Martin Tesher, a former family medical doctor, was sentenced today by United States District Judge Raymond J. Dearie to 20 years’ imprisonment for nine counts of unlawful distribution of oxycodone without a legitimate medical purpose and one count of unlawful distribution of oxycodone and fentanyl that resulted in the death of a patient.  The Court also ordered Tesher to pay $3,700 in restitution and forfeit $2,725 in criminal proceeds.  Tesher was convicted by a federal jury in July 2018 following a nearly two-week trial.    

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.

Between June 2013 and January 2017, Tesher prescribed oxycodone tablets and fentanyl patches without a legitimate medical purpose to five patients after learning, or had reason to believe, that these patients were addicted to drugs.  None of these patients had verified medical conditions that would require the prescription of Schedule II opioids.  While under Tesher’s care, Nicholas Benedetto, 27, tested positive for cocaine, heroin, methadone, oxycodone and fentanyl.  Nonetheless, Tesher prescribed oxycodone and fentanyl patches for Benedetto.  On March 5, 2016, Benedetto was found dead of a fatal combination of oxycodone and fentanyl, two days after he had been prescribed those drugs by Tesher.    

“In the midst of an unprecedented opioid epidemic, Dr. Tesher used his medical skills to harm, not heal and in doing so he cost a young man his life,” stated United States Attorney Donoghue.  “Such criminal conduct is an utter betrayal of the trust our society places in doctors and it warrants the severe sentence imposed today.”

 “Today’s sentence demonstrates how DEA, EDNY and their many law enforcement partners have come full circle to eliminate the threat of rogue doctors, like Tesher who posed a threat to the public health of the citizens of New York City, Staten Island, and beyond,” stated DEA Special Agent-in-Charge Donovan.  “DEA and its law enforcement partners will continue to seek justice for patients like Nicholas Benedetto, as well as the countless other families and friends who have suffered greatly at the hands of this opioid epidemic.”

The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Internal Revenue Service, Nassau County Police Department (NCPD), Suffolk County Police Department (SCPD), Port Washington Police Department and Rockville Centre Police Department.  The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the New York City Police Department (NYPD), Criminal Enterprise Investigations, the Department of Health & Human Services, Office of Inspector General and NCPD’s Asset Forfeiture and Intelligence Bureau. 

This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative.  In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the NCPD and SCPD, the NYPD and the New York State Police, along with other key federal, state and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics.  To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers.  The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Jennifer M. Sasso and Penelope Brady are in charge of the prosecution.

The Defendant:

DR. MARTIN TESHER
Age:  83
Manhattan, New York

E.D.N.Y. Docket No. 17-CR-523 (RJD)

WASHINGTON – Moayad Heider Mohammad Aldairi, 31, pleaded guilty to conspiracy to bring aliens to the United States and a related charge for his role in a scheme to smuggle Yemeni aliens through Mexico to the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.

According to the plea agreement, during the second half of 2017, Aldairi conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee.  Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras where he directed them to cross the Rio Grande River into the United States.  Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing.  Aldairi will be sentenced by the Honorable Alia Moses at a later date.

“When Mohammad Aldairi illegally smuggled multiple Yemeni aliens across our southwest border, he put the security of the United States in peril,” said Assistant Attorney General Benczkowski.  “The Department of Justice cannot — and will not — tolerate such threats to our national security.  The Criminal Division remains dedicated to prosecuting alien smugglers, especially criminals like Aldairi who attempt to sneak aliens from countries of interest into the United States.”

“Border security is national security.  We simply cannot have an immigration system that allows people from all over the world to enter this country without detection,” said U.S. Attorney Bash.  “We must know the identity of every person setting foot on U.S. soil, however they enter.”

"This investigation is a great example of how Homeland Security Investigations uses its worldwide resources, foreign and interagency partnerships to bring international criminals to justice in the United States,” said Special Agent in Charge Folden.  “Mohammad Aldairi was a key facilitator and smuggler of Yemeni nationals; the illicit pathway he created into the U.S. is now dismantled.”

“This case is a perfect example of collaboration between different government agencies, making each individual agency more effective than it would be on its own,” said Chief Patrol Agent Raul Ortiz the Del Rio Sector.  “The U.S. Border Patrol relies on cooperation with our law enforcement partners to secure our nation’s borders and to protect the communities we live in.”

This case is being investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio.  The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

This case is being prosecuted by Trial Attorney James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.

BOSTON – A California man was sentenced yesterday in federal court in Boston for distributing methamphetamine from California to Massachusetts. 

Christopher Halfond, 37, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 140 months in federal prison and five years of supervised release.  In April 2018, Halfond pleaded guilty to conspiracy to distribute methamphetamine and distribution of methamphetamine. 

After a two-year investigation, Halfond and 10 others from Massachusetts and California were indicted in 2016 on methamphetamine distribution and money laundering charges. Beginning in at least 2013, the defendants participated in a conspiracy to transport sizeable quantities of methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the drug sales were then transported and/or transferred back to California and laundered in various ways.  

Halfond, who was previously from Massachusetts, agreed to send packages containing methamphetamine from California back to Massachusetts. In January 2016, agents learned that Halfond had sent a methamphetamine package to Massachusetts. After the package was delivered, agents executed a search warrant and seized the package, which contained approximately 434 grams of 95% pure methamphetamine. 

Halfond is the first of the defendants to be sentenced. The remaining defendants have each pleaded guilty to various charges and are awaiting sentencing.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; the Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Jared C. Dolan of Lelling’s Narcotics & Money Laundering Unit are prosecuting the cases.

BOSTON – A Mississippi man pleaded guilty on Friday, April 26, 2019, in federal court in Boston to sexually assaulting a minor during a cruise from Boston to Bermuda.

Adam Christopher Boyd, 32, of Bay Springs, Miss., pleaded guilty to one count of sexual abuse of a minor. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 1, 2019. Boyd appeared in federal court in August 2017 and was subsequently released on conditions. However, after violating his conditions of release in November 2018, he was ordered detained and has been in custody since.

In August 2017, Boyd was a passenger on a seven-day cruise from Boston to Bermuda. While the ship was docked in Bermuda, Boyd allegedly raped a minor passenger while the two were onboard the ship. The child subsequently reported the rape to ship security, who notified Bermudian authorities. In the course of the Bermuda Police Service’s initial investigation, they arrested Boyd and notified authorities in the United States.  

Sexual abuse of a minor carries a sentence of no greater than 15 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Valuable assistance was also provided by U.S. Customs and Border Protection, the Bermuda Police Service, Massachusetts Port Authority and FBI Legat Bridgetown, Barbados, Sub Office Nassau. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

     PHOENIX – On April 29, 2019, William Starr Schwartz, 54, of Meadview, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 24 months’ imprisonment, to be followed by three years of supervised release.  Schwartz was also ordered to pay restitution in the amount of $22,655 to the National Fish and Wildlife Foundation, a charitable and nonprofit corporation established to further the conservation and management of fish, wildlife, plants, and other natural resources.  Schwartz had previously pleaded guilty to possession with intent to distribute methamphetamine, theft of government property, smuggling cacti from the United States, and Lacey Act false labeling charges. 

     Between approximately Oct. 1, 2014 and Aug. 22, 2018, Schwartz stole, and directed others to steal for him, in excess of 500 federally-protected cactus plants from the Lake Mead National Recreation Area in Arizona.  Schwartz sold the stolen cacti through the Internet, andillegally shipped the cacti from Meadview to more than 20 countries throughout the world.  During a search warrant conducted on Schwartz’s residence in August 2018, numerous stolen cacti were recovered by law enforcement agents.  Additionally, methamphetamine and related drug paraphernalia were found.

     The United States Fish and Wildlife Service, with assistance from the National Park Service and the United States Postal Inspection Service, conducted the investigation.  The prosecution was handled by Paul Stearns, Assistant U.S. Attorney, District of Arizona.

CASE NUMBER:           CR-18-08333-SPL

RELEASE NUMBER:    2019-057_Schwartz

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/azFollow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

NEWARK, N.J. – A Union County, New Jersey, man was arrested and charged today for allegedly robbing a New Jersey business owner at gunpoint in February 2019, U.S. Attorney Craig Carpenito announced.

Raymond Scura, 29, of Kenilworth, New Jersey, is charged by complaint with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court. Scura previously was arrested and charged in March 2019 with wire fraud and aggravated identity theft.

According to the complaints and other documents filed in this case:

In February 2019, Scura was a customer of an internet-based business owned and operated by the victim. Scura wrote at least one fraudulent check to the victim to pay for the services of the business. When the victim insisted on cash payment, Scura drove with the victim to a bank, where Scura brandished a firearm, threatened to kill the victim, and demanded that the victim deposit a fraudulent check into the victim’s bank account and withdraw the same amount of money as set forth in the check. Scura led the victim to an ATM, where he directed the victim to insert the victim’s bank card into the ATM, asked for the victim’s PIN, input the PIN himself, and deposited the check. Scura then led the victim to a teller, where the victim withdrew the money as directed. Scura and the victim left the bank, where Scura demanded, at gunpoint, that the victim hand him the money withdrawn at the bank.

Scura was charged by complaint in March 2019 with allegedly defrauding various individuals and entities by obtaining and attempting to obtain merchandise, services, and cash. In some circumstances, Scura obtained goods and services, including a country club membership, limousine services, luxury hotel expenses, wine, and a Rolex watch, by charging such items to credit card accounts that were not his own and which he did not have authorization to access or use. Scura also wrote and presented personal checks both in his own name and in the name of victims from accounts Scura knew were either closed or held insufficient funds to cover the checks.

The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be served consecutively to any other sentence imposed. The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud affecting a financial institution charge carries a statutory maximum of 30 years in prison and a $1 million fine, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentence imposed.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to the charges against Scura. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.

The charges and allegations against Scura are merely accusations, and he is presumed innocent unless and until proven guilty.

Defense counsel: Anthony Iacullo Esq., Clifton, New Jersey

CAMDEN, N.J. – The president of a staffing company was sentenced today to 36 months in prison for defrauding a commercial finance lending company out of more than $400,000, U.S. Attorney Craig Carpenito announced.

Jeremy Hare, 48, of Philadelphia, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with wire fraud. Judge Bumb imposed the sentence today in Camden federal court.

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

Hare was the president and managing member of Apollo Search Partners LLC, a staffing agency with an office in New Jersey. On June 16, 2017, Hare had Apollo enter into a financing agreement with a commercial finance lender that offered funding to companies so that they could meet payroll and other obligations. The lender agreed to provide funding to Apollo. In order to get funding, Apollo would provide the Victim Company invoices and supporting time cards for each person Apollo staffed with a client.

Between June 20, 2017 and Aug. 15, 2017, Hare submitted more than 15 invoices to the lender even though Apollo never staffed most of the individuals listed on the invoices and the time sheets submitted with the invoices included hours that were never worked. Based on those invoices, the lender provided more than $400,000 to Apollo between June and August 2017. To date, the lending company has not received reimbursement for that funding.

In addition to the prison term, Judge Bumb sentenced Hare to three years of supervised release and ordered him to pay $411,838 in restitution.

U.S. Attorney Carpenito credited and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit and Sarah Devlin of the Asset Recovery and Money Laundering Unit in Newark.

Defense counsel: Ronald L. Greenblatt Esq., Philadelphia

PITTSBURGH, PA – The United States Attorney’s Office for the Western District of Pennsylvania honored seven individuals and a task force for their exceptional service to victims of crime during the annual Victim Advocate Recognition Ceremony in the Joseph F. Weis Jr. United States Courthouse on Friday, April 26.

"Whether a victim of sexual assault, stalking, hate crimes, domestic violence, elder abuse or financial fraud, all crime victims need and deserve to be protected and comforted as much as possible, and to be assured that those who caused their suffering will be brought to justice," said U.S. Attorney Scott W. Brady. "The people we are recognizing have made an impact in the lives of crime victims, and they continue to work to ensure that every victim is empowered to recover and become a survivor."

In 1981, President Ronald Reagan proclaimed National Crime Victims’ Rights Week to bring greater sensitivity to the needs and rights of victims of crime. Each April, the office joins U.S. Attorney’s Offices across the country to observe National Crime Victims’ Rights Week by honoring victims of crime and those who advocate on their behalf. In addition, the offices participate in events to bring awareness to the services available to victims. This theme of this year’s observance is "Honoring Our Past: Creating Hope for Our Future."

The U.S. Attorney’s Award for Dedication and Extraordinary Contributions in the Service of Victims was presented to Assistant U.S. Attorney Jessica Smolar and Assistant U.S. Attorney Soo C. Song.

AUSA Smolar has prosecuted multiple child exploitation cases and more than 15 human trafficking cases in conjunction with the Department of Justice, Federal Bureau of Investigation, Department of Homeland Security, United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Allegheny County Police and Pennsylvania State Police, among other law enforcement agencies. Ms. Smolar served as the Project Safe Child (PSC) Coordinator and Human Trafficking point of contact for approximately eight years. Through her work, she has brought help, hope and healing to crime victims and their families.

AUSA Song’s work with victims is long and varied. Over her 15 years with the office, she helped to establish the Veterans Treatment Court, one of the first federal courts of its kind. As the district’s Gang Coordinator, she charged more than 60 defendants in a series of cases that helped to clear unsolved homicides and reduce violence in Mon Valley communities. During the timeframe that she led the Crimes Against Children Task Force for Western Pennsylvania, the district’s child exploitation prosecutions constituted nearly one in 10 of criminal cases filed. She served for a time as the office’s Violence Against Women Act coordinator and organized a Victim/Witness Roundtable for Western Pennsylvania local, state and federal victim/witness advocates. She strengthened protocols for crime victim notification, advocacy and restitution in federal court, including corporate victims of cyber intrusions.

U.S. Attorney Brady also recognized Ana Valero-Silva of the United States Attorney’s Office for her work as a legal assistant in the criminal division and her invaluable support in child exploitation cases. Ms. Valero-Silva performed all of her responsibilities on these difficult cases with a patient manner, a calm demeanor, and excellent organization skills.

Members of the Federal Bureau of Investigation’s Opioid Task Force (WPOTF) were honored for their work to disrupt and dismantle drug trafficking organizations that have caused western Pennsylvania to have the second highest rate of opioid-related deaths in the United States. The WPOTF is comprised of local, state and federal participants who work in partnership to target all levels of distribution routes, including upper- and mid-level local opioid suppliers, interstate opioid traffickers, postal/mail opioid traffickers and internet-based opioid traffickers. Since its formation in 2016, the WPOTF has netted 43 Federal Indictments, recovered over 9.5 kilos of fentanyl and 3.4 kilos of cocaine, and seized 107 guns.

Retired Pennsylvania State Trooper Mike Warfield was honored for his work as a DEA Task Force Officer, for helping the office build successful cases against violent drug organizations. His efforts led in part to the dismantlement of the Samuel and Wayne McCracken heroin and fentanyl trafficking organizations, the Aaron Taylor cocaine network, the Christian Stevens heroin trafficking organization, a notorious Beaver County heroin distribution ring. Most notable was his work on the Jelani Solomon violent drug trafficking organization, in which Solomon hired Claron Hanner to murder the father of a cooperating witness. Mr. Warfield’s efforts led to the convictions of Solomon and Hanner for murder, and Solomon’s life sentence.

Lorraine M. Bittner, Chief Legal Officer for the Women’s Center & Shelter of Greater Pittsburgh, was recognized for providing direct legal representation for domestic violence survivors for 40 years. Women’s Center and Shelter provides specialized care and support for women who have experienced all types of intimate partner violence from physical to emotional through Emergency Shelter, Legal Advocacy, a 24-Hour Hotline, Support Groups and more.

Two advocates for the Center for Victims - Patrice El-Waaga, Director of Advocacy and Court Services, and Anita White, a Counselor and Advocate, who works primarily with the elderly – were recognized for providing stellar support in myriad federal cases, working side by side with the USAO’s Victim/Witness Coordinator to ensure victims were kept updated on the status of their case, received resources and referrals, and were provided support during court hearings. Center for Victims is the largest, most comprehensive provider of services in Pennsylvania, providing advocacy and education for victims.

            CONCORD– United States Attorney Scott W. Murray today announced that

            Jason L. Brewer, 36, of Milton, New Hampshire was sentenced to time served (over 15 months) for participating in a conspiracy to possess a controlled substance with intent to distribute.

            According to court documents and statements made in court, on July 12, 2016, a New Hampshire State Police trooper observed Brewer commit multiple motor vehicle violations while driving northbound on Interstate 95.  The trooper executed a traffic stop of Brewer’s car near the Hampton tolls.  Timothy Kondroski was a passenger in the car.  During the traffic stop, the trooper observed evidence of drug possession.  While the trooper questioned Brewer and Kondroski, Kondroski fled and darted across four lanes of the interstate highway toward the barriers that divided the cash tolls from the open road tolling lanes.  The trooper chased Kondroski, yelling at him to stop.  The trooper eventually caught up to Kondroski at the barriers, which Kondroski was attempting to climb over.  During the chase, Kondroski’s sneakers fell off.  When retrieving them from the roadway, the troopers found a bag containing approximately 35 grams of heroin.  A second bag containing approximately one ounce of cocaine was recovered from inside one of Kondroski’s sneakers.  Kondroski and Brewer both eventually admitted to buying the drugs in Lawrence, Massachusetts.  Kondroski further acknowledged that he paid $2700 for the drugs and intended to sell them.

            Brewer previously pleaded guilty on August 1, 2017.  Co-defendant Timothy W. Kondroski, was sentenced on January 8, 2018 to 54 months in prison.         

            “Interstate drug trafficking continues to endanger lives throughout New Hampshire,” said U.S. Attorney Murray.  “Determined action by the state trooper prevented the drugs from reaching their intended destination and ensured that Mr. Brewer was before a judge today to face justice. Traffickers should be aware that federal prison terms await those who engage in the drug trade.”

            This matter was investigated by the New Hampshire State Police.  The case was prosecuted by Assistant U.S. Attorney Anna Dronzek.  Former Assistant U.S. Attorney Bill Morse also participated in the prosecution of this case.

###

NASHVILLE, Tenn. – April 30, 2019 – Barbara Butler, 59, of Murfreesboro, Tennessee, pleaded guilty last week to wire fraud and tax evasion, after embezzling more than $1.8 million from her employer, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. 

Butler, the comptroller for D.S. Collaborative in Brentwood, Tennessee, was charged in a criminal information on April 5, 2019, and pleaded guilty to the charges on April 25, 2019.

According  to documents filed with the court, Butler had been the comptroller for D.S. Collaborative for over 20 years and was responsible for all of the company’s financial affairs.  Between December 2009 and July 2016, Butler wrote company checks to herself and used the company’s credit cards for personal use and for the use of her family members, without the knowledge or approval of the company’s owners.  Butler also opened a company Costco credit card in the name of a family member and permitted that family member to use the card for personal use.  In another instance, in March 2015, Butler used a company credit card to make a purchase from Jared Galleria Jewelry in Franklin, Tennessee, in the amount of $11,774.96.  During the course of the scheme, Butler embezzled more than $1.8 million from the company.

In 2016, after learning that the company was subjected to an IRS audit, Butler provided false financial documents to the IRS auditor in an attempt to conceal the fact that she had written company checks to herself, and she altered general ledgers to make it appears as though the checks were written to legitimate vendors.  During tax years 2010-2015, Butler failed to report to the IRS the income resulting from the embezzlement and caused a tax loss of $521,207.

According to the terms of the plea agreement, Butler faces up to 25 years in prison and will have to pay restitution.  Butler also agrees to forfeit the contents from several bank accounts and proceeds from the sale of a house.

This case was investigated by the IRS-Criminal Investigation.  Assistant U.S. Attorney Kathryn Booth is prosecuting the case.

# # # # #

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Acting Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced the arrest today of REGINALD FOWLER on charges of bank fraud and operating an unlicensed money transmitting business.  Bank fraud charges were also unsealed against co-conspirator RAVID YOSEF, who remains at large.  FOWLER and YOSEF, who worked for several related companies that provided fiat-currency banking services to various cryptocurrency exchanges (the “Crypto Companies”), allegedly participated in a conspiracy in which FOWLER made numerous false and misleading statements to banks to open bank accounts that were used to receive deposits from individuals purchasing cryptocurrency, and in which FOWLER and YOSEF falsified electronic wire payment instructions to conceal the true nature of a voluminous cryptocurrency exchange business.  Hundreds of millions of dollars flowed through the Crypto Companies’ accounts from banks located across the globe. FOWLER will be presented today in federal court in Phoenix, Arizona.  The case is assigned to U.S. District Judge Andrew L. Carter Jr.

U.S. Attorney Geoffrey S. Berman said:  “Reginald Fowler and Ravid Yosef allegedly ran a shadow bank that processed hundreds of millions of dollars of unregulated transactions on behalf of numerous cryptocurrency exchanges.  Their organization allegedly skirted the anti-money laundering safeguards required of licensed institutions that ensure the U.S. financial system is not used for criminal purposes, and did so through lies and deceit.  Thanks to the investigative work of the FBI and the IRS-CI, they will be prosecuted for their actions.”

FBI Assistant Director William F. Sweeney Jr. said:  “Lying to banks and skirting the regulations put in place by the banking industry is a violation of federal law, a crime both Fowler and Yosef are charged with today.  Taking it one step further, as alleged, Fowler himself directed the ebb and flow of significant amounts of money to and from these various bank accounts, despite the fact that he was not licensed to do so.  May this be a reminder to all that there are consequences to engaging in fraudulent behavior and risky business practices.”

IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said:  “As this indictment shows, IRS-CI will continue to follow the money, no matter if it's virtual currency, to bring criminals to justice. This should serve as a warning to cyber-criminals who think they can hide behind virtual currency that IRS-CI is fully committed to unraveling these schemes.”

According to the allegations in the Indictment unsealed today^[1]:

In or about 2018, REGINALD FOWLER, RAVID YOSEF, and others operated the Crypto Companies, and FOWLER opened and maintained bank accounts at various banks around the world on behalf of the Crypto Companies.  One of the Crypto Companies markets itself as a company that allows clients to deposit and withdraw government-backed, or “fiat,”  currency to numerous crypto exchanges, which are platforms where people can buy and sell cryptocurrency or “virtual currency.”  Users of one particular crypto exchange (“Exchange-1”) deposited government-backed currency into a bank account of the Crypto Companies (“Account-1”) that was opened and maintained by FOWLER at a specific international bank (“Bank-1”). Although Exchange-1 advertised itself as providing required “know your customer” and anti-money laundering verification services in connection with Exchange-1’s platform, this was false with respect to the shadow banking services provided by FOWLER and YOSEF.

As described in the Indictment, FOWLER and YOSEF conspired to, and did, misrepresent the nature of the Crypto Companies’ business and falsely stated to Bank-1 that Account-1 would be used to process real estate investments.  These misrepresentations also appeared on wire transfer instructions sent out from bank accounts opened and maintained by FOWLER and YOSEF, among others, on behalf of the Crypto Companies.  Records from Bank-1 reveal that dozens of individuals from various countries wired millions of dollars into Account-1, and, at the same time, Account-1 also wired millions of dollars to other individuals and companies.  Even though FOWLER was receiving and directing these monetary transactions, neither he nor any of the Crypto Companies were ever licensed as a money transmitting business, as required by federal law.     

*                      *                     *

FOWLER, 60, of Chandler, Arizona, and YOSEF, 36, of Tel Aviv, Israel, are each charged with one count of bank fraud and one count of conspiracy to commit bank fraud, each of which carries a maximum sentence of 30 years in prison.  FOWLER is also charged with one count of operating an unlicensed money transmitting business and one count of conspiracy to do the same, each of which carries a maximum sentence of five years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman praised the outstanding investigative work of Special Agents from the FBI New York Money Laundering Investigations Squad and Special Agents from the IRS-CI.  

The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Sheb Swett, David Zhou, and Jessica Fender are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 

KANSAS CITY, Mo. – A Kansas City, Mo., man and woman who were involved in a fatal shooting during a drug deal, which they attempted to cover up by falsely claiming an attempted rape, both appeared in federal court today.

Orval L. Johnson, 26, pleaded guilty before U.S. Chief District Judge Beth Phillips to three counts of distributing cocaine, one count of possessing a firearm in furtherance of a drug-trafficking crime, one count of possessing cocaine with the intent to distribute, and one count of being a drug user in possession of a firearm.

Co-defendant Latasha M. Alexander, 27, was sentenced in a separate hearing to eight months in federal prison without parole. Alexander, who pleaded guilty to misprision of a felony, has been in federal custody since her bond was revoked in October 2018.

By pleading guilty today, Johnson admitted that he sold cocaine to an undercover detective with the Kansas City, Mo., Police Department on three separate occasions in 2017. During the third drug transaction, Johnson was armed with a loaded Glock .357-caliber pistol with an extended magazine. Johnson told the undercover detective that someone recently tried to rob him and threatened to kill him and his girlfriend. “I had to kill (him),” Johnson said, “I blew half his … face off.”

According to court documents, Johnson was referring to a homicide investigation in the Knob Hill neighborhood of Kansas City, Mo. Alexander falsely claimed that a man, identified in court documents as “R.B.,” came to her residence on March 9, 2017, to smoke marijuana and tried to rape her. She told law enforcement officers that R.B. fired a shot at her, then she shot and killed him in self-defense. Investigators believed her lie, according to court documents, until Johnson bragged about the killing to the undercover detective.

Alexander later admitted that she falsely reported the attempted rape in order to conceal Johnson’s drug-trafficking offense. Alexander pleaded guilty to misprision of a felony on Oct. 23, 2018.

Johnson and Alexander told investigators that R.B. came to their apartment to purchase cocaine. He attempted to rob Johnson, and a struggle ensued. Johnson yelled at Alexander to grab the gun; she retrieved a firearm and shot R.B., who then attacked her. Johnson grabbed the gun and shot R.B. several times, killing him. According to court documents, both Johnson and Alexander consistently claimed self-defense, which is not refuted by the physical evidence at the scene.

Johnson was arrested on March 14, 2017. The day after his admission to the undercover detective, the undercover detective contacted Johnson to arrange for the purchase of 3.5 grams of cocaine for $170.  Johnson was arrested when he left a nearby residence on his way to conduct the drug transaction. He had a Glock .357-caliber semi-automatic pistol, which had been reported as stolen, in his right front pants pocket and 3.39 grams of cocaine in his left coat pocket.

Johnson admitted to law enforcement officers that he had been making deliveries of cocaine five to 10 times a day, every day since November 2016. Johnson said he had been using about a gram of cocaine a day since November of 2016.

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

This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

St. Louis, MO – Travion Lindsey, 20, of St. Louis, was sentenced to 108 months in prison for armed robbery charges.  He appeared in federal court today before U.S. District Judge Ronnie L. White. 

According to court documents, Lindsey, along with co-defendants Jevante Phillips and Ahmaad Ali, entered the 7-11 store located on Christy Avenue in South St. Louis, Missouri on October 18, 2017.  The three arrived at the 7-11 in a Pontiac Aztek that had been stolen one day earlier at gunpoint by Ali and Phillips.  They entered the store with firearms displayed.  Their faces were covered with masks.  Phillips walked around the counter and began removing lottery tickets and money from the cash register.  Ali jumped over the counter and began removing the cash register’s contents.  Lindsey stood guard at the door and eventually assisted in removing the money.  After two minutes inside of the store, the three started taking liquor bottles, cigarettes, and candy on their way outside.  The males then re-entered the Aztec and fled the area. 

Phillips pled guilty in September 2018 and was sentenced to 130 months in prison in February 2019.  Ahmaad Ali pled guilty in February 2019 and will be sentenced May 8, 2019.

The case was investigated by the Federal Bureau of Investigation and assisted by the St. Louis Metropolitan Police Department.  Assistant U.S. Attorney Tom Mehan was handling the case for the U.S. Attorney’s Office.

          A dozen tribes in the Western District of Washington have been awarded nearly $6 million in Department of Justice grants to improve their services for victims of crime, announced U.S. Attorney Brian T. Moran.  The grants range from $85,000 for the Hoh Tribe to $779,488 for the Squaxin Island Tribe based on applications submitted by the tribes.

            “These grant awards cover needs identified by the tribes themselves,” said U.S. Attorney Moran.  “Whether it is providing emergency services for families in crisis, providing skilled interviewers for child abuse victims or providing a secure domestic violence shelter, each of these projects reflects the needs and culture of our tribal partners.”

          “American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”

          The twelve grants to Western Washington tribes include:

• Squaxin Island Tribe - $779,488 – to expand existing services and outreach to victims of domestic violence, sexual assault, stalking, sex trafficking and dating violence.
• Skokomish Tribe - $446,234 – to expand current programs to better serve elder victims.
• Jamestown S’Klallam Tribe - $420,119 – to establish a satellite Children’s Advocacy Center to increase accessibility to culturally relevant services including trained interviewers.
• Nooksack Tribe - $677,152 – to expand existing services with a needs assessment and strategic plan to implement a responsive Victim Services Program for victims of domestic violence, sexual assault, dating violence and elder abuse and neglect.
• Lummi Nation - $574,361 – to maintain a fully staffed, safe, secure and confidential shelter serving victims of domestic violence, sexual assault and elder abuse.
• Muckleshoot Tribe - $650,000 – to expand victim services with additional trained staff for crisis counseling and referrals to trauma counseling.
• Quinault Nation - $168,631 – to expand services provided by the Healthy Families Program with a satellite office and services to victims in crisis.
• Chehalis Confederated Tribes – $719,741 – to create a Crime Victims Service Trauma Center where victims can receive services in a centralized and non-threatening facility.
• Hoh Tribe - $85,000 – to conduct a community needs assessment and complete a strategic plan with the goal of developing a Victim Services Program.
• Lower Elwha Klallam Tribe - $556,556 – to serve the needs of all crime victims with particular focus on providing pediatric forensic exams for child victims.
• Puyallup Tribe - $407,408 – to expand existing services by strengthening the continuum of care for homeless crime victims and or victims with alcohol and substance abuse issues.
• Port Gamble S’Klallam Tribe - $420,119 – to support victims of crime with a focus on service to victims with disabilities and those who have been victimized multiple times, using services that are trauma-informed and culturally rooted in tradition.

          “American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”

          The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.

A North Lauderdale resident was sentenced today to more than six years in prison for being a felon in possession of a firearm and possession of cocaine.

            Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.

            Christopher Sergo Denis, 28, of North Lauderdale, was sentenced by U.S. District Judge James I. Cohn to 77 months in prison, to be followed by 3 years of supervised release for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and a concurrent term of 12 months in prison, to be followed by 1 year of supervised release for possession of cocaine, in violation of Title 21, United States Code, Section 844 (Case No. 18-CR-60296).

            According to the court record, including the agreed upon factual proffer, on September 15, 2018, Denis posted a video recording that he labeled “Wild Wild West” on Facebook as he was firing three firearms at a local gun range.  A BSO detective discovered the Facebook posting and brought it to the attention of ATF.  An ATF Special Agent viewed the Facebook posting, went to the gun range, and recovered evidence documenting Denis’s presence at the gun range as well as a video recording made by the gun range of Denis firing the firearms.

            On October 18, 2018, an ATF Special Agent and BSO detectives arrested Denis outside a courtroom in the Broward County Courthouse in Fort Lauderdale when he arrived to attend a hearing in a pending state criminal case.  In his pocket, Denis had a small container in which there were fourteen plastic zip-lock bags, each containing a small quantity of cocaine.

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

U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and BSO in this matter.  This case was prosecuted by Assistant U.S. Attorney William T. Shockley.

            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 former resident of Fort Lauderdale, Florida was sentenced to over twelve years in prison and ordered to pay over $7 million in restitution for orchestrating an international property fraud scheme.

Ariana Fajardo Orshan, U.S Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau Investigation (FBI), Miami Field Office, made the announcement.

Dale Scott Wood, 46, formerly of Fort Lauderdale, Florida, pled guilty to a single count information that charged him with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, on July 25, 2018 (Case No. 18-CR-60202)  U.S. District Judge William P. Dimitrouleas sentenced Wood to 151 months in prison, to be followed by 3 years of supervised release.  Wood was also ordered to pay $7,130,410 in restitution.                                                        

According to court documents, investors in Germany formed a limited partnership to invest in the United States real estate mortgage market.  The partnership made mortgage loans secured by commercial properties throughout the United States.  After the United States real estate market crash beginning in 2007, the partnership had to foreclose on many of the mortgages it owned domestically.  The partnership needed someone to oversee the foreclosure process and manage, maintain, and market the properties when the partnership acquired title.  The partnership retained Wood for that purpose.  From November 2009 to November 2013, Wood retained Theodore Gunter Gies, a bookkeeper, to assist him.  Wood and Gies, without disclosure to or authorization from the partnership, sold the properties to third parties.  Wood and Gies then submitted, via international e-mail, false financial and status reports indicating that the properties were still held by the partnership.  The loss to the partnership by the actions of Wood and Gies was $7,130,410. 

Gies previously pled guilty for his role in the conspiracy and was sentenced to 51 months in prison. 

            U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.  The case was prosecuted by Assistant U.S. Attorneys Thomas P. Lanigan and Karen Olivia-Marie Stewart.

            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.

            CONCORD – Mark T. Moore, 38, of Loudon, New Hampshire, was sentenced in federal court 50 months in prison for participating in a conspiracy to distribute, and possess with intent to distribute, methamphetamine, United States Attorney Scott W. Murray announced today.

            According to court documents and statements made in court, beginning in late 2016, the DEA and the Postal Inspection Service investigated numerous parcels mailed from Las Vegas, Nevada, to New Hampshire suspected of containing methamphetamine. Law enforcement agents also investigated parcels of money mailed from New Hampshire to Las Vegas, and money transfers from New Hampshire to Las Vegas.  Eventually, investigators identified Edward Espejo as the individual in Las Vegas who was shipping methamphetamine to buyers in New Hampshire in return for money transfers or packages of cash mailed to him via the U.S. Postal Service.        

            Co-Defendant Michael Bean, along with his girlfriend and co-defendant Katie-Jo Waters, joined the conspiracy in or before January 2018.  Defendant Mark Moore, who already knew Espejo, joined the conspiracy soon afterwards.  Within the conspiracy, Moore handled the communications (mostly by text) to and from Edward Espejo in Las Vegas and coordinated the shipments of drugs from Nevada and the wiring of payments from New Hampshire. Waters received mailed packages containing methamphetamine at her residence; Bean and Waters distributed methamphetamine to buyers in New Hampshire; and Bean and Waters wired the proceeds of drug sales to Espejo in Las Vegas to purchase additional drugs.  Bean and Waters also distributed to Moore a portion of the methamphetamine they received from Espejo.

            On January 16, 2018, a package was mailed from Las Vegas. The package was scheduled to be delivered on January 17, 2018. The package was addressed to Waters at an apartment on Pembroke Street in Pembroke. Postal Inspectors obtained and executed a federal search warrant for the package.  The package contained 18.989 grams of 100 percent pure methamphetamine.

            On April 9, 2018, a package was mailed from Las Vegas. The package was scheduled to be delivered on April 10, 2018. The package was addressed to co-defendant Waters at the same Pembroke Street location. This package was delivered to the Pembroke residence.  On April 11, 2018, Waters was stopped by the New Hampshire State Police driving a car registered to her.  Inside the car was a black bag containing four baggies containing a total of 23.011 grams of 100 percent pure methamphetamine.

            Wal-Mart and MoneyGram records reflect that either Bean or Waters made at least 16 separate money transfers to three persons in Las Vegas, NV between January 10, 2018 and April 29, 2018, sending a total of at least $28,550 to purchase methamphetamine.

            On May 2, 2018, Postal Inspectors intercepted another package from Espejo in Las Vegas.  The package was addressed to another individual at the same Pembroke Street residence previously used by co-defendant Waters.  Postal Inspectors obtained a federal search warrant for the package and seized what was later determined to be 441.8 grams (approximately one pound) of pure methamphetamine. 

            Moore previously pleaded guilty on January 17, 2019.

            Espejo previously pleaded guilty and is awaiting sentencing. 

            Bean was sentenced to 120 months in prison and Waters was sentenced to 72 months in prison.   

            “Highly pure methamphetamine is appearing in New Hampshire with greater frequency,” said U.S. Attorney Murray.  “We will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate those who are responsible for distributing this very dangerous drug in the Granite State.  Drug traffickers who choose to sell methamphetamine in New Hampshire should understand that their conduct will result in substantial prison sentences.”

            “This sentence reflects DEA’s strong commitment to bring to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle.  “DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”

            “The sentence imposed today on Mark Moore demonstrates the commitment of the U.S. Postal Inspection Service and our law enforcement partners, to the safety and health of the American public,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division.  “Moore’s actions allowed this highly addictive drug to have a place in our community.  We will continue to investigate and take action against those who take part in this type of behavior.”

            This matter was investigated by the DEA and the U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorney John Davis.

            This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF).  The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.  

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BOSTON – A Dominican national was convicted yesterday by a federal jury in Boston of laundering close to $1 million in fraudulently-obtained IRS refund checks using 11 different bank accounts at five different banks.

Francisco Oscar “Frank” Grullon, 52, was convicted following a six-day jury trial of one count of conspiracy, 15 counts of theft or conversion of United States property, and one count of conspiracy to commit money laundering. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 24, 2019. Grullon was arrested in the Dominican Republic and extradited to the United States in 2018. 

Grullon conspired with an attorney R. David Cohen, who, in 2016, was convicted for his role in the scheme, to deposit and launder over 100 fraudulently-obtained tax refund checks. The checks were based on fraudulent tax returns with false W-2 information, usually using the name and Social Security number of a resident of Puerto Rico, where residents are not required to file federal income tax returns. Once the fraudulent returns were accepted by the IRS, refund checks were sent to addresses in Lawrence, East Boston and New York. 

From October 2011 until November 2013, Grullon and his co-conspirators obtained and negotiated close to $1 million in fraudulent checks into bank accounts in the name of a front company, AD Professional Association Inc., and in co-conspirator R. David Cohen’s attorney client trust accounts. When questioned by bank officials about the suspicious quantity of U.S. Treasury checks, Grullon falsely claimed that he was depositing them as a favor for friends and that he had a check-cashing license. Later, after their bank accounts were closed by several banks, Grullon and Cohen recruited a third co-conspirator and directed him to open accounts for AD Professional Association Inc., deposit more than $500,000 in treasury checks, and make hundreds of thousands of dollars in cash withdrawals. 

The charge of conspiracy provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the loss or gain from the offense. The charge of theft or conversion of U.S. property provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the loss or gain from the offense. The charge of money laundering provides a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $500,000 or twice the value of the property involved in the transaction. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was also investigated by the Department of Homeland Security and U.S. Secret Service. Assistant U.S. Attorneys S. Theodore Merritt and Elysa Q. Wan of Lelling’s Criminal Division are prosecuting the case.

            CONCORD - Joseph Buenviaje, 53, of Berlin, pleaded guilty in federal court to accepting bribes from inmates and providing contraband in prison, United States Attorney Scott W. Murray announced today.

            According to court documents and statements made in court, in 2015 Buenviaje began working as a chaplain at the Federal Correctional Institution in Berlin, New Hampshire.  Beginning April 2018 through November 2018, while working as a chaplain, Buenviaje smuggled drugs, including Suboxone, synthetic cannabinoids, and marijuana, cellular telephones, tobacco, and other contraband into the prison in exchange for bribe payments.  When interviewed by investigators in November 2018, Buenviaje admitted that he had been smuggling drugs and other contraband into the prison once or twice per week, he had received bribes of at least $12,000, and inmates owed him an additional $3,000 to $5,000 for contraband he had or was going to provide. 

            Buenviaje also admitted that he received the contraband and some of the bribe payments by mail addressed to his ministry.  Buenviaje received Suboxone—an opioid ordinarily prescribed to treat drug addiction—in its original packaging.  Upon receipt, Buenviaje repackaged the drug in cellophane for distribution in the prison.  Buenviaje also received notebooks with drug-soaked pages that he smuggled into the prison.  After smuggling items he received into the prison, Buenviaje placed the contraband in a cabinet in the prison chapel where inmates would later retrieve the items.

            In November 2018, during a consensual search of Buenviaje’s car and office, investigators found 111 Suboxone strips, some of which were in Buenviaje’s car and some of which were in Buenviaje’s office repackaged for distribution.  Investigators also located multiple notebooks that Buenviaje had placed in a cabinet in his office for an inmate.  Some pages in the notebooks had been soaked with unlawful synthetic cannabinoids, specifically FUB-AMB and 5F-ADB. 

            Buenviaje is scheduled to be sentenced on August 1, 2019.

            “Those who work in federal prisons have a responsibility to uphold the law,” said U.S. Attorney Murray.  “By smuggling contraband into a prison, this defendant jeopardized the safety of the inmates and staff at the facility.  Such conduct simply cannot be tolerated.”

            “Today’s guilty plea demonstrates that anyone who violates the public’s trust and jeopardizes the security of federal prisons by introducing contraband will be brought to justice.  We will continue to work with our law enforcement partners to root out smuggling schemes in federal prisons,” said DOJ OIG Special Agent-in-Charge Guido Modano. 

            This matter was investigated by the U.S. Department of Justice Office of the Inspector General and FCI-Berlin’s Office of the Special Investigative Supervisor.  The case is being prosecuted by Assistant U.S. Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Matthew T. Hunter.

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RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that today, DANNIE SIMON PARKER, JR., 48, of Raleigh, North Carolina was convicted in federal court following a two-day trial before United States District Judge James C. Dever, III.  The jury found PARKER guilty of Bank Robbery.

On December 28, 2017, PARKER, entered the PNC Bank in Roanoke Rapids, North Carolina.  Utilizing a handwritten demand note, PARKER, who was unarmed,stole $1,975 from the bank before fleeing.  He was caught a short time later on I-95 South, after police blocked traffic in order to apprehend him.  In the passenger seat of the car PARKER was driving were the funds from the robbery, as well as the demand note, and various other incriminating items.  PARKER has two prior convictions for federal bank robbery, and was on federal supervised release at the time of the robbery.

PARKER faces a maximum sentence of 20 years imprisonment followed by 3 years of supervised release, along with a fine of up to $250,000.

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

In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative.  This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.

Investigation of this case was conducted by the Federal Bureau of Investigation, Roanoke Rapids Police Department, and the Halifax County Sheriff’s Office.  Assistant United States Attorneys Donald R. Pender and Melissa B. Kessler handled the prosecution of this case for the government.