NEWARK, N.J. – A Lakewood, New Jersey, insurance producer was charged today with conspiring to defraud several Blue Cross Blue Shield health care insurance affiliates of more than $10 million, U.S. Attorney Craig Carpenito announced today.

Jonas Knopf, 63, of Lakewood, was charged by complaint with one count of conspiring to defraud three health care Blue Cross Blue Shield (BCBS) affiliates in Pennsylvania and the Washington, D.C., area. He is scheduled to appear today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

According to documents filed in this case and statements made in court:

From 2009 to 2017, Knopf was the chief executive officer of Madison Financial Services (MFS) and a licensed insurance producer – a person who is licensed to sell insurance products. MFS was the parent company of 11 sham companies created by Knopf and others solely for the purpose of marketing health insurance coverage to people who were not, in fact, his employees. These companies purported to be located and doing business in Pennsylvania and/or Virginia, and created the appearance of employment status for hundreds of individuals, largely Lakewood residents who were seeking health care coverage through BCBS benefit plans. The conspiracy began in Pennsylvania, and lasted until 2013, when an internal BCBS investigation uncovered irregularities in the information submitted by Knopf and others through his sham companies. Ultimately, the Pennsylvania Department of Insurance initiated an investigation and Knopf surrendered his Pennsylvania insurance producer’s license and ceased operation in the state. The conspiracy, however, continued in Virginia.

Knopf’s clients or purported employees paid him inflated insurance premiums as well as providing him with monies for payroll; Knopf, in turn, issued fake payroll checks, giving the false impression that they were actually employees being paid for services rendered. The conspiracy continued until January 2017. The conspiracy caused the health care insurers to pay out more than $10 million in fraudulent claims.

The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent In Charge Gregory W. Ehrie; special agents of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region, under the direction of Special Agent in Charge Michael Mikulka; and investigators of the U.S. Department of Labor, Employee Benefit Security Administration (EBSA), under the direction of Regional Director Darren Cohen, with the investigation leading to today’s charge.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit and Assistant U.S. Attorney Tracey Agnew of the Violent Crime Unit.

The charge and allegations contained in the complaint, are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Defense counsel: Michael Gilbert Esq., New York

            WASHINGTON – James Richardson, 38, of Washington, D.C., was sentenced today to seven years in prison for sexually assaulting a 22-year-old woman in September 2003, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Richardson pled guilty in October 2018, in the Superior Court of the District of Columbia, to one count of attempted first-degree sexual abuse.  The plea, which was contingent upon the Court’s approval, called for an agreed-upon seven-year prison term. Richardson also will be required to register as a sex offender for life and serve a 10-year term of supervised release. The Honorable Milton C. Lee accepted the plea and sentenced Richardson accordingly.

            According to the government’s evidence, on Sept. 21, 2003, at approximately 8:20 p.m., Richardson engaged the victim in conversation, offered to walk her home, and then walked her down the 4600 block of Blue Plains Drive SW. He then pulled her into a wooded area, brandished a knife, and raped her at knifepoint. The victim screamed for help and tried to run, but was unsuccessful. When the assault was over, Richardson threatened to kill the victim if she reported the assault. He again offered to walk the victim home, but she told him to leave her alone and ran back to her residence.

            The victim made an immediate report to police, and was transported to an area hospital, where she received a Sexual Assault Nurse Examination.

            Richardson was developed as a suspect in this offense by MPD’s Cold Case Sexual Assault Unit in September 2018. On Sept. 18, 2018, a D.C. Superior Court judge signed a complaint and warrant authorizing Richardson’s arrest. The warrant was executed on Sept. 19, 2018, two days before the statute of limitations would have run on this case. Richardson has been in custody ever since.

            When detectives discovered this case in September 2018, the investigation revealed that Richardson had been convicted of two prior sexual assaults, one that occurred in 2000 in Baltimore, and one that occurred in 2003 in the District of Columbia.

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of the detectives of the Metropolitan Police Department’s Cold Case Sexual Assault Unit and officers from the Seventh District, as well as the Deputy Marshals from the U.S. Marshals Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins, and Paralegal Specialist Tameka Garcia.

            Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Amy Zubrensky and Jennifer Loeb, who investigated and prosecuted the case.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that DARIN WEBB was sentenced in Manhattan federal court to two years in prison for defrauding Donadio & Olson, a Manhattan-based literary agency (the “Agency”), and its clients of over $3.3 million.  WEBB provided bookkeeping services for the Agency and carried out his scheme by making unauthorized transfers from the Agency’s bank accounts, and then making changes to the Agency’s accounting system to evade detection.  WEBB pled guilty on July 25, 2018, to one count of wire fraud before U.S. District Judge Edgardo Ramos, who also imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “Darin Webb, a bookkeeper for a literary agency, admitted to embezzling more than $3.3 million from the agency, and then changing their accounting system to evade detection.  Webb’s theft was eventually uncovered, and he is now sentenced to two years in federal prison.”

According to allegations contained in the Information filed against Webb and statements made in related court filings and proceedings:  

From 2001 through March 2018, WEBB was engaged as a bookkeeper for the Agency.  From January 2011 through March 2018, WEBB used his position as the Agency’s bookkeeper to transfer more than $3.3 million of funds, belonging to the Agency and its clients, from the Agency’s bank accounts to bank accounts that WEBB controlled.  In order to evade detection of his criminal conduct and carry out his scheme, WEBB made changes to the Agency’s accounting records to disguise the nature of the transfers.

*                    *                    *

In addition to his prison term, WEBB, 48, of Manhattan, New York, was sentenced to three years of supervised release, a forfeiture money judgment in the amount of $3,300,000, and restitution in an amount to be determined.

Mr. Berman praised the work of the FBI.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.

NASHVILLE, Tenn. – December 17, 2018 – Donald M. McCoy, 52, of Murfreesboro, Tennessee, was arrested Friday by federal and state agents and charged with two counts of healthcare fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. 

According to the criminal complaint, McCoy is a licensed psychologist by the State of Tennessee and is an authorized TennCare provider who provides individual psychotherapy and family psychotherapy services to patients—usually minors—in the care of the Department of Children’s Services (“DCS”).  The complaint alleges that between January 2014 and December 7, 2018, McCoy billed for more hours of services than can physically be provided in any given day and received over $2.16 million from TennCare based on those claims.

The complaint alleges that an investigative analysis conducted by the Tennessee Bureau of Investigation determined that on multiple occasions, McCoy submitted claims for psychotherapy services that totaled more than 24 hours per day, some even exceeding 48 hours and 72 hours per day.  The analysis also determined that McCoy billed for services purportedly rendered on more than 200 weekends and major federal holidays, including New Year’s Day, the Fourth of July, Thanksgiving and Christmas day, among others.  The complaint further alleges numerous times McCoy billed for family psychotherapy sessions  involving patients in DCS custody, which never occurred. 

If convicted, McCoy faces up to 20 years in prison and up to a $250,000 fine on each count.

This case was investigated by the Tennessee Bureau of Investigation; the U.S. Postal Inspection Service; and the IRS Criminal Investigation.  Assistant U.S. Attorneys Kathryn Booth and Sarah Bogni are prosecuting the case. 

The charges are merely an accusation.  The defendant is presumed innocent until proven guilty in a court of law. 

OKLAHOMA CITY – JOHN ARNOLD SHELLEY, 68, of Oklahoma City, has been sentenced to four years in federal prison for making a false statement to the Federal Deposit Insurance Corporation, announced Robert J. Troester of the U.S. Attorney’s Office.  He has also been ordered to pay over $137 million in restitution.

Shelley was the President, Chief Executive Officer, Chairman of the Board, and a loan officer at The Bank of Union ("BOU") in El Reno, Oklahoma, from the late 1990s until his resignation on November 30, 2013.  In January 2014, state banking regulators closed BOU because of the bank’s loan losses, and the FDIC was appointed as receiver.

On December 13, 2016, a federal grand jury returned a 23-count indictment against Shelley in connection with the failure of the Bank of Union.  The counts included bank fraud, money laundering, making false statements to a bank, misapplication of bank funds, false bank entries, wire fraud, and making false statements to the FDIC.  According to the indictment, Shelley defrauded BOU in several ways: (1) by issuing loans with insufficient collateral and falsifying financial statements for several high-dollar bank borrowers; (2) by originating nominee loans to circumvent the bank’s legal lending limit; (3) by concealing the bank’s true financial condition from the Board of Directors; (4) by soliciting a fraudulent investment; and (5) by falsely representing the bank’s true status to the FDIC.

According to the indictment, Shelley conspired with certain BOU borrowers from approximately 2009 through November 2013 to defraud BOU by issuing them millions of dollars in BOU loan proceeds secured by collateral that they did not have.  Although these borrowers had already accumulated significant debt that they could not repay, Shelley continued to issue them new loans and capitalized accrued interest.  At monthly BOU Board meetings, he failed to disclose the true status of these delinquent loan accounts; instead, he advised the Board that the borrowers were continuing to pay down their loans.  Shelley also allegedly issued new loans to these borrowers in order to keep them off of BOU’s monthly overdraft reports.

Further, the indictment charged that Shelley executed a scheme to defraud a partial owner and investor in BOU in 2012.  According to the indictment, Shelley persuaded the investor to wire $40 million by falsely representing that BOU was growing rapidly and performing well.  The indictment alleged that, although Shelley knew that the bank was on the brink of failure and needed an immediate capital infusion to ensure its solvency, he advised the partial owner that his money would not be at risk.

Finally, Shelley was charged with falsely representing the bank’s loan status to the FDIC.  Between September 2012 and September 2013, Shelley continued to renew certain unpaid borrower loans by capitalizing unpaid interest.  Pursuant to an October 2013 FDIC safety and soundness examination, he allegedly falsely represented that he had not renewed or extended any loans without full collection of the interest due between September 2012 and September 2013.

On September 18, 2017, Shelley pleaded guilty to making a false statement to the FDIC on July 30, 2013, when he falsely represented in writing that the bank had total equity capital of $36,290,000, when he knew the bank’s equity capital was significantly less.  This offense carries a penalty of up to 30 years in prison and a fine of up to $1,000,000.

On December 14, 2018, after two days of testimony about Shelley’s conduct, U.S. District Judge Timothy D. DeGiusti sentenced Shelley to four years in prison.  He found that Shelley’s crime involved more than $85 million in losses for purposes of federal sentencing law.  He imposed a sentence well below the advisory imprisonment range applicable under the U.S. Sentencing Guidelines because of Shelley’s health, personal history, and other factors.  After release from prison, Shelley will serve two years on supervised release.

The sentence requires Shelley to pay $137,384,291 in restitution.  The partial owner who wired money for the bank’s benefit in late 2012 is due $40 million of the restitution amount.  Shelley owes the remaining $97,384,291 to the FDIC, which lost money when it assumed the bank’s liabilities in January 2014.

This case is the result of an investigation by the Federal Deposit Insurance Corporation–Office of Inspector General and the Federal Bureau of Investigation’s Oklahoma City Division.  It was prosecuted by Assistant U.S. Attorneys Julia E. Barry, William E. Farrior, and Scott E. Williams.

Reference is made to public filings for further information.

Earlier today, at the federal courthouse in Central Islip, Jermaine Jackson was sentenced by United States District Judge Sandra J. Feuerstein to 365 months’ imprisonment, to be followed by five years’ supervised release, for the murder of Edwin Lopez, an employee of a convenience store in Valley Stream, New York.  Jackson pleaded guilty to the charge in December 2017.   

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence. 

“Jackson senselessly murdered a hard-working man who was just trying to support his wife and teenage daughter. While this sentence cannot return Mr. Lopez to his family and community, it will ensure that others will be protected from Jackson for decades to come and it will make other criminals think twice before taking a life,” stated United States Attorney Donoghue.  “It is my hope that today’s sentence brings some measure of closure for the Lopez family.” 

“The actions of Mr. Jackson brought an unknowable grief to the Lopez family that will be felt for years to come,” stated ATF Special Agent-in-Charge Benedict.  “Today’s sentence provides some semblance of closure to a family that never deserved to be touched by this senseless violence. May Mr. Jackson spend every minute of his sentence pondering his grievous actions and the toll they took on an innocent family.  I would like to thank our partners in the NCPD and NYPD that stand shoulder to shoulder with ATF in the fight against violent criminals like Mr. Jackson.  I would also like to thank the United States Attorney’s Office for their work in prosecuting the case.”

“The sentencing today of defendant Jermaine Jackson for murder and robbery is a clear example of how unjust criminal activity will be dealt with by law enforcement,” stated NCPD Commissioner Ryder.  “Although no sentence is ever enough, hopefully this will bring some closure to the Lopez family.  I would also like to credit all of the agencies and members involved during this investigation on a job well done.”

On December 16, 2016, Jackson and a coconspirator entered the Al Mini Market wearing a mask over the lower portion of his face and brandishing a semi-automatic handgun.  Jackson held the store’s employees at gunpoint while the coconspirator attempted to steal money from the cash register.  Lopez, a store employee, grabbed a bottle and resisted the robbery at which point Jackson shot him once.  Jackson then attempted to leave the store but Lopez chased him.  Jackson turned around and shot Lopez several more times, killing him.  Jackson and his coconspirator fled, empty-handed.   

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorney Christopher Caffarone is in charge of the prosecution.

The Defendant:

JERMAINE JACKSON
Age: 25
Queens Village, New York

E.D.N.Y. Docket No. 17-CR-140 (SJF)

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MOSHE BENENFELD, a/k/a “Michael Benenfeld,” pleaded guilty to bank fraud in connection with hundreds of unauthorized transactions that BENENFELD conducted in bank customer accounts while employed by two different New York-area banks. BENENFELD’s bank fraud scheme resulted in losses totaling more than $5 million.  BENENFELD pleaded guilty before U.S. District Judge Loretta A. Preska.  Sentencing is scheduled for April 17, 2019.

Manhattan U.S. Attorney Geoffrey Berman said:  “Moshe Benenfeld, a branch manager for two separate New York banks, admitted today to abusing his position of trust by stealing from the banks’ customers.  Benenfeld used his position of access to withdraw and transfer funds from victims’ accounts by falsely authorizing transactions and forging signatures. Today, he has admitted to his crime, which victimized more than 20 individuals and totaled more than five million dollars.”

According to the allegations in the Complaint and the Indictment, to which BENENFELD pleaded guilty:

From 2000 to 2016, BENENFELD was the branch manager at a branch of a New York-area bank (“Bank-1”).  Beginning in or about 2004 and continuing into 2016, while employed at Bank-1, BENENFELD conducted hundreds of unauthorized transactions involving the accounts of over 20 bank customers, including the accounts of BENENFELD’s relatives.  BENENFELD made unauthorized draws on, and payments to, the customers’ lines of credit; made unauthorized withdrawals from, and deposits to, the customers’ deposit accounts; and used the customers’ deposit accounts as collateral for other customers’ lines of credit without authorization.  To effect the unauthorized transactions, BENENFELD, among other things, forged the signatures of bank customers and used a document previously signed by a bank customer to create paperwork that falsely purported to authorize a different transaction.  In or about April 2016, after having discovered BENENFELD’s conduct, Bank-1 terminated BENENFELD’s employment.  In or about June 2016, BENENFELD was hired by another New York-area bank (“Bank-2”).  At Bank-2, BENENFELD continued to conduct unauthorized transactions involving customer accounts.  As a result of the unauthorized transactions conducted by BENENFELD, Bank-1 sustained losses of over $5 million.

*                *                *

BENENFELD, 49, of Brooklyn, New York, pleaded guilty to one count of bank fraud, which carries a maximum sentence of 30 years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the investigative work of the U.S. Postal Inspection Service’s New York Division.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorney Dina McLeod is in charge of the prosecution.

HAMMOND – Lawrence W. LaFlower, 43 years old, of Valparaiso, Indiana, was sentenced before U.S. District Court Judge Philip P. Simon on his plea of guilty to wire fraud, announced U.S. Attorney Kirsch.

US Attorney Kirsch said, "Mr. LaFlower’s immediate guilty plea and sentence reflect the zero tolerance this District has for public officials who abuse their positions for personal financial gain.  My Office, with our law enforcement partners, will continue to pursue those who corrupt their office for self-serving motives."

LaFlower was sentenced to 15 months in prison and 2 years of supervised release. The Court also ordered a money judgment forfeiture in the amount of $187,698.52.

According to court documents, between April 2013 and April 2018, LaFlower used his position as the treasurer of the Fraternal Order of Police Ewalt Jahnz Lodge #165’s to embezzle over $180,000 from its investment and bank accounts. The FOP is a fraternal organization in Porter County, Indiana, whose mission is to improve working conditions for law enforcement officers and serve the public by raising money for scholarships and other programs.

This case was investigated by the FBI and Indiana State Police and was prosecuted by Assistant United States Attorney Abizer Zanzi.

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ALBANY, NEW YORK – Jason Novoa, age 38, of Ballston Spa, New York, was sentenced today to 120 months in prison for receipt and possession of child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Senior United States District Judge Gary L. Sharpe also sentenced Novoa to 20 years of supervised release, to begin following his term of imprisonment.  Novoa was also ordered to pay $5,000 in restitution to one of the victims portrayed in the child pornography he possessed.  He will be required to register as a sex offender upon his release from prison.

Novoa pled guilty on July 17, 2018.  Novoa admitted that, over a period of at least 5 years, he used a laptop computer equipped with peer-to-peer file-sharing software to search for and download videos and images depicting child pornography.  Novoa further admitted that between June 9 and June 13, 2017, he made available for download over 800 images of child pornography.  Novoa additionally possessed approximately 30 video files and 310 image files depicting child pornography on June 29, 2017, when the laptop was seized by investigators.

This case was investigated by the FBI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

This case was prosecuted as part of Project Safe Childhood.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc

SAN JUAN, Puerto Rico– A federal grand jury in the District of Puerto Rico returned an indictment against Ricardo González-Rodríguez, charging him for threatening to injure the Secretary of Public Safety Héctor Pesquera via Facebook, in violation of Title 18, United States Code, Section 844(e), announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation.

According to the information contained in the indictment, the threat was posted on Facebook, on May 2, 2018. The post contained the following text: “Ai (sic) que matarlo ahora mismo.” Translated to the English language, the post states: “He must be killed right now.” On December 14, 2018, FBI agents arrested the defendant without incident.

“Federal authorities will continue to prosecute those who use social media to threaten, promote violence, or incite violent acts,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. 

“The FBI defends and protects the rights of all people to speak freely. But this does not include sending messages that threaten or encourage violence, which is a serious crime,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division.

Assistant United States Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, González-Rodríguez faces a maximum term of imprisonment of 10 years, a term of supervised release of up to three years, and a fine of up to $250,000.

# # #

U.S. Attorney Geoffrey S. Berman said:  “Therese Okoumou was convicted in federal court today for a dangerous stunt last July 4^th that endangered herself and the NYPD and U.S. Park Police officers who rescued and apprehended her.  The act of climbing the base of the Statue of Liberty went well beyond peaceable protest, a right we certainly respect.  It was a crime that put people at grave risk.  We commend Judge Gorenstein’s decision to hold Therese Okoumou accountable for her dangerous and reckless conduct.”

SHREVEPORT/ALEXANDRIA/LAKE CHARLES, La. –United StatesAttorney David C. Joseph announced that three felons pleaded guilty last week for possession of firearms.

Shreveport Felon Pleads Guilty to Possessing Semi-Automatic Pistol

            SHREVEPORT - Dennis Lee Richardson, 29, of Shreveport, pleaded guilty on December 11, 2018 before U.S. District Judge S. Maurice Hicks Jr. to one count of felon in possession of a firearm.  According to the guilty plea, law enforcement agents executed a search warrant on June 29, 2018 at a Prentiss Street residence.  As agents approached the home, they saw Richardson and his girlfriend sitting in a parked car in the driveway.  The agents also observed a loaded Glock semi-automatic pistol with an extended clip on the floorboard behind the driver’s seat.  Richardson said his mother had purchased the firearm for him.  He is a convicted felon who pleaded guilty on March 10, 2014 in Caddo Parish for attempted illegal carrying of weapons while in possession of controlled dangerous substances.

Richardson faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for February 28, 2019.

The ATF and the Caddo-Shreveport Narcotics Task Force conducted the investigation.  Assistant U.S. Attorneys Jessica D. Cassidy and Earl M. Campbell are prosecuting the case.

Alexandria Felon Pleads Guilty to Possessing Pistol

            ALEXANDRIA - Theodore Hines, 37, of Alexandria, pleaded guilty on December 11, 2018 before U.S. District Judge Dee D. Drell to one count of felon in possession of a firearm.  According to the guilty plea, an Alexandria Police officer observed Hines on June 26, 2018 remove a pistol from his pocket and throw it to the ground.  Hines told the police officer that he had the pistol to protect himself.  After learning that Hines had five previous felonies and was not allowed to possess a firearm, the officer arrested Hines and took possession of the firearm, a loaded Kel-Tec .380-caliber pistol.  

Hines was convicted in February of 2001 of possession of a Schedule IV controlled dangerous substance; he was convicted in December of 2003 of one count of possession of a Schedule V controlled dangerous substance, one count of possession of marijuana and one count of possession of a Schedule V controlled dangerous substance; and he was convicted in February of 2014 of possession with intent to distribute a Schedule II controlled dangerous substance.

Hines faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for March 7, 2019.

The ATF and the Alexandria Police Department conducted the investigation.  Assistant U.S. Attorney Cadesby Cooper is prosecuting the case.

Lake Charles Felon Pleads Guilty to Possessing a Handgun

LAKE CHARLES, La. –United StatesAttorney David C. Joseph announced that Keelan Arnold Broussard, 27, of Lake Charles, pleaded guilty on Friday before U.S. District Judge Dee D. Drell to one count of felon in possession of a firearm.  According to the guilty plea, law enforcement agents executed a search warrant at Broussard’s home on May 23, 2018 and discovered a Taurus .38 Special handgun, and two .38 caliber rounds in Broussard’s bedroom.  Broussard admitted that he owned the firearm.

At the time of his arrest, Broussard had a criminal history dating back to January 5, 2011, including previous convictions in the 14^th Judicial District Court for possession with intent to distribute marijuana, possession of cocaine, and attempted possession of a weapon by a convicted felon.  As a previously convicted felon, he was prohibited from possessing a firearm.

Broussard faces up to 10 years in prison, three years of supervised release and a $250,000 fine.  The court set the sentencing date for March 25, 2019. 

The ATF and the Calcasieu Parish Sheriff’s Office along with the Combined Anti-Drug Task Force conducted the investigation.  Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.

Each case was brought as part of Project Safe Neighborhoods (PSN), a program that is the centerpiece of the Department of Justice’s violent crime reduction efforts.  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 re-entry programs for lasting reductions in crime.

FRESNO, Calif. — Thomas Lee Crow, 49, of Fresno, was sentenced today for aiding and abetting an unlawful animal fighting venture involving a large cockfighting enterprise to two years in prison and a 10-year ban on possessing or owning any animals, U.S. Attorney McGregor W. Scott announced.

After hearing from an animal cruelty expert from the Humane Society, U.S. District Judge Lawrence J. O’Neill stated: “This is nothing short of a case of animal torture. His animals were treated without compassion.” Crow was fined $5,500 in addition to agreeing to the forfeiture of $22,800. Fresno County Sheriff’s Office will receive $6,278 of the forfeited funds to pay for the cost of disposal of the fighting roosters.

Crow’s sentence follows his guilty plea earlier this year. According to court documents, law enforcement officers searched Crow’s rural Fresno residential property last year after he was found at a large cockfighting event in Kerman. Cockfighting is illegal under federal law and in all 50 states. At the cockfight, Fresno County Sheriff’s deputies and detectives recovered 129 fighting roosters, including 28 dead and nine injured roosters. Crow was in possession of $22,800 in cash, along with a scoresheet that tracked the winnings for 144 gamecocks expected to fight that evening. They also found cockfighting equipment, such as knives used for cockfighting called slashers, sheaths, mounting boots, and scales. During the search of Crow’s residence, officers found an additional 200 fighting roosters and items associated with cockfighting, including 293 slashers; injectable stimulants, such as “Pure Aggression,” and scoresheets used for cockfighting derbies. The officers also found personalized leg bands in Crow’s name for sponsoring his birds in cockfighting events.

This case was the product of an investigation by the U.S. Department of Agriculture Office of Inspector General, Fresno County Sheriff’s Office, the Humane Society of the United States, and the Central California SPCA. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

CHICAGO — A convicted felon from Chicago has been sentenced to six and a half years in federal prison for illegally selling more than a dozen handguns and rifles.

JYMIL CAMPBELL, 31, sold ten handguns, three rifles, and four large-capacity magazines during a nine-month period that ended with his arrest in the summer of 2016.  The sales netted Campbell a total of $8,700 in cash.  Unbeknownst to Campbell, the two buyers were confidential informants working on behalf of law enforcement.  They provided the guns to law enforcement after each sale.

Campbell pleaded guilty earlier this year to one count of willfully dealing firearms without a license and one count of illegal possession of a firearm by a convicted felon.  U.S. District Judge Robert W. Gettleman imposed the 78-month sentence on Dec. 12, 2018, in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

“No illegal sales of any firearms – especially in this time and place – should be accepted, let alone 13,” Assistant U.S. Attorney Devlin N. Su argued in the government’s sentencing memorandum.  “Chicagoans are extremely fortunate that the buyers of the weapons turned out to be working for law enforcement, because any willingness to inject guns onto the streets fuels the violence.”

Campbell acknowledged in a plea agreement that he could not legally possess or deal firearms because he had previously been convicted of two felonies – home invasion and armed robbery – and he lacked a federal firearms license. 

Most of the gun sales occurred in Campbell’s residence in the North Lawndale neighborhood of Chicago.  According to the plea agreement, one of the buyers put Campbell on notice that the firearms would be used in illegal gun violence.  Campbell nonetheless made the sale.  Campbell also admitted telling the buyer that although Campbell had personally fired one of the rifles, the firearm was essentially “brand new” and had not yet been “shot shot, like in a war.”

KANSAS CITY, KAN. – A staff member at a facility for children and adults with developmental disabilities pleaded guilty Monday to federal child pornography charges, U.S. Attorney Stephen McAllister said.

William Bresee, 31, Fontana, Kan., pleaded guilty to three counts of distributing child pornography and one count of possessing child pornography. At sentencing, the prosecutor told the court Bresee admitted that federal agents downloaded child pornography from his computer using an online file sharing program. Bresee was a staff member at Lakemary Center in Paola, Kan., working an overnight shift when investigators tracked child pornography to an IP address at the center.

Sentencing is set for March 4. He faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution charges, and not more than 10 years and a fine up to $250,000 on the possession count.

McAllister commended Homeland Security Investigations (HSI) and Assistant U.S. Attorney Kim Flannigan for their work on the case.

NEW BERN– United States Attorney Robert J. Higdon, Jr. announced that over the course of the last week in federal court, before Chief United States District Judge Terrence W. Boyle, multiple defendants have been sentenced in a large-scale heroin and marijuana trafficking organization. 

The investigation was part of OCDETF Operation 190, which was named in memory of New Bern Police Department Officer Alexander Thalmann.  Officer Thalmann was shot and killed in the line of duty in March of 2014 by associates of the defendants in this case.  An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

The defendants’ convictions and sentencings were the culmination of a multi-year investigation into a heroin trafficking ring operating in and around New Bern, North Carolina, and led primarily by two men: DAMIEN LAMONTE BROWN and CALVIN MARK WILSON.  Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and members of the New Bern Police Department learned that BROWN, WILSON, and others had been involved in ordering heroin from New York City and arranging it to be brought down in multi-kilogram amounts over a period of several years.  BROWN and WILSON then supplied various mid and lower-level dealers in and around New Bern with the heroin for sale. 

As part of the investigation, law enforcement conducted over twenty controlled purchases of heroin from organization members between November 2016 and July 2017, along with traffic stops and other encounters in which they confirmed that members possessed drugs and guns.  Based on that investigation, ATF then obtained authorization for a federal wiretap of cellular phones associated with WILSON and two co-defendants.   As a result, agents intercepted calls and texts over a three-month period in late 2017 showing that WILSON was directing the supply and distribution of kilogram-levels of heroin from New York to New Bern, NC.  Based on intercepted calls, agents were able to stop and arrest WILSON and two co-defendants traveling back from New York with 3lbs of marijuana and 7 bars of heroin cutting agent.

ATF made arrests of many of the defendants on October 24, 2017, along with searches of five residences associated with the organization.  Through the life of the investigation, law enforcement has seized over a kilogram of heroin and twenty firearms.

The defendants include:

• DAMIEN LAMONTE BROWN, aka “Dame,” 36, of New Bern, NC.  BROWN was convicted in August 2018 by a federal jury of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, possession with intent to distribute one hundred (100) grams or more of heroin, and possession of a firearm by felon.  BROWN was sentenced to 360 months’ imprisonment.
• DERRICK LAMONT DAVIS, aka “Gucci,” 35, of Kinston, NC.  DAVIS was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin.  DAVIS was sentenced to 48 months’ imprisonment.
• DWAYNE LEE STALLINGS, aka “Smiley,” 35, of Cove City, NC.  STALLINGS was convicted of possession of a firearm by a felon and was sentenced to 108 months’ imprisonment.
• NASSAR TURE MACK, 37, of New Bern, NC.  MACK was convicted of possession of a firearm by felon and was sentenced to 24 months’ imprisonment.
• MARIO CORRELLUS BARGNEARE, aka “Rio,” 39, of New Bern, NC.  BARGNEARE was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and discharging a firearm in furtherance of a drug trafficking crime.  BARGNEARE was sentenced to 204 months’ imprisonment.
• DEREK JACQUAN WIGGINS, aka “DJ,” 38, of New Bern, NC.  WIGGINS was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin, several counts of distributing heroin, and possession of a firearm by a felon.  He was sentenced to 120 months’ imprisonment.
• ROY JAMES NOLON, aka “Henny,” 21, of New Bern, NC.  NOLON was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime.  He was sentenced to 96 months’ imprisonment.
• MICHAEL QUALEEK VELASQUEZ, aka “Moo Moo,” 23, of New Bern, NC.  VELASQUEZ was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of heroin.  He was sentenced to 96 months’ imprisonment.
• LAMAR HOSEA WIGGINS, aka “LB,” 39, of New Bern, NC.  WIGGINS was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession of a firearm by a felon.  He was sentenced to 96 months’ imprisonment.
• LASHAWNNA JAQUETTE MCCOTTER, aka “Flossy,” 47, of New Bern, NC.  McCOTTER was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of marijuana.  She was sentenced to 30 months’  imprisonment.
• LATREKA DENISE HARDESTY, aka “T,” 27, of New Bern, NC.  HARDESTY was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to time served.
• ADRIENNE MICHELLE HALL, 35, of New Bern, NC.  HALL was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to time served.
• CAROLINE LOUISE HUGHES, 28, of Alliance, NC.  HUGHES was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to 5 years probation.

Three defendants are scheduled to be sentenced over the course of the next few months.  They are:

• CALVIN MARK WILSON, aka “Bali,” 34, of New Bern, NC.  WILSON was convicted of conspiracy to distribute and possess with the intent to distribute one thousand grams or more of heroin and a quantity of marijuana and possession with intent to distribute a quantity of marijuana.  WILSON faces a sentence of not less than 20 years’ imprisonment.
• WILLIE FRANK JAMES AHERN, aka “White, White Bread, Dribs,” 39, of Bayboro, NC.  AHERN was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and several instances of distributing quantities of heroin.  AHERN faces up to life imprisonment.
• WALTER NAJEE GREEN, III, 21, of New Bern, NC.  GREEN was convicted of distribution of a quantity of heroin and faces up to 30 years’ imprisonment.
   

The investigation also led to 8 individuals being charged by the state for drug offenses.  Those charges remain pending.

The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Bern Police Department, Jacksonville Police Department, Craven County Sheriff’s Office, Pamlico County Sheriff’s Office, the North Carolina State Bureau of Investigation, Onslow County Sheriff’s Office, Sampson County Sheriff’s Office, Trent Woods Police Department, Carteret County Sheriff’s Office, Morehead City Police Department, Beaufort County Sheriff’s Office, and with the assistance of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA).  Assistant United States Attorney Laura S. Howard prosecuted this case on behalf of the government.

PROVIDENCE – A former office manager and bookkeeper for a used car dealership in Cranston today admitted the she defrauded her former employer by altering and misrepresenting information entered in financial records.

Appearing before U.S. District Court John J. McConnell, Jr., Michelle Saritelli, 45, of South Kingstown, admitted to the Court that from January 2014 to October 5, 2017, she engineered and executed a scheme to defraud the owners of Stamas Auto and Truck Center by pocketing dealership checks and substantial portions of checks cashed on a weekly basis to fund the dealership’s petty cash fund, and by writing checks to her domestic partner for auto repair services and parts sales not provided.

The government alleges that the loss to Stamas Auto is between $250,000 and $560,000.

According to court documents, on September 27, 2017, the owners of Stamas Auto were notified that their bank accounts had been frozen. An internal review of the accounts by the business owners determined that several check ledgers were missing, funds were unaccounted for, and that numerous checks had been forged and/or fraudulently cashed.

The majority of missing bank ledgers were located during a court-authorized search of Saritelli’s residence on June 7, 2018.

An investigation by the Cranston Police Department and the FBI determined that Saritelli deposited stolen funds in bank accounts controlled by her and her parents. The majority of cash was withdrawn from ATMs at banks located near Saritelli’s South Kingstown residence and at casinos in Newport, Lincoln, Foxwoods, and Mohegan Sun.

Saritelli’s guilty plea today to bank fraud is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and Cranston Police Chief Colonel Michael J. Winquist.

Saritelli is scheduled to be sentenced on March 18, 2019.

The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.

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Tampa, Florida – U.S. District Judge William F. Jung has sentenced Cedric D. Moultry (26, Tampa) to 5 years and 10 months in federal prison for access device fraud and aggravated identity theft stemming from the filing of fraudulent tax returns using stolen identities. The court also ordered Moultry to forfeit more than $95,000, which is a portion of the proceeds traceable to the offenses, and to repay the IRS more than $509,000. 

Moultry had pleaded guilty on September 11, 2018.

According to court documents, on September 9, 2012, officers from the Tampa Police Department conducted a traffic stop on a vehicle that Moultry was driving. Moultry, who had an outstanding warrant for his arrest, was alone in the car. During a search of the vehicle, officers recovered notebooks that contained names, dates of birth, Social Security numbers, tax filing information, refund amounts, and debit card account information for more than 500 identity theft victims. Moultry’s finger and palm prints were recovered from various pages of the notebooks. Subsequent investigation revealed that approximately 214 fraudulent federal income tax returns had been electronically filed using some of the identities recovered from Moultry’s vehicle. The returns claimed refunds totaling approximately $1.8 million. The IRS released refunds totaling more than $509,000, all of which were directed to reloadable debit cards found in Moultry’s possession.

This case was investigated by the Tampa Police Department and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.

PITTSBURGH, PA- A former resident of Van Buren, Arkansas, pleaded guilty in federal court to a charge of coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney Scott W. Brady announced today.

Alastair Lee Stewart, 27, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.

In connection with the guilty plea, the court was advised that from November 15, 2016 to March 27, 2017, Stewart engaged in internet conversations with a 12 year-old female over a chatting application called "Live Me," and later communicated with the victim over Skype, Snapchat, and text message. Stewart then traveled from Van Buren, Arkansas to Pennsylvania and arranged to meet the victim at her grandfather’s residence, where he sexually assaulted her in a motor home on the property on March 24 and March 25, 2017. Stewart fled the area on March 26, 2017.

Chief Judge Hornak scheduled sentencing for April 26, 2019. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Stewart remains incarcerated pending the sentencing hearing.

Assistant United States Attorneys Jessica L. Smolar and Christy C. Wiegand are prosecuting this case on behalf of the government.

The Federal Bureau of Investigation (FBI) and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.

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

America’s Highest Per Capita Murder Rate Down 42 Percent

EAST ST. LOUIS, IL – One year ago, the U.S. Attorney’s Office joined with its federal, state, and local law enforcement partners to implement Project Safe Neighborhoods (PSN) in East St. Louis, Illinois. The centerpiece of the Department of Justice’s violent crime strategy, PSN is a nationwide initiative that brings together federal, state, and local law enforcement officials, along with community leaders, to identify the most pressing violent crime problems and to develop comprehensive solutions to address them.

According to numerous reports, since 2015, East St. Louis has had among the top per capita murder rates in the country. According to an analysis by the city of East St. Louis, from Dec. 4, 2016 to Dec. 4, 2017 there were 36 homicides in East St. Louis. Exactly one year after the implementation of PSN on Dec. 4, 2017, that number was reduced to 21 homicides. That represents a 42 percent decrease in homicides.

"PSN is about empowering people in their communities," said Acting Attorney General Matthew Whitaker. "Rather than having Washington, D.C. dictate a uniform approach, PSN directs our U.S. Attorneys to work with their communities to develop a customized crime reduction plan to target the most violent criminals in the most violent areas, and to prevent and deter violent crimes before they happen. That is what we have done in East St. Louis—and it is working. In this city, where murder and violent crime rates are some of the highest in the country, crime is going down and public confidence is going up. I want to thank U.S. Attorney Weinhoeft, all of our prosecutors and federal officers and especially our state, local, and community partners. Their hard work is achieving incredible results that we want to replicate across America."

The United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, joined St. Clair County State’s Attorney Brendan Kelly, Illinois State Police Director Leo Schmitz,

East St. Louis Police Chief Jerry Simon, and United States Marshal Brad Maxwell, along with representatives from the Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Drug Enforcement Administration (DEA), in announcing the development.

US Attorney Weinhoeft said, "One year ago, the city of East St. Louis experienced the highest per capita murder rate in America, for the third straight year. Today, on the one-year anniversary of the local implementation of the Project Safe Neighborhoods strategy, I’m happy to report that the homicide rate has been cut by 42 percent. There is still much to do. But, today, we can be very proud of the progress that has been made."

PSN is built on three foundational principles. First, it is community based. The initiative recognizes that different communities have different dynamics. As such, each US Attorney is tasked with tailoring a strategy that makes sense for that particular district. Second, PSN is a targeted program that uses law enforcement and community resources to identify the most violent offenders for criminal enforcement. This second principle recognizes that the majority of violent crimes are perpetrated by a small number of persistent violent offenders. Third, the program is comprehensive. It seeks to sustain relationships between local, state, and federal law enforcement, together with community groups, and with a focus on prevention and reentry strategies to disrupt the cycle of violence.

The US Attorney’s primary local PSN strategy has focused on leading bi-weekly case reviews at the East St. Louis police department with the law enforcement personnel who directly investigate violent crime cases. At those meetings, state, local, and federal law enforcement officials review every shooting incident and prioritize resources to focus on cases against the most persistent, repeat, violent offenders. State and federal prosecutors participate in the case reviews to help guide the investigations.

The Illinois State Police has supported law enforcement efforts for decades in the East St. Louis and Metro East areas. Over the past year, however, they have significantly increased their commitment by supporting the PSN initiative. The Illinois State Police has committed additional manpower to conduct proactive patrols, and they send crime scene investigators to process any scene involving a gun crime, whether or not the crime results in a fatality. This is a significant commitment considering East St. Louis receives roughly 1,300 calls each year for shots fired.

St. Clair County State’s Attorney Brendan Kelly said, "This is the kind of effort, with all the key agencies, consistently involved, that must be sustained over the long term if we are going to continue to move in the right direction. Law enforcement helps set the table for economic development by other parts of the community."

East St. Louis Police Chief Jerry Simon said, "I appreciate the support of the US Attorney’s Office and the St. Clair County State’s Attorney’s Office, as well as the support of each of the law

enforcement agencies. This work is directly responsible for the decrease in the overall crime rate and for the significant reduction in the homicide rate. I look forward to continuing these relationships in the future."

US Attorney Weinhoeft said, "The challenges we face are great, but our resolve to meet those challenges is greater. One neighborhood at a time, and one shooter at a time, we are making the community safer. Today, that impact is most dramatically demonstrated by the 42% reduction in the homicide rate."