BIRMINGHAM – A federal judge today sentenced a Birmingham man to 24 years and four months in prison on charges that included selling heroin that caused the death of a 22-year-old Hoover man, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.

U.S. District Judge Karon O. Bowdre sentenced EDWARD LEE HENDERSON JR., 31, for selling heroin on Dec. 30, 2016, that caused the Hoover man’s death. The young man’s father found his son unresponsive in the parking lot of a Hoover business on Jan. 2, 2017.  Forensic medical examination concluded the man would not have died “but for the heroin” found in his system.

Judge Bowdre also sentenced Henderson for distributing heroin and cocaine and for being a convicted felon in possession of a firearm. Henderson, also known as Hot Boi Eddy, pleaded guilty to the charges in April.

“Overdoses from heroin and other opioids killed more people in America in 2017 than either car crashes or guns,” Town said. “This defendant pushed his deadly poison hard. My office and our law enforcement partners are deep into the fight against the country’s opioid epidemic. Drug dealers should be getting the message that if they cause an overdose death, they will spend time, possibly the rest of their lives, in federal prison.”  

“The successful prosecution of Edward Lee Henderson should put others who engage in this type of activity on notice: if you sell drugs, and that drug causes a death, you will face federal charges and a lengthy prison sentence,” Hamilton said. “This ‘career offender’s’ sentence in federal prison sends a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities.”

According to evidence presented in court, the overdose victim was a heroin addict who checked himself out of a rehabilitation facility in Bessemer on Dec. 7, 2016. On Dec. 30, 2016, he traveled to Birmingham to buy heroin from Henderson, whose number was saved in the victim’s cell phone as Hot Boi Eddy.

Investigators found text messages to and from Henderson on the victim’s phone discussing the potential sell of heroin between Dec. 24, 2016, and Dec. 27, 2016, according to evidence in court. One of the texts from Henderson said: “Christmas Eve deals goin today but deals only start when u get 3 or[sic] them today!”

A Christmas Eve text from the victim to a friend asked the friend to call 911 if he had not heard back from him in 15 or 20 minutes. The victim gave his friend an address for his location. The address was Henderson’s residence, according to evidence.

About a month after the victim’s overdose death, a Birmingham Police detective began making undercover drug buys from Henderson, according to evidence. The officer bought heroin from Henderson three times that February. In May 2017, the undercover bought heroin and cocaine from Henderson.

On July 4, 2017, when Birmingham Police stopped Henderson riding an all-terrain vehicle on Sixth Avenue South, he had a Smith & Wesson pistol in his waistband. Henderson had a previous felony conviction in Jefferson County Circuit Court in April 2012 for discharging a firearm into an occupied building, and an October 2010 conviction in Jefferson County District Court for unlawful possession of a controlled substance, according to court records.

DEA investigated the case in conjunction with the Birmingham Police Department. Assistant U.S. Attorney Gregory R. Dimler prosecuted the case.

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KNOXVILLE, Tenn. – On October 2, 2018, Amir Hossain Rasekh, 40, of Las Vegas, Nevada, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 33 months in federal prison for stealing Social Security benefits from unsuspecting seniors through a conspiracy involving theft of their personal information.  He was also ordered to pay restitution in the amount of $547,719.20.

Rasekh pleaded guilty in May 2018, to conspiracy to commit mail fraud and wire fraud.  From 2012 until his arrest in June 2017, Rasekh engaged in a scheme involving the theft of Social Security Administration (SSA) benefits from unsuspecting victims, including using their personal identification information (PII) to sign up for benefits online.  He and other individuals, who are currently unknown to law enforcement, then directed the payment of the monthly SSA benefits to prepaid debit cards issued by Green Dot and under their control.  Over the five-year period of the scheme, Rasekh stole $547,719.20 in SSA benefits.

“The U.S. Attorney’s Office will continue to pursue prosecution of individuals who commit crimes against our district’s older residents,” said U.S. Attorney J. Douglas Overbey. “We encourage anyone near retirement age to protect themselves from fraudulent acts such as these by contacting the Social Security Administration to ensure that their personal identification information has not been used without their knowledge.”

Agencies involved in this investigation included the SSA, Office of the Inspector General and U.S. Postal Inspection Service. Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States in court proceedings.                                   

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PROVIDENCE, RI –A Providence man arrested a week ago on federal indictments charging him with unlawfully selling four firearms, including two AR-47 assault rifles, was re-arrested yesterday and ordered detained in federal custody on a criminal complaint charging him with witness intimidation.

According to the criminal complaint, it is alleged that soon after his arraignment in U.S. District Court last Thursday, Emmanuel Miamen, 24, posted several threatening messages on social media directed at his indictment and a person who assisted the FBI in the Project Safe Neighborhoods Investigation.

On Tuesday, United States Attorney Stephen G. Dambruch, FBI Boston Division Special Agent in Charge Harold H. Shaw and ATF Boston Division Assistant Special Agent in Charge Kenneth K. Kwak announced the indictment of twenty-six individuals over the past 18 months in a series of Project Safe Neighborhoods investigations into firearm and drug trafficking in and around Providence.

It is alleged in two indictments returned against Miamen that in May and June 2018, he conspired with others to unlawfully sell two AR-47 assault rifles and two handguns. Additionally, it is alleged in the indictment, Miamen offered that he had a grenade launcher for sale for $8,000.

A criminal complaint and indictment are merely allegations and are 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.

The cases are being prosecuted by Assistant U.S. Attorneys Richard W. Rose and Terrence P. Donnelly.

The matter was investigated by the FBI.

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HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Millan-Miranda, age 31, of Lebanon, Pennsylvania, was sentenced yesterday to 151 months’ imprisonment and five years’ supervised release by United States District Court Judge John E. Jones, III for various drug trafficking offenses.

According to United States Attorney David J. Freed, Millan-Miranda was convicted on April 11, 2017, along with codefendants Julio Aviles, Sr. age 49, of Lebanon, Pennsylvania, and Israel Nazario, age 62, of Philadelphia, Pennsylvania, all members of a Lebanon County Drug Trafficking Organization, of conspiracy to distribute and possess with intent to distribute one kilogram and more of heroin.  The parties stipulated that Millan-Miranda was responsible for at least three but less than 10 kilograms of heroin (which is equivalent to approximately 120,000 to 400,000 individual doses of heroin).  Millan-Miranda was also convicted of possession with the intent to distribute heroin and the distribution of heroin.  The six-day trial was held in federal court in Harrisburg before United States District Judge John E. Jones, III. 

The two-year investigation by the Drug Enforcement Administration and the Lebanon County Drug Task Force culminated with the execution of search warrants at 513 Arnold Street and 443 North 6^th Street, in Lebanon, Pennsylvania, on May 14, 2015.  During the search at 513 Arnold Street, law enforcement agents discovered a “heroin mill” where kilogram amounts of heroin were being processed on a weekly basis.  The evidence at trial revealed that Julio Aviles, Sr., a previously convicted drug dealer, owned and operated the heroin mill and employed a network of sellers, packagers, brokers and testers to conduct this illegal enterprise.  Packagers were paid approximately $500 a week like factory workers to process and package the heroin for later distribution.  The testers operated as quality assurance inspectors to ensure the heroin was of sufficient quality.  At the time of the searches, law enforcement agents found over 400 grams of heroin, over 85 grams of cocaine powder, and over 71 grams of crack cocaine.  A kilogram of heroin, which weighs approximately 2.2 pounds is equivalent to approximately 40,000 to 50,000 individual doses of heroin, any one of which can be fatal depending on its purity and the nature of its other ingredients.  In this case the evidence established that the drug trafficking organization was mixing the heroin with Fentanyl, morphine, oxycodone and Lidocaine.  Law enforcement agents estimated that this drug operation was distributing heroin, crack cocaine, and cocaine for a two-year period and during the last few months was distributing kilogram quantities of heroin, crack cocaine and cocaine powder.  The value of the drugs distributed has a conservative street value of between $3 million and $5 million. 

Located in the processing room were over 52,000 small Ziploc style bags, 37,000 small glassine bags and over 28,000 rubber bands that are used to package controlled substances.  Each rubber band was used to package ten individual bags of heroin, called a bundle.      

Law enforcement also located three handguns, ten rifles, six shotguns and paraphernalia consistent with a large-scale drug trafficking operation.  During the search at 443 North 6^th Street, law enforcement officers located additional quantities of heroin, cocaine powder, and crack cocaine along with drug packaging materials.

Thirteen individuals, all together were charged as part of this operation:

• Julio Aviles, Sr., age 49, sentenced to life imprisonment;
• Isrrael Nazario, age 62, sentenced to 180 months’ imprisonment;
• Julio Aviles, Jr., age 24, sentenced to 28 months’ imprisonment;

• Leandro Nazario, age 30, sentenced to 240 months’ imprisonment;
• Suheidy Soto-Concepcion, age 35, sentenced to 120 months’ imprisonment;
• Eliezer Soto-Concepcion, age 36, sentenced to 144 months’ imprisonment;
• Brenda Soto, age 35, sentenced to 12 months and one day in prison;
• Geidy Arroyo, age 37, time served;
• Brittany Rivera, age 24, sentenced to one year and one day in prison;
• Brent Moyer, age 22, sentenced to 18 months’ imprisonment;
• Carlos Nazario, age 72; pending sentencing; and
• Kengie Millan-Miranda, age 27, remains a fugitive. If you have any information on the whereabouts of Kengie Millan-Miranda, please contact Crime Stoppers at 717-270-9800.

Julio Aviles, Jr., Brittany Rivera, Brent Moyer, Carlos Nazario, Brenda Soto and Geidy Arroyo all pled guilty to conspiracy to distribute and possess with intent to distribute 1,000 grams and more of heroin.  On the day of trial, Leandro Nazario, Eliezer Soto-Concepcion and Suheidy Soto-Concepcion all pled guilty to conspiracy to distribute and possess with intent to distribute 1,000 grams and more of heroin, 280 grams and more of cocaine base, or crack cocaine and an unspecified quantity of cocaine hydrochloride or powder cocaine. 

            The investigation was conducted by the Drug Enforcement Administration, Lebanon County Drug Task Force, Lebanon County Detective Bureau, Lebanon City Police Department, Cornwall Borough Police Department, and assisted by the Lebanon County Probation Department. Assistant United States Attorney Daryl F. Bloom, Chief of the Organized Crime and Drug Enforcement Task Force and Special Assistant United States Attorney Nichole Eisenhart who also serves as the First Assistant District Attorney in Lebanon County, Pennsylvania prosecuted the case.   

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A criminal complaint was unsealed today in federal court in Brooklyn charging Kaderrah Doyle, Cara Steinberg, Marina Golfo, Ego Onaga, Lyubov Beylina, Danielle Scopinich, Patricia Hakim and Enock Mensah with stealing more than $600,000 in funds from Medicaid and the New York City Department of Health and Mental Hygiene through fraudulent billing practices in connection with the New York State Early Intervention Program (EIP).  The EIP is a New York State program that provides remedial services to developmentally delayed children from birth to age three.  The defendants, all EIP therapists, were arrested earlier today and are scheduled to make their initial appearance this afternoon before United States Magistrate Judge Sanket J. Bulsara.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), announced the charges.

“As alleged in the complaint, the defendants defrauded government agencies out of hundreds of thousands of dollars in public funds designated for therapeutic care for developmentally disabled children,” stated United States Attorney Donoghue.  “The victims of this fraud include not only the children and their families who were deprived of the therapeutic care that these defendants claimed to have performed, but ultimately the taxpayers whose taxes support Medicaid.  This Office and our law enforcement partners are committed to ensuring that those who defraud benefit programs will be held accountable.”  Mr. Donoghue also expressed his appreciation to the New York City Department of Health and Mental Hygiene for its assistance during the investigation.

“As we allege today, these defendants stole hundreds of thousands of government dollars from a program designed to aid some of our city’s most vulnerable residents,” stated FBI Assistant Director-in-Charge Sweeney.  “Rather than provide honest services, they chose to line their own pockets at the expense of taxpayers and the developmentally-delayed children and their families for whom these funds were targeted.  Today’s arrests should serve as a reminder that the FBI will continue to be vigilant in our effort to root out fraud and abuse in programs intended to serve the public when these programs are corrupted by greed.”

 “These eight therapists shamefully benefited by stealing hundreds of thousands of dollars in public funds while developmentally disabled and delayed children in their care were denied thousands of crucial therapy sessions, according to the charges,” stated DOI Commissioner Peters.  “DOI thanks the U.S. Attorney’s Office for the Eastern District of New York for its prosecution of these crimes.”

According to the complaint, between approximately 2012 and 2018, the defendants submitted thousands of fraudulent session notes and accompanying invoices for non-existent EIP therapy sessions.  As a direct result of their fraudulent submissions, the defendants received hundreds of thousands of dollars in reimbursements from Medicaid and the New York City Department of Health and Mental Hygiene.  On many occasions, the defendants were not present at the place where the therapy sessions supposedly occurred, including instances in which they were outside of New York State or even outside of the United States.  For example, Beylina allegedly submitted approximately 51 fraudulent invoices for EIP therapy sessions that purportedly occurred when she was in the Dominican Republic.  On other occasions, the defendants submitted documentation containing the forged signatures of the children’s caretakers, including parents, guardians, teachers and daycare providers.  In other instances, the defendants falsely claimed to have performed EIP therapy sessions for two different children at two different locations at the exact same time.  Many of the defendants also falsely claimed to have performed EIP therapy sessions when they were, in fact, at work elsewhere, including as full-time teachers with the New York City Department of Education.  

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. 

If convicted, the defendants face a statutory maximum of 10 years’ imprisonment.

The government’s case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorneys Ryan Harris and Erin Reid are in charge of the prosecution.

The Defendants:

KADERRAH DOYLE
Age: 41
Bronx, New York

CARA STEINBERG
Age: 40
Old Bridge, New Jersey

MARINA GOLFO
Age: 44
North Pelham, New York

EGO ONAGA
Age: 45
Staten Island, New York

LYUBOV BEYLINA
Age: 30
Brooklyn, New York

DANIELLE SCOPINICH
Age: 35
Ozone Park, New York

PATRICIA HAKIM
Age: 54
Forest Hills, New York

ENOCK MENSAH
Age: 58
Mount Olive, New Jersey

E.D.N.Y. Docket No. 18-MJ-927

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury returned a superseding indictment on October 2, 2018, charging Phillip Finn, Jr, age 48, of Plains Township, Pennsylvania, with interstate communications and using fire to commit a felony. 

According to United States Attorney David J. Freed, the superseding indictment charges Finn with using his email account to send a Luzerne County caseworker threatening emails between March 4, 2017 and March 5, 2017.  It also alleges that on March 6, 2017, Finn used three Molotov cocktails to firebomb the Luzerne County Children and Youth Services building in Wilkes-Barre, Pennsylvania, to commit the felony of stalking.    

On July 11, 2017, Finn was indicted on charges of stalking, interstate communications and malicious damage to federal property by fire.  The indictment alleged that between March 3, 2017 and March 6, 2017, Finn used Facebook, Google and his cell phone to engage in a course of conduct, to harass and intimidate two Luzerne County Children and Youth Services employees.  The superseding indictment added the charge of use of fire to commit a felony and an additional count of interstate communication.

The case was investigated by the U.S. Federal Bureau of Investigation (FBI), the Wilkes-Barre City Police Department and the Luzerne County District Attorney’s Office.  Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The combined maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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A Mesquite-based bariatric surgeon today formally admitted his role in the $200 million Forest Park Medical Center fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

53-year-old Wade Neal Barker, one of Forest Park’s founding doctors, appeared in court this morning, where he pleaded guilty to conspiracy to pay and receive healthcare bribes and kickbacks as well as aiding and abetting commercial bribery.

“Patients trust doctors to make healthcare recommendations based on their best interests,” said Nealy Cox. “Instead, Dr. Barker let his own financial considerations guide decisions about where patients would be treated – and, in the process, defrauded millions from patients’ insurance.  The Northern District of Texas will not tolerate plots that undermine confidence in the healthcare system.”

“With the plea in this conspiracy to defraud patients and the healthcare industry by those entrusted to administer and to protect it, the FBI and our law enforcement and regulatory partners will increase our efforts to shine even brighter lights on such schemes to restore the missing trust for all those harmed by the conspirator's actions,” said Eric Jackson, Special Agent-In-Charge of the FBI Dallas Division.

Barker is the seventh of 21 defendants to formally plead guilty in the bribery scheme, designed to induce doctors to refer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now-defunct hospital, as opposed to other facilities.

Instead of billing patients for out-of-network co-payments, instituted by insurers to de-incentivize the high costs associated with out-of-network treatment, Forest Park allegedly assured patients they would pay in-network prices. Because they knew insurers wouldn’t tolerate such practices, they concealed the patient discounts and wrote off the difference as uncollected “bad debt.”

According to prosecutors, Barker and his co-conspirators shelled out approximately $40 million in bribes, disguised as “marketing money” and funneled through a shell company, between 2009 and 2013.  Because he performed surgeries at Forest Park, Barker received these so-called “marketing” payments as well.

He faces roughly five to seven years in federal prison. Sentencing has not yet been set.

Co-defendants Richard Ferdinand Toussaint, Jr., another Forest Park Founder, and Alan Andrew Beauchamp, the hospital manager, have pleaded guilty in the case, along with several others. The remaining defendants are awaiting trial early next year.

The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, the U.S. Office of Personnel Management Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration and the U.S. Postal Inspection Service.

Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle and Mark Tindall are prosecuting the case.

CHICAGO — Twelve individuals are facing federal charges as part of an investigation into heroin trafficking on the West Side of Chicago.

As part of the investigation, dubbed “Operation Dirty Ice,” law enforcement intercepted cellphone communications between the defendants, conducted extensive surveillance, and performed court-authorized searches of residences in the Austin neighborhood of Chicago and west suburban Bellwood.  During the probe, authorities seized one and a half kilograms of heroin, a half kilogram of crack cocaine, more than $892,000 in illicit cash proceeds, and a stolen handgun. 

The investigation was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies, whose principal mission is to identify, disrupt and dismantle the most serious drug trafficking organizations.

A criminal complaint filed in U.S. District Court in Chicago charges eleven defendants with conspiracy to possess a controlled substance with the intent to distribute, and one defendant with possession of a controlled substance with the intent to distribute.  Many of the defendants were arrested Tuesday, and they have made initial appearances in federal court in Chicago.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Eddie Johnson, Superintendent of the Chicago Police Department.  The Illinois State Police provided valuable assistance.  Assistant U.S. Attorneys Kelly Guzman and Rebekah Holman represent the government.

Charged in the drug conspiracy are DIAMOND LAKE, 42, of Bellwood; DARNELL HUDSON, 42, of Chicago; ANTWION WILLIAMS, 43, of Berwyn; DERRON BARTON, 42, of Chicago; STEVEN MOORE, 41, of Chicago; ROMELL RATLIFF, 40, of Chicago; DEANDRE HUGHES, 23, of Chicago; LAWRENCE JONES, 41, of Chicago; CLAYVON VIVETTER, 30, of Chicago; WILLIE BLAKE, 39, of Chicago; and EDDIE YOUNG, 39, of Chicago.  Charged with possession of a controlled substance with the intent to distribute is TYJUAN YATES, 36, of Chicago.

According to the charges, Lake operated a drug trafficking organization that distributed nearly 500 grams of heroin in the Chicago area on a weekly basis.  The organization used Lake’s residence in Bellwood to store bulk quantities of heroin and to prepare the drug for street-level distribution, the complaint states.  Lake, Williams and Hudson parceled the drug in distinctive packaging by wrapping it in tinfoil and stapling it inside mini Ziploc bags, the complaint states.  Williams and Hudson then allegedly worked with Barton to bring the bags to street-level dealers, including Moore, Ratliff, Hughes, Jones, Vivetter, Blake and Young.  After sales on the street, Williams, Hudson and Barton collected cash proceeds and delivered the money to Lake, the charges allege. 

From May to October of this year, Lake’s organization distributed at least 10 kilograms of heroin to customers on the West Side of Chicago, the complaint states.  Many of the sales allegedly occurred in the city’s Austin neighborhood, including in the 100 block of North LaPorte Avenue, the 5000 block of West Maypole Avenue, and the 4800 block of West Quincy Street.

The charge against Yates stems from a June 2018 seizure of heroin in the Garfield Park neighborhood of Chicago, the complaint states.  Law enforcement discovered approximately 109 grams of packaged heroin in Yates’s vehicle in the 4400 block of West Fulton Street, according to the complaint.

The conspiracy charge carries a mandatory minimum sentence of ten years in prison and a maximum penalty of 40 years in prison, while the possession charge against Yates is punishable by up to 20 years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

The public is reminded that charges contain only accusations and are not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHARLESTON, W.Va. -- One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department’s violent crime reduction strategy and a top priority of Attorney General Sessions.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Throughout the past year, we have partnered with federal, state and local law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.

“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs.  I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face.  Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”  

The Department of Justice has been tremendously supportive of our efforts in the Southern District of West Virginia to combat the opioid crisis and violent crime.  Earlier this year, the Department of Justice invested and committed substantial new resources to the Southern District of West Virginia, including five new prosecutors and enhanced and strengthened programs to combat violent crime and intensify civil enforcement efforts.  These prosecutors focus on identifying and prosecuting individuals who unlawfully possess firearms, including individuals with domestic violence convictions, those with violent criminal histories and drug traffickers that carry guns during the commission of their crimes.  In further support of the Department’s PSN programs throughout the country, the Attorney General also announced awards of almost $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies, and enhance services and resources for victims of violent crime. 

“I am fully committed to ensuring that Project Safe Neighborhoods, a priority of this Administration, is the centerpiece of our enforcement strategy in the Southern District of West Virginia,” said United States Attorney Mike Stuart.  “Since I took the oath as United States Attorney, we have built remarkable relationships with our federal, state and local partners and our aggressive enforcement actions are breaking all records in the District.  We have been and will continue to be aggressive to ensure violent crime is attacked and our citizens protected.  Everyone has a fundamental right to live in a safe neighborhood with safe streets and we will continue our efforts with a sense of urgency to ensure that public safety is our top and paramount priority.” 

“ATF is committed to reducing gun violence in our neighborhoods by arresting armed violent offenders and their sources,” stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “Our ongoing partnerships with federal, state, and local law enforcement not only are a wise use of resources, but are getting measurable results for the citizens of West Virginia. We look forward to our continued work with the U.S. Attorney in our Project Safe Neighborhoods cases.”

As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:

Enforcement Actions

Our PSN enforcement efforts are currently focused in the cities of Huntington and Charleston.  The City of Huntington experienced a precipitous increase in gun and violent crime in 2017:  a 75% increase in homicides, the majority of which were committed with firearms, a 42% increase in violent crime, and an approximate 50% increase in non-fatal shootings.  To address the violence, United States Attorney Mike Stuart announced “Project Huntington” in March 2018, doubling the number of federal prosecutors to focus on the most violent and chronic offenders in the city.  As a result, a major takedown took place in April 2018 that dismantled a multi-state heroin and fentanyl network and netted several related violent and gun crime offenders.  

So far in calendar year 2018, the United States Attorney’s Office for the Southern District of West Virginia has filed 45 PSN related indictments and informations charging approximately 110 defendants with various violent crime related offenses.  Recent notable cases include:

• Jonathan Chafin and Robert Reid were convicted of stealing firearms from a federally licensed firearms dealer.  The two defendants admitted breaking into Sportsmen’s Gun and Pawn multiple times and stealing over 150 guns.  Chafin faces up to 10 years in prison and Reid faces up to 40 years in prison when they are sentenced in November 2018.

• Dillon Jackson was sentenced to 36 months in prison for stealing 24 firearms from an FFL.  He admitted to trading the stolen guns for money and drugs.

• Terry Lee Powell, a former Mason County Deputy Sheriff was sentenced to 5 months in prison, followed by 6 months of home confinement for possession of a stolen firearm.  Powell admitted that he sold a firearm he seized during an investigation instead of logging it into evidence.

• James Anthony Mitchell, from Detroit, Michigan, was sentenced to 30 months in prison for being a felon in possession of a firearm as a result of being caught with a gun after a bar fight in Huntington.  Police received a call reporting a large bar fight at Rehab Bar.  A bystander provided officers with a description, matching Mitchell’s, of a male with a gun who had just left the area.  When officers found Mitchell, he had a loaded pistol in his waistband.   Mitchell had previously been convicted of multiple felony offenses in state court and was prohibited from possessing a firearm.

• Bunthia Tach from Kansas was sentenced to 11 years in prison after pleading guilty to possession with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. 

• Marshall Leroy Saunders was sentenced to 12 years in prison after pleading guilty to carjacking.   Saunders was a suspect in an unrelated crime when police observed him entering a taxi.  Saunders admitted that when police attempted to pull the taxi over, he pointed a loaded gun at the driver and ordered him out of the vehicle.  Saunders then took control of the taxi, driving at speeds of up to 110 miles per hour before he was apprehended by law enforcement officers.

Community Partnerships

The United States Attorney’s Office SDWV has built unprecedented partnerships among various federal, state and local agencies, as well as community prevention coalitions to implement prevention, outreach and reentry initiatives.  A series of community forums has been launched, with the first recently held in the Huntington, Cabell County area.  A public messaging campaign is in development to inform the community about the PSN initiative and send a message of deterrence  to potential offenders.

Improvements to Community Safety

• The FBI’s official crime data for 2017 reflects that after two consecutive years of historic increases in violent crime, the nationwide violent crime rate began to decline in the first year of the Trump Administration.  The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.

• The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.

• According to the FBI’s crime data for West Virginia, violent crime incidents decreased from 5131 in 2016 to 4805 in 2017.

• Since the April 2018 DTO takedown in Huntington, the city is seeing significant decreases in violent crime.  Comparing April 2018 – September 2018 (2 quarters) with that of the same time period in 2017,  homicides decreased from 8 to 2, non-fatal shootings dropped from 24 to 9, and overall violent crime incidents fell from 217 to 181.   Interestingly, first responders report that overdoses have been trending downward in the area since our significant enforcement action.  Treatment professionals also indicate an increase in substance abuse disorder treatment referrals.

• In 2018, ATF referred 79 firearm cases with 118 defendants to the U.S. Attorney’s Office, SDWV.  Also, during the same time period, ATF seized 466 firearms in the Southern District of West Virginia with a street value of over $86,000.

These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.

SDWVNewsandUSAttyStuart

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OXFORD – Jackie Lee Brooks, 54, of Ashland MS, the leader of a multi-defendant conspiracy, was sentenced to 240 months in federal prison resulting from his role in a methamphetamine (ice) distribution conspiracy in the Northern District of Mississippi by Chief Judge Sharion Aycock at the United States District Court in Aberdeen Wednesday morning. He was ordered to forfeit $42,705 dollars in drug trafficking proceeds, 11 firearms and assorted ammunitions, and approximately 200 acres of property in Mississippi and Tennessee. Brooks previously pleaded guilty to drug trafficking, firearms, and money laundering offenses in United States District Court in April, 2018. 

The investigation and prosecution of this trans-national drug trafficking organization responsible for distributing hundreds of pounds of methamphetamine from Mexico through Southern California to North Mississippi is the result of a joint investigation between the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, and Firearms, the Mississippi Bureau of Narcotics, North Mississippi Narcotics Unit, Tippah County Sheriff’s Department, Alcorn County Sheriff’s Department and the United States Attorney’s Office. This joint investigation involved numerous search warrants, arrests, and convictions resulting in the seizure of firearms, drugs and property. In all, seven defendants have been sentenced in federal court for their roles in the drug trafficking conspiracy with one remaining defendant to be sentenced.

 William C. Lamar, U.S. Attorney for the Northern District of Mississippi, Joseph Frank, Resident Agent in Charge of the Oxford Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Warner Benson, Resident Agent in Charge of the Oxford Office of the DEA, and Phillip Robertson, Major, Mississippi Bureau of Narcotics made the announcement.

“We are making and keeping our neighborhoods safe through joint and collaborative efforts like this one with our federal, state and local law enforcement under the umbrellas of our Project Safe Neighborhoods Initiative and the Organized Crime Drug Enforcement Task Force. Working together is a force multiplier and by working together there’s no limit to what we have, can and will accomplish,” said U.S. Attorney William C. Lamar.

These charges were the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a federal multi-agency, multi-jurisdictional task force that provides supplemental funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations pursuant to the Project Safe Neighborhood anti-violent crime initiative. Several agencies were crucial to this investigation, including the DEA, ATF, the U.S. Marshals Service, Mississippi Bureau of Narcotics, North East Mississippi Narcotics Unit, Mississippi Highway Patrol, Tippah County Sheriff’s Office, Alcorn County Sheriff’s Office and the Mississippi National Guard Counter-Drug Unit.

The case was prosecuted by Assistant U.S. Attorneys Chad M. Doleac and Sam Wright.

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

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Mark Bieniek, 45, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to cyberstalking. The charge carries a minimum penalty of one year in prison, a maximum of five years, and a $250,000 fine.

Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that the defendant and Victim 1 were once partners and had children together. On April 25, 2017, Victim 1 received an order of protection against Bieniek, prohibiting the defendant from communication with Victim 1, except as permitted by order of a family or supreme court.

Between January 25, 2018, and February 19, 2018, Bieniek resided in North Richland Hills, Texas, while Victim 1 resided in Erie County, NY. In violation of the order of protection during this period, the defendant sent several hundred electronic messages to Victim 1 with the intent to kill, injure, harass, intimidate, or cause substantial emotional distress to Victim 1 or to place Victim 1 in reasonable fear of the death of or serious injury to herself or her partner, Victim 2. Among the messages:

• “I got [Victim 2]..” “I may spend the rest of my life in prison. But it’ll be worth it…I can’t wait to see him…Texas has lots and lots of pawnshops”
• “Hi [Victim 2]! Looking forward to meeting you…My brother killed someone…so can I (expletive)”
• “I like the pictures you posted. I’m coming fir you [Victim 2]. Now I know exactly what you look like. I’ll see you soon.” “(Expletives) I’m going to murder your boyfriend while you watch.”
• Images of the defendant holding an object resembling a black pistol along with the message, “It’s time [Victim 1]. I’m going to let you make the decision.”
• Photos of the outside of Victim 1’s place of employment with the message, “I’m wondering…Are you planning on coming out?”
• “I am here and I will get you. Maybe tonight I’ll just torch the place or ill wait to see the looks on your faces.”
• “see i paid a lot to put this whole plan together and i sawed off the end of my attitude adjuster. i have patience. be sure to look over your shoulder mother fucker because there will be dead bodies when I’m thru. Starting with your face getting a few slugs.”
• “I have nothing left [Victim 1].  You took it all.  Idc what i have to do.  You will hear my cries.”  “I have two things i must do. Get you. No matter what. Then get myself.”
• “I know that you are alone and scared up there.”
• “I can feel the the hate for me.  I can smell your feae.”  “Fear.”
• “[Victim 2] you and [Victim 1] are going to die”, “Tomorrow”, “I promise you this sir”, “You are both dead”
• I SWEAR ON MY MOTHER CAROLS LAST BREATH IF SHE WERE TO ASK ME HER LAST DYING WISH TO NOT DO ANYTHING TO HURT OR SCARE YOU...LIKE SHE HAS BEFORE BUT YOU DONT CARE. IF SHE ASKED ME FOR THAT ONE LAST WISH BEFORE SHE TOOK HER LAST BREATH I'D LOOK HER IN HER EYES AND TELL HER I CANNOT CAN NOT GIVE YOU THIS WISH.

The defendant has a history of domestic violence-related conduct towards Victim 1. On December 17, 2011, he was arrested for assaulting, including choking and kicking, Victim 1 with intent to cause physical injury. As a result, Victim 1 feared death or serious injury to herself and Victim 2 and suffered substantial emotional distress.

The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, with assistance from the   FBI in Fort Worth, Texas.

Sentencing is scheduled for January 28, 2019, at 12:30 p.m. before Judge Arcara.

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NEW ORLEANS – The U.S. Attorney’s Office, EDLA announced that U.S. District Judge Carl J. Barbier sentenced CHRIS WELLS, age 35, of Chalmette, Louisiana, to 240 months imprisonment and 8 years of supervised release after pleading guilty to several drug charges, including conspiracy to distribute and possession with intent to distribute one hundred grams or more of heroin.  WELLS also pled guilty to firearms offenses, including being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.

According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including WELLS, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans.  Based on that information, officers conducted surveillance in that area.

On Thursday April 13, 2017, officers observed WELLS conduct hand-to-hand narcotics transactions in the area of Mandeville Street and Derbigny Street.  Afterward, officers observed WELLS drive to his residence at 406 E. Liberaux Street in Chalmette, Louisiana, then return to North Claiborne Avenue in New Orleans where he picked up an individual.  After observing WELLS drive in a manner as if to avoid being followed, officers suspected that WELLS conducted a narcotics transaction with the individual.  

After the individualexited WELLS’ vehicle, he attempted to flee from the officers but fell and spilled approximately an ounce of heroin he purchased from WELLS.  Officers arrested the individual and seized additional heroin from his pockets. 

Officers and DEA Special Agents obtained a search warrant for WELLS’ residence.  During the search, officers and agents seized approximately 33 grams of crack cocaine, 70 grams of heroin, and a semi-automatic pistol.

Through further investigation, officers learned that WELLS and his associates used one telephone to conduct heroin transactions.  Customers would call the one telephone number and WELLS or his associates would conduct the sale. 

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

U.S. Attorney’s Office praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorneys André Jones and Nicholas D. Moses were in charge of the prosecution.

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

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Damion Christopher Alexander Brown, 43, a Jamaican national residing in Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute 100 kilograms or more of marijuana, and bribery of a public official, was sentenced to 60 months in prison by Senior U.S. District Judge William M. Skretny.  

Special Assistant U.S. Attorney Jeremy Murray and Assistant U.S. Attorneys Paul Bonanno and Wei Xiang, who handled the case, stated that over a nine-month period between 2012 and 2013, Brown trafficked 100 kilograms or more of marijuana and bribed a United States Postal Service (USPS) carrier to deliver U.S. priority mail parcels filled with marijuana. The defendant paid the postal carrier to provide addresses of unsuspecting citizens, who lived along the carrier’s route in Buffalo, to which parcels filled with marijuana could be mailed. When the boxes arrived in Buffalo, the postal carrier did not deliver them to the listed recipient address, but instead, held on to the boxes and handed them directly to Brown in exchange for cash payments.

Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge, Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin, Boston Division; the United States Postal Service, Office of the Inspector General, under the direction of Special Agent-in-Charge Kenneth G. Cleevely; and the Amherst Police Department, under the direction of Chief John Askey.

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NASHVILLE, Tenn. – October 4, 2018 – Tammy Young, 49, of Knoxville, Tennessee, was sentenced yesterday in U.S. District Court to 15 months in federal prison for her role in defrauding the government of more than $2 million, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.  Young is the final defendant to be sentenced in the conspiracy, which resulted in charges against eight other individuals.  U.S. District Judge Aleta A. Trauger also ordered $550,001 in forfeiture and restitution.

According to court documents, All About Giving, Inc. was formed by LaShane Hayes and incorporated as a non-profit agency in September 2014.  The entity was registered as a sponsor agency in the United States Department of Agriculture’s Child and Adult Care Feeding Program (CACFP), which is administered by the Tennessee Department of Human Services (TDHS).  The CACFP was created to reimburse child care providers for meals served to low-income children and other qualifying individuals.

Between January 2015 and July 2016, Tammy Young used her residence as the Knoxville office for All About Giving, Inc. and enrolled other individuals as providers for the purpose of submitting fraudulent reimbursement claims to TDHS, representing that the funds had been used to provide meals for eligible CACFP participants.  Young pleaded guilty to conspiracy to commit wire fraud and admitted that she registered individuals as providers, knowing that they were not providing child care and overstated the number of providers who actually furnished meals to children and inflated the number of children who actually received meals.  During the course of this conspiracy, Young personally received checks totaling more than $54,000.

The other eight defendants charged in this case previously pleaded guilty and have been sentenced by the court.

The case was investigated by the USDA Office of Inspector General and the Tennessee Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Henry Leventis and Sara Beth Myers.

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

BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Duane Loyd, 47, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to bank robbery and brandishing a firearm. The charges carry a mandatory minimum penalty of seven years, in prison, a maximum penalty of life, and a $250,000 fine.

Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that Loyd robbed the Key Bank located at 4248 Delaware Avenue in the Town of Tonawanda on December 7, 2015. In a rental car, the defendant drove his son Brandon, who was 19-years-old at the time, to the bank and provided him with a respirator mask and a firearm to commit the crime. Brandon Loyd pointed the firearm at the tellers and several bank customers before fleeing with money in his father’s waiting vehicle. Officers from the City of Tonawanda and the Town of Tonawanda Police Departments pursued the fleeing vehicle and tackled the defendant and his son after they crashed the rental car. Officers recovered the loaded firearm, a 9mm pistol, and the money stolen from the bank.

Following their arrest, Town of Tonawanda police officers and FBI and agents uncovered 16 additional robberies at local stores that the father and son committed prior to the bank robbery. In each of the robberies, the defendant drove the getaway car while his son entered the store and robbed the clerks of cash. Surveillance images assisted law enforcement with solving the previous robberies.

A total of approximately $4,500 was stolen during the course of the 16 robberies which occurred between November 22, 2015, and December 7, 2015, prior to the Key Bank robbery. In eight of those robberies, Brandon Loyd displayed a firearm to intimidate the clerk into handing over the cash. Duane Loyd also admitted his role in the 16 robberies. 

Brandon Loyd was previously convicted and is scheduled to be sentenced on November 8, 2018, at 12:30 p.m. before Judge Arcara.

Duane Loyd’s plea is the result of an investigation by Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Town of Tonawanda Police Department, under the direction of Jerome C. Uschold, III; the City of Tonawanda Police Department, under the direction of Chief William Strassburg; the Town of Amherst Police Department, under the direction of Chief John Askey; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Village of Kenmore Police Department, under the direction of Chief Peter Breitnauer; the Town of West Seneca Police Department, under the direction of Chief Daniel Denz; the City of Lackawanna Police Department, under the direction of Chief James Michel; the Town of Cheektowaga Police Department, under the direction of Chief David Zack; and the Erie County Crime Analysis Center.

Duane Loyd is scheduled to be sentenced on January 25, 2019, at 12:30 p.m. before Judge Arcara.

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United States Attorney Ron Parsons announced that a Hermosa, South Dakota, man convicted of Access Device Fraud and Aggravated Identity Theft was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.

Tobin Nettifee, age 40, was sentenced on October 2, 2018, to 3 years and 9 months in federal prison, to be followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund and $19,159.57 in restitution.

Nettifee was charged on March 20, 2018.  The charges related to Nettifee using another person’s identity to obtain three credit cards and using those credit cards for various purchases, totaling more than $19,000.  Additionally, Nettifee stole a gift card from a mailbox and used that card to make a purchase.

This case was investigated by the United States Postal Service. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.

Nettifee was immediately turned over to the custody of the U.S. Marshals Service.

United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Malicious Mischief was sentenced on October 2, 2018, by U.S. District Court Judge Roberto A. Lange.

Lawrence Parker III, age 27, was sentenced to 3 years of probation, restitution in the amount of $2,536.24, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Lawrence Parker III, was indicted by a federal grand jury on October 12, 2016.  He pled guilty on July 23, 2018.

The conviction stemmed from an incident on June 4, 2016, when Parker used an Automated Teller Machine (ATM) belonging to the State Bank of Eagle Butte to attempt to withdraw money from his account.  When he was unable to do so, due to reaching his daily withdrawal limit, Parker destroyed the screen on the ATM.

This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Jay Miller prosecuted the case.

Parker was released following sentencing.

United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Failure to Register was sentenced on October 2, 2018, by U.S. District Court Judge Roberto A. Lange.

Daniel Red Horse, Jr., age 48, was sentenced to 24 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Red Horse was indicted by a federal grand jury on May 15, 2018.  He pled guilty on July 23, 2018.

Red Horse, who is a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, did knowingly fail to register and update his registration from November 1, 2017, to November 8, 2017.  This was Red Horse’s sixth conviction for failing to register as a sex offender.

This case was investigated by the U.S. Marshals Service.  Assistant U.S. Attorney Jay Miller prosecuted the case.

Red Horse was immediately turned over to the custody of the U.S. Marshals Service.  

HARRISBURG - A Harrisburg, Pennsylvania man pleaded guilty in federal court to one count of conspiring to defraud the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environmental and Natural Resources Division, EPA Criminal Investigation Division Director Jessica Taylor, and U.S. Attorney David J. Freed for the Middle District of Pennsylvania.

According to documents and information provided to the court, David Tielle served as Director Business Development at Keystone Biofuels Inc. (Keystone), located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Keystone purported to be a producer and seller of biodiesel, a type of renewable fuel. Between 2009 and 2012, Tielle participated in a conspiracy to fraudulently claim tax refunds based on the Biodiesel Mixture Tax Credit – a federal excise tax credit for persons or businesses who mix biodiesel with petroleum and use or sell the mixture as a fuel.

“Fraud committed against the United States Government, making all of us victims, is always disappointing,” said U.S. Attorney David J. Freed.  “It is particularly so when the fraud is connected to a program with the laudable aim of encouraging renewable fuel production.  The defendant in this case nefariously turned a program meant to benefit our community into a scheme to enrich himself and his partners, at our expense.  I commend the tireless work of all of our partners in this case, especially the investigators with IRS-Criminal Investigation and the Environmental Protection Agency Criminal Investigation.”

“A strong enforcement program is essential to maintaining the integrity of the renewable fuel program,” said EPA Special Agent in Charge Jennifer Lynn.  “Today’s guilty plea should send a clear message that EPA and our law enforcement partners are committed to vigorously pursuing these criminal cases.”

As part of the conspiracy, Tielle caused inflated fuel amounts to be reported to the IRS in order to fraudulently claim tax refunds on fuel Keystone was not producing. To account for the inflated fuel amounts, Tielle created false books and records and engaged in a series of sham financial transactions intended to mirror the false books and records. Tielle also caused Keystone to fraudulently claim tax refunds on fuel that did not meet the quality standards needed to qualify for the Biodiesel Mixture Tax Credit and on fuel Keystone had not mixed with petroleum. The total loss resulting from Tielle’s conduct is approximately $4,149,983.41.

Tielle faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman, Acting Assistant Attorney General Wood, and U.S. Attorney Freed thanked agents of IRS-Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division, who conducted the investigation, and Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, Trial Attorneys Mark Kotila and Kimberly Ang of the Justice Department’s Tax Division and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental and Natural Resources Division, who prosecuted the case.

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