SACRAMENTO, Calif. — Today, the U.S. Attorney’s Office dedicated the John K. Vincent Memorial Conference Room to honor the legacy of their friend and colleague.

John Vincent provided selfless service to the U.S. Attorney’s Office and his country for more than thirty-two years until his untimely death in 2018. His tenure in the office was marked by inspiring leadership, devoted service, tenacious advocacy on behalf of the United States, and steady guidance as the office’s moral and ethical guiding star in the pursuit of justice.

John Vincent was a public servant of the highest order. He came to the office as an Assistant U.S. Attorney (AUSA) in 1986 and was promoted to Chief of the Special Prosecutions Unit in 1997, a role he held until 2000. He was then promoted to First Assistant U.S. Attorney, and in 2001, he became Acting and then court-appointed U.S. Attorney until 2003. In 2003, Mr. Vincent became the district’s Criminal Chief, a role he held until 2018 while continuing to carry his own portfolio of complex cases and supervising the office’s National Security Unit. His contributions to the office were invaluable and helped to form and sustain the heart and soul of the office. Mr. Vincent exemplified integrity, and he personified the principle that the office’s mission is to always do the right thing for the right reason.

In recognition of his public service, Mr. Vincent was awarded the Director’s Award three times: in 1991 and 1996 for Superior Performance as an AUSA, and then in 2018 for Superior Performance in a Managerial Role. He worked tirelessly to pursue justice, and he embodied the best qualities of a prosecutor and a leader.

To recognize John Vincent’s many contributions to the Office, U.S. Attorney McGregor W. Scott chose to dedicate the main conference room in the U.S. Attorney’s Office in Sacramento in his honor. This facility is the heart of the office and is used almost continually to hold presentations, trainings, press conferences, staff meetings, and holiday events. It is the room that AUSAs enter on their first day of service to take their oath and where the office celebrates AUSAs as they bid their farewell. It is fitting that John Vincent’s name will overlook the many activities that will take place in this room.

MISSOULA—West Yellowstone resident Ann Bennett Hermanson was sentenced today to five years of probation and ordered to pay $479,730 restitution for embezzling from her employer over a seven-year period, U.S. Attorney Kurt Alme said.

Hermanson, 54, pleaded earlier to wire fraud.

Chief U.S. District Judge Dana L. Christensen presided.

Prosecution evidence showed that Hermanson worked for 15 years as a para-professional in the West Yellowstone office of a regional accounting and business services company. As a para-professional, Hermanson had access to bank account information and signature stamps for the company’s customers.

Starting in 2009 and continuing until April 2016, Hermanson embezzled about $630,327.88 from several accounts belonging to the company’s customers. She has repaid some of the money.

The thefts were discovered in April 2016 when a customer reported irregularities in her business account to the company’s corporate office.

 Hermanson embezzled funds by writing checks to herself for personal credit card expenses and other bills and using customers’ signature stamps to sign the checks. She also obtained a duplicate credit card for one victim’s account and used it to make unauthorized purchases.

When approached by a company employee in April 2016 about suspicious transactions, Hermanson admitted to embezzling money. She also admitted the thefts to an FBI agent and identified five business accounts from which she stole money.

Assistant U.S. Attorney Timothy Racicot is prosecuting the case, which was investigated by the FBI.

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PHILADELPHIA – U.S. Attorney William M. McSwain announced that James Williams, 32, of Philadelphia, PA was convicted today at trial of distribution of heroin, possession with intent to distribute heroin and crack cocaine.

The defendant and his co-defendant, “A.J.,” became romantically involved in April 2017, after which the defendant began to supply A.J. with heroin to sell to her regular customers located in Bristol, PA.  The defendant and A.J. shared the proceeds.  Williams also sold narcotics to other customers outside of his relationship with A.J.

On July 18, 2017 A.J. arranged to meet a man, who was actually a confidential informant (“CI”) working with the Bensalem Township Police Department, in a shopping center in Bensalem, PA to sell him heroin and crack cocaine.  A.J. and the defendant arrived together in the defendant’s Ford Mustang, and the CI got into the back seat of the defendant’s car to purchase the narcotics.  The defendant and A.J. were immediately arrested.   Bensalem Township Police officers then found a loaded firearm and more narcotics locked in the glovebox, and more narcotics hidden in the trunk of the defendant’s car.  Williams had a prior felony conviction which prohibited him from legally possessing a firearm.

“Drug distribution and gun violence are an epidemic in Philadelphia and the federal government is aggressively prosecuting both and getting dangerous criminals off the streets,” said U.S. Attorney McSwain. “We want to thank our law enforcement partners in this case, ATF and the Bensalem Township Police Department, for their hard work and dedication.”

“There is no place in our community for those who use firearms for violent, criminal purposes,” said Donald Robinson, Special Agent in Charge of ATF’s Philadelphia Field Division. “ATF will continue to work with our law enforcement partners at the federal, state, and local levels to ensure those individuals are brought to justice.”

The case was investigated by Bensalem Township Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and is being prosecuted by Assistant United States Attorneys Timothy Stengel and Eric Henson.

Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Lauren Montillo, age 47, of Towson, Maryland, to eight years in federal prison, followed by five years of supervised release, for conspiracy to commit wire fraud and for tax evasion.   Judge Bennett also ordered Montillo to pay restitution of $4,060,284.79 to the victims of the scheme, and $276,240 to the Internal Revenue Service. 

Montillo admitted that from 2010 through 2015, she and her co-conspirators sought at least $8.7 million in advance fees from foreign and United States victims, purporting to offer access to exotic bank financial instruments.  Victims paid $4,342,540 in advance fees into Hong Kong bank accounts or attorney escrow accounts and received nothing in return.  For tax years 2012 through 2014, Montillo reported no income other than $100, evading a substantial amount of income taxes.  

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to her plea agreement and other court documents, Montillo and her co-conspirators created shell companies, with associated websites, email addresses, and bank accounts, which they used to perpetrate the fraud.   Specifically, in February 2010, Montillo opened an account with GoDaddy, which provides web-hosting services.  From 2010 to 2015, Montillo and other co-conspirators used GoDaddy to host websites for shell companies such as MLL Holdings, The Bussola Group, Worldwide Escrow Holdings, Ltd., International Insurance of Nebraska, Atlas Investment Bancorp, Entirety Capital, GPF Global, and Atlas-Gayle Trust.  Each of these shell companies had associated email addresses, which Montillo and her co-conspirators opened and used.

Also in 2010, Montillo's father incorporated "Worldwide Escrow Holdings Limited" ("Worldwide Escrow") in Hong Kong and opened a bank account for Worldwide Escrow at the Hong Kong Shanghai Bank (HSBC), Hong Kong with Montillo as a signatory.  Montillo’s father resigned from the company in April 2011.  In March 2011, Montillo and a co-conspirator opened two more bank accounts in Hong Kong, the MLL Holdings and the Skywall bank accounts, also at HSBC.  Montillo and her co-conspirators had on-line access to the Hong Kong bank accounts so that they could conduct banking transactions over the internet.  In 2012, Montillo’s father also opened an escrow account in the name of his mother-in-law, a licensed attorney in Maryland who had stopped practicing law in approximately 2007.  She was not aware that the escrow account had been opened in her name.  The conspirators directed victims to wire-transfer their advance fees into the HSBC, Hong Kong bank accounts or the attorney escrow account.

Montillo’s co-conspirator, Eric Becker, was her former fiancé.  Becker developed, and Montillo edited, websites for the various phony businesses, which purported to offer access to financial instruments, such as standby letters of credit, bank guarantees, bonds, or private placement trading platforms.  Montillo and her co-conspirators had no access to any financial instruments.  For example, Montillo and several co-conspirators obtained advance fee payments from a victim that would purportedly gain access to a private placement trading platform.  The co-conspirators persuaded the victim, through several broker intermediaries, to send $1.7 million to a BB&T bank account in Florida.  BB&T returned the funds to the victim.  The victim, a Mexican national, was told that the funds were returned because the window had closed on the investment opportunity.  Co-conspirators, including Montillo, then informed the victim, through his broker, that they could offer him a private placement trading platform in which he would receive profits and a charitable organization would use its portion of the profits to invest in its projects.  The conspirators directed the victim to send his money to the Worldwide Escrow account at HSBC, Hong Kong.  On May 8, 2012, the victim used his own and his family's funds to send $3,099,990 to the Worldwide Escrow Holdings account.  The conspirators, including Montillo, moved more than $2 million of the funds to a bank account opened at Choice Bank in Belize.

To conceal the fraud and to reassure the victim and his brokers, co-conspirators including Montillo, created an insurance policy for a non-existent insurance company called International Insurance of Nebraska, which was back-stopped with a website hosted through Montillo's GoDaddy account.  The insurance policy purported to show that the victim's investment funds would not be at risk because they were fully insured.  In addition, co-conspirators, including Montillo, used her GoDaddy account to host the website “wweholdingsltd.com” to add an air of legitimacy to Worldwide Escrow.  Both the insurance company and the private placement trading platform were bogus.

Over the next several years, Montillo and her co-conspirators continued with the advance fee scheme.  The scheme had both foreign and U.S. victims.  To protect her identity, Montillo frequently used the name “Kati Conti” in the frauds and used a “burner phone” so that after the scam was concluded, she could “go dark” and stop communicating with the victims.   In all, the scheme sought at least $8.7 million from victims, and actually obtained $4,342,540. 

For tax years 2012 through 2014, Montillo filed personal tax returns showing either no income or just $100 in income, and thus no income tax was owed.  Montillo admitted that she was the signatory on bank accounts in the names of limited liability corporations into which victims' funds were wire transferred from Hong Kong, Choice Bank in Belize, the attorney escrow account, and other accounts controlled by co-conspirators.  Montillo used the victim funds transferred to the limited liability accounts for living expenses.  Montillo had no accounts in her own name.  Montillo admitted that by failing to report her income for 2012 through 2014 to the Internal Revenue Service, she evaded a substantial amount of income taxes.

Three defendants were charged and sentenced in a related case in the Western District of Texas—James Edward Cox was sentenced to 78 months in prison and was ordered to pay $4,249,478 in restitution; and Kelly Ray Coronado and Gordon Richard Moscowitz were each sentenced to 46 months in prison sentence and were also ordered to pay restitution.  Becker was indicted with Montillo but has since died.  Montillo’s father died in 2016.          

United States Attorney Robert K. Hur commended the FBI and IRS-CI for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Sean Delaney, who prosecuted the case.

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SAN FRANCISO –Sunnyvale-based Fortinet, Inc. has agreed to a settlement valued at $545,000 to resolve allegations it violated the False Claims Act by falsely representing its products were in compliance with the Trade Agreements Act (TAA), 19 U.S.C. § 2501 et seq., announced United States Attorney David L. Anderson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge Bryan D. Denny; General Services Administration Office of the Inspector General (GSA-OIG), Western Field Office, Special Agent in Charge Theresa Quellhorst; Director of the U.S. Army Criminal Investigation Command’s (USACIDC) Major Procurement Fraud Unit Frank Robey; and Department of Homeland Security Office of Inspector General (HSI-OIG) Special Agent in Charge Amanda Thandi.    

According to the settlement agreement made public today, Fortinet acknowledged that during the more than seven years between January of 2009 and the fall of 2016, a Fortinet employee responsible for supply chain management (the “Responsible Employee”) arranged to have labels on certain products altered to make the products appear to be compliant with the TAA.  A portion of the products were resold through distributors and subsequent resellers to U.S. government end users. 

“Today’s announcement illustrates the continuing commitment of the U.S. Attorney’s Office and our law enforcement partners to identify and prosecute fraudulent schemes relating to the sale of goods to the United States,” said U.S. Attorney Anderson.  

“Contractors that supply the U.S. Government with Chinese-made technology will be pursued and held accountable when violating the Trade Agreement Act,” said DCIS Special Agent in Charge Denny.  “The DCIS and its law enforcement partners are committed to combatting procurement fraud and cyber risk within U.S. Department of Defense programs.”

“This settlement displays the steadfast commitment of our agents and our federal law enforcement partners,” said USACIDC Director Robey. “This settlement is a clear signal to the supply community doing business with the Department of the Army—fraud will not be tolerated in any way, shape or form.” 

“Contractors who undermine American trade interest and pose a security risk by selling unauthorized foreign-made devices to the United States will be held accountable,” said HSI-OIG Special Agent in Charge Thandi.  “Contracting companies that conduct business with the federal government must uphold our trade laws; any misrepresentation during this process undercuts its integrity.”  

“This settlement reflects the GSA OIG’s commitment to work with our law enforcement partners to aggressively investigate and prosecute those who seek to fraudulently sell products to the federal government that do not meet the standards set by law,” said GSA OIG Special Agent in Charge Theresa Quellhorst.

The TAA generally prohibits certain government contractors from purchasing products that are not entirely from, or “substantially transformed” in, the United States or certain designated countries.  Fortinet sells network security devices, some of which may be sold through distributors and subsequent resellers to U.S. government end users.  In this case, Fortinet acknowledged the Responsible Employee directed certain employees and contractors to change product labels so that no country of origin was listed, or to include the phrases “Designed in the United States and Canada,” or “Assembled in the United States.”  Fortinet acknowledged that the Responsible Employee’s actions involved products sold to certain distributors that subsequently sold them to resellers, which in turn sold a portion of them to U.S. government end users.  The Responsible Employee has since been terminated from employment with Fortinet.

To settle the allegations, Fortinet has agreed to pay $400,000 and to provide the United States Marine Corps with additional equipment valued at $145,000.  

The lawsuit was filed by Yuxin “Jay” Fang under the qui tam provisions of the False Claims Act.  Under the act, private citizens can bring suit on or behalf of the government for false claims and share in any recovery.  The act also permits the United States to intervene in and take over a whistleblower suit, as was done here.  

This matter was investigated by the U.S. Attorney’s Office of the Northern District of California, along with the DCIS, GSA-OIG, Air Force Office of Special Investigations, USACIDC, HSI-OIG, the Department of the Navy, and the Coast Guard Investigative Service.  Fortinet cooperated in the government’s investigation, including by sharing the results of its internal investigation in this matter.  The settlement reflects Fortinet’s cooperation with the government in this and other matters.

Assistant U.S. Attorney Ellen London is handling the case with the assistance of Garland He, Jacqui Hollar, and Tina Louie.  
 

RENO, Nev.– A jury sitting in northern Nevada convicted a felon of a federal firearm violation, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Clifton James Jackson, 55, of Reno, was found guilty of felon in possession of a firearm. He has a prior conviction for felon in possession of a firearm in Nevada. United States District Judge Howard D. McKibben scheduled a sentencing hearing on July 10, 2019.

According to court documents and evidence introduced at trial, in December 2018, a deputy with the Washoe County Sheriff’s Office responded to a 911 call reporting a man holding a handgun while walking towards a business. Gunshots were also reported by the caller. As responding law enforcement officers located and pursued a truck driven by the suspect, the deputy observed an object being thrown from the truck. When additional units arrived on scene, Jackson and a juvenile were arrested. A subsequent search of the truck and the area where the object had been thrown revealed a 7.65mm semi-automatic pistol and a box of .32 caliber ammunition. A records check of the recovered firearm revealed that it had been stolen in Plumas County, California in May 2018.

The maximum penalty is 10 years in prison and a $250,000 fine.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washoe County Sheriff’s Office. Assistant U.S. Attorneys Megan Rachow and Randy St. Clair are prosecuting the case.

To report a tip about a stolen firearm contact the ATF at 1-888-ATF-TIPS (1-888-283-3473).

This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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COLIN HACKLEY PHOTO

TALLAHASSEE, FLA.-Lawrence Keefe, second from left, is joined by his wife Dr. Lynn Keefe and sons Robert, John, and Patrick, right, as he takes the Oath of Office as the United States Attorney for the Northern District of Florida from Mark Walker, left, Chief United States District Judge on April 12, 2019.

TALLAHASSEE, FLORIDA– This afternoon, U.S. Attorney Lawrence Keefe took the oath of office in an official investiture ceremony, joined by staff from the U.S. Attorney’s Office; federal, state, and local law enforcement agency heads; Congress members; Judiciary members; Florida cabinet members; city and county government members; distinguished guests; and family.

The Honorable Mark E. Walker, Chief United States District Judge, presided over the ceremony.  Three of U.S. Attorney Keefe’s longtime friends, mentors, and colleagues participated in the ceremony.  U.S. Attorney Keefe met Phillip S. Dingle, who gave the invocation, and J. Rex Farrior III, who led the Pledge of Allegiance, in law school at the University of Florida.  Benjamin H. Hill III, who hired U.S. Attorney Keefe after graduation at his Tampa-based law firm, gave the keynote address.

U.S. Attorney Keefe gave a special message to each group present at the investiture about his core beliefs of hard work, integrity, and treating everyone with respect, no matter their station in life.  He quoted from Sir Winston Churchill: “To each there comes in their lifetime a special moment when they are figuratively tapped on the shoulder and offered the chance to do a very special thing, unique to them and fitted to their talents.  What a tragedy if that moment finds them unprepared or unqualified for that which could have been their finest hour.”  The full text of U.S. Attorney Keefe’s remarks as drafted are attached, as well as a photo and copy of the program.

As the 41st U.S. Attorney for the Northern District of Florida, U.S. Attorney Keefe is the top-ranking federal law enforcement official in the district, which includes Florida’s 23 panhandle counties, from Escambia in the west to Alachua in the east.  The district has offices in Pensacola, Panama City, Tallahassee, and Gainesville.  The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, human trafficking, financial fraud, health care fraud, firearms, and narcotics.  The office also defends the United States in civil cases and collects debts owed to the United States.  For more information about U.S. Attorney Keefe’s appointment and experience, click here.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

SALT LAKE CITY -- The U.S. Attorney’s Office in Salt Lake City filed a civil complaint in U.S. District Court afternoon morning against a doctor the complaint alleges is issuing prescriptions for controlled substances in violation of the Controlled Substance Act. To protect the public, the United States is also seeking a preliminary injunction to immediately stop the doctor from prescribing powerful controlled substances.

According to the complaint, Dr. Nicholas Carl Greenwood operates Greenwood Addiction Physicians in Murray. Greenwood Addiction Physicians claims on its website to be the premier outpatient program for the treatment of opioid dependence in the Western United States.  In reality, the complaint alleges, Dr. Greenwood issues prescriptions for substances with no legitimate medical purpose and outside the usual course of professional practice. 

Through his business, Dr. Greenwood claims to offer treatment options for opioid dependence, alcohol dependence, Benzodiazepine dependence, outpatient medical detox, and nicotine/tobacco dependence.

Dr. Greenwood has the authority to dispense and administer Schedule III drugs for maintenance or detoxification treatment.  Currently, the only controlled substance approved for the treatment of narcotic addiction is Buprenorphine.

A Schedule III controlled substance, Buprenorphine and Buprenorphine combination products are manufactured by multiple companies, according to an affidavit filed in the case.  The products are marketed under several trade names including Suboxone, Zubsolv, and Butrans. Suboxone is sold as a dissolvable film for the treatment of opioid dependence and should be used as part of a complete treatment plan including counseling and psychosocial support.   

According to the complaint, on April 4, 2018, the Tooele County Sheriff’s Office told the DEA’s Tactical Division Squad that an inmate was organizing and paying individuals to obtain controlled substances from Dr. Greenwood. 

Following the tip from the Tooele County Jail inmate, three separate agents with the DEA Tactical Diversion Squad visited Dr. Greenwood 20 times in an undercover capacity, according to the complaint.  The complaint alleges that over the course of almost eight months, Dr, Greenwood wrote the undercover agents 19 prescriptions for 889 pills without a legitimate medical purpose and outside the usual course of professional practice. All prescriptions were for Buprenorphine. The agents visited Dr. Greenwood from June 28, 2018, through February 21, 2019.

The complaint alleges all of the agents’ visits with Dr. Greenwood followed the same pattern: Dr. Greenwood never performed a medical examination, never asked questions about the agent’s health or symptoms, and never reviewed prior medical records. Instead, Dr. Greenwood issued prescriptions for Buprenorphine to the undercover agents without any evidence of medical need. Dr. Greenwood issued most of the prescriptions without actually meeting with the undercover agents, according to documents filed in court.

Dr. Greenwood knew, or should have known, that the prescriptions he issued, essentially on a cash-and-carry basis, were not medically necessary and were being sold or traded on the street, documents filed in court allege.  Dr. Greenwood believed that 25 to 50 percent of the prescriptions he issued were sold or traded, documents filed with the court allege. None of Dr. Greenwood’s prescriptions issued to the undercover investigators had a legitimate medical purpose, according to a motion and memorandum in support of a preliminary injunction filed with the court.

The United States is seeking to stop Dr. Greenwood from prescribing controlled substances. Accordingly, the United States moved for a preliminary injunction at the same time it filed the complaint against Dr. Greenwood. Dr. Greenwood will have 60 days to respond to the complaint and 14 days to respond to the motion.

The claims made in the complaint and other court filings are allegations only, and there has been no determination of liability.

SAN FRANCISCO – Brian Gutierrez-Villasenor was sentenced today to 120 months in prison for possessing with the intent to distribute methamphetamine and transporting funds to promote unlawful activity announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin, and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez.  The sentence was handed down by the Honorable Susan Illston, U.S. Senior District Judge.

Gutierrez-Villasenor, 27, of San Francisco, pleaded guilty to the charges on November 13, 2018. According to his guilty plea, between 2014 and May of 2018, Gutierrez-Villasenor distributed cocaine and methamphetamine for a Darknet vendor site called JetSetLife.  JetSetLife operated on multiple Darknet marketplaces and used encryption technology to avoid interception and monitoring of its communications and transactions.  Gutierrez-Villasenor admitted that he provided his contact information to the operators of JetSetLife so they could wire him money from abroad to promote drug distribution.  Gutierrez-Villasenor delivered requested drug types and quantities to JetSetLife customers by mailing the drugs through the U.S. Postal Service.  For example, on March 23, 2015, an individual in Australia sent Gutierrez-Villasenor a $5,160 wire transfer to distribute drugs for JetSetLife.  Gutierrez-Villasenor retrieved the payment in San Francisco and used the money to buy drugs and supplies to fulfill JetSetLife customer orders, and to pay himself for distributing the drugs.  Gutierrez-Villasenor admitted that between October 2014 and April 2018, he received over $575,000 to distribute drugs for JetSetLife.     

On September 17, 2018, Gutierrez-Villasenor was charged by information with one count of possessing with intent to distribute over 50 grams of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)(viii), and one count of transporting monetary instruments or funds to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and 2. Gutierrez-Villasenor pleaded guilty to both counts.

In addition to the prison term, Judge Illston also ordered Gutierrez-Villasenor to pay a $40,000 fine and to serve an additional five-year term of supervised release to begin after his prison term.  Gutierrez-Villasenor has been in custody since his arrest on May 17, 2018, and will begin serving his sentence immediately.

This prosecution was the result of a coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet.  The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:

• Federal arrests of more than 30 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
• Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
• Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
• Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
• Seizure of more than $3.6 million in U.S. currency and gold bars;
• Seizure of nearly 2,000 Bitcoins and other virtual currencies, with an approximate value of more than $20 million;
• Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
• Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.

Additional information on the operation can be obtained here.

Assistant U.S. Attorney Helen Gilbert is prosecuting the case with the assistance of Andy Ding.  The prosecution is the result of an investigation by the DEA, FBI, HSI, and USPIS.  This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
 

     PHOENIX– On April 8, 2019, Seraphina Charley, 30, of Church Rock, NM, a member of the Navajo Nation, was sentenced by District Judge Steven P. Loganto 78 months’ imprisonment. After a four-day trial, Charley was found guilty by a jury of assault with a dangerous weapon, assault resulting in serious bodily injury and making false statements to a government agency.  

     In March 2018, Charley intentionally struck her then boyfriend, also a member of the Navajo Nation, in the back of the head with a piece of metal rebar. During the investigation, Charley lied about her identity and created a false story that unknown males assaulted the victim. Due to the assault, the victim suffered permanent brain damage affecting his ability to walk and remember.

     The Navajo Nation Criminal Investigations and the Federal Bureau of Investigation conducted the investigation. The prosecution was handled by Kiyoko Patterson and Dimitra Sampson, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:           CR-18-8135-PCT-SPL   

RELEASE NUMBER:    2019-050_Charley

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

As the filing deadline for income taxes quickly approaches, United States Attorney Trent Shores announced that charges have been filed against four individuals for tax crimes.

“Tax Day is nearly upon us and millions of honest Americans will meet their tax obligations as required. However, there are those who will seek to cheat the system, and they must be held accountable. Those who file false returns, embezzle payroll taxes, commit identity theft to receive fraudulent refunds or fail to file tax returns at all can expect to be investigated and prosecuted."

During this tax season, the following individuals have been charged with fraudulent tax practices:

On April 3, 2019, Earenest J. Grayson Jr., 45, of Tulsa, Oklahoma, was indicted for 10 counts of failing to account for or pay over to the Internal Revenue Service (IRS) payroll taxes withheld from wages paid to employees of his business, Zealcon Corporation (Zealcon), during the years 2014, 2015, and 2016. Grayson was also indicted for three counts of failing to file corporate income tax returns for Zealcon for the years 2013, 2014 and 2015, and failing to file his own personal income tax returns for the years 2013, 2014 and 2015. The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division is prosecuting the case, in coordination with Assistant United States Attorneys Charles M. McLoughlin and Victor A.S. Régal,

On April 4, 2019, Gina Lisa Preble, 59, of Bartlesville, was charged by Criminal Information with bank fraud and subscribing to a false tax return. Preble was employed as a clerk at TransWood Carriers Incorporated from 2011 until her termination in 2017. In an effort to disguise her intent to steal funds, Preble allegedly created fraudulent “draft checks” which she mixed in with legitimate business expense “draft checks” and provided to a supervisor for signature. Preble deposited draft checks totaling $394,058.20 into her personal checking account, and used the funds for her own personal gain. Additionally in 2016, Preble signed and submitted a false tax return, omitting the stolen funds as income. The case was investigated by special agents of IRS-Criminal Investigation and the FBI. Assistant U.S. Attorneys Charles M. McLoughlin and Catherine J. Depew are prosecuting the case.

On April 5, 2019, Kevin Glenn Petty, 54, of Sand Springs was charged by Criminal Complaint with Theft of Government Property.  Petty allegedly filed fraudulent 2016 income tax returns under the name of taxpayer Woodson J. Nightwalker. The $3,800 tax refund amount was deposited into a Green Dot card account, which funded a Green Dot pre-paid debit account. Petty filed five additional fraudulent returns, which were intercepted by the IRS. The six false returns filed by Petty sought a total of $12, 303 in fraudulent refunds. The case was investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspector. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.

On April 10, 2019, Jennifer Leann McCormick 44, of Nowata, was charged by Misdemeanor Criminal Information with failure to file a tax return for 2013. The case was investigated by special agents of IRS-Criminal Investigation. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.

A Criminal Information or Criminal Complaint is a set of allegations that, if a case were to proceed to trial, the government would need to prove beyond a reasonable doubt. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.

ALBANY, NEW YORK – Stephen Jacques-Scott, age 33, of New York City, pled guilty yesterday to trafficking crack cocaine and fentanyl from New York City to Plattsburgh.

The announcement was made by United States Attorney Grant C. Jaquith, Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division, and Plattsburgh City Police Chief Levi J. Ritter.

Jacques-Scott pled guilty to two counts of distribution of a controlled substance and one count of conspiracy to possess with intent to distribute and to distribute a controlled substance.

Jacques-Scott admitted that on May 11, 2017, he distributed approximately 33.5 grams of crack cocaine, and that on May 15, 2017, he distributed approximately 27.9 grams of crack cocaine and approximately 14.5 grams of fentanyl ,in Plattsburgh.  On May 18, 2017, Jacques-Scott was pulled over while travelling to Plattsburgh and police found approximately 27.9 grams of crack cocaine hidden on him that he intended to distribute in Plattsburgh.  Jacques-Scott has been in custody since his arrest on May 18, 2017.

As a result of his conviction, Jacques-Scott faces at least 10 years and up to life in prison, when he is sentenced by Senior United States District Judge Frederick J. Scullin, Jr. on August 14, 2019.  A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by the DEA and the Plattsburgh City Police Department, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.

          GRAND RAPIDS, MICHIGAN— Kevin Scott Konen, 52, of Grand Ledge, Michigan, was sentenced for sexual exploitation and attempted sexual exploitation of children, and for possession of child pornography, U.S. Attorney Andrew Birge announced today. Konen was sentenced to 380 months’ imprisonment to be followed by 10 years of supervised release and was ordered to pay fines and other monetary penalties.

          U.S. District Judge Gordon Quist observed at the sentencing hearing that Konen led a double life – one that was of an upstanding family man and member of the community, and a second secret life. That secret life preyed on children and exploited them for his sexual interests. Konen used online persona to perpetrate his scheme. He used the alias "Jenny Mays" on Facebook and other social media, whereby he pretended to be a high school girl and befriended girls and boys in order to manipulate and encourage them to take sexually explicit images of themselves. Konen also used the alias of "Alyssa Pietrzak" to aggressively extort minors and demand that they send him sexual images under the threat that such person would send compromising pictures to the victims’ family and friends. Another ruse involved directing the victims to contact "Denny Ha," on the representation that he could help the victims remove their pictures from internet websites, but to do so "Denny Ha" needed user names and passwords for their accounts. Once he had access to the accounts, Konen would search the victims’ accounts for compromising pictures.

          At the sentencing hearing, one of his victims addressed the court and described the deep sense of betrayal she suffered. She described her loss of trust and the resultant questioning of friendships and personal relationships. Judge Quist further observed that Konen’s conduct also victimized Konen’s own family.

          This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), federal, tribal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.

          This case was investigated by the FBI, Michigan State Police, and the Grand Ledge Police Department and prosecuted by Assistant U.S. Attorney Daniel Mekaru.

END

FARGO– U.S. Attorney Christopher C. Myers announced today that on Thursday, April 18, 2019, the U.S. Attorney’s Office for the District of North Dakota will host a National Crime Victims’ Rights Week Awards Ceremony to raise awareness about crime victims’ rights and to recognize individuals in the state who provide outstanding services to crime victims.  The awards ceremony will take place at the Quentin N. Burdick United States Courthouse, Jury Assembly Room, 655 First Avenue North, Fargo, ND at 10:30 a.m. 

The Office for Victims of Crime (OVC) of the U.S Department of Justice leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week, April 7-13, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf.  This year’s theme –Honoring Our Past. Creating Hope for the Future. – celebrates the progress made by those before us as we look to a future of crime victim services that is even more inclusive, accessible, and trauma-informed.    

Members of the media will be permitted to bring appropriate still photo, video, and audio equipment to the Jury Assembly Room for purposes of covering this event.  The public is invited to attend

CHICAGO — Federal authorities today announced criminal prosecutions against several Chicago-area defendants for a variety of alleged tax schemes.  With the arrival of Tax Day, the prosecutions serve as a reminder that individual taxpayers are responsible for the contents of their own return.

The recent prosecutions announced today include charges against a south suburban tax professional who allegedly filed a false personal income tax return, as well as a guilty plea by a west suburban general contractor who admitted willfully failing to file income tax returns for nearly a decade.

In addition to criminal penalties, including potential incarceration, tax evaders remain responsible for all taxes and interest due, as well as civil penalties. 

Today is the nation’s tax deadline.

“Preserving the integrity of the federal tax system is a significant priority in our office,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “Through vigorous criminal enforcement of the internal revenue laws, we will hold accountable those who attempt to cheat the system.”

“As the tax filing deadline quickly approaches, I urge all Chicago-area residents to fully comply with federal tax laws,” said Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  “If you choose to disobey these laws, please understand that you are not just hurting the government, you are hurting your neighbors and your community.  IRS special agents will continue to serve the American people by aggressively pursuing tax criminals year round.”

A federal jury last week convicted JERMAINE JACKSON, 48, of Chicago, of filing 13 fraudulent federal income tax returns in the names of various trusts he created.  Each of the returns sought a fraudulent tax refund based on fictitious income and withholding numbers.  The IRS identified the bogus nature of a dozen of the returns, but the agency paid a refund of $900,000 on one of them.  U.S. District Judge John Z. Lee set sentencing for July 10, 2019.  The government in Jackson’s case is represented by Assistant U.S. Attorneys Stephen Heinze and Patrick King.

In a criminal information filed last month, the U.S. Attorney’s Office charged LISA LLOYD TAYLOR, 51, of Country Club Hills, with one count of willfully filing a false personal income tax return, and one count of stealing approximately $134,835 of Social Security funds.  According to the charges, Taylor, who owned Ebiz Accounting Services in Country Club Hills, filed a false personal income tax return for calendar year 2012 that falsely listed gross receipts or sales from her business as $7,890, when Taylor knew that her gross receipts or sales substantially exceeded that amount.  Taylor has pleaded not guilty to the charges.  A status hearing is set for April 23, 2019, before U.S. District Judge Andrea R. Wood.  The government in Taylor’s case is represented by Assistant U.S. Attorney Nani Gilkerson.  The public is reminded that charges are not evidence of guilt.  Taylor is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The general contractor, STEPHEN KEEFE, 47, of Downers Grove, pleaded guilty last month to multiple counts of willfully failing to file personal income tax returns.  Keefe, who previously owned Downers Grove-based Stephen Keefe Construction and S. Keefe Construction, admitted in a plea agreement that he willfully failed to file income tax returns for the calendar years 2010 through 2017, despite receiving taxable income of at least $2.08 million in those years.  Keefe’s conduct caused a combined tax loss to the federal and state government of approximately $379,493.  U.S. Magistrate Judge Sunil R. Harjani set sentencing for June 28, 2019.  The government in Keefe’s case is represented by Assistant U.S. Attorney Patrick King.

Another recent tax prosecution resulted in a term of imprisonment for a northwest suburban business executive.  PETER KONOPKA, 72, of Marengo, was sentenced in December to six months in federal prison, and ordered to pay restitution of $189,837.  While President of Illinois-based Solarcrete Energy Efficient Building Systems, Konopka filed a bankruptcy petition on behalf of Solarcrete that contained false statements in order to conceal corporate assets from the bankruptcy trustee.  In addition, Konopka willfully failed to report personal income for the calendar year 2011 that included payments from business accounts that were used to pay off personal loans.  The government in Konopka’s case was represented by Assistant U.S. Attorney William Hogan.

For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website: https://www.irs.gov/help-resources.

U.S. Attorney Christina Nolan served as the keynote speaker for the Consumer Financial Protection Bureau’s Elder Fraud Prevention and Response Network Convening in Burlington, Vermont. Speaking last week to an audience comprised of Federal, State, Local and Private Sector stakeholders, U.S. Attorney Nolan emphasized the commitment of her office to protecting the elderly from any kind of abuse, financial or physical. 

U.S. Attorney Nolan stated, “Society should be judged by how it protects its most innocent and vulnerable members.  Elder abuse is a despicable crime that is already far too common.  Protecting the elderly is a deeply rooted American ideal.  As a country, we give the elderly special social and medical protections, as we should.  The elderly should likewise receive special focus from our investigative and prosecutorial bodies.  The Department of Justice will not stand for elder abuse or elder financial exploitation.  At a nationwide level, we are doing more than ever to warn communities about ongoing scams, and to investigate and prosecute those who seek to exploit our seniors.  And we are doing more in Vermont.” 

The Convening was part of a nationwide effort by the Consumer Financial Protection Bureau’s Office of Older Americans to create or bolster local Elder Fraud Prevention and Response Networks.  Convening participants engaged in a group exercise to brainstorm the successes and challenges of addressing Elder Financial Exploitation in Vermont.  The Convening also included presentations from Assistant U.S. Attorney Andrew Gilman, Elder Justice Coordinator for the District of Vermont U.S. Attorney’s Office, Vermont Assistant Attorneys General Jamie Renner and John Waszak of the Vermont Attorney General’s Office Elder Protection Initiative, and Captain Frank Koss, President of the Vermont Chiefs of Police Association.

U.S. Attorney Nolan expressed her thanks to all who attended and helped organize the convening, including the Consumer Financial Protection Bureau’s Office of Older Americans, the Financial Abuse Specialist Team of Vermont, the Vermont Bankers Association, and the Association of Vermont Credit Unions.

If you have information concerning elder abuse, please contact law enforcement.  The U.S. Attorney’s Office may be reached at 802-951-6725.

A Palm Beach County resident was sentenced to 12 years in prison for distributing cocaine and heroin containing Fentanyl.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P.  Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, Dave Aaronberg, State Attorney, Palm Beach County State Attorney’s Office, made the announcement. 

Duwayne Jones, 44, of Lake Worth, Florida, previously pled guilty to distributing a controlled substance (Case No. 19-CR-80004).  On April 12, 2019, Jones was sentenced by U.S. District Judge Kenneth A. Marra to 144 months in prison, to be followed by 3 years of supervised release.   

According to the court record, on October 2, 2018, Jones sold cocaine and heroin laced with Fentanyl to an undercover police officer.  On December 12, 2018, Jones again sold heroin to an undercover officer and was subsequently arrested.  During a search incident to his arrest additional heroin, cocaine, marijuana, and $415 in U.S. currency was recovered. 

Based upon prior police reports and telephone records, Jones was connected to two prior non-fatal overdoses.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and Palm Beach County Sheriff’s Office in this matter.  She thanked the Palm Beach County State Attorney’s Office for their assistance. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci and Special Assistant U.S. Attorney Andrew Carrabis.

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.

A California tobacco company executive on Friday was arrested after being charged with a conspiracy to evade the payment of millions of dollars in excise taxes on imported cigars.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Nicholas Colucci, Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, DC Field Office, made the announcement.

Akrum Alrahib, 41, of Los Angeles, California, was charged by indictment with the following counts: conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371; conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343.  The indictment also charged Alrahib with violations of the Internal Revenue Code, including: refusing to pay Federal Tobacco Excise Tax on large cigars, and attempting to evade or defeat the tax or payment thereof, in violation of 26 U.S.C. §  5762(a)(3); and willfully attempting to evade or defeat Federal Tobacco Excise Tax on large cigars, in violation of Title 26 U.S.C. § 7201.

According to the indictment, Alrahib was the President of Trendsettah USA, Inc. (“Trendsettah”), a California tobacco company authorized to transact business in the State of Florida. Trendsettah sold various tobacco products, such as large cigars, and marijuana paraphernalia, such as “blunt wraps,” many of which were imported from the Dominican Republic. 

In 2013, Alrahib partnered with Gitano Pierre Bryant, Jr., a TTB-permitted tobacco importer, to import large cigars from the Dominican Republic into Miami, Florida. The indictment alleges that Alrahib and Bryant agreed to lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on the imported cigars. According to the charging document, Alrahib and Bryant consistently evaded Federal Tobacco Excise Tax by concealing the price Alrahib actually paid for the cigars.

It is alleged that Alrahib paid over $9 million for untaxed tobacco products during the course of the charged conspiracies and received over $700,000 in kickbacks from Bryant, on which aggregate amount he did not pay the required federal excise tax.  

Alrahib will remain in custody pending his removal to the Southern District of Florida.

If convicted, Alrahib can be sentenced up to five years imprisonment on the conspiracy to defraud the United States charge and each of the charges for violations of the Internal Revenue Code, and up to 20 years imprisonment on the wire fraud and wire fraud conspiracy charges.  Additionally, the court may impose a fine of up to $250,000, on each count alleged in the indictment. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the TTB and IRS-CI. The case is being prosecuted by Assistant United States Attorney Christopher Browne.

An indictment contains mere allegations. A defendant is presumed innocent unless and until proven guilty 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 on http://pacer.flsd.uscourts.gov.

BIRMINGHAM – The number of people charged with federal crimes in the Northern District of Alabama in 2018 and the percentage of those defendants sentenced to prison was the highest since 2007, announced U.S. Attorney Jay E. Town.

“I believe that our numbers are a reflection of effort and my office turned in a tremendous effort in FY18,” Town said.  “Each Division is coordinating with the others in a true phalanx and, as a result, the office was more productive than at any time in recent memory.   Because of this team effort, the citizens of NDAL are safer, our communities are better, and our partnerships with local law enforcement are stronger than ever before.”

The priorities of the Department of Justice to reduce illegal gun crimes, reduce violent crime, pursue criminal immigration matters, to aggressively address the opioid epidemic in Alabama, and protect the public fisc were all successfully executed by the Northern District in 2018.  The U.S. Attorney’s Office showed vast improvement in all categories in 2018 over the previous fiscal year, which was itself one of the most productive years in over a decade.

The data provided by the Department of Justice indicates that the Northern District’s conviction rate of 99 percent is the highest since at least 2004.  Defendants charged totaled 575 for Fiscal Year 2018, up 6.5% from the 540 defendants charged in FY 2017. The number of defendants sentenced to prison in 2018 rose 19%, from 325 in 2017 to 387 in 2018.

The 259 defendants charged with violent crimes in 2018 was an 80% increase over the 144 charged with violent crimes in 2015.  The 169 defendants charged with drug-related crimes in 2018 was the largest number since 2008.

Illegal firearms prosecutions rose 27% in FY 2018 to 286, from 225 in FY 2017.  FY 2018 marked the largest number of illegal firearms prosecutions ever recorded in the Northern District of Alabama. 

In FY 2018, the prosecution of criminal immigration cases saw a 116% increase in the number of defendants found guilty, which is the largest increase in the history of the Northern District of Alabama. 

Our Civil Division achieved favorable judgments in nearly every category of litigation. 

Our Appellate Division was successful in all civil and criminal appeals.

In addition to the prosecutorial numbers, the Department of Justice, through grant funding, invested over $8.5 million last year in the Northern District of Alabama. 

U.S. District Judge James Peterson scheduled Graham’s sentencing for July 1.  Graham faces a mandatory minimum penalty of 15 years and a maximum of life in federal prison.  Moore will be sentenced on June 5, and also faces a maximum of life.

The charges against Graham and Moore are the result of an investigation by the Dane County Sheriff’s Office, the Wisconsin Department of Justice Division of Criminal Investigation, with the assistance of the Madison, Grand Chute, Wisconsin State Capitol and Hampton (Virginia) Police Departments.  The prosecution of the case is being handled by Assistant U.S. Attorneys Julie Pfluger and Kevin Burke.