NOTE: The entire report can be found here. 

     WASHINGTON - The Department of Justice released today its annual report to Congress, Indian Country Investigations and Prosecutions, which provides a range of enforcement statistics required under the Tribal Law and Order Act, as well as information about the progress of the Department’s initiatives to reduce violent crime and strengthen tribal justice systems.

     The report reveals that in 2017, U.S. Attorney Offices prosecuted a majority of Indian country cases presented to them.  U.S. Attorney Offices declined prosecution of a minority of cases presented to them primarily due to insufficient evidence or referral to another prosecuting authority, such as a tribal prosecutor.  The report also shows that the FBI closed 12.5 percent more investigations in 2017 than in 2016 (see detailed findings below).

     “The Department of Justice is committed to public safety in Indian country,” said Deputy Attorney General Rod J. Rosenstein.  “We have demonstrated this commitment over the past two years by investing substantial resources and supporting innovative programs that empower federal and tribal prosecutors and build the capacity of tribal justice systems.  Today’s report demonstrates that our work makes a difference.  Lasting public safety improvements in Indian country are best achieved when federal, state, and tribal law enforcement agencies work together.”

     “The Justice Department’s Indian Country Investigations and Prosecutions Report reflects that the many coordinated efforts among United States Attorneys and tribal justice officials are making a difference,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma, and Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “Our work continues, and we must be resolute, in order to meet the challenges prevalent in American Indian and Alaska Native communities. In August, the Attorney General's Native American Issues Subcommittee met and renewed our commitment to finding meaningful and practical tools to help put an end to the disproportionate rates of violence afflicting Native Americans.  Among these, the department is expanding the use of cross-deputization agreements, access to criminal databases, funding for juvenile programs serving at-risk native youth, and services to victims and their families. We must continue to work together and find solutions to violent crime and drug trafficking in Indian Country. United States Attorneys are committed to upholding the federal trust responsibility and the rule of law in Indian Country.”

     The Trump Administration has strengthened the Department’s commitment to Indian Country by prioritizing the reduction of violent crime throughout the United States—including in Indian Country. This reflects a recognition that Native Americans suffer from persistently high rates of violent crime, particularly domestic and sexual abuse of women and children, and like many communities in the United States, have been hit hard by both opioid and methamphetamine abuse.  

     In April 2017, as part of the Department’s efforts under the Task Force on Crime Reduction and Public Safety, Attorney General Jeff Sessions announced a series of actions the Department would take to support law enforcement and maintain public safety in Indian Country.

     The Justice Department recognizes that investigating crime and prosecuting those responsible is critical to public safety in Indian Country. To that end, the Justice Department’s partnerships with tribes, as well as all federal, state and local law enforcement, are crucial to success. The Department deploys innovative programs such as the Tribal Access Program, Tribal Special Assistant U.S. Attorneys, and numerous grant programs that enhance partnerships, increase information sharing, build capacity for local criminal justice systems, and provide services to victims of crime.

     According to the report, in 2017 implementation of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013) remained an important priority for the Department. Federal prosecutors continued to utilize the federal assault charges created by VAWA 2013.  In Calendar Year (CY) 2017, federal prosecutors filed cases against 139 defendants under VAWA 2013’s enhanced federal assault statutes, which include enhanced sentences for certain crimes of domestic violence such as strangulation and stalking. They obtained 134 convictions (an increase of 30% from CY 2016 (103)). Also in CY 2017, prosecutors filed cases against 43 defendants in Indian country cases using the domestic assault by a habitual offender statute, 18 U.S.C. § 117, and obtained 29 convictions.

     Cooperation among federal and tribal law enforcement and victim advocates is key to successfully prosecuting sexual assault crimes in Indian country. As of 2017, every U.S. Attorney Office with Indian country responsibilities has developed federal sexual violence guidelines designed to improve the federal response to sexual abuse in tribal communities.

     The report also notes that the Tribal Liaison Program remains one of the most important components of the Department’s efforts in Indian country. TLOA requires that the U.S. Attorney for each district with Indian country appoint at least one Assistant United States Attorney to serve as a Tribal Liaison for that district.  They foster and facilitate relationships between federal and tribal partners that are vital to reducing violent crime. As part of their duties, Tribal Liaisons assist in developing multi-disciplinary teams to combat child abuse, work with SART teams on sexual abuse response, conduct community outreach, and coordinate the prosecution of federal crimes.

The information contained in the report shows the following:

• FBI’s CY 2017 statistics show a 12.5 percent increase in total closed investigations (2,210 total) compared to FBI’s CY 2016 statistics (1,960 total). The FBI has investigative responsibility for federal crimes committed on approximately 200 Indian Reservations. This responsibility is shared concurrently with BIA-OJS and other federal agencies with a law enforcement mission in Indian country
• Approximately 79.5 percent (1,511 out of 1,900) of Indian country criminal investigations opened by the FBI were referred for prosecution.
• Of the 699 Indian country investigations that the FBI closed administratively without referral for prosecution, the primary reason for closing (approximately 21 percent) was that the case did not meet statutory definitions of a crime or U.S. Attorney’s Office (USAO) prosecution guidelines. In addition, analysis of CY 2017 data indicates that 15 percent of investigations closed administratively were closed due to unsupported allegations, meaning no evidence of criminal activity was uncovered during the investigations. Another reason for non-referral (20 percent) was that the deaths under investigations were determined to be the result of accident, suicide, or natural causes.
• 84 percent (141 out of 167) of the death investigations that were closed administratively by the FBI in CY 2017 were closed because the death was due to causes other than homicide (i.e., accidents, suicide, or natural causes).
• In CY 2017, the USAOs resolved 2,390 Indian country matters.
• The majority of Indian country criminal matters resolved by the USAOs in CY 2017 (1,499 out of 2,390) were prosecuted (charges filed in either District or Magistrate Court).
• The USAO declination rate remained relatively steady. USAO data shows that in CY 2017, 37% (891) of all (2,390) Indian country matters resolved were declined. USAOs declined cases at a similar rate in prior years: 34% (903) of all Indian country matters resolved (2,666) in CY 2016; 39% (1,043) of all Indian country matters resolved (2,655) in CY 2015; 34% (989) of all Indian country matters resolved (2,886) in CY 2014; 34% (853) of all Indian country matters resolved (2,514) in CY 2013; 31% (965) of all Indian country matters resolved (3,097) in CY 2012; and 38% (1,042) of all Indian country matters resolved (2,767) in CY 2011.
• The most common reason for declination by USAOs was insufficient evidence (70.9% in CY 2017, 68.0% in CY 2016, 71.7% in CY 2015, 59.6% in CY 2014, 55.6% in CY 2013, and 52% in CY 2012). The next most common reason for declination by USAOs was referral to another prosecuting authority (13.2% in CY 2017, 16.4% in CY 2016, 13.8% in CY 2015, 16.3% in CY 2014, 20.8% in CY 2013, and 24% in CY 2012).

     The data presented in this report covers only those offenses reported to the FBI and federal prosecutors. The majority of criminal offenses committed, investigated, and prosecuted in Indian Country are adjudicated in tribal justice systems. In much of Indian Country, tribal law enforcement and tribal justice systems hold criminals accountable, protect victims, provide youth prevention and intervention programs, and confront precursors to crime such as alcohol and substance abuse. These efforts are often in partnership with federal agencies or accomplished with support from federal programs and federal funding opportunities.

Read the entire report at www.justice.gov/tribal/tloa.html

Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html

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NEW ORLEANS, LOUISIANA – KHANH BUI, age 42, a resident of Westwego, Louisiana, was charged by a federal grand jury on November 9, 2018 in a nine-count indictment for mail fraud and aggravated identity theft, announced U.S. Attorney Peter G. Strasser.

According to court documents, BUI fraudulently obtained credit cards and false California driver’s licenses in order to obtain money and property from home improvement stores.

If convicted, BUI faces 20 years of imprisonment and a $250,000 fine for mail fraud. BUI also faces a mandatory consecutive two-year sentence in addition to any sentence for mail fraud if convicted of aggravated identity theft.  

U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  

U.S. Attorney Strasser praised the work of the United States Postal Inspection Service in investigating this matter.  The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.

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United States Attorney Gretchen C.F. Shappert announced today that the Virgin Islands Police Department is the recipient of $ 300,000 as part of the Department of Justice (DOJ) Body-Worn Camera Policy and Implementation Program. DOJ’s Bureau of Justice Assistance awarded more than $12.2 million to 75 law enforcement agencies to support implementation and expansion of comprehensive body-worn camera programs. This funding will enable law enforcement agencies to improve their capacity to collect evidence and protect the safety of law enforcement officers and citizens. "The Body-Worn Camera (BWC) program is designed to implement the Department’s priority of supporting America’s law enforcement by providing the necessary technical assistance so that police officers can do their jobs more effectively," Shappert said. "Body-worn cameras are important investigative tools in the law enforcement toolbox."

The intent of the program is to help agencies develop, implement, and evaluate a BWC program as one tool in a law enforcement agency's comprehensive problem solving approach to enhance officer safety and build community trust. Elements of such an approach include: implementation of a BWC program developed in a planned and phased approach; implementation of appropriate privacy policies; implementation of operational procedures and tracking mechanisms; training of local officers, administrators, and associated agencies that require access to digital multimedia evidence; and the adoption of practices and deployment of BWC programs appropriately addressing operational requirements.

For a complete list of individual grant programs, amounts awarded, and the jurisdictions that will receive funding, visit https://go.usa.gov/xPUfH.  Additional information about Fiscal Year 2018 OJP grant awards can be found online at https://go.usa.gov/xnqk5.

 GREENEVILLE, Tenn. – On October 10, 2018 a federal grand jury in Greeneville returned a 76-count indictment against the following individuals for their roles in the distribution of methamphetamine (meth):

• Juan Moreno Pantiga, 29, of Greene County, Tennessee;
• Oscar Orozco-Blaco, 44, of Jefferson City, Tennessee;
• Luis Rey Maldonado-Patino, 32, of Hamblen County, Tennessee;
• Rainey Nichole Fields, 27, of Greene County, Tennessee;
• Brycen Foster Nye, 32, of Greene County, Tennessee;
• Cody Allen Arnold, 33, of Greene County, Tennessee;
• Jeffery Allen Isley, 39, of Greene County, Tennessee;
• Kenneth Dewayne McIntosh, 24, of Greeneville, Tennessee;
• David Brock Church, 27, of Greeneville, Tennessee;
• James Clayton Alan Broyles, 43, of Greeneville, Tennessee;
• JD Edward Ealey, 48, of Greeneville, Tennessee;
• Brian David Gray, 35, of Greeneville, Tennessee
• Donya Lea Earley, 27, of Greene County, Tennessee;
• Austin Edward Isley, 20, of Greene County, Tennessee;
• Chelsea Brook Gray, 27, of Greeneville, Tennessee;
• Randy Allen Brown, 52, of Greeneville, Tennessee
• Makayla Nicole Isley, 21, of Greene County, Tennessee;
• Harold Arthur Johnson, Jr., 48, of Greene County, Tennessee;
• Kimberly Gaye Maples, 32, of Greeneville, Tennessee;
• Caleb Blaine Davis, 27, of Hawkins County, Tennessee;
• Jessee Dewayne Lowery, 32, of Greene County, Tennessee;
• Dana Renee Nelson, 32, of Greene County, Tennessee.

The indictment was recently unsealed by the U.S. District Court and has not yet been set for trial.  The case will be heard by the Honorable J. Ronnie Greer, Senior U.S. District Judge.  

The indictment, on file with U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 50 grams or more of meth in the Eastern District of Tennessee and elsewhere.  Moreno-Pantiga, Maldanado-Patino, Fields, Arnold, Jeffrey Isley, McIntosh, Church, Broyles, Earley, Brian Gray, Austin Isley, Chelsea Gray, Makayla Isley, Johnson, Maples, and Davis were also each charged with at least one count of possession of a firearm in furtherance of a drug trafficking crime.   The indictment also alleges other charges related to the distribution and possession with the intent to distribute controlled substances as well as money laundering. 

If convicted of the meth conspiracy charge, each faces a minimum mandatory term of at least 10 years and up to life in prison, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment. Moreno-Pantiga, Maldanado-Patino, Fields, Arnold, Jeffrey Isley, McIntosh, Church, Broyles, Earley, Brian Gray, Austin Isley, Chelsea Gray, Makayla Isley, Johnson, Maples, and Davis face a minimum mandatory term of at least five years and up to life in prison for the firearms charges against them, which must be served consecutively to any other prison term imposed, up to five years supervised release, a fine of up to $250,000, and a $100 special assessment.                                                                  

The ongoing investigation leading to the indictment was the product of a partnership between Greene County Sheriff’s Department, Greeneville Police Department, Hawkins County Sheriff’s Department, Hamblen County Sheriff’s Department, Jefferson County Sheriff’s Department, Washington  County Sheriff’s Department, Tusculum Police Department, Baileyton Police Department, Elizabethton Police Department, Third Judicial Drug Task Force, Fourth Judicial Drug Task Force, Tennessee Bureau of Investigation, Tennessee National Guard Counterdrug Task Force, Tennessee Highway Patrol, United States Marshal Service, Homeland Security Investigations, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and FBI.  Assistant U.S. Attorney J. Christian Lampe will represent the United States.  

Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.

The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

This case is also 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.   Former 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 Offics 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.

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on November 20, 2018, a federal indictment was issued against Jeffrey Melgar (age: 33) of Neenah, Wisconsin.

The indictment alleges that Jeffrey Melgar possessed in excess of 50 grams of actual (also known as “crystal”) methamphetamine with the intent to distribute the controlled substance in violation of Title 21, United States Code, Section 841(a) and (b)(1)(A). If convicted of the charges alleged, Melgar faces a mandatory 10 year prison sentence and up to a life sentence. Melgar will be arraigned on November 27, 2018, in Green Bay federal court.

This case was investigated by the U.S. Postal Inspection Service, the U.S. Drug Enforcement Administration, and the Lake Winnebago Area Metropolitan Enforcement Group. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.    

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For additional information contact:

Public Information Officer Dean Puschnig, 414-297-1700

A Cuyahoga County Land Bank employee was indicted for soliciting and accepting improvements to his property in Cleveland Heights in return for assisting a demolition company get contracts.

Kenneth Tyson, 48, was indicted on one count of conspiracy to commit bribery and honest services fraud, three counts of honest services wire fraud and one count of bribery.

Tyson worked as property specialist for the Cuyahoga County Land Reutilization Corp., also known as the Cuyahoga County Land Bank. Tyson served as a liaison with East Cleveland on land acquisition, demolition and other projects, according to the indictment.

He vetted prospective demolition contractors seeking to be placed on the Land Bank’s list of qualified contractors and exercised influence over who could compete for Land Bank contracts, according to the indictment.

Residential Commercial Industrial (RCI) Services  was a demolition company whose principal place of business was East Cleveland. It was operated by someone identified in the indictment as M.R. A person identified as M.S. served as chief of staff in the city of East Cleveland

Tyson conspired with M.R. and M.S. between 2013 and 2018. Tyson solicited M.R. to provide free contractor and repair services to Tyson’s property at 1210 Castleton Road in Cleveland Heights. In exchange, Tyson assisted and arranged for RCI to be put on the Land Bank’s qualified demolition contractor list and for RCI to be invited to bid on Land Bank demolition jobs, according to the indictment.

In October 2013, M.R. was billed approximately $2,565 for plumbing work done at Tyson’s property. That same month, M.R. paid someone approximately $1,000 to cut down a tree on the property, according to the indictment.

An East Cleveland employee, at the direction of M.S., sent documents and pictures to the Land Bank confirming RCI had previously completed demolition work in East Cleveland. Tyson and others conducted a site visit to RCI on Elderwood Road in East Cleveland, according to the indictment.

RCI was added to the Land Bank’s system as a demolition contractor on Nov. 21, 2013, allowing it to bid on Land Bank contracts. Five days later, the Land Bank invited RCI to bid on jobs at three sets of properties. RCI submitted the lowest bids on those jobs and was awarded the contracts, according to the indictment.

The Land Bank sent RCI three checks between January and March 2014, paying approximately $32,355 for the work, according to the indictment.

Around July 2014, RCI paid approximately $3,200 for concrete work done at Tyson’s property, according to the indictment.

“This defendant used his position to enrich himself with free home repairs when he was supposed to be helping rid our community of blight,” said U.S. Attorney Justin Herdman. “We remain committed to stamping out public corruption in all its forms.”

“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, especially when the programs involved should have been used to help our neediest families,” said HUD-OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our Federal law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.”

"Competition in federal blight demolition programs is critical to protecting taxpayers, with no room for contract awards involving bribery, as is alleged against this land bank official,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero.  “Cuyahoga County Land Bank has taken nearly $60 million from TARP’s Blight Elimination Program to demolish homes and improve local communities. It is critical that these taxpayer funds be used appropriately and for their intended purpose.  I thank U.S. Attorney Justin Herdman and his team of prosecutors for standing with SIGTARP in the fight against blight-related crime.”

“Our tax-paying citizens are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and bribe-paying contractors,” FBI Special Agent in Charge Stephen D. Anthony said. “The FBI will continue to hold those that violate the public trust accountable in a court of law.”

This case was investigated by the Department of Housing and Urban Development’s Office of Inspector General, The Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Bureau of Investigation and and the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Carmen E. Henderson and Chelsea S. Rice.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.  In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

A charge is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Merkourios Alexopoulos, 46, and Sabrina Schnekker, 32, of Miami Beach, were arrested on an indictment charging them with conspiracy to commit wire fraud and wire fraud in connection with a fraudulent online car sales website.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office and Daniel Oates, Chief, Miami Beach Police Department (MBPD) made the announcement. 

According to the allegations contained in the indictment, from in or around August 2013, through May 2018, Alexopoulos and Schnekker operated Salvageworldauctions.com as an online retailer purporting to sell salvaged vehicles.  Potential buyers would pay a $500 entrance fee to bid on the vehicles purportedly for sale. 

Once a bid was accepted, Alexopoulos would allegedly discuss the final terms for the payment and delivery of the vehicles with the individual purchasers and instructed the victims to send the purchase monies via wire transfer or money orders to the various bank accounts controlled by Alexopoulos and Schnekker and maintained at City National Bank, Citi Bank, PNC Bank, Wells Fargo, Regions Bank, BB&T, Suntrust Bank, and Chase Bank, among others.  After the victims transferred the purchase monies to the bank accounts controlled by Alexopoulos and Schnekker, the conspirators would use those monies to pay their personal expenses and to further the fraudulent scheme.  

The indictment further alleges that Alexopoulos and Schnekker never delivered, nor did the victims receive, the vehicles ordered and paid for by the victim purchasers from Alexopoulos and Schnekker through Salvageworldauctions.com.  In total, the investigation has revealed approximately 51 victims, with an approximately loss amount of $1.2 million. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS and MBPD.  This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.

An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

On November 16, 2018, Peter Vincent Cruz, a resident of Washington State and Alaska, pleaded guilty to money laundering charges, stemming from his decision to launder hundreds of thousands of dollars in fraud proceeds from online romance and business email compromise (“BEC”) scams, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office.

According to documents filed with the court, from approximately June 2016 through June 2018, in Broward County, Florida, and elsewhere, Cruz knowingly and willfully agreed to participate in, and did participate in, a conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).  The purpose of the conspiracy was for Cruz and his co-conspirators to unlawfully enrich themselves, to hide illegal proceeds, and to further wire fraud schemes by, among other things, withdrawing, depositing, and transferring fraudulently obtained funds between federally insured credit unions, federally insured banks, and individuals, and converting the fraudulently obtained funds to cash and cryptocurrency.  Cruz laundered proceeds from BEC and romance scams. 

According to court documents, Cruz’s co-conspirators in Nigeria and elsewhere contacted businesses (the “business victims”) located throughout the United States, using email, social media, and other Internet-based methods of communication, and falsely and fraudulently posed as vendors seeking payment for services rendered, in order to facilitate the BEC scam.  The co-conspirators, posing as vendors, used spoofed emails and email account takeover techniques to send emails falsely and fraudulently directing the business victims to make payments to various bank accounts, through wire transfers, in purported satisfaction of invoices due to the actual vendors. 

The court docket further indicates that Cruz’s co-conspirators also used stolen and false identification information to create online personas, utilizing online dating applications, email, social media, and other forms of communication, in order to facilitate romance scams.  The co-conspirators then pursued false and fraudulent relationships online with individual victims (the “romance scam victims” or “individual victims”), and tricked these victims into falling in love with them.  Eventually, the co-conspirators would persuade these individuals to open bank accounts and shell companies; to conduct financial transactions (cash withdrawals or transfers) under false pretenses, such as to purportedly aid with medical bills or business expenses; and to send money from the victims’ personal savings, or in the form of iTunes gift cards. 

At times, Cruz’s co-conspirators directed fraudulently obtained funds from the business victims into accounts established by the romance scam victims.  They then directed the romance scam victims to wire the fraud proceeds on to accounts controlled by other co-conspirators, such as the defendant, Cruz.  One of these victims resided in Broward County, Florida.

According to the court record, Cruz’s role in the laundering conspiracy was to convert fraud proceeds from the cyber and romance scams via wire, in United States dollars, into cryptocurrency.  Cruz then provided the cryptocurrency to his co-conspirators via email, and in doing so, Cruz assisted them in further concealing their true identities, and their role in the underlying fraud schemes.  Cruz met, and routinely communicated with, his co-conspirators via e-mail, over the dark web, and through online cryptocurrency exchange forums.  Indeed, Cruz regularly received funds from multiple anonymous sources, and regularly sent cryptocurrency payments to anonymous counterparties. 

Cruz is scheduled to be sentenced on January 25, 2018 before U.S. District Judge William P. Dimitrouleas.  He faces a statutory maximum sentence of twenty years in prison.  He also faces a period of supervised release of up to three years, restitution and monetary penalties. 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, FBI Miami’s Cyber Task Force and USSS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

             WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is launching an Elder Abuse and Financial Exploitation Initiative to expand its response to criminal and civil violations targeting older adults, U.S. Attorney Jessie K. Liu announced today.

             The establishment of this initiative will enable the U.S. Attorney’s Office to further develop and coordinate its prosecution of these cases and enhance its overall support of older victims.  The team will consist of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions as well as the Victim Witness Assistance Unit.  The work coordinated through this initiative will reach victims of both local and federal offenses in the District of Columbia and across the country who have been affected by elder abuse, neglect, and financial exploitation. This initiative is part of a larger effort by the Department of Justice to combat elder abuse and financial exploitation.

            “We must do everything we can to protect our older citizens from those predators who target them for physical, emotional and financial harm,” said U.S. Attorney Liu. “This initiative sharpens our focus on this important mission. By bringing together all of those in our office who work on these issues in court and in the community, we hope to identify ways that we can better serve our vulnerable older adults and prevent them from becoming victims of crimes and abuse.”

            The initiative will coordinate and combine the work that is already being done throughout the Office on behalf of older victims. Many components of the Office work on such matters, and each will designate a representative to support the initiative’s mission to develop uniform strategies and best practices, track data and cases, share resources, enhance support of older victims, and facilitate further outreach with community and agency partners.  

            Nationally, the 2017 Elder Abuse Prevention and Prosecution Act mandated that each U.S. Attorney designate an Elder Justice Coordinator to serve as legal counsel on matters relating to elder abuse, assist with prosecution of elder abuse cases, conduct public outreach relating to elder abuse, and coordinate data collection. U.S. Attorney Liu has selected Sarah McClellan, a senior prosecutor and the chief of the Office’s Victim Witness Assistance Unit, to serve in that position for the U.S. Attorney’s Office for the District of Columbia.

            The U.S. Attorney’s Office works with the Metropolitan Police Department, District of Columbia Office of the Inspector General, the FBI’s Washington Field Office, and other law enforcement partners on investigations of crimes targeting older victims. In launching the initiative, the Office hopes to build on its work successfully prosecuting such cases.

            In one recent matter, for example, a former personal banker pled guilty to stealing money from an 88-year-old woman by ordering a debit card for his own use and linking it to her account.   He made 17 unauthorized transactions, totaling more than $4,000. In a similar case, another bank manager pled guilty to stealing more than $9,000 from the bank accounts of customers, including senior citizens, by issuing debit cards or changing PIN numbers linked to their bank accounts. In a third case, a woman pled guilty to using a stolen debit card to steal more than $25,000 from the checking and savings account of a 70-year-old man who was in failing health. All three defendants were ordered by the Court to pay full restitution as part of their sentences. 

            In another case last year, the office’s Sex Offense and Domestic Violence Section prosecuted a woman who carried out a pair of attacks against her 64-year-old ex-boyfriend, including one with a knife and one with sulfuric acid. The defendant pled guilty to charges and was sentenced to 12 years in prison. The victim suffered devastating injuries, including lifelong disfigurement – and spent nearly a month in a hospital burn unit.

            The Office’s Civil Division will pursue cases related to nursing home fraud and abuse, including quality of care cases and all forms of billing abuses. The Civil Division will collaborate with D.C. government agencies associated with elder care and oversight and the D.C. Medicaid Fraud Control Unit (MFCU).  In addition, the Civil Division plans to work with the Social Security Administration (SSA) to identify elder financial abuse.

            In addition, the Office will continue its extensive community outreach efforts in hopes of increasing awareness to protect seniors. The Office regularly offers two important but distinctly different senior seminars in partnership with other agencies: “Financial Crimes Against Seniors” and “Elder Abuse and Exploitation of the Elderly.” Prosecutors and community outreach specialists present these seminars in senior dwellings and at senior programs throughout the District of Columbia. Participants are provided with resources about where they can find help in the event they become victims of financial scams, exploitation, or abuse.

            These efforts are part of the Department of Justice’s Elder Justice Initiative, a multi-faceted nationwide program to combat elder abuse, neglect and financial fraud and scams that target senior citizens. According to the Justice Department, each year, an estimated $3 billion is stolen or defrauded from millions of American seniors.  Through “grandparent scams,” fake prizes, romance scams, fraudulent IRS refunds, and even outright extortion, criminals try to exploit some of the most vulnerable Americans and steal their life’s savings.

            With approximately 10,000 Americans turning 65 each day, the population of potential targets continues to grow. The U.S. Census Bureau projects that the population of Americans over 65 years of age will increase to 83.7 million in 2050, nearly double the estimated population of 43.1 million as of the most recent census.

            More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice

COLUMBIA, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Vital Energy Occupational Therapy and Wellness Center, LLC, headquartered in Lexington, South Carolina, has agreed to pay $200,000 to resolve allegations that it knowingly submitted false or fraudulent claims to Medicare and Medicaid for physical and occupational therapy services.     

The settlement announced today resolves allegations that Vital Energy violated federal law from November 1, 2013, through April 30, 2016, by submitting bills for individual therapy services when group therapy services were actually provided, and by submitting bills for therapy services using former employees’ names and billing numbers when those former employees did not actually provide the therapy services.  Vital Energy denies these allegations.

The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act.  The Act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery.  As part of today’s resolution, the whistleblower will receive $36,000. 

“The False Claims Act exists to protect taxpayer dollars from waste, fraud, and abuse,” said U.S. Attorney Lydon.  “And when health care providers fail to follow the rules, the public bears the cost.  It is through settlements like these that we recover those costs and discourage fraudulent and reckless billing.”

The settlement was the result of an investigation by the United States Attorney’s Office, with support from the Department of Health and Human Services and the South Carolina Attorney General’s Office Medicaid Fraud Control Unit.  The settlement was handled by Assistant United States Attorney Brook B. Andrews of the Columbia office. 

The case is captioned United States ex rel. Ashley C. Baggett, DPT v. Vital Energy Occupational Therapy and Wellness Center, LLC, d/b/a Vital Energy Wellness and Rehab Center, Case No. 3:16-cv-1692-DCC (D.S.C.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability. 

#####

Earlier today, in federal court in Central Islip, Zoobia Shahnaz pleaded guilty to providing material support to a foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS”), which has been designated by the U.S. Secretary of State as a foreign terrorist organization.  As part of her plea agreement with the government, Shahnaz admitted defrauding numerous financial institutions, and then laundering and transferring the stolen proceeds out of the country with the intent to support a specified unlawful activity, namely the provision of material support to ISIS, after which she attempted to leave the United States and travel to Syria.  When sentenced, Shahnaz faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine.  The guilty plea was entered before United States District Judge Joanna Seybert.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty plea.

“With today’s guilty plea, Shahnaz, a resident of our district, admitted to engaging in a complex scheme using cryptocurrencies designed to put thousands of dollars into the coffers of ISIS, a foreign terrorist organization dedicated to murder and destruction,” stated United States Attorney Donoghue.  “Counterterrorism is the highest priority of the Department of Justice and our law enforcement partners, and together we will continue to hold accountable those who abet terrorists seeking to harm the United States and its allies.” 

Mr. Demers and Mr. Donoghue expressed their grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a number of federal, state and local agencies from the region.

“In the interest of empowering and enriching a terrorist organization whose aim is to harm America, Zoobia Shahnaz turned her back on her country and her fellow citizens,” stated FBI Assistant Director-in-Charge Sweeney. “Thanks to the diligent work of the FBI New York Joint Terrorism Task Force, her crimes were uncovered, and she was unable to succeed in her ultimate goal of traveling to Syria to join ISIS. This conviction sends a message to anyone who seeks to manipulate our financial systems to provide support to our adversaries: you too will be discovered, investigated, and brought to justice.”

According to court filings and facts presented at the guilty plea proceeding, between March 2017 and the date of her attempted travel to Syria on July 31, 2017, Shahnaz engaged in a bank fraud scheme to raise money for ISIS.  In furtherance of that scheme, she obtained a loan for approximately $22,500 through materially false representations, used more than a dozen fraudulently obtained credit cards to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online and then wired over $150,000 to individuals and shell entities in Pakistan, China and Turkey that were fronts for ISIS. 

At the same time, Shahnaz accessed ISIS propaganda at various violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers.  She also searched the internet for information to facilitate her travel into  Syria, but ultimately was intercepted by the JTTF at John F. Kennedy International Airport.    

The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Artie McConnell of the Eastern District of New York and Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section are in charge of the prosecution.

The Defendant:

Zoobia Shanaz
Age: 27
Brentwood, NY

E.D.N.Y. Docket No. 17-CR-522 (JS)

JEFFERSON CITY, Mo. – A prior sex offender in Fulton, Mo., pleaded guilty in federal court today after his mother and grandmother transported a 13-year-old child victim from Alabama to engage in illegal sexual activity with him.

Michael James Collins, 21, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr. Collins, who was a resident at the Community Supervision Center in Fulton, was on probation at the time of the offense for a prior felony conviction for sexual misconduct involving a child.

According to today’s plea agreement, the Callaway County, Mo., Sheriff’s Department received information on Dec. 10, 2017, that a 13-year-old girl from Alabama was missing from her home. A cell phone ping placed the child victim at a residence in Fulton, where she was located and removed.

Collins admitted that he paid his grandmother $400 to go to Alabama to pick up the child victim, whom he met on a dating website in July 2017. Collins’s mother was with his grandmother when the child victim was picked up in Alabama and transported to Missouri. Collins’s grandmother and mother also transported the child victim between the Fulton residence and Collins’s residence at the Community Supervision Center when they were taking Collins back and forth to work.

Collins and the child victim communicated with each other from July to December 2017 via cell phone, Facebook Messenger and other apps, which was a violation of Collins’s probation. Collins accessed the internet using his cell phone as well as his mother’s cell phone. 

Collins pleaded guilty today to transporting a minor under the age of 14 across state lines with the intent to engage in illegal sexual activity and to committing the felony offense while he was under the requirement to register as a sex offender.

Under federal statutes, Collins is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Fulton, Mo., Police Department, the FBI, the Callaway County, Mo., Prosecutor’s Office and the Callaway County Children’s Division.

Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
 

TULSA, Okla. – An Claremore physician pleaded guilty today in U.S. District Court to leading multiple conspiracies to write fraudulent opioid prescriptions in an effort to support his drug habit.

United States Attorney Trent Shores announced that Dr. Jeremy David Thomas, 42, of Owasso, was convicted of drug conspiracies in five separate federal cases.

Today’s guilty pleas stem from Thomas’ issuance of fraudulent prescriptions for the opioid hydrocodone to multiple co-conspirators who were his patients. His accomplices then filled the prescriptions at area pharmacies and delivered some or all of the hydrocodone tablets to Thomas. As a result of their illegal pill sharing activity, Thomas and his co-conspirators diverted more than 13,740 doses of the drug during a two year period, mainly for the physician’s illegal personal use.

“We need to be more aware today than ever before of the dangers of opioid addiction. The defendant, Dr. Thomas, risked the lives of his patients by performing an estimated 2,500 surgical procedures while under the influence of opioids. Dr. Thomas exploited the special Doctor-patient relationship to feed his addiction. He became a drug dealer hiding behind a medical license,” said U.S. Attorney Trent Shores.

Assistant Special Agent in Charge Richard W. Salter (Oklahoma District) added, “The number of Americans dying each day from opioid overdoses is alarming.  There are few, if any, communities that have been spared by this epidemic. The elimination of this drug trafficking organization will absolutely spare lives. While the vast majority of the medical professionals in this this country are committed to saving lives, there are a few who are merely drug dealers hiding behind lab coats, and driven by greed. The DEA in Oklahoma, in collaboration with our state, local, and tribal law enforcement partners, will continue to aggressively investigate and prosecute anyone who illegally diverts or traffics opioids in our communities. The success of this case is the direct result of outstanding collaboration among the Rogers County District Attorney’s Office, the Oklahoma Bureau of Narcotics and Dangerous Drugs (OBNDD), the Northern District of Oklahoma U.S. Attorney’s Office, and the DEA Tulsa Resident Office.” 

Investigators from the Rogers County District Attorney’s Office played a significant role in investigating the pill sharing conspiracy.

"This case illustrates the far-reaching impact of opioid abuse and its effects across society. I appreciate the work by the United States' Attorney's Office and law enforcement to remove the source of these illegally diverted drugs," said Rogers County District Attorney Matthew J. Ballard.

Also implicated in the drug conspiracies are Jeffrey Lee Koger, 47, of Claremore; Joseph Marcus Jones, 36, of Claremore; Toni Dawn Martin, 49, of Owasso; Shawn Del Martin, 50, of Owasso; and Chad Lee Choat, 46, of Claremore.

U.S. District Judge John E. Dowdell set Thomas’ sentencing for Feb. 28, at 10 a.m.  At that time, Thomas faces a maximum penalty of 20 years in prison and a $2 million fine for each count of Drug Conspiracy and Distribution.

Thomas was remanded into the custody of the U.S. Marshals Service.

The Rogers County District Attorney’s Office, the Drug Enforcement Administration, and the Oklahoma Bureau of Narcotics and Dangerous Drugs conducted the investigation. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.

This investigation and resulting conviction are part of the Department of Justice and Department of Health and Human Services’ 2018 National Healthcare Fraud and Opioid Takedown initiative, the largest ever healthcare fraud enforcement action. The opioid related enforcement action charged 162 defendants, including 76 doctors, for their roles in illegally prescribing and distributing opioids and other dangerous narcotics.

Painkillers are involved in more than 80% of the prescription drug-related overdose deaths in Oklahoma, and hundreds of Oklahomans die each year due to these overdoses. To find help and resources to fight opioid addiction, visit the following site:

https://findtreatment.samhsa.gov/   

          CONCORD- Jason Sfara, 44, of Concord, pleaded guilty in federal court to possession of fentanyl, cocaine, and methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.  

          According to court documents and statements made in court, parole officers attempted to conduct a parole inspection of Sfara's apartment in Concord on May 15, 2018, and Sfara fled to the roof of the building. The Concord Police Department responded to provide assistance and arrested Sfara on the roof. Officers ultimately obtained a search warrant for Sfara's apartment and found an array of illegal drugs including 107.8 grams of fentanyl, 32 grams of cocaine, and 20 grams of methamphetamine, along with digital scales and other drug distribution paraphernalia.

          Sfara is scheduled to be sentenced on March 4, 2019.

          “Fentanyl, cocaine and methamphetamine are lethal substances whose distribution in New Hampshire endangers the general public as well as police officers,” said U.S. Attorney Murray. “Accordingly, we are coordinating our efforts with our law enforcement partners to target dealers and get them off the streets.”

          This matter was investigated by the Concord Police Department.  The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes.

###

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond Donovan, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that former Honduran congressman Juan Antonio Hernandez Alvarado, a/k/a “Tony Hernandez,” (“HERNANDEZ”) was charged in Manhattan federal court with conspiring to import cocaine into the United States, related weapons offenses involving the use and possession of machineguns and destructive devices, and making false statements to federal agents.  HERNANDEZ is the brother of the current president of Honduras, Juan Orlando Hernandez.  The case is assigned to U.S. District Judge P. Kevin Castel.  HERNANDEZ was arrested on November 23, 2018, in Miami, Florida, and will appear this afternoon in Miami federal court before United States Magistrate Judge Jonathan Goodman. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, former Honduran congressman Tony Hernandez was involved in all stages of the trafficking through Honduras of multi-ton loads of cocaine that were destined for the U.S.  Hernandez allegedly arranged machinegun-toting security for cocaine shipments, bribed law enforcement officials for sensitive information to protect drug shipments, and solicited large bribes from major drug traffickers.  Thanks to the ongoing work of the DEA, Hernandez is now in custody on U.S. soil and facing justice in the U.S. courts.”

Special Agent in Charge Raymond Donovan said:  “Drug trafficking and corruption around the world threatens the rule of law, fuels violence and instability, and harms innocent families and communities.  Hernandez and his criminal associates allegedly conspired with some of the world’s most deadly and dangerous transnational criminal networks in Mexico and Colombia to flood American streets with deadly drugs.  DEA looks forward to Hernandez facing American justice and answering for his alleged crimes.”

As alleged in the Superseding Indictment unsealed in federal court:^[1] 

From at least in or about 2004, up to and including in or about 2016, multiple drug-trafficking organizations in Honduras and elsewhere worked together, and with support from certain prominent public and private individuals, including Honduran politicians and law enforcement officials, to receive multi-ton loads of cocaine sent to Honduras from, among other places, Colombia via air and maritime routes, and to transport the drugs westward in Honduras toward the border with Guatemala and eventually to the United States.  For protection from official interference, and in order to facilitate the safe passage through Honduras of multi-hundred-kilogram loads of cocaine, drug traffickers paid bribes to public officials, including certain members of the National Congress of Honduras.

HERNANDEZ is a former member of the National Congress of Honduras, the brother of the current president of Honduras, and a large-scale drug trafficker who worked with other drug traffickers in, among other places, Colombia, Honduras, and Mexico, to import cocaine into the United States.  From at least in or about 2004, up to and including in or about 2016, HERNANDEZ was involved in processing, receiving, transporting, and distributing multi-ton loads of cocaine that arrived in Honduras via planes, go-fast vessels, and, on at least one occasion, a submarine.  HERNANDEZ had access to cocaine laboratories in Honduras and Colombia, at which some of the cocaine was stamped with the symbol “TH,” i.e., “Tony Hernandez.”  HERNANDEZ also coordinated and, at times, participated in providing heavily armed security for cocaine shipments transported within Honduras, including by members of the Honduran National Police and drug traffickers armed with, among other weapons, machineguns. 

As part of his drug-trafficking activities, HERNANDEZ and his co-conspirators bribed law enforcement officials for sensitive information to protect drug shipments and solicited large bribes from major drug traffickers for HERNANDEZ. 

In or about February 2014 in Honduras, HERNANDEZ met with Devis Leonel Rivera Maradiaga, the former leader of a violent Honduran drug-trafficking organization known as the Cachiros, for a meeting arranged by, among others, a former member of the Honduran National Police.  During a video- and audio-recorded portion of that meeting, HERNANDEZ agreed to help Rivera Maradiaga by causing Honduran government entities to pay money owed to one or more Cachiros money-laundering front companies in exchange for kickback payments from Rivera Maradiaga.  Rivera Maradiaga paid HERNANDEZ approximately $50,000 during the meeting.  

*                *                *

The Superseding Indictment charges HERNANDEZ, 40, with four counts:  (1) conspiring to import cocaine into the United States, (2) using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, (3) conspiring to use and carry machine guns and destructive devices during, and to possess machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, and (4) making false statements to federal agents.  If convicted, HERNANDEZ faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison on Count One, a mandatory minimum sentence of 30 years in prison and a maximum term of life in prison on Count Two, a maximum term of life in prison on Count Three, and a maximum term of five years in prison on Count Four.  The potential mandatory minimum and maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.

This case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Emil J. Bove III and Mathew J. Laroche are in charge of the prosecution.

The charges contained in the Superseding Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. 

SIOUX FALLS, S.D. – United States Attorney Ron Parsons today announced additional progress made in the past six weeks by law enforcement in the fight against opioids.  The epidemic of opioid abuse and addiction is, by now, distressingly familiar.  In 2017 alone, over 70,000 people in the United States suffered a fatal overdose and countless others suffered nonfatal overdoses because they were revived by first responders using Narcan.  To combat this crisis, the Department of Justice is dedicating tremendous resources to reduce the supply of illicit opioids (primarily heroin and fentanyl).

          “Federal, state, local, and tribal task force officers are working these cases hard in every corner of the state,” said U.S. Attorney Parsons.  “And we’re not going to let up.  We’re going to hammer the traffickers who are dealing these poisons with everything we’ve got.”

          The following federal criminal investigations, involving at least 19 defendants, have resulted in indictments, arraignments, guilty pleas, or prison sentences in opioid-related prosecutions by the U.S. Attorney’s Office for the District of South Dakota since the beginning of October 2018.

Indictments

Stuart Siecke, Dean Bourn, and Deon Hillard.  On October 10, 2018, Stuart Harlon Siecke (age 27) of Worthing, SD, Dean Joseph Bourn (age 36) of Vermillion, SD, and Deon Lee Hillard (age 30) of Minneapolis, MN, were indicted by a federal grand jury in Sioux Falls for Conspiracy to Distribute a Controlled Substance.  The three men are alleged to be part of a fentanyl distribution ring stretching from Minneapolis to Yankton, SD.  Hillard’s federal indictment came while he was released on bond after being charged in Minnesota state court for causing a fentanyl overdose death.  These charges are merely accusations and Siecke, Bourn, and Hillard are presumed innocent unless and until proven guilty.

Maurice Cathey and Corrod Phillips.  On October 10, 2018, a superseding indictment was filed against Maurice Bellafonta Cathey, also known as “Short,” (age 38) of Sioux Falls, SD, and Corrod Leon Phillips (age 27) of Sioux Falls, SD, for Conspiracy to Distribute a Controlled Substance, namely heroin.  Cathey also was charged with one count of Distribution of a Controlled Substance Resulting in Death and two counts of Distribution Resulting in Serious Bodily Injury.  In addition, Phillips was charged with two counts of Distribution Resulting in Serious Bodily Injury.  The defendants are alleged to have been heroin dealers responsible for numerous overdoses in the Sioux Falls area.  A jury trial before U.S. District Judge Karen E. Schreier is set to begin on January 29, 2019.  These charges are merely accusations and Cathey and Phillips are presumed innocent unless and until proven guilty.

Sarah Bailey, a/k/a/ Sarah Johnson and Justin Johnson.  On October 23, 2018, a superseding indictment was filed against Sarah Bailey, also known as Sarah Johnson (age 40) and Justin Johnson (age 37), both of Rapid City, SD, charging them with Conspiracy to Distribute a Controlled Substance, namely heroin.  Bailey also was charged with Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Distribution of a Controlled Substance to a Person under Age 21.  In addition, Justin Johnson was charged with two counts of Distribution of a Controlled Substance.  It is alleged that these defendants were dealing heroin in Rapid City, and that Bailey provided the heroin that caused the overdose of a 15-year-old boy.  These charges are merely accusations and Bailey and Johnson are presumed innocent unless and until proven guilty.

Alyssa Tuttle.  Alyssa Tuttle (age 28) of Peever, SD, was indicted by a federal grand jury for Obtaining a Controlled Substance by Fraud on September 5, 2018.  On November 1, 2018, she was arraigned before U.S. Magistrate Judge William D. Gerdes and pleaded not guilty to the Indictment.  It is alleged that on or about February 2, 2018, Tuttle knowingly and intentionally acquired and obtained hydrocodone, a Schedule II controlled substance, by misrepresentation, fraud, forgery, deception, and subterfuge in Watertown, SD.  The charge is merely an accusation and Tuttle is presumed innocent unless and until proven guilty. 

Darcy Hoff and Michael Cooper.  Michael WayneCooper (age 57) of Sioux Falls, SD and Darcy Ranee Hoff (age 43) of Sioux Falls, SD, were indicted by a federal grand jury on November 6, 2018, for Distribution of a Controlled Substance Resulting in Serious Bodily Injury.  It is alleged that these defendants were dealing fentanyl that resulted in the overdose of a victim in Sioux Falls.  Hoff was arraigned on November 20, 2018, before U.S. Magistrate Judge Veronica L. Duffy and pleaded not guilty to the indictment.  Hoff was ordered to be detained and remanded to the custody of the U.S. Marshals.  Cooper is still at large and actively sought by federal authorities.  He was last known to reside in Sioux Falls but has strong ties to the Chicago area, as well as Louisiana.  Anyone with information about Cooper’s whereabouts can contact the U.S. Marshal Service at (605) 330-4356 or by email at usms.wanted@usdoj.gov.  A photograph of Michael Wayne Cooper accompanies this release. 

Guilty Pleas

Andy Ontiveros.  On October 16, 2018, Andy Ontiveros (age 39) of South Gate, CA, pleaded guilty in federal court to Possession with Intent to Distribute 400 grams or more of a substance containing fentanyl.  On or about May 28, 2018, Ontiveros was inside his parked vehicle on the shoulder of I-29 in Minnehaha County, SD.  A Deputy with the Minnehaha County Sheriff’s Office approached and requested assistance from the South Dakota Highway Patrol.  Ontiveros gave consent for the officers to search the vehicle.  The search uncovered 264 grams of heroin and 993 grams of fentanyl hidden inside the vehicle.  This is believed to be the largest seizure of both heroin and powdered fentanyl in South Dakota history.  Ontiveros has admitted that he intended to distribute the substances both in South Dakota and elsewhere.  Sentencing is scheduled for January 14, 2018 before Judge Schreier.  The penalty is a mandatory minimum sentence of 10 years in federal prison and maximum sentence of life, and/or $10 million dollar fine, or both.  The term of supervised release is a minimum of 5 years and maximum of life. 

Shania Hofer.   On October 22, 2018, Shania Rose Hofer (age 21) of Sioux Falls, SD, pleaded guilty to Distribution of a Controlled Substance Resulting in Serious Bodily Injury.  On or about April 23, 2018, Hofer knowingly and intentionally distributed a mixture and substance containing heroin to an individual in Sioux Falls.  Later that day, the person used the heroin sold by Hofer and was found unconscious.  First responders were unable to find the victim’s pulse and observed that he was not breathing.  They began to perform CPR and administered two doses of Narcan before he was revived.  While at the scene, law enforcement collected a syringe found next to the victim that tested positive for both heroin and fentanyl.  But for the use of the heroin provided by Hofer, the victim would not have stopped breathing, which caused a substantial risk of death.  Sentencing is scheduled before Judge Schreier on January 4, 2019.  Hofer faces a mandatory minimum sentence of 20 years in federal prison up to life, a $1 million fine, or both, and a term of supervised release from three years to life.

Cory Poelstra.  On October 31, 2018, Cory Michael Poelstra (age 29) of Yankton, SD, appeared before Judge Schreier and pleaded guilty to a Superseding Information that charged him with Conspiracy to Distribute a Controlled Substance, namely fentanyl.  During his involvement in the conspiracy, Poelstra ordered fentanyl from the "Dark Web" and had it shipped to Yankton.  He then sold fentanyl to various customers in South Dakota.  He also was aware that some of his fentanyl customers were reselling it to others.  Sentencing is scheduled before Judge Schreier for January 28, 2019.  Poelstra faces a maximum sentence of 20 years in federal prison, a $1 million fine, or both, and a term of supervised release.

Troy Adolfson.  On November 14, 2018, Troy Edward Adolfson (age 47), now of Pella, IA, pleaded guilty to Distribution of a Controlled Substance in violation of federal law.  Between January 9 and April 17, 2017, Adolfson, then a licensed physician in Aberdeen, SD, illegally distributed oxycodone to others by writing prescriptions for oxycodone pills to a coworker, who would get the prescriptions filled and give Adolfson the pills.  Adolfson would give the coworker some of the pills and cash for getting the prescription filled.  Adolfson made the same arrangement with two other individuals, and estimates he illegally prescribed 1,400 pills of oxycodone in this manner.  Sentencing is scheduled before U.S. District Judge Charles B. Kornmann on May 13, 2019.  Adolfson faces a maximum sentence of 20 years in federal prison, a $1 million fine, or both, and a term of supervised release.

Devlin Tommeraasen.  On November 16, 2018, Devlin Tommeraasen (age 23) of Harrisburg, SD, pleaded guilty to Conspiracy to Distribute a Controlled Substance.  As part of his involvement in the conspiracy, Tommeraasen purchased heroin from co-conspirators and sold it in the Sioux Falls area.  He accompanied a co-conspirator on a trip from Sioux Falls to Minneapolis and back to purchase heroin for distribution in the Sioux Falls area.  Sentencing is scheduled before Judge Schreier for February 4, 2019.    Tommeraasen faces a maximum sentence of 20 years in prison, a $1 million fine, or both, and a term of supervised release.

Federal Prison Sentences

Tyler Woodraska, Trevor Harden, Rodney Rohrbach, Sr., Rodney Rohrbach, Jr. Four South Dakota fentanyl dealers convicted of Conspiracy to Distribute a Controlled Substance have been sentenced by Judge Schreier, the most recent on October 15, 2018.  Tyler Wayne Woodraska (age 25) of Oacoma, SD, was sentenced on October 15, 2018, to 63 months in federal prison and three years of supervised release.  Trevor Robert Harden (age 20) of Chamberlain, SD, was sentenced on April 30, 2018, to 108 months in federal prison and three years of supervised release.  Rodney Scott Rohrbach, Sr., a/k/a “Scott” (age 51) of Chamberlain was sentenced on August 20, 2018, to 84 months in federal prison and three years of supervised release.  Rodney Scott Rohrbach, Jr., a/k/a “Bubba” (age 26) of Chamberlain was sentenced on July 30, 2018, to 97 months in federal prison and three years of supervised release.  The convictions stem from incidents ending on or about June 19, 2017, when the Defendants knowingly and intentionally conspired with others to acquire fentanyl and cyclopropylfentanyl, both Schedule II controlled substances, using the “Dark Web” and distribute it in South Dakota.  Woodraska, Harden, Rohrbach, Sr., and Rohrbach, Jr. were immediately turned over to the custody of the U.S. Marshals Service.

All of these recent developments in the District of South Dakota have occurred as the Drug Enforcement Administration released its 2018 National Drug Threat Assessment, which outlines the threats posed to the United States by domestic and international drug trafficking and the abuse of illicit drugs.

“Hot off the presses, the new DEA threat assessment underscores the broad scope and severe magnitude of the ongoing opioid crisis in the United States,” said U.S. Attorney Parsons.  “It represents the sum of all the data and critical intelligence from our law enforcement partners gathered over the past year.  It highlights the need to use every tool at our disposal in our collective mission to defeat this horrific and deadly epidemic.”

Key findings in the report include:

• Controlled prescription drugs remain responsible for the largest number of overdose deaths of any illicit drug class since 2001.  These drugs are the second most commonly abused substance.  Traffickers are now disguising other opioids as controlled prescription drugs to gain access to this market.
• Heroin-related drug-poisoning deaths almost doubled between 2013 and 2016. This has been exacerbated by the increased adulteration of heroin with fentanyl and other synthetic opioids.  Heroin now available in U.S. markets is primarily sourced from Mexico, where opium poppy cultivation and heroin production have both increased significantly in recent years.
• Of all opioids, the abuse of illicit fentanyl and other synthetic opioids has led to the greatest number of deaths in the United States.  Fentanyl is increasingly available in the form of counterfeit prescription pills marketed for illicit street sales, and also sold by traffickers on its own, without the presence of other drugs.
  The 2018 National Drug Threat Assessment can be accessed here.

The cases listed above are being investigated by the Drug Enforcement Agency (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Unified Narcotics Enforcement Team (UNET), U.S. Postal Service, U.S. Department of Health and Human Services OIG/OI, South Dakota Division of Criminal Investigation (DCI), South Dakota Highway Patrol, Minnehaha County Sheriff’s Office, Sioux Falls Police Department, Yankton Police Department, Minneapolis Police Department, and the Sioux Falls Area Drug Task Force.  Assistant U.S. Attorneys John Haak, Jennifer Mammenga, Benjamin Patterson and Tamara Nash are prosecuting the cases.

# # #

Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced bank robbers Donald Marcel Rivers, Jr., age 30; Ashley Nicole Collier, age 31; and Timothy Mclain, age 29; all of Hagerstown, Maryland, to 14 years, 90 months, and 84 months and one day in prison, respectively, each followed by five years, five years, and three years of supervised release, for armed bank robbery and related firearms charges.  Collier and Mclain were sentenced today and Rivers was sentenced on November 19, 2018.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office, Chief Paul J. Kifer of the Hagerstown Police Department; and Washington County Sheriff Douglas W. Mullendore.  

According to their plea agreements, Rivers and his girlfriend, Collier, planned to rob a bank and enlisted Collier’s brother, Mclain.  Specifically, on January 9, 2018, the conspirators robbed a bank located in the 1300 block of Salem Avenue in Hagerstown. The three arrived at the bank in a gray Jeep Cherokee.  Rivers and Mclain, both wearing black face masks, entered the bank while Collier remained in the Jeep as the getaway driver.  Rivers was armed with a loaded 9mm handgun, which he pointed at bank employees and customers inside the bank.  Both men yelled and demanded “hundreds and fifties” from the tellers.  Mclain held a duffle bag for the tellers to put the cash in, while Rivers approached several bank employees and a customer and pointed the firearm at them.  After the tellers put the cash in Mclain’s duffle bag, the two men ran from the bank and jumped into the back seat of the Jeep while Collier sped away.  The robbers stole approximately $6,567 from the bank.

Approximately 20 minutes later, police saw the gray Jeep near the road that runs along the Maryland and Pennsylvania state line.  As the police attempted to stop the Jeep, the passenger side door swung open while the Jeep was in motion.  As the Jeep came to a stop, Rivers jumped out and fled into a nearby cornfield, while the Jeep sped away.  Police caught Rivers, who had $2,860.00 in his pocket.

A short time later, police saw the Jeep again parked in a nearby church parking lot.  About 100 yards away, police saw Mclain and Collier walking on the road and arrested both of them.  Mclain had $2,660.00 and a black face mask in his pocket.  Collier had a 9mm handgun loaded with nine live 9mm rounds of ammunition and $1,070 in her purse.  The 9mm handgun was the same handgun used in the bank robbery, and had previously been reported stolen from the owner in West Virginia.

A search warrant was authorized for the gray Jeep, which was registered to Rivers’ mother.  Inside the Jeep, police located clothing worn by the robbers during the robbery, a black ski mask worn by Rivers during the robbery, a black duffle bag, and plastic cards belonging to Rivers and Collier, including a shooting range badge with Rivers’ name and photograph printed on the front of the card.

According to witnesses and records from the shooting range, on November 6, 2017, Rivers was in possession of firearms and ammunition at the shooting range.  Rivers had a previous felony conviction and was therefore prohibited from possessing firearms or ammunition.

Donald Rivers’ mother, Dianne Rivers, pled guilty to felony obstruction of justice after she destroyed a phone her son used after the robbery.  The grand jury had subpoenaed the phone during the robbery investigation.  On November 9, 2018, Judge Chasanow sentenced Dianne Rivers to 3 months in prison.

United States Attorney Robert K. Hur praised the FBI – Frederick, the Hagerstown Police Department, and the Washington County’s Sheriff’s Office for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Christine Duey and Sandra Wilkinson, who prosecuted the case.

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FRESNO, Calif. — Oscar Ivan Salazar-Avalos, 28, a citizen of Mexico, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, Salazar and his co-defendant Jose Manuel Sotelo-Mendoza, 26, of Ceres, delivered 15 pounds of methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer to sell the drug for $3,400 per pound. In pleading guilty, Salazar acknowledged that he and Sotelo had met his source of supply in Castaic in the northern part of Los Angeles County to obtain the 15 pounds of methamphetamine. In addition, Salazar indicated that they intended to make $51,000 on the deal.

Salazar is scheduled for sentencing on February 19, 2019, before U.S. District Judge Dale A. Drozd. Salazar faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Charges are pending against Sotelo. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, California Highway Patrol, Bureau of Investigation of the California Department of Justice, Fresno Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. — Johnny Sanchez, 22, of Modesto, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 11 years and eight months in prison for stealing 50 firearms from a Fresno gun store last year, U.S. Attorney McGregor W. Scott announced. Co‑defendant Nathan Creel, 22, also of Modesto, pleaded guilty today to conspiring with Sanchez and three others in connection with the burglary of the firearms store.

According to court documents, on October 20, 2017, Sanchez, Creel, and co-defendants James Britt, David Avina, and Luis Galvan broke into the Fresno firearms store by cutting a chain and lock with bolt cutters and prying open the door. The defendants stole 50 firearms, including numerous foreign and domestic rifles. After the theft, the defendants sold most of the firearms to others.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the case.

Creel is scheduled to be sentenced by Judge O’Neill on February 11, 2019. Creel faces a maximum statutory penalty of 25 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

James Britt pleaded guilty and is scheduled to be sentenced on March 25, 2019. Charges are pending against David Avina and Luis Galvan. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging ALVIN ROBERTSON, 55, of Bridgeport, with three counts of bank robbery and two counts of interference with commerce by robbery.

The indictment was returned on October 16, 2018.  Robertson appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charges.  He has been detained since his arrest on related state charges on September 27, 2018.

The indictment alleges that Robertson robbed a Subway store located at 9 Ethan Allen Highway in Ridgefield on May 20, 2018; a Subway store located at 447 Monroe Turnpike in Monroe on July 22, 2018; a People’s United Bank branch located at 470 Monroe Turnpike in Monroe on August 29, 2018; a People’s United Bank branch located at 763 Straits Turnpike in Watertown on September 21, 2018, and a People’s United Bank branch located at 1135 Farmington Avenue in Berlin on September 25, 2018.

If convicted, Robertson faces a maximum term of imprisonment of 20 years on each count.

U.S. Attorney Durham stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Federal Bureau of Investigation and the Watertown, Ridgefield, Monroe and Berlin Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.