WASHINGTON – Michael S. Flynn, executive and co-owner of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in multiple schemes to rig bids in violation of the antitrust laws and to engage in criminal fraud on insulation contracts, marking the second conviction in this ongoing investigation, the Department of Justice announced. 

According to court documents, from October 2011 and continuing until March 2018, Flynn, of Ridgefield, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut, New York, and Massachusetts.  The conspirators discussed prices and agreed on bids that inflated prices to their customers by at least 10%.  In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using burner phones and an encrypted disappearing messaging app.

“Today’s guilty plea is the second relating to a $45 million scheme to cheat New England schools, hospitals, and other businesses by agreeing to fix prices on insulation contracts in violation of the antitrust laws,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “As this prosecution shows, the Justice Department and our law enforcement partners, including the FBI and DCIS, will use every available resource to detect and bring to justice individuals who attempt to hide their criminal conduct by using high-tech encryption apps, burner phones, or any other means.”

“This defendant profited handsomely by colluding with other insulation contractors and inflating bids on $45 million worth of insulation jobs,” said U.S. Attorney John H. Durham for the District of Connecticut.  “The scheme victimized hospitals, universities and businesses throughout New England.  I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the perpetrators of this brazen scheme to justice.”

“Based on the great work of joint law enforcement efforts, the judicial system has clearly confirmed that crimes of deceit and fraud against hard working members of our communities will not go unpunished,” said Brian C. Turner, Special Agent in Charge of FBI’s New Haven Field Office. 

“Ensuring the integrity of the U.S. Department of Defense’s (DoD) procurement process is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office.  “Bid-rigging and fraud schemes, such as the ones in this case, can cause serious economic damage to the DoD’s resources, which ultimately harms the American taxpayer and the U.S. military.  Today’s guilty plea is the direct result of a joint effort and demonstrates the DCIS’ commitment to work with the FBI, the Antitrust Division, and the U.S. Attorney’s Office to investigate and prosecute individuals and companies that engage in fraudulent activity impacting the DoD.”

The antitrust charge announced today carries a maximum penalty of 10 years in prison and a fine of $1 million for individuals.  The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a fine of $250,000.  The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

In addition to his guilty plea, Flynn has agreed to pay restitution to the victims and to resolve civil forfeiture cases connected to the criminal charges.  Flynn agreed to settle the pending forfeiture action on his home for $327,500 and to forfeit all of his seized bank accounts.

The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the United States Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service.  Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Section at 212-335-8035, or visit http://www.justice.gov/atr/contact/newcase.html.

A 71-year-old Tulsa man was sentenced today in U.S. District Court for convincing an adolescent to send him sexually explicit pictures using a cell phone, announced U.S. Attorney Trent Shores.

U.S. District Judge Claire V. Eagan sentenced James Wesley Barnes to 15 years in prison for possession of child pornography. Following completion of his prison term, Barnes will serve seven years on supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children.

“James Barnes’ perverse and deviant crimes are deserving of every day of his 15-year prison sentence. The physical, mental and emotional harm inflicted on this young victim may have lifetime repercussions,” said U.S. Attorney Shores. “It is inspiring to see that, in the face of fear and uncertainty, this child victim spoke out about the abuses perpetrated against her. Because of one child’s courage and resiliency, this vile predator is going to federal prison for a long time.”

At his plea hearing on Jan. 30, 2019, Barnes admitted that from March to June 2018, he possessed sexually explicit pictures of an eleven-year-old girl that she sent at his request.  According to court documents, Barnes was previously convicted in Tulsa County District Court for second-degree rape of a minor under 16 years of age.

Barnes remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prison’s facility.

The Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni prosecuted the case.

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

NEWARK, N.J. – A Pennsylvania man was sentenced today to 60 months in prison for using his position as an employee of the U.S. Army Contracting Command New Jersey (ACC-NJ) in connection with his role in two conspiracies in construction projects at Picatinny Arsenal (PICA) and Joint Base McGuire-Dix Lakehurst (Ft. Dix), U.S. Attorney Craig Carpenito announced.

Kevin Leondi, 58, of Stroudsberg, Pennsylvania, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Counts One and Two of a superseding indictment charging him with conspiring to defraud the United States by soliciting and accepting bribes, and conspiring to steer kickbacks from one conspirator to another. Judge Wigenton imposed the sentence today in Newark federal court.

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

Leondi represented the Army in renovation projects at PICA and Ft. Dix. A company referred to in the indictment as “Construction Company No. 1” served as a Job Order Contractor, also known as a “prime contractor,” for construction projects at PICA and Fort Dix. James Conway was employed by Construction Company No. 1 as a regional project manager of large-scale projects at PICA and Ft. Dix. George Grassie ran a construction, excavating and landscaping business in Pennsylvania that did subcontracting work at the bases. 

From December 2010 through August 2015, Leondi solicited and accepted more than $150,000 in bribes from Grassie and others in return for task orders and other favorable assistance at the bases, and for not denying them future work. Leondi and the conspirators would disguise the bribes in the form of facially legitimate transactions, with Leondi buying vehicles and equipment from the conspirators at cut-rate prices or selling them equipment at inflated prices. In another instance, Leondi had Grassie absorb the costs that another contractor incurred in renovating property that Leondi owned in East Stroudsburg, Pennsylvania.

Leondi also admitted that he conspired to steer at least $48,000 in corporate kickbacks from Grassie to Conway to improperly obtain and reward Conway for his giving subcontracts and other favorable assistance to Grassie relating to Conway’s employer’s contracts with the federal government at PICA and Ft. Dix. The kickbacks included cash payments to help Conway pay his mortgage as well as free construction work at Conway’s home in Pennsylvania.

Grassie pleaded guilty in February 2017 to one count of conspiracy and one count of providing unlawful kickbacks for his role in the bribery and kickback conspiracies. Conway pleaded guilty to accepting unlawful kickbacks and a wire fraud charge involving other fraudulent conduct in August 2016. Both defendants are awaiting sentencing.   

In addition to the prison term, Judge Wigenton sentenced Leondi to three years of supervised release and fined him $25,000.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s sentencing.    

The government is represented by Senior Trial Counsel Leslie Faye Schwartz and Senior Trial Counsel Mark J. McCarren, of the U.S. Attorney’s Office’s Special Prosecutions Division.

            Montgomery, Alabama - On Monday, April 29, 2019, Candace Brie Betances, 42, of Prattville, Alabama pleaded guilty to submitting false claims to the Internal Revenue Service (IRS) seeking tax refunds, announced United States Attorney Louis V. Franklin, Sr., and IRS Criminal Investigation Special Agent in Charge Thomas J. Holloman.

            The guilty plea comes after Betances was indicted by a federal grand jury in February of 2019 on four counts of making false claims against the government. Court documents show that in July 2015 she filed a tax return for the 2013 tax year and claimed that her employer withheld $1,152,320.00 in federal taxes. Based on this false statement regarding her withholdings, she requested that the United States Treasury pay her $253,080.00. When filing the return, Betances knew the claim was false, that the withholding amount was not accurate, and that she was not owed the tax refund. Fortunately, the IRS detected the fraud and did not pay the requested refund.

            Betances’s sentencing hearing will occur in the next few months. At that hearing, Betances will be facing up to five years in prison and substantial fines.

            “By making false statements on her tax return, Ms. Betances was attempting to defraud the government and steal from every American taxpayer,” stated U. S. Attorney Franklin. “I am pleased that the Internal Revenue Service was able to prevent the loss of tax dollars in this case and I pledge that my office will prosecute anyone that wants to use the United States Treasury as his or her own piggy bank.”

            “This plea is an important victory for America's taxpayers who play by the rules and have no tolerance for those who make up their own rules,” said Special Agent in Charge Holloman. “This investigation serves to remind us that there is no such thing as free money and there are no awards or incentives for creativity when it comes to crime. We will continue to utilize our resources and work with the U.S. Attorney’s Office in holding those accountable who attempt to defraud the government and steal from the American taxpayer.”

            The IRS’s Criminal Investigation Division investigated the case. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.

John H. Durham, United States Attorney for the District of Connecticut, announced that JUSTIN C. FREEMAN, 47, of Manchester, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to eight months of imprisonment, followed by one year of supervised release, for filing tax returns that substantially underreported his income.  Judge Dooley also ordered Freeman to pay a $4,000 fine.

According to court documents and statements made in court, Freeman is an attorney who owns and operates his own law practice, The Law Offices of Justin C. Freeman, based in Hartford.  For the 2010, 2011 and 2012 tax years, Freeman signed individual federal income tax returns that underreported more than $1.2 million in income he received from his law practice.  The returns were subsequently filed by his tax preparer.

For 2010, Freeman reported $476,228 in total income, but actually earned $860,041.93.  For 2011, he reported $410,002 in total income, but actually earned $1,093,147.43.  For 2012, he reported $529,673 in total income, but actually earned $696,559.43.  The tax loss to the IRS resulting from this criminal conduct was $419,259.

On November 28, 2018, Freeman pleaded guilty to one count of filing a false tax return.

Since learning he was under criminal investigation, Freeman has paid the $419,259 he owed for the 2010 through 2012 tax years, and an additional $3,329,527 in taxes, interest and penalties for the 2013 through 2016 tax years, and estimated payments for the 2017 through 2019 tax years.  He still owes approximately $1.3 million in back taxes, interest and penalties.

Freeman, who is released on a $100,000 bond, is required to report to prison on July 1, 2019.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Susan L. Wines.

BOSTON – A Lawrence man was sentenced today in federal court in Boston for his role in a fentanyl distribution conspiracy in the Merrimack Valley.

Antonio Camillo, 21, was sentenced by U.S. District Court Judge Denise J. Casper to 34 months in prison and three years of supervised release. On Feb. 4, 2019, the defendant pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl and one count of distribution of and possession with intent to distribute fentanyl.

In September 2018, Camillo sold nearly 40 grams of fentanyl to an undercover police officer during a months-long federal investigation. Camillo was part of a drug organization that was distributing large quantities of fentanyl throughout the Merrimack Valley. In October 2018, Camillo was charged and arrested along with dozens more during a federal sweep targeting impact players and repeat offenders in and around the City of Lawrence.

United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering prosecuted the case.

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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

BOSTON – A Colombian national was sentenced today in federal court in Boston for illegally reentering the United States after deportation

Hector Mejia Mejia, a/k/a Hector Giraldo Mejia, 33, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two years in prison and three years of supervised release. His sentence is to be served consecutive to a state sentence he is currently serving for cocaine trafficking. In February 2019, Mejia Mejia pleaded guilty to one count of illegal reentry of a deported alien.

Mejia Mejia has been deported from the United States on four prior occasions between 2008 and 2011, and has two prior federal convictions for illegal reentry: in 2009 out of the District of New Mexico, and one in 2010 out of the Southern District of Texas. Sometime after his last deportation, Mejia Mejia illegally reentered the United States.

United States Attorney Andrew E. Lelling and Todd Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.

A Lake Worth resident was sentenced to life in prison today, after having been convicted at trial of sex trafficking and obstruction of a sex trafficking investigation.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.

Alston Orlando Leroy Williams, 42, of Lake Worth, Florida, was sentenced by U.S. District Judge Robin L. Rosenberg to five life sentences and an additional 20 years in prison, to be followed by a lifetime of supervised release (Case No. 18-CR-80053).  In December of 2018, Williams was convicted by a federal trial jury of two counts of sex trafficking of a minor in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(2), three counts of sex trafficking by force, fraud or coercion in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(1), and one count of obstructing a human trafficking investigation, in violation of Title 18, United States Code, Section 1591(d).

According to evidence and testimony presented at trial, from 2008 through 2017, Williams trafficked multiple women, including two juveniles, for commercial sex throughout Florida.  Williams had the women live at his homes and travel to hotels and other locations to meet adult men and engage in sexual acts for money.  Williams used force, violence and coercion to traffic the women and kept all of the money earned by the victims.  He was arrested on November 29, 2017 on related state charges, before being charged and convicted federally.

U.S. Attorney Fajardo Orshan commended the investigation efforts of the FBI, PBSO, and the Palm Beach County Human Trafficking Task Force in this matter.  Mrs. Fajardo Orshan thanked Palm Beach County State Attorney Dave Aronberg for the 15^th Judicial Circuit and his staff for their assistance with this investigation.  This case was prosecuted by Assistant U.S. Attorney Gregory Schiller and Special Assistant U.S. Attorney Justin Hoover.

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.

BOSTON – An East Bridgewater man pleaded guilty today in federal court in Boston in connection with fentanyl trafficking. 

Joshua Siereveld, 38, pleaded guilty to conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl, and possession with intent to distribute 40 grams or more of fentanyl. U.S. Senior District Court Judge Geoerge A. O’Toole Jr. scheduled sentencing for Sept. 16, 2019. Siereveld has been in custody since his arrest in March 2018.

From December 2017 through January 2018, investigators intercepted hundreds of communications between Siereveld and his source of supply in Lawrence. Over the course of two months, Siereveld purchased over a kilogram and a half of fentanyl, assisted by co-defendant Justin Brunick, 29, of Rockland, who served as a courier for several transactions. After a fentanyl pickup on March 14, 2018, investigators stopped Siereveld, seized approximately 130 grams of fentanyl, and arrested him. 

Brunick pleaded guilty to his role in the fentanyl conspiracy on April 19, 2019; his sentencing is scheduled for July 17, 2019.

The charge of conspiracy for over 400 grams of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The charge of possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a sentence of no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $8 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; East Bridgewater Police Chief Scott Allen; and Pembroke Police Chief Richard D. Wall made the announcement today. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case. 

WASHINGTON – An owner of a Florida medical clinic was sentenced to serve 91 months in prison today for her role in a $2.5 million health care fraud scheme.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.

Juliette Anais Tamayo, 54, the owner of Miami-based clinic Sunshine Medical Care Group Inc. (Sunshine), was sentenced by U.S. District Judge Cecilia Altonaga of the Southern District of Florida. Judge Altonaga also ordered Tamayo to pay $2.5 million in restitution.  Tamayo pleaded guilty in February 2019 to one count of conspiracy to commit health care fraud and wire fraud.  Also, Tamayo previously pleaded guilty to conspiracy to pay and receive kickbacks and to defraud the United States.

Tamayo was charged in a December 2018 superseding indictment with charges stemming from her involvement in a Part A home health care and Part B medical services fraud scheme in which she sold medically unnecessary home health care prescriptions to home health agency owners who in turn billed Medicare. According to her admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine.  The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries.  Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions.  In addition, Sunshine billed Medicare directly for medical services purportedly provided at the clinic that were not necessary and/or were not provided.

The case was investigated by the FBI, HHS-OIG, and USSS. Trial Attorneys Adam G. Yoffie, Gary A. Winters and Sara Clingan of the Criminal Division’s Fraud Section prosecuted the case.  Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida handled the asset forfeiture proceedings.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

BOSTON – A Dominican national pleaded guilty today in federal court in Springfield in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from Bronx, N.Y., and the Dominican Republic.

Jose Miguel Ramos, 39, pleaded guilty to one count of conspiring to distribute and possession with intent to distribute more than one kilogram of heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 1, 2019.

Ramos lived in a heroin mill in Springfield where he and others packaged kilograms of heroin for retail distribution for a drug trafficking organization (DTO) based in Springfield, which was allegedly run by Alberto Marte. The investigation revealed that in approximately April of 2016, Marte paid approximately $20,000 to smuggle Ramos into the country so that Ramos could work for Marte’s DTO in Springfield. When law enforcement executed federal search warrants related to the investigation in September 2016, they recovered approximately $140,000 in cash and over six kilograms of heroin. 

The charge of conspiracy to distribute more than one kilogram of heroin provides for a mandatory minimum sentence of 10 years in prison, a minimum of five years of supervised release and a fine of up to $10 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Acting Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the case. 

The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

NEW ORLEANS, LOUISIANA – DAVID TRAN, age 32, of New Orleans, Louisiana, pleaded guilty today before the Honorable Jane Triche Milazzo to an indictment charging him with violating the Federal Controlled Substances Act, announced U.S. Attorney Peter G. Strasser.

According to the court records, TRAN pleaded guilty to conspiring with other individuals to manufacture, possess with the intent to distribute, and to distribute 1,000 or more marijuana plants, 400 grams or more of fentanyl, 500 grams or more of methamphetamine, and 100 grams or more of heroin.  TRAN also admitted that he possessed large quantities of fentanyl and methamphetamine with the intent to distribute them and that he was manufacturing large quantities of marijuana. 

The case resulted from a lengthy Title III wire intercept investigation conducted by the Drug Enforcement Administration in which TRAN and his co-conspirators were captured discussing heroin sales, as well as the construction of a large indoor marijuana grow in Bridge City.  The calls led the DEA agents to conduct a search of a warehouse and adjacent residence in Bridge City.  During the search, the agents found a large marijuana grow that contained approximately 700 plants in varying stages of growth and equipment sufficient to grow many thousand more plants.  Significant work and expense had been put into remodeling the warehouse, including thousands of dollars in lights, cooling systems, and ventilation.  The agents also discovered a safe containing a cornucopia of other drugs, including 1,396.2 grams of methamphetamine; 990 grams of MDMA (ecstasy); and 1,175.9 grams of fentanyl, a highly potent synthetic opioid that is fueling the tremendous rise in overdose deaths. 

Sentencing is scheduled for July 31, 2019 at 9:00 a.m.  TRAN faces a mandatory minimum term of imprisonment of at least 10 years up to a maximum of life, a fine of $10,000,000, and at least five years of supervised release following any term of imprisonment.

The case was investigated by the Drug Enforcement Administration and the New Orleans Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Several other law enforcement agencies, including Jefferson Parish Sheriff’s Office, Plaquemines Parish Sheriff’s Office, and the Kenner Police Department, assisted in the search of the warehouse in Bridge City.  The prosecution is being handled by Assistant United States Attorney David Haller.

*     *     *

LAS VEGAS, Nev. – A Las Vegas man convicted of sexually exploiting children by producing child pornography and possessing hundreds of images and videos of child pornography, was sentenced today to 140 years in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.

“Today’s sentence sends a strong message that we will hold child sexual predators accountable and bring them to justice,” said U.S. Attorney Trutanich. “Through our Project Safe Childhood initiative, in collaboration with local and federal partners, we will prosecute individuals who prey on our children and commit heinous and violent acts against them.”

A jury convicted Lonny Joseph DiTirro, 37, of four counts of sexual exploitation of children by producing child pornography and one count of possession of child pornography. United States District Judge Kent J. Dawson presided over the jury trial and sentencing hearing. After being released from custody, under the Sexual Offender Registration Notification Act (SORNA), DiTirro will be required to register as a sex offender.

According to court documents and evidence presented during the three-day jury trial, on September 10, 2015, the Las Vegas Metropolitan Police Department received a concerned citizen’s report of possible child pornography found on a SD card belonging to DiTirro. Law enforcement obtained and executed a search warrant for the SD card. A forensic examination of the SD card found 254 images and 42 videos of child pornography, depictions that included infants and toddlers being sadistically and violently sexually assaulted.

Additionally, DiTirro had organized and catalogued dozens of folders titled with the name and age of nearly 50 girls from multiple states. The folders contained nude photos and videos of the girls, including videos of DiTirro raping several girls. Law enforcement identified several victims who all testified that they met DiTirro on a social media dating application when they were under the age of 16. The victims further testified that DiTirro lied about his age, claiming he was a teenager or in his early 20s, and went as far as falsifying his birth certificate in an effort to coerce, entice, and induce the victims into various sexual activities. DiTirro recorded sex acts with the minor victims, and he also created screenshots of sexually explicit video chats of the victims.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Christopher Burton prosecuted the case.

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

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CAMDEN, N.J. – An Atlantic City man was sentenced today to 264 months in prison for his role in a drug trafficking and money laundering in the Atlantic County area, U.S. Attorney Craig Carpenito announced.

Toye Tutis, 46, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count One of a second superseding indictment, charging him with conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine and heroin, and Count 13 charging him with conspiring with his long-time paramour, Jazmin Vega, 45, to launder his drug trafficking proceeds. Vega also pleaded guilty to the conspiracy to launder Tutis’ drug proceeds in Count 13 and is scheduled to be sentenced June 14, 2019.

“Defendant Tutis laundered more than just clothing at his Atlantic City laundromat – he also laundered the proceeds of his significant heroin and cocaine drug trafficking ring,” U.S. Attorney Carpenito said. “The sentence handed down today punctuates the end of both his drug trafficking and his money laundering activities, and is yet another example of our efforts to clean up the streets of Atlantic City and the towns surrounding it.”

“This defendant littered the streets of Atlantic City and surrounding areas with dangerous drugs and then washed the money through his laundromat, various businesses and multiple real estate transactions,” FBI Newark Special Agent-in-Charge Gregory W. Ehrie said. “The magnitude of his crimes may never be fully known but his actions fed a deadly drug epidemic that claims countless lives. The FBI is committed to working with our local, state and federal law enforcement partners to drive drug traffickers like Toye Tutis out of business and rid the community of these threats to public health and public safety.”

“Mr. Tutis’ actions show his main concern was making a profit off the misery of others,” said Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division.  “His term in federal prison will allow him to experience some misery of his own. DEA and our law enforcement partners will continue to pursue those who choose to poison our community.”

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

From 2010 through December 2014, Tutis operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 million and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds. As part of their plea agreements, Vega and Tutis have to forfeit 20 properties, cash and other assets.

In addition to the prison term, Judge Simandle sentenced Tutis to X years of supervised release.

Nine other people have pleaded guilty to participating in the drug trafficking conspiracy or other related drug trafficking in the Atlantic County area, including:

• Kabaka Atiba, 49, of Atlantic City, sentenced on Oct. 16, 2017, to 120 months in prison and five years of supervised release;
• Tozine Tiller, 45, of Absecon, sentenced on Jan. 3, 2018, to 235 months in prison and five years of supervised release;
• TeJohn Cooper, 45, of Galloway Township, sentenced on Sept. 12, 2017, to 96 months in prison and one year of supervised release;
• Ronald Douglas Byrd, 53, of Pleasantville, sentenced on July 11, 2017, to 96 months in prison and five years of supervised release;
• Kareem Taylor, 43, of Atlantic City, sentencing scheduled for June 3, 2019;
• Talib Tiller, 46, of Mays Landing, sentenced on Sept. 5, 2017, to 57 months in prison and three years of supervised release;
• John Wellman, 43, of Somers Point, sentenced on July 13, 2017, to 130 months in prison and five years of supervised release;
• Phillip Horton, 53, of Los Angeles, California, sentencing scheduled for June 3, 2019;
• and Francisco Alberto Rascon-Muracami, 25, of Obregon, Mexico, sentenced on Oct. 30, 2015, to 70 months in prison and five years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s sentencing.

He also thanked the N.J. State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.

The government is represented by Assistant U.S. Attorneys Diana Carrig of the Camden Division, Jonathan M. Peck of the Newark Division and Peter W. Gaeta of the Asset Recovery and Money Laundering Unit.

United States Attorney Erica H. MacDonald today announced the sentencing of MILES DENZEL RAYMOND LEWIS, 26, to 248 months in prison for methamphetamine distribution and illegal possession of three firearms. LEWIS, who pleaded guilty on December 13, 2018, was sentenced today before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota.

According to his guilty plea and documents filed in court, on May 1, 2018, LEWIS sold methamphetamine to a confidential informant from his home in Shakopee, Minnesota. Upon execution of a search warrant at LEWIS’s residence, law enforcement recovered approximately 2,238 grams of methamphetamine, 338 grams of cocaine, 1,564 grams of marijuana, three firearms, two digital scales, a money counting machine, numerous rounds of ammunition, and $88,221 in cash. When law enforcement arrested LEWIS on May 18, 2018, he was found to be in possession of another $49,831 in cash.

This case was the result of an investigation conducted by Homeland Security Investigations, the Ramsey County Violent Crime Enforcement Team, the Shakopee Police Department, and the Saint Paul Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.

This case was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.

Defendant Information:

MILES DENZEL RAYMOND LEWIS, 26

Shakopee, Minn.

Convicted:

• Possession with the intent to distribute methamphetamine, 1 count
• Possession of firearms in furtherance of drug trafficking crimes, 1 count

Sentenced:

• 248 months in prison
• Five years of supervised release

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

LAS VEGAS, Nev. – A federal grand jury in Las Vegas, Nevada returned a three-count indictment today against three alleged gang members of La Mara Salvatrucha (MS-13) for their involvement in connection with a kidnapping and murder.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Special Agent in Charge Joseph Macias of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Los Angeles made the announcement.

Jose Luis Reynaldo Reyes-Castillo, aka Molesto, 25, Miguel Torres-Escobar, aka Chamilo, 21, and David Arturo Perez-Manchame, aka Walter Melendez and Herbi, 20, are charged with murder in aid of racketeering, using and carrying a firearm during and in relation to a crime of violence and causing death through the use of a firearm. Reyes-Castillo and Torres-Escobar are citizens of El Salvador and Perez-Manchame is a citizen of Honduras. All of the defendants are illegally in the United States.

According to the indictment, MS-13 is a violent, transnational criminal organization that operates throughout the United States, including in Las Vegas, Nevada. MS-13 is a street gang composed primarily of persons from Central America, including El Salvador, Honduras, and Guatemala. The Parkview clique of MS-13 operated in the Las Vegas, Nevada sector. MS-13 members are required to commit crimes, including acts of violence, to maintain membership and discipline within the group. 

The indictment alleges that, on Jan. 21, 2018, Reyes-Castillo, Torres-Escobar, and Perez-Manchame kidnapped and murdered Arquimidez Sandoval-Martinez. As alleged, the defendants intentionally participated in the act of violence that resulted in the death of Sandoval-Martinez. 

Reyes-Castillo, Perez-Manchame, and Torres-Escobar remain in federal custody. Reyes-Castillo is pending federal charges in the Eastern District of California. All three defendants are scheduled to be arraigned on May 21, 2019, before Magistrate Judge Cam Ferenbach in U.S. District Court in Las Vegas.

An indictment merely contains allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The charges are the result of a joint investigation by the FBI, HSI, and the Las Vegas Metropolitan Police Department with the assistance of the DEA. Trial Attorney John S. Han of the Justice Department’s Organized Crime & Gang Section is prosecuting the case.

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NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that WAYNE JEROME CELESTINE, M.D., age 58, a physician who practiced in Gretna and resided in New Orleans, was sentenced today after previously pleading guilty to two counts in the Second Superseding Indictment, which charged him with illegally dispensing controlled substances and money laundering. 

U.S. District Judge Jane Triche Milazzo sentenced DR. CELESTINE to (7) seven years (84 months) imprisonment.  On Monday, April 30, 2018, DR.CELESTINE was arrested on charges of distribution of controlled substances.  According to court records, DR.CELESTINE illegally dispensed and conspired with others to illegally dispense controlled substances, including oxycodone, a Schedule II drug controlled substance.  On November 29, 2018, DR. CELESTINE plead guilty to two counts of the Second Superseding Indictment.        

In addition to the(7)seven year term of incarceration, DR. CELESTINE was fined $20,000 and will face a term of supervised release of (3) three years, following the term of imprisonment.  Pursuant to the terms of the plea agreement, DR. CELESTINE has been ordered to forfeit to theUnited States: over $1 million in seized currency, investment accounts, and negotiable instruments; and over $1 million in seized vehicles, residences, and commercial properties.  By virtue of the plea agreement, DR. CELESTINE acknowledged that these assets represent proceeds and/or facilitating property of the crimes for which he has pled guilty. 

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, Internal Revenue Service, Jefferson Parish Sheriff’s Office, Harahan Police Department, Westwego Police Department, Louisiana State Police, St. Bernard Parish Sheriff’s Office, New Orleans Police Department, and New Orleans District Attorney’s Office in investigating this matter.  Assistant United States Attorneys John F. Murphy and Andre J. Lagarde are in charge of the prosecution.

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A two-time felon was sentenced to more than five years in federal prison today.

Roque Moreno, age 38, from Sioux City, Iowa, received the prison term after an November 19, 2018, guilty plea to one count of possession of a firearm by a prohibited person.

Evidence produced by the United States at the change of plea and sentencing hearings revealed Moreno had two prior felony convictions, and had used guns to threaten people on two occasions, once dry firing the weapon to scare an individual and on another occasion actually firing the weapon into the ground. Additionally, his criminal history revealed a history of dangerousness including five assault convictions, negligent child abuse, interference with official acts, Operating While Intoxicated, and other offenses.    

Moreno was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand.  Moreno was sentenced to 70 months’ imprisonment.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.  Moreno is being held in the United States Marshal’s custody until he can be transported to a federal prison.

This case was brought as part of the Project Safe Neighborhoods (PSN).  PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violence crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violence offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-04068.

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ALEXANDRIA, Va. – A former Central Intelligence Agency (CIA) case officer pleaded guilty today to conspiring to communicate, deliver and transmit national defense information to the People’s Republic of China.

“Those Americans entrusted with our government’s most closely held secrets have a tremendous responsibility to safeguard that information,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Instead of embracing that responsibility and honoring his commitment to not disclose national defense information, Lee sold out his country, conspired to become a spy for a foreign government, and then repeatedly lied to investigators about his conduct. This prosecution should serve as a warning to others who would compromise our nation’s secrets and betray our country’s trust. My thanks to the prosecutors, agents and our intelligence community partners for their terrific work on this important case.”

According to court documents, Jerry Chun Shing Lee, 54, left the CIA in 2007 and began residing in Hong Kong. In April 2010, two Chinese intelligence officers (IOs) approached Lee and offered to pay him for national defense information he had acquired as a CIA case officer. The IOs also told Lee they had prepared for him a gift of $100,000 cash, and they offered to take care of him “for life” in exchange for his cooperation.

Beginning sometime in May 2010 and continuing into at least 2011, Lee received requests for information, or taskings, from the Chinese IOs. The majority of the taskings asked Lee to reveal sensitive information about the CIA, including national defense information. On May 14, 2010, Lee made or caused to be made a cash deposit of $138,000 HKD (approximately $17,468 in USD) into his personal bank account in Hong Kong. This would be the first of hundreds of thousands of dollars (USD equivalent) in cash deposits Lee made or caused to be made into his personal HSBC account from May 2010 through December 2013.

“This is the third case in less than a year in which a former US intelligence officer has pled or been found guilty of conspiring with Chinese intelligence services to pass them national defense information,” said Assistant Attorney General Demers. “Every one of these cases is a tragic betrayal of country and colleagues. The National Security Division will continue to prosecute individuals like Lee who abuse their former access to classified information for financial gain while threatening the security of America. Many thanks to the agents, analysts and prosecutors whose work led to today’s outcome.”

On May 26, 2010, Lee created on his laptop computer a document that described, among other things, certain locations to which the CIA would assign officers with certain identified experience, as well as the particular location and timeframe of a sensitive CIA operation. After Lee created this document, he transferred it from his laptop to a thumb drive. The document included national defense information of the United States that was classified at the Secret level.

In August 2012, the FBI conducted a court-authorized search of a hotel room in Honolulu, Hawaii registered in Lee’s name. The search revealed that Lee possessed the thumb drive within his personal luggage. The FBI forensically imaged the thumb drive and later located the document in the unallocated space of the thumb drive, meaning that it had been deleted. The search also revealed that Lee possessed a day planner and an address book that contained handwritten notes made by Lee that mostly related to his work as a CIA case officer prior to 2004. These notes included, among other things, intelligence provided by CIA assets, true names of assets, operational meeting locations and phone numbers, and information about covert facilities.

“Today’s guilty plea is an example of how the FBI and the Department of Justice successfully pursue threats to our nation’s security and intelligence,” said Nancy McNamara, Assistant Director in Charge of the FBI's Washington Field Office. “U.S. Government employees are entrusted by the American people to keep our country safe and secure from adversaries. The targeting of former U.S. security clearance holders by Chinese intelligence services is a constant threat we face, and the FBI will continue to combat these threats and guard our nation against those who conspire to compromise our national security. I would like to thank the hardworking people of the FBI who work each day to defend our security and intelligence.”

During 2012, Lee had a series of interviews with the CIA. Throughout these interviews, in response to questions about what the IOs had wanted from him, Lee intentionally failed to disclose that he had received taskings from them. In May 2013, the FBI conducted three interviews with Lee. During one of those interviews, Lee admitted that he had received taskings but stated that he had not kept the written requests because they would tend to incriminate him.

“Today, Mr. Lee accepts responsibility not only for his crimes but also for their dangerous ramifications,” said John Brown, Assistant Director for Counterintelligence for FBI. “By knowingly aiding a foreign government, Mr. Lee put our country’s national security at serious risk and also threatened the safety and personal security of innocent people, namely his former intelligence colleagues. He deserves to answer for his treachery and he will do so as a result of the dedication of the FBI’s Counterintelligence Division, the Washington Field Office, and the Department of Justice in pursuing this case.”

The FBI interviewers also confronted Lee with the sensitive document discovered on the thumb drive. Lee falsely denied that he possessed it, claimed not to know who created it, and denied knowing why it would have been on his computer. He also denied deleting the document. Approximately one week later, in another FBI interview, Lee admitted that he created the document in response to two taskings from the IOs and transferred it to a thumb drive. He also said he thought about giving it to the IOs but never did.

In a January 2018 interview with the FBI, Lee falsely denied that he ever kept any work-related notes at home. When shown a photocopy of the front covers of the day planner and address book described above, as well as a copy of his handwriting therein, Lee falsely denied that he possessed the notebooks while transiting through Hawaii in August 2012. Lee also falsely denied that either of the books contained notes from asset meetings but conceded that any such notes would be classified. Further, Lee falsely denied that he ever put the sensitive document on a thumb drive, notwithstanding the fact that he had admitted having done so when interviewed by FBI agents in May 2013. Finally, Lee also falsely told the interviewing agents that in drafting this document he was writing down things “more [like] a diary thing,” notwithstanding the fact that in May 2013 he had told FBI agents that he had created the document in response to two taskings from the Chinese IOs.

Lee pleaded guilty to conspiracy to deliver national defense information to aid a foreign government and faces a maximum penalty of life in prison when sentenced on August 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Neil Hammerstrom and Trial Attorneys Patrick T. Murphy and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Assistant U.S. Attorney Inayat Delawala.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-89.

CHARLESTON, W.Va. – A Boone County man who trafficked methamphetamine was sentenced to six years in federal prison, announced United States Attorney Mike Stuart.  Stuart commended the investigation conducted by the Boone County Sheriff’s Office, the West Virginia State Police, the U.S. 119 Drug and Violent Crime Task Force, and the Drug Enforcement Administration.

“Meth is being trafficked in every county in the District,” said United States Attorney Mike Stuart.  “We’re working hard with our federal, state and local law enforcement partners to identify meth dealers and hold them accountable.”

Shaine Ray Dingess, 41, previously pled guilty to distribution of methamphetamine.  As established by public court filings and hearings, on December 12, 2017, Dingess distributed $50 worth of methamphetamine to a confidential police informant at Dingess’ residence in Nellis, West Virginia, where Dingess’ co-defendant, Bruce Lee Boardman, was present.  Boardman supplied Dingess with the methamphetamine and brandished a firearm during the drug transaction.  On January 10, 2018, Dingess gave a small amount of marijuana to a confidential police informant.  On February 6, 2018, Dingess again sold $50 worth of ice methamphetamine to a confidential police informant.  Finally, on April 11, 2018, police investigators spotted Dingess while he was walking in Nellis.  When asked if he was carrying any drugs, Dingess turned over five small packages of ice methamphetamine.

Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence.  The case was prosecuted by Assistant United States Attorneys R. Gregory McVey and Drew O. Inman. 

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