIG), Special Agent in Charge Steven Grell of the U.S. Department of Labor (DOL) – OIG, Assistant Special Agent in Charge Ramsey Covington of IRS-Criminal Investigation (CI), Special Agent in Charge James Werner of the Department of Veterans Affairs (VA) – OIG and Special Agent in Charge David J. Green of the Department of Homeland Security (DHS) – OIG.

A federal jury convicted Jeffrey Eugene Rose Sr., 56, along with his wife - chief financial officer (CFO) Pamela Annette Rose, 56 - and the clinic’s vice president of operations Frankie Lee Sanders, 56, following 14 hours of deliberation on Oct. 17, 2016.

Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, sentenced Rose to 233 months in federal prison and ordered him to pay $14,537548.54 in restitution to the DOL, Office of Worker’s Compensation Program (OWCP) which administered the Federal Employees Compensation Act health care benefit program known as FECA. In arriving at the sentence, Judge Werlein considered the seriousness of the offense and the $18,354,971 in fraudulent claims submitted from Rose’s 10 TWR clinics located in Texas, Louisiana, Georgia, Memphis and Alabama, including clinics in Houston, San Antonio, and McAllen. Rose will also be required to serve three years supervised release upon completion of the prison term.

“The sentence imposed today serves as a clear deterrent to those engaging in fraud against federal benefit programs,” said Cave. “USPS-OIG, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts in uncovering these fraud schemes.”

Pamela Rose and Sanders were previously sentenced July 21, 2017, to 120 and 300 months, respectively.

During the trial, the jury heard testimony from 38 witnesses including former patients of TWR clinics, former employees of TWR clinics, various experts and special agents from USPS-OIG and IRS-CI. According to testimony, TWR submitted millions in false and fraudulent claims for physical therapy services.

“Jeffrey Rose orchestrated a fraudulent scheme to submit more than $18 million in claims for services never provided to injured federal workers to DOL-OWCP using the health care clinics he owned in multiple states,” said Grell. “We will continue to work with our law enforcement partners to protect the integrity of department programs and safeguard taxpayer money.”

“Our system of health care is founded on the trust of the public in its health care professionals and the outstanding services they provide. The health care fraud and money laundering activities committed by Jeffrey Rose and his co-conspirators harms all Americans, as we all have to pay our fair share for government services and protections that we enjoy,” said Covington. “IRS-CI agents along with our law enforcement partners remain committed to ending healthcare fraud conspiracies and seeking justice for those involved in these crimes.”

Patients testified at trial that they did not receive the one-on-one physical therapy services for which DOL-OWCP paid under FECA. Rather, they stated they exercised independently on treadmills, bicycles, elliptical machines and with the Nintendo Wii game as well as other pieces of exercise equipment. One patient described an electronic massage chair in the San Antonio clinic, while another patient testified that unlicensed staff told him to do exercises on both of his arms, although he only injured his left elbow and to use the electronic massage chair and the treadmill for his injury. Similarly, a patient from Houston testified that she was asked to do some exercises that had nothing to do with her carpal tunnel wrist injury, specifically walking on a treadmill.

Testimony from former TWR employees revealed that the Houston clinic had as many as 30 – 60 patients a day and that employees did not know what the patients were doing in the main treatment area because they were busy in the back doing massages, electrical stimulation treatments and ultrasound treatments. Patients at the New Orleans clinic were instructed to go back to the therapy room to begin doing exercises by themselves. Employees testified that they did not perform all the one-on-one services documented on patient treatment notes and admitted they frequently completed the patient treatment notes at the end of the day by following a “cheat sheet” and asking each other and the patients what activities had been done. Various individuals described the treatment as “like a gym.”

Undercover federal agents posed as patients at two of the TWR clinics. The jury watched portions of covertly made recordings that supported the employee and patient testimony about clinic activities. The jury also heard several recordings a TWR employee made demonstrating how  the defendants tried to coerce her into ordering medically unnecessary treatment so the clinics could profit.

As explained during the trial by DOL-OWCP’s chief fiscal officer, FECA does not pay for professional services performed by unlicensed aides. Under FECA rules, a chiropractor can only be paid when they treat spinal subluxation or when they personally perform physical therapy under the direction of, and as prescribed by, a medical doctor. They also cannot direct unlicensed individuals to perform skilled physical therapy services. Specifically, in relation to this case, TWR falsely and fraudulently submitted claims for skilled one-on-one physical therapy services provided by a licensed chiropractor when, in reality, the services were not provided as described.

Rose and his wife were also convicted of money laundering after another TWR employee testified about the pair moving $700,000 out of TWR accounts to hide it from the federal government in July 2013, while federal agents executed search warrants at multiple TWR locations.

Rose has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

USPS - OIG, DOL - OIG, IRS - CI, Department of Veterans Affairs - OIG, and Department of Homeland Security – OIG conducted the investigation.  Assistant U.S. Attorneys (AUSA) Julie Redlinger and Daniel Rodriguez prosecuted the case. AUSA Kristine Rollinson handled the forfeiture matters.

PITTSBURGH, PA - A resident of Pittsburgh, PA, has been sentenced by a federal district court judge in Pittsburgh, Pennsylvania to 60 months in prison on charges of wire fraud and tax evasion, United States Attorney Scott W. Brady announced today.

Albert P. Majkowski, Jr., 59, went to trial in January and was found guilty by a jury of wire fraud and tax violations set forth in a seven-count indictment.

According to the evidence presented during trial, Majkowski defrauded potential investors over nearly a decade by, among other things, making false statements about his own success in "incubating" start-up businesses, misrepresenting his own personal wealth and producing a series of false documents that inflated the assets of his company and the funding he was supposedly receiving from outside sources. He also evaded his income tax obligations for the years 2007 through 2010 by a variety of means including failing to file tax returns, putting his assets into the names of other persons and manipulating a series of checks made out in blank or to cash. The evidence produced at trial showed that he evaded nearly $200,000 in federal income tax on income of more than $700,000. The presiding judge, U.S. District Court Judge Reggie Walton, made a finding at the time of sentencing that various investors had lost more than $2.2 million that they had entrusted to Majkowski.

At the sentencing proceeding Majkowski was given 60 months in prison to be followed by three years of supervised release and ordered to pay more than $2.2 million to defrauded investors as well as restitution to the IRS of $181,456.

The Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service conducted the investigation leading to the charges in this case.

United States Attorney Matthew D. Krueger announced today that Jonathan Tilman Lane, from Kiel, Wisconsin, was arrested and appeared in federal court in Milwaukee to face charges of tampering with a consumer product.

The criminal complaint alleges that on two separate occasions during March 25-28, 2018, Lane, an employee at Johnsonville Sausage, LLC, placed foreign objects into sausage links.  Video surveillance, determined that on March 25, 2018, Lane placed a cigarette paper in a sausage link and on March 28, 2018, Lane placed a wire connector in a sausage link while the items were on the processing line.  Both times, the items were removed before the sausage links were packaged.  Due to the public risk of Lane’s behavior, Johnsonville closed down the operation and discarded all products that they believed could have been affected.

Lane is charged with two counts of tampering with a consumer product and acting with reckless disregard for the risk that another person would be placed in danger of death or bodily harm and manifesting an extreme disregard to such a risk.  As to each count, the Lane face a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.

According to a representative of Johnsonville, none of the tampered products left their facilities. United States Attorney Krueger stated, “We commend Johnsonville Sausage, LLC for its security measures and quick action to prevent any harm to consumers.”  

The case is being investigated by the United States Department of Agriculture, Office of Inspector General (USDA/OIG).  Assistant United States Attorney Karine Moreno-Taxman is assigned to the prosecution of this case.

This case was charged by a criminal complaint.  The public is reminded that the complaint contains only allegations of criminal conduct, and the defendant is presumed innocent until proven guilty in a court of law.

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For additional information contact:

Public Information Officer Dean Puschnig, 414-297-1700

The Office of the United States Attorney for the District of Vermont stated that two persons have pled guilty to the smuggling and transporting of fourteen illegal aliens who traveled on foot from Quebec to Derby, Vermont in October 2017. The two defendants are Alberto Alvarado-Castro, 30, a Mexican citizen, and Hector Perez-Alvarado, 25, a Honduras citizen.

Alberto Alvarado-Castro pled guilty to smuggling aliens for financial gain, which carries a three-year mandatory minimum sentence and a ten-year maximum sentence. The parties agreed that Alvardo-Castro’s sentence should be three years, which is still subject to the Court’s approval. Hector Perez-Alvarado pled guilty to transporting aliens for financial gain, which carries a ten-year maximum sentence. The parties have not agreed to a specific sentence for Perez-Alvarado. United States Chief Judge Geoffrey W. Crawford will conduct both sentencings, which are currently scheduled for September 27, 2018 in Rutland. Both defendants are detained and in the custody of the U.S. Marshals Service.

According to the complaint affidavit and the statements made at the recent hearings, late in the evening of October 7, 2017, Alberto Alvarado-Castro guided the fourteen aliens through the woods on the border to a van parked in Derby, which was driven by Hector Perez-Alvarado. In multiple trips, Perez-Alvardo drove the aliens to a motel in Derby, where, on the last trip, they were all apprehended by the U.S. Border Patrol. Eleven of the smuggled illegal aliens were Guatemala citizens and three were Mexican citizens. The Government alleges that Alvarado-Castro has multiple prior felony burglary convictions in the United States.

This matter was investigated by the United States Border Patrol and Homeland Security Investigations. “This case serves as an excellent example of the dedication and hard work put forth by Border Patrol agents to keep our country and communities safe,” said U.S. Border Patrol Swanton Sector Acting Chief Patrol Agent Robert Garcia. “Our agents did an outstanding job thwarting this smuggling attempt and the U.S. Attorney's Office did an excellent job prosecuting it.”

The Assistant U.S. Attorney prosecuting this matter is Joe Perella. Elizabeth Quinn, Esq., of the Federal Public Defender’s Office represents Perez-Alvarado. David Watts, Esq., of Burlington represents Alvarado-Castro. Robert Sussman, Esq., of Burlington represents Perez-Ramirez.

United States Attorney Matthew D. Krueger announced that on June 1, 2018, United States District Court Judge J.P. Stadtmueller sentenced Edy Matute to 41 months in prison for being an illegal alien in possession of firearms in violation of 18 U.S.C. §§ 922(g)(5)(A) & 924(a)(2).  Matute also received a sentencing enhancement for possessing the firearms in connection with drug trafficking. 

As part of an investigation into a large-scale drug and firearm trafficking organization originating in the Southern District of Illinois, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a search warrant on Matute’s Milwaukee residence on December 5, 2017.  The agents recovered a chrome Taurus PT945 handgun and a Bushmaster AR-15 style rifle.  They also recovered a grocery bag that contained two “kilo wrappers” that tested positive for cocaine residue.  At the time of the search warrant, Matute, who is a citizen of Honduras and unlawfully in the United States, had been convicted of driving under the influence three times and was in immigration removal proceedings. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Zachary J. Corey.  The related cases in the Southern District of Illinois are being prosecuted by Assistant United States Attorney Kit Morrissey. 

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For Additional Information Contact:

Public Information Officer Dean Puschnig 414-297-1700

BOSTON – A Maine man pleaded guilty today in federal court in Worcester to his role in a drug trafficking conspiracy.

Thomas Walker, 43, of Pemaquid, Maine, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin and cocaine, specifically cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 28, 2018. In 2017, Walker and four others, Vito Nuzzolilo, of Worcester; Kristin Little, of Worcester; Melissa Rock, of Pemaquid, Maine; and Ricardo Ortega-Vasquez, a Dominican national residing in New York City, were indicted for their roles in the conspiracy.  

According to court documents, a court-authorized wiretap intercepted Rock and Walker speaking with Nuzzolilo about purchasing cocaine for re-distribution in Maine. On April 10, 2017, Rock contacted Nuzzolilo to ask if he would “front” a quantity of cocaine for Walker; she then traveled to Nuzzolilo’s apartment in Worcester. On April 15, 2017, Walker arranged to obtain cocaine from Nuzzolilo’s apartment, and Nuzzolilo directed Little to provide two ounces of cocaine to Walker. On April 23, 2017, Walker again visited Nuzzolilo’s apartment to obtain cocaine. On April 27, 2017, Walker spoke with Nuzzolilo about obtaining additional cocaine, promising that his “workers” had cash to cover it. Rock and Walker then traveled to Nuzzolilo’s Worcester apartment, and, after leaving the apartment, were stopped by law enforcement and found in possession of more than 50 grams of cocaine.

Walker faces a sentence of up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

Rock, Little, and Ortega-Vasquez have also pleaded guilty and are awaiting sentencing. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.

CONTACT:  Barbara Burns
PHONE:      (716) 843-5817
FAX #:         (716) 551-3051

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nerio Frank Fogazzi, 77, of Canada, was arrested and charged by criminal complaint with possessing with intent to distribute and distributing marijuana, and importing marijuana from Canada into the United States. The charges carry a maximum penalty of five years in prison and a $250,000 fine.

Assistant U.S. Attorney Emmanuel O. Ulubiyo, who is handling the case, stated that according to the complaint, on May 21, 2018, at approximately 10:00 p.m., the defendant attempted to enter the United States from Canada at the Peace Bridge port of entry. During primary inspection, Fogazzi, a Canadian Citizen, told the primary Customs and Border Protection Officer that he was coming to the United States to go shopping but could not provide the Officer with an intended shopping destination.

When asked if he was bringing anything into the United States and if he had anything to declare, the defendant said he did not. The officer then asked Fogazzi to unlock the trunk of his vehicle for inspection. The officer opened the trunk and observed an empty black hockey bag laying on top of two other black hockey bags that appeared full. The officer also detected the odor of marijuana emanating from the trunk. The officer then unzipped one of the full hockey bags and observed suspected marijuana inside clear vacuum sealed plastic bags. The defendant was escorted to the security office. Fogazzi’s vehicle was also taken to the secondary area for further inspection during which officers discovered additional suspected marijuana in a second hockey bag as well as in the spare-tire cavity under the hockey bags in the trunk. A total of 96 packages of suspected marijuana, weighing a total of over 104 lbs., were seized.

“Although 77-year-old Canadians who come to the United States to play hockey will be welcomed—and likely even celebrated—here,” stated U.S. Attorney Kennedy, “septuagenarians who use hockey bags to smuggle marijuana into our country will not be given the same reception. Instead, they will be prosecuted to the fullest extent of the law.”

“This is an excellent seizure that demonstrates our officers dedication to enforcing the CBP mission and protecting the public from illegal narcotics,” said Acting Port Director Cary Frieling. “Their vigilance and our excellent working relationship with our partners at Homeland Security Investigations and the U.S. Attorney’s Office prevented these narcotics from entering our country and ensured that the violator will face justice.”

“HSI will continue working with our partners at CBP to ensure that those engaged in smuggling large quantities of illegal drugs into the United States are brought to justice,” said Kevin Kelly, Special Agent-in-Charge of HSI Buffalo. “HSI has the capability to leverage significant seizures into wider investigations that attack every level of a drug smuggling organization, both foreign and domestic.”

The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and was released on conditions.
 
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

            WASHINGTON – Darryl Smith, 41, the manager of a Southeast Washington barbershop, pled guilty today to federal narcotics and firearms offenses stemming from an investigation into drug trafficking at the business and surrounding area.

            The announcement was made by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Smith pled guilty in the U.S. District Court for the District of Columbia to one count of possession of a firearm in furtherance of a drug trafficking offense and one count of possession with the intent to distribute PCP. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 80 months of incarceration, to be followed by five years of supervised release. The Honorable Amit P. Mehta scheduled sentencing for Aug. 15, 2018.

            On Dec. 24, 2017, Smith was arrested by MPD while in the possession of a loaded firearm and packaged capsules of fentanyl after he fled officers following a drug transaction in the 2400 block of Martin Luther King, Jr. Avenue SE, where the Next Level Cuts barbershop is located. Smith also was arrested following a search warrant executed at the barbershop and surrounding property on Feb. 1, 2018. In addition to recovering three firearms from the barbershop and adjoining property, law enforcement seized more than $7,000 in cash, more than 800 grams of PCP, more than 300 grams of heroin, and boxes of Suboxone strips.  

            Smith, of Washington, D.C., was indicted on federal charges in February 2018.

            Two co-defendants are still facing charges. Anthony Fields, 44, of Washington, D.C., was indicted for drug trafficking offenses arising from the Feb. 1, 2018 seizure. James Venable, 46, of Fort Washington, Md., was indicted on narcotics and firearms charges, stemming from two separate drug trafficking offenses committed in the District of Columbia, one of which alleges his distribution of narcotics outside the barbershop. Both have pled not guilty.

            In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Chittum, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who are handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Christopher Macchiaroli and Paralegal Specialist Candace Battle.

PROVIDENCE, RI – Four individuals pleaded guilty in U.S. District Court in Providence to federal tax charges arising out of an investigation into payments to vendors who performed maintenance on United States Postal Service vehicles in Rhode Island, announced United States Attorney Stephen G. Dambruch, Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, and Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.

On Friday, June 1, 2018, Ronald Long, 54, and Cheryl Melton Long, 48, of Warwick, each pleaded guilty to one count of conspiracy to defraud the United States. 

On May 23, 2018, Gary Neirinckx, 60, a now retired Postmaster from Warwick, pleaded guilty to one count of filing a false tax return.

On February 22, 2018, Donald Tonks, 57, pleaded guilty to one count of failure to file a tax return. 

According to information presented to the Court, the cases originated as a fraud investigation related to billing by companies controlled by Ronald and Cheryl Long, which functioned as vendors to the United States Postal Service by providing mechanical repair work to Postal Service vehicles. The Longs’ business utilized various corporate names, however virtually all of the Long’s business derived from work performed on United States Postal Service vehicles. By dollar amount, the Longs’ businesses were the largest non-fuel vendor of the Postal Service in Rhode Island between 2006 and 2014. Ronald Long directed and controlled the business; Cheryl Long was primarily responsible for maintaining financial records and paying bills.

Gary Neirinckx was a Postal service employee who held various roles with the Postal Service including Postmaster in Warwick.  In 2015, while still employed by the Postal Service, Neirinckx opened a business in Warwick co-owned by Ron and Cheryl Long. Neirinckx had utilized Long’s services at the Warwick Post Office and subsequently referred the Longs to other postmasters.

A review by investigators of the Longs’ bank records between 2010 and 2015, showed that the Longs were paying nearly all of their personal living expenses out of their business bank account, including rent for their residence, utilities, expenses related to their children and expenses related to their boat. The investigation also revealed the Longs were paying employees in cash and that a series of checks were found to be made out to cash and with the notation of “G” on the memo line. The investigation revealed that the checks were cashed and the same amounts were simultaneously deposited into Neirinckx’s personal bank account by Cheryl Long. 

At the time of his guilty plea, Neirinckx admitted that he recommended the Longs and their mechanical services to other postmasters, but that he never ordered work be sent their way. In return for doing so he accepted payment from the Longs. The investigation determined that the Longs paid Neirinckx $66,300, which he failed to report as income on his tax returns. Neirinckx also admitted that deductions for charitable contributions he reported on his tax returns were fabricated.

Ronald and Cheryl Long provided false information to their tax return preparer which resulted in the filing of false tax returns, which did not accurately report their individual and household income.  The Long’s did not file a federal income tax return for the year 2011, and filed various false corporate and income tax returns for the years 2012 through 2015.

Donald Tonks was an employee of the Longs until approximately September 2014, when he and the Longs agreed to divide the business with the Postal Service.  Tonks started his own business and generally took over services for post offices in southern Rhode Island, such as South Kingstown, Wakefield, Charlestown and Westerly. Around the time Tonks started working for the Longs, he stopped filing federal income tax returns, despite being required to do so. 

On May 23, 2018, Donald Tonks was sentenced by United States Magistrate Judge Lincoln D. Almond to two years probation, ordered to perform 200 hours of community service, and pay full restitution to the IRS in the amount of $92,624.

Gary Neirinckx is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 7, 2018.  Ronald Long and Cheryl Long are scheduled to be sentenced by Chief Judge William E. Smith on September 28, 2018. 

The cases are being prosecuted by Assistant U.S. Attorneys John P. McAdams and Denise M. Barton.  The matter was investigated by the United States Postal Service-Office of Inspector General, and the IRS-Criminal Investigation Division.

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PROVIDENCE, RI – A national sales executive for Dr. Pepper/Seven Up, Inc., a subsidiary of Dr. Pepper Snapple Group (Dr. Pepper), was sentenced Friday to 33 months in federal prison for submitting more than $1.7 million dollars worth of fraudulent invoices to Dr. Pepper through a promotions and marketing company he formed in his wife’s name.

In February, Michael Lynch, 53, of Newport, R.I., admitted to the Court that in April 2003, he incorporated Seacoast Unlimited Marketing and Promotions, LLC (Seacoast) in his wife’s name, and through Seacoast, from January 2007 until November 29, 2017, submitted to Dr. Pepper more than 200 fraudulent invoices totaling $1,716,949 for services such as promotional signs and banners, delivery of sample products to retail stores and the offering of discount prices to retail stores. None of the services billed to and paid for by Dr. Pepper were provided.

Additionally, Lynch admitted that he failed to declare any of the income he derived through Seacoast on the joint federal tax filings he filed with his wife. The tax loss applicable to the defendant’s conduct totals $386,320.

Lynch pleaded guilty on February 27, 2018, to wire fraud and filing a false tax return.

At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Lynch to serve 2 years supervised release upon completion of his term of incarceration, to pay full restitution to Dr. Pepper, and to pay taxes owed to the Internal Revenue Service.

The U.S. Sentencing Guidelines range of imprisonment in this matter is 33 – 41 months. The government recommended the court impose a sentence of 33 months incarceration. Lynch’s sentence is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.

The matter, investigated by the FBI and by IRS Criminal Investigation, was prosecuted by Assistant U.S. Attorney Lee H. Vilker. 

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Société Générale S.A. (Société Générale), a global financial services institution based in Paris, France, and its wholly owned subsidiary, SGA Société Générale Acceptance N.V., have agreed to pay a combined total penalty of more than $860 million to resolve charges with  law enforcement authorities in the United States and France, including $585 million relating to a multi-year scheme to pay bribes to officials in Libya and $275 million for violations arising from its manipulation of the London InterBank Offered Rate (LIBOR), one of the world’s leading benchmark interest rates.  Together with approximately $475 million in regulatory penalties and disgorgement that Société Générale has agreed to pay to the Commodity Futures Trading Commission (CFTC) in connection with the LIBOR scheme, the total penalties to be paid by the bank exceed $1 billion.

In related proceedings, Société Générale reached a settlement with the Parquet National Financier (PNF) in Paris relating to the Libya corruption scheme.  The United States will credit $292,776,444 that Société Générale will pay to the PNF under its agreement, equal to 50 percent of the total criminal penalty otherwise payable to the United States.  This is the first coordinated resolution with French authorities in a foreign bribery case.

SGA Société Générale Acceptance N.V. is scheduled to plead guilty in connection with the resolution of the foreign bribery case and Société Générale will enter into a deferred prosecution agreement on Tuesday afternoon in federal court in Brooklyn before Chief United States District Judge Dora L. Irizarry.  The plea agreement and the deferred prosecution agreement are subject to court approval by Chief Judge Irizarry.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Christopher Hacker, Acting Assistant Director, Federal Bureau of Investigation (FBI), Criminal Investigative Division, and Eric Hylton, Deputy Chief, Internal Revenue Service-Criminal Investigation (IRS-CI), made the announcement.

“The resolution announced today by the Department with Societe Generale and a subsidiary, which includes a guilty plea, admissions of wrongdoing, significant corrective measures and hundreds of millions of dollars in penalties, sends a powerful message to financial institutions that engage in corruption and manipulation in the financial markets that they will be held accountable,” stated United States Attorney Donoghue.  “The United States will vigorously protect the integrity of financial markets by holding responsible to the full extent of the law those banks, corporations and individuals who seek to corrupt government officials to enrich themselves.” 

“For years, Société Générale undermined the integrity of global markets and foreign institutions by issuing false financial data and by fraudulently securing contracts through bribery,” said Acting Assistant Attorney General Cronan.  “Today’s resolution – which marks the first coordinated resolution with France in a foreign bribery case – sends a strong message that transnational corruption and manipulation of our markets will be met with a global and coordinated law enforcement response.”

“Today’s resolution demonstrates that fraudulently manipulating LIBOR and deceiving the financial market has severe consequences, and the FBI will not tolerate this type of criminal activity,” said FBI Special Agent-in-Charge DeSarno. “The FBI remains committed to holding institutions accountable for their actions in breaking the law and manipulating the global benchmark interest rate. The personnel of the FBI Washington Field Office have dedicated significant time and resources to investigating complex financial fraud schemes such as this one, and I want to thank them for their tireless efforts as well as our colleagues at the Department of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York for their hard work.”

“Today’s announcement resulted from the unraveling of international financial transactions orchestrated by Société Générale and its agents to facilitate illegal payments to foreign government officials in Libya,” said IRS-CI Deputy Chief Hylton. “IRS-CI is a trusted partner in pursuit of those who use pervasive bribery schemes to circumvent the law. We are committed to maintaining fair competition, free of corrupt practices, through global teamwork and our robust financial investigative talents.”                                   

The FCPA Case

According to the companies’ admissions, between 2004 and 2009, Société Générale paid bribes through a Libyan “broker” in connection with 14 investments made by Libyan state-owned financial institutions.  For each transaction, Société Générale paid the Libyan broker a commission of between one and a half and three percent of the nominal amount of the investments made by the Libyan state institutions.  In total, Société Générale paid the Libyan broker over $90 million, portions of which the Libyan broker paid to high-level Libyan officials in order to secure the investments from various Libyan state institutions for Société Générale.  As a result of the corrupt scheme, Société Générale obtained 13 investments and one restructuring from the Libyan state institutions worth a total of approximately $3.66 billion, and earned profits of approximately $523 million.

Société Générale will enter into a deferred prosecution agreement in connection with a criminal information charging the company with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of transmitting false commodities reports.  Additionally, Société Générale’s subsidiary, SGA Société Générale Acceptance N.V., will plead guilty to a one-count criminal information filed today in federal court in Brooklyn charging the company with a conspiracy to violate the anti-bribery provisions of the FCPA.  Pursuant to its plea agreement, Société Générale will pay a total criminal penalty of $860 million to the Department of Justice.  Société Générale also agreed to continue to cooperate with the Department’s investigation and adopt and maintain enhanced compliance procedures.                  

The Department of Justice entered into this resolution in part due to Société Générale’s failure to voluntarily self-disclose the companies’ misconduct to the Department; the seriousness of the companies’ conduct, including the high value of the bribes paid to foreign officials; the company’s substantial, though not full, cooperation with the Department; and the company’s significant remediation which, together with the company’s risk profile and ongoing monitoring by L’Agence Française Anticorruption, resulted in the Department determining that a monitor was not necessary in this case.

The LIBOR Case

As admitted by the company, between May 2010 and at least October 2011, Société Générale promulgated falsely deflated U.S. Dollar (USD) LIBOR submissions to make it look as though Société Générale was able to borrow money at more favorable interest rates than it was actually able to do so.  This downward manipulation allowed Société Générale to create the appearance that it was stronger and more creditworthy than it was. 

The USD LIBOR manipulation scheme was ordered by senior executives of Société Générale, who tasked the managers of the company’s Treasury Department with overseeing the execution of the deflation effort.  Several employees within Société Générale’s Treasury Department ensured that the company’s USD LIBOR submissions were altered in accordance with the deflation directive.  Société Générale’s misconduct frequently altered the daily rate at which USD LIBOR was set, which affected financial products worldwide, including interest rate swaps, futures contracts and other derivative financial products.

Further, in 2006, certain Société Générale employees in London and Tokyo worked together to manipulate Société Générale’s Japan Yen (JPY) LIBOR submissions.  These employees endeavored to manipulate JPY LIBOR in order to benefit the trading positions of a Société Générale employee.  This employee had numerous deals tied to JPY LIBOR, and manipulation of JPY LIBOR improved the profitability of the employee’s trading book.

By the terms of the agreement, Société Générale will pay a fine of $275 million to resolve the LIBOR misconduct matter.  Additionally, in August 2017, two individuals—former Société Générale Global Treasury Head Danielle Sindzingre and former Paris Treasury Head Muriel Bescond—were indictedfor their roles in the scheme.  Both individuals remain at large.

The FBI’s New York Field Office and IRS-Criminal Investigation’s New York office are investigating the case. 

Assistant U.S. Attorneys David C. Pitluck and James P. McDonald of the Eastern District of New York, and Trial Attorneys Gerald M. Moody Jr. and Dennis R. Kihm of the Criminal Division’s Fraud Section are prosecuting the FCPA case.  Assistant U.S. Attorney Matthew S. Amatruda of the Eastern District of New York and Assistant Chief Carol Sipperly, Trial Attorneys Timothy A. Duree and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the LIBOR case.  The Criminal Division’s Office of International Affairs provided significant assistance in this matter.

The Department appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission and the CFTC in this matter.  The PNF, the United Kingdom’s Serious Fraud Office, the Federal Office of Justice in Switzerland and the Office of the Attorney General in Switzerland also provided significant cooperation.

E.D.N.Y. Docket No. 18-CR-274 (DLI)

E.D.N.Y. Docket No. 18-CR-253 (DLI)

Assistant U.S. Attorney Michael A. Sullivan was honored today with an Arthur S. Flemming Award for his work in preventing and prosecuting crimes involving the exploitation of children.

The Flemming Awards were established in 1948 and are presented by the George Washington University Trachtenberg School of Public Policy and Public Administration. Past recipients include Neil Armstrong, former Secretary of Defense Robert Gates, former Senator Elizabeth Dole, former Senator Daniel Patrick Moynihan, and former Federal Reserve Chair Paul Volcker.  The last time a Flemming Award was presented to an employee of any U.S. Attorney’s Office was in 2011.

Sullivan was honored for his highly successful prosecution, as Senior Litigation Counsel, of child exploitation cases.  He has gained a national reputation for his aggressive prosecution of these offenders.  His greatest contribution may well be his role in the implementation and promotion of a new investigative protocol for child pornography cases that has been incredibly successful in Northern Ohio and has been replicated across the country.

“This award is a testament to the many years Mike has spent pursuing predators and sticking up for our most vulnerable victims,” U.S. Attorney Justin E. Herdman said. “Mike is absolutely the best that the Department of Justice, the United States Attorney’s community, and the Northern District of Ohio has to offer. I’m very glad he’s on our side and the side of our nation’s child victims.”

Sullivan is often asked to train and speak to prosecutors around the nation about how to investigate and prosecute child exploitation cases. He also frequently talks to students and parents at school throughout the area about safe use of computers and social media.

Sullivan graduated from the University of Notre Dame and the Fordham University School of Law. He worked in the Suffolk County (New York) District Attorney’s Office and the Cuyahoga County Prosecutor’s Office before joining the United States Attorney’s Office in Cleveland in 2003.

SHREVEPORT/LAFAYETTE/MONROE/ALEXANDRIA/LAKE CHARLES, La.–On the 500^th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney David C. Joseph announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws and help roll back the devastating opioid crisis.

In the largest increase in decades, the Department of Justice is allocating 311 new Assistant U.S. Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force, which targets the opioid crisis at every level of the distribution system.

“Under President Trump’s strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’  When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime-fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”

In the Western District of Louisiana, two of these AUSAs will focus on prosecuting violent crime and one will focus on civil enforcement of federal law.

“Upon taking office, I promised to aggressively prosecute violent crime throughout the district while ensuring immigration offenses, public corruption, and our efforts to stem the opioid epidemic remain top priorities,” Joseph stated. “These additional prosecutors will assist in achieving our objectives by bringing more criminal prosecutions against those who threaten the safety and wellbeing of our citizens.  These positions also give our office more capacity to pursue those who abuse government benefits and otherwise cheat the United States, by bringing civil actions against them.  I want to thank Attorney General Jeff Sessions for the opportunity to hire additional Assistant United States Attorneys to serve the communities in our district.  We will work with our federal agencies as well as our state and local partners to ensure we make the most of these added resources.”

To see more information on the locations of the 311 Assistant U.S. Attorney positions click here.

Five men have been charged in New Orleans with crimes related to illegally exporting birds protected under the Convention on International Trade in Endangered Species (CITES) from the United States to Taiwan.  William McGinness, 59, of Buena Park, California; Paul Tallman, 55, of Destreham, Louisiana; Rene Rizal, 62, of La Mirada, California; Wayne Andrews, 46, of Royal Oaks, California and Alex Madriaga, 76, of Buena Park, California; were each indicted in federal court in the eastern District of Louisiana today.

On May 31, 2018, a five-count indictment was returned charging McGinness, Tallman, Rizal, Andrews and Madriaga with conspiracy to smuggle CITES-protected birds from the United States to Taiwan. McGuinness was also charged with smuggling birds to Taiwan and three counts of making and submitting false records under the Lacey Act, and Tallman was charged with smuggling and one count of making and submitting false records under the Lacey Act.

The indictment alleges, among other things, that McGinness, a resident of California, and his co-conspirators created false statements and submitted them to the United States Fish and Wildlife Service (USFWS) in order to illegally export CITES-protected birds from the Port of New Orleans to Taiwan. The shipment included 90 CITES-protected birds, including parrots, macaws, cockatoos and corellas. Several of the birds were in crates that were falsely labeled. The USFWS seized 14 of the birds at the airport in Houston, Texas before they were exported. 

The indictments were announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, and Acting Assistant Director Edward Grace of the Office of Law Enforcement for the U.S. Fish and Wildlife Service.

 “These indictments demonstrate our commitment, shared with the U.S. Fish and Wildlife Service, to investigate and prosecute those engaged in illegal trade of protected animals,” said Acting Assistant Attorney General Wood. “We will continue to collaborate with our partners at the federal, state and local levels to prosecute wildlife smuggling.”

"Today’s indictments were the result of a complex investigation into the wildlife trafficking of protected birds,” said Acting Assistant Director Grace. “Wildlife trafficking is a serious crime that is detrimental to species around the world. I am very proud of our special agents and wildlife inspectors who helped bring these defendants to justice."

The United States and approximately 182 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Species are listed on “appendices,” based on the level of protection necessary to protect the species. 

The case was investigated by the USFWS and the Justice Department’s Environmental Crimes Section. The government is represented by Environmental Crimes Section Trial Attorney Mary Dee Carraway.

BOSTON – On the 500^th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney for the District of Massachusetts Andrew E. Lelling announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis. The District of Massachusetts will receive five new federal prosecutors who will focus on violent crime, civil enforcement and immigration matters.

In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.

“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’ When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”

The District of Massachusetts will hire two new AUSAs to focus on violent crime, two on civil enforcement and one who will prosecute immigration crimes. 

“Reducing violent crime, tackling the opioid crisis and enforcing immigration laws are top priorities for my office,” said U.S. Attorney Lelling. “In recent years, prosecutors working in these areas have seen significant increases in Massachusetts. This overwhelms our capacity to prosecute those who disregard the laws of our country and strains legal and law enforcement resources. Hiring five new Assistant U.S. Attorneys will pay dividends for years to come and make a discernable impact in communities across the Commonwealth.”