WICHITA, KAN.– Zoos in Topeka and Wichita are receiving tiger and lion pelts that federal agents seized from wildlife traffickers, U.S. Attorney Stephen McAllister said today.

McAllister said his office donated the pelts to the Topeka Zoo and the Sedgwick County Zoo. The pelts were seized by agents of the U.S. Fish and Wildlife Service who were enforcing federal laws aimed at protecting endangered animals and disrupting the global black market for hides and other parts of protected wildlife.

“Poachers, wildlife smugglers and black market merchants are stealing our last chance to protect and preserve creatures of awesome strength and beauty,” McAllister said. “Once these animals go, they will be gone forever. They are a precious natural resource that the federal government protects, including by criminal prosecution of illegal traffickers.”

The Department of Justice’s Environment and Natural Resources Division (ENRD), together with United States Attorneys’ Offices across the country, is responsible for prosecuting international wildlife trafficking crimes, primarily under the Endangered Species Act (ESA)and the Lacey Act, as well as crimes related to wildlife trafficking, such as smuggling, money laundering, and criminal conspiracy.

Wildlife items forfeited or abandoned to the U.S. Fish and Wildlife Service are stored in a 22,000-square-foot office and warehouse located northeast of Denver that is called the National Wildlife Repository. Many of the items are donated to educational facilities and nonprofit organizations to aid in teaching about endangered species.

McAllister said the tiger pelts came from the wildlife depository. Fish and Wildlife Service agents used some of them in a sting operation in Wichita in 2018. A Wichita man pleaded guilty to making a deal to pay $8,000 to have two tiger pelts delivered to him. Agents retrieved the tiger pelts and seized a lion pelt from his home when they arrested him.

McAllister said the Justice Department estimates the international illegal trade in wildlife generates as much as $23 billion annually. In Kansas in recent years, federal agents have investigated wildlife trafficking cases including deer and elk that had been poached by guides and hunters, eagle feathers that were being unlawfully sold and Asian leopard cats unlawfully imported to Kansas. Federal prosecutors across the country also have pursued cases involving native turtles being exported to other countries.

For more information, see https://www.fws.gov/wildliferepository/ and https://www.justice.gov/enrd/wildlife-trafficking and https://www.fws.gov/eaglerepository/ .

PITTSBURGH - A resident of Turtle Creek, Pennsylvania, has been sentenced in federal court to 11 years’ (132 months’) imprisonment, followed by 10 years’ supervised release on his conviction of distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.

United States District Judge Cathy Bissoon imposed the sentence yesterday on Robert Bernal, Jr., 29.

According to information presented to the court, on December 3, 2015, Bernal distributed an image depicting the sexual exploitation of a prepubescent female over the Internet using the Skype application. Law enforcement officers were notified of the uploaded image after a report was submitted to the National Center for Missing and Exploited Children. A search warrant was then obtained and executed at Bernal’s residence. A search of a computer and cellular telephones seized during the search revealed hundreds of saved images and videos depicting the sexual exploitation of minors.

Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.

The Federal Bureau of Investigation, Allegheny County Police Department, and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Bernal, Jr.

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

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that Chief United States District Judge Nannette Jolivette Brown sentenced BRYSON TUESNO on May 23, 2019 to 15 years of imprisonment, to be followed by three years of supervised release, for robbing two banks while armed.  During the course of these robberies, guns were placed at the head of a bank security guard and a bank teller both of whom testified that they thought they would be killed. 

TUESNO, age 24, of New Orleans, and DWAYNE WINANS JR., a/k/a “Butter,” age 25, also of New Orleans were convicted on April 26, 2018, after a four-day jury trial.  The jury found TUESNO and WINANS guilty of robbing, on August 15, 2016, both the Regions Bank located at 3836 Elysian Fields Avenue in New Orleans and the Gulf Coast Bank located at 1900 Oak Harbor Boulevard in Slidell.  The men were also convicted of two counts of using firearms during the commission of those crimes.

The jury also found WINANS guilty of committing two carjackings, on August 12, 2016, in New Orleans, and two counts of using firearms during the commission of those crimes.  WINANS and TUESNO used one of the carjacked vehicles as a getaway car during the Regions Bank and Gulf Coast bank robberies.  WINANS was sentenced last month to 30 years of imprisonment for these crimes.

PITTSBURGH, PA A resident of Wexford, Pennsylvania, has been sentenced in federal court to five years’ probation on his conviction for willful failure to pay over taxes, United States Attorney Scott W. Brady announced today.

United States District Judge Joy Flowers Conti imposed the sentence yesterday on William J. Houser, Jr., 59. The court ordered that the first 24 weekends, and one week each year, of the five-year term of probation be served in a community confinement center. The court also sentenced Houser to pay $1,128,660 in restitution to the Internal Revenue Service.

According to information presented to the court, Houser, a licensed medical doctor and practitioner in Youngstown, Ohio, was required to withhold monies from the paychecks of his employees to cover their individual income, Social Security, and Medicare tax obligations, referred to as trust fund monies, and to remit the trust fund monies to the Internal Revenue Service (IRS) on a quarterly basis. He was also required to pay over to the IRS matching contributions for Social Security and Medicare, commonly known as employment taxes. Houser failed to pay over both employment and trust fund taxes during the period September 2009 through December 2014. Houser also failed to file personal tax returns and pay income taxes for the years 2010 through 2014. Failure to pay the required taxes resulted in a total tax loss to the IRS of more than $899,269.

Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.

The Internal Revenue Service conducted the investigation that led to the prosecution of Houser.

Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that former New York City Police Department (“NYPD”) detective SAED RABAH was sentenced to 24 months in prison for knowingly providing misinformation to a federal law enforcement officer in order to obstruct a narcotics investigation.  RABAH pled guilty December 14, 2018, and was sentenced today by U.S. District Judge Vincent L. Briccetti.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As an NYPD detective, Saed Rabah’s first duty was to uphold the law, not befriend known drug dealers and assist in their criminal enterprises.  Now Rabah, a convicted corrupt former police officer, will serve time alongside criminals he and his colleagues arrested.”

According to the Information and a previously filed criminal Complaint: 

The target of a narcotics investigation was a cooperator in another court proceeding, and RABAH was his handler.  Despite his obligation as a cooperator to engage in no further criminal conduct, the target continued to operate a sophisticated narcotics distribution business.  In May 2016, RABAH was contacted by law enforcement and informed that the target was under investigation for narcotics-related offenses.  In September 2016, RABAH was again contacted by law enforcement, this time about whether RABAH had a phone number for the target.  RABAH waited to respond and, when he did, intentionally provided a phone number for the target that RABAH knew the target was no longer using, rather than providing the target’s active phone number through which RABAH and the target were regularly communicating. 

As alleged in the Complaint, RABAH’s obstruction of the investigation was only one component of his corrupt relationship with the target.  RABAH and the target traveled to Las Vegas together in July 2016.  Moreover, RABAH warned the target when RABAH observed one of the target’s employees make a drug delivery in a manner that RABAH believed could have drawn the attention of law enforcement.

*                *                *

In addition to the prison term, RABAH, 46, of Brooklyn, New York, was sentenced to one year of supervised release and ordered to forfeit $10,000.   

Mr. Berman praised the outstanding investigative work of the Drug Enforcement Administration’s (“DEA”) Westchester Tactical Diversion Squad, comprising agents and officers of the DEA, Yonkers Police Department, Orangetown Police Department, NYPD, Westchester County Police Department, Putnam County Sheriff’s Office, Rockland County Sheriff’s Office, New Windsor Police Department, and the Woodbury Police Department.  He also thanked the Special Agents of the United States Attorney’s Office for the Southern District of New York for their assistance.

This case is being handled by the Office’s White Plains Division.  Assistant United States Attorney Celia V. Cohen is in charge of the prosecution.                                       

Gulfport, Miss. – Robert Ashton Kerns, 23, of Long Beach, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 46 months in federal prison, followed by 3 years of supervised release, for possession with intent to distribute fentanyl and fentanyl analogues, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. 

On April 17, 2018, officers with the Gulfport Police Department were dispatched to a Sonic Drive-In after a report of a man passed out in the driver’s seat of a running vehicle.  The man was Kerns and he was in possession of approximately 300 dosage units of oxycodone, an opiate painkiller, and over 1,500 dosage units of Xanax, a benzodiazepene.  After lab testing, it was determined that the substances were counterfeit and contained fentanyl and fentanyl analogues, a powerful opiate which is deadly in relatively small amounts.

On June 12, 2018, Kerns was charged in a federal criminal indictment.  He pled guilty on March 1, 2019 to one count of possession with intent to distribute fentanyl and fentanyl analogues.   

The case was investigated by the Gulfport Police Department and the Drug Enforcement Administration.  It was prosecuted by Assistant U.S. Attorney John Meynardie.

John H. Durham, United States Attorney for the District of Connecticut, today announced that on May 22, 2019, MALCOLM NEWTON, also known as “Biggie,” 25, of New Haven, was sentenced by U.S. District Judge Vanessa L. Bryant in Hartford to 66 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine in New Haven.

According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization.  The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in the New Haven area.

Newton distributed crack cocaine on behalf of the organization numerous times between November 2017 and February 2018.

Newton and several other members of the organization were arrested on federal criminal complaints on February 6, 2018.  At the time of his arrest, Newton was on state probation.  A search of his residence on that date revealed five firearms, and small quantities of crack cocaine and oxycodone packaged for street sale.

On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging Newtown and 18 other individuals with various offenses.

Newton has been detained since his arrest.  On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”).

This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction.  The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.

BOSTON – A Dominical national was arrested yesterday and charged in federal court in Boston with identity theft.

Marlon Suazo Santos, 30, a Dominican national residing in Dorchester, was indicted on two counts of false representation of a Social Security number and one count of aggravated identity theft. Suazo is in state custody but will appear in federal court in Boston for an initial appearance and arraignment at a later date.

According to the indictment, Suazo fraudulently used a Social Security number that was not his when applying for a learner’s permit and driver’s license with the Massachusetts Registry of Motor Vehicles in 2017.

The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, one year of supervised release and a fine of $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 Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Eric Wayne Grinder, age 36, of Westminster, Maryland, to 30 years in prison, followed by lifetime supervised release for five counts of production of child pornography, one count of attempted production of child pornography, two counts of possession of child pornography, and witness tampering.  A federal jury convicted Grinder on those charges on February 25, 2019.  Judge Blake also ordered that, upon his release from prison, Grinder must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.

According to the evidence presented at his three-day trial, from June 2013 through August 2016, Grinder sexually abused a minor female when the girl was between seven and nine years old, and produced images of himself and the minor engaged in sexually explicit conduct. Further, Grinder used his laptop computer and cellular phone to store and obtain images documenting the sexual exploitation of prepubescent minors, including the victim.

The evidence also proved that Grinder wrote a letter to an individual in July 2017, in which he asked that person to manipulate the victim into saying that she took the produced images of the abuse, not Grinder.  Further, Grinder repeatedly attempted to contact and manipulate the victim’s mother.

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

United States Attorney Robert K. Hur commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office, and the Carroll County State’s Attorney’s Office for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Paul Riley and Paul Budlow, who prosecuted the case.

Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Jeremy Lamar Hayes, 29, and Kennedy Boggs, 26, were sentenced in federal court in Florence on federal robbery and gun charges.  Hayes previously pleaded guilty to two counts of Hobbs Act Robbery (robbery affecting commerce) and two counts of Brandishing a Firearm during a Crime of Violence.  Boggs pleaded guilty to one count of Conspiracy to Commit Hobbs Act Robbery and one count of Aiding and Abetting the Brandishing of a Firearm during a Crime of Violence.  Chief United States District Judge R. Bryan Harwell sentenced Hayes to 240 months in federal prison, followed by 5 years of court-ordered supervision.  He sentenced Boggs to 108 months in federal prison, followed by 5 years of court-ordered supervision.  There is no parole in the federal system. 

Evidence presented to the court showed that on January 29, 2018, officers from the Myrtle Beach Police Department (MBPD) responded to an armed robbery at a dry cleaner in Myrtle Beach, South Carolina.  Hayes entered the location, presented a firearm, and demanded money from the register and the victim’s wallet.  Hayes took money from the register, the victim’s wallet and cell phone, and the store phone and then fled in a vehicle. 

The next day, MBPD officers responded to an armed robbery at a restaurant in Myrtle Beach, South Carolina.  Hayes entered the location, presented a firearm, and demanded money from the register.  Hayes took cash from the register and an employee’s cell phone.  Hayes then forced employees to lay on the ground and count while Hayes exited the store and fled in a vehicle. 

After the restaurant robbery, MBPD located a vehicle matching the description of the get-away vehicle.  The driver, Kennedy Boggs, failed to stop, and after a pursuit, both Boggs and Hayes were detained.  MBPD found in the vehicle clothing matching the description of clothing worn by Hayes during the robberies.  Hayes’ fingerprint was also located at the scene of the restaurant robbery.  Boggs admitted that she had driven Hayes to the robberies and that during the vehicle pursuit, the firearm was thrown out of the car window.  Officers later recovered the firearm. 

The charges against Hayes and Boggs were the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Myrtle Beach Police Department, the Surfside Beach Police Department, the Horry County Police Department, the Randolph County Sheriff’s Office (NC), and the Guilford County Sheriff’s Office (NC).  This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001 that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Turning the tide of rising violent crime in America is a top priority for the Department of Justice, which has reinstituted PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy.  Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case. 

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BOSTON – A Dominican national was charged yesterday in federal court in Boston with illegally reentering the United States after being deported.

Diostene Pimental, 41, a Dominican national formerly residing in Boston, was indicted on one count of unlawfully re-entering the United States after being deported.

According to the indictment, Pimental was removed in November 2012 and subsequently re-entered the United States without permission. The indictment further alleges that Pimental was deported after being convicted of an aggravated felony.

Pimental faces a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Pimental will be subject to deportation proceedings. 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 Marcos D. Charles, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Tampa, FL – The United States has filed a complaint in intervention against Doctor’s Choice Home Care Inc (Doctor’s Choice), Timothy Beach, and Stuart Christensen alleging False Claims Act violations arising from the alleged payment of kickbacks in the form of sham medical director agreements and payments to the spouses of referring physicians, the Department of Justice today announced. Doctor’s Choice is a home health agency based in Sarasota, Florida. Timothy Beach and Stuart Christensen are partial owners of Doctor’s Choice.

“Healthcare providers must make recommendations about their patients’ health without respect to their own financial interests,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will continue to do our part to protect federal health care program beneficiaries and the American taxpayers from the corrupting influence of kickbacks designed to undermine the impartiality and integrity of physician decision making.”

“Kickbacks and other improper remuneration that interferes with the medical decision-making process undermines the integrity of our healthcare system,” said U.S. Attorney Maria Chapa Lopez. “My Office will continue to aggressively pursue those who violate these laws and compromise our system of care.”

The lawsuit alleges that Doctor’s Choice, with the knowledge of Beach and Christensen, paid kickbacks in the form of sham medical directorships to three physicians to refer patients to Doctor’s Choice. All three physicians allegedly did little, if any, of the work for which Doctor’s Choice paid them as medical directors. Sham medical director agreements to induce patient referrals violate the Anti-Kickback Statute and the Stark Law. Doctor’s Choice also allegedly paid some employees in a manner that accounted for the volume of referrals by their physician spouses, in violation of the Stark Law.    

The Anti-Kickback Statute prohibits anyone from offering or paying remuneration in order to induce or reward referrals for services paid for under federal healthcare programs. The Stark Law forbids certain medical providers, including home health agencies, from submitting claims to Medicare for services provided to patients who were referred by a physician with whom the provider has a prohibited financial relationship, unless that relationship falls within an applicable exception. 

The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating the case, as it has done here. A defendant who violates the act is subject to three times the government’s losses, plus applicable penalties. 

This case is being handled by the Department of Justice’s Civil Division and Assistant U.S. Attorney Charles Harden of the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the Office of Inspector General of the Department of Health and Human Services. 

The claims made in the complaint are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Herbold v. Doctor’s Choice Home Care Inc., et al., Case No. 8:15-cv-01044 (M.D. Fl.).

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of MICHAEL MENDLOWITZ, the former CEO and part owner of a payment-processing company that operated under various names, including Commerce Payment Systems (“CPS”), for defrauding its merchant customers.  The jury convicted MENDLOWITZ yesterday for wire fraud and conspiracy to commit wire fraud following a four-week trial before U.S. District Judge Vernon S. Broderick.  Richard Hart, a CPS sales manager, previously pled guilty before Judge Broderick to one count of conspiracy to commit an offense against the United States.

U.S. Attorney Geoffrey S. Berman said:  “Michael Mendlowitz preyed on small business owners, defrauding thousands of them.  Small businesses are entitled to be dealt with fairly and billed at the rates that are actually promised.  Mendlowitz’s victims got sold a bill of goods and were duped into overpaying.”

According to the allegations contained in the Indictment and Superseding Indictment, and the evidence presented in Court during the trial:

MENDLOWITZ and Hart operated a fraud scheme through a payment-processing company that operated under various names, including CPS.  MENDLOWITZ and Hart lured in customers with false claims of “no hidden fees” and false promises that specified rates and fees were “guaranteed for life.”  In truth, however, CPS customers, including thousands of small businesses located throughout the country, were charged all manner of hidden and increased rates and fees.  In furtherance of the fraud, MENDLOWITZ directed senior employees of CPS to significantly increase rates on customer accounts with no disclosure to customers that they would in fact be charged those increased rates.  In addition, MENDLOWITZ deleted three pages from the customers’ contracts that contained terms and conditions that directly contradicted representations made to customers during the sales process.  As part of the fraud scheme, MENDLOWITZ falsely told representatives of CPS’s parent company that those terms and conditions had been provided to customers.

*                *                *

MENDLOWITZ, 44, of Woodmere, New York, was found guilty of one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison. Hart, 39, of East Meadow, New York, pled guilty to one count of conspiracy to commit an offense against the United States, which carries a maximum term of five years in prison.  The maximum potential sentences 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 the U.S. Postal Inspection Service.   

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys David Abramowicz, Jilan Kamal, Dina McLeod, and David Raymond Lewis are in charge of the prosecution.

DENVER – Forty-two people were arrested over the last three days in one of the largest black market marijuana enforcement actions in Colorado history, announced U.S. Attorney Jason Dunn, DEA Denver Division Special Agent in Charge William T. McDermott, 18^th Judicial District Attorney George Brauchler and 17^th Judicial District Attorney Dave Young.  During the last two years more than 250 locations have been searched. 

This week law enforcement conducted additional searches and began making arrests on Wednesday, May 22, 2019.  Of those arrested as of Friday morning, 26 were state defendants and 16 were federal defendants.  The federal defendants charged with offenses involving 100 or more marijuana plants face a minimum mandatory sentence of five years imprisonment and a maximum of 40 years imprisonment.  The federal defendants charged with offenses involving 1,000 or more marijuana plants face a minimum mandatory sentence of 10 years imprisonment and a maximum of life in prison.

The law enforcement action identified marijuana grows in homes across the Metro Denver area.  Eight businesses were also searched.  The total number of search warrants executed, by county, include the following:

• 120 were in Adams County
• 63 were in Arapahoe County
• 22 were in Weld County
• 17 were in Jefferson County
• 7 were in Denver County
• 22 were in Douglas County
• 3 were in El Paso County
• 1 was in Broomfield County

From the locations searched, over 80,000 marijuana plants and 4,500 pounds of finished marijuana product were seized. 

In addition to the criminal prosecutions there are federal asset forfeiture actions pending, including:

• 41 homes
• $2,160,776.89 in U.S. currency
• 25 vehicles
• 3 jewelry items

Marijuana is a Schedule I narcotic and illegal under federal law.  The marijuana subject to this law enforcement action was destined for the black market, which has dramatically increased in Colorado in recent years. 

This investigation began in the summer of 2016, when investigators from the North Metro Task Force began investigating a network of marijuana cultivators involved in the distribution of large amounts of marijuana.  The grows were found in the basements of newer houses in fairly upscale neighborhoods.  The grow areas are generally in sealed basement rooms.  Large commercial charcoal air filters are often used to remove marijuana odor.  Some growers vent air late at night to prevent investigators and neighbors from detecting the odor. 

Five percent of the grow locations involved the bypass of the electrical meter, which greatly decreases the amount of electricity for which a marijuana grow home is billed, making it more difficult for law enforcement to identify the grow homes by reviewing electrical use data, but increasing the public safety risk. 

“Colorado has become the epicenter of black market marijuana in the United States,” said United States Attorney Jason Dunn.  “It’s impacting communities, it’s impacting neighborhoods, and it’s impacting public safety.  But this investigation may be just the tip of the iceberg.  We will therefore continue to pursue black market growers and prosecute them to the full extent of the law.”

“Unfortunately Colorado is no longer known for its beautiful mountains and scenery,” said DEA Denver Division Special Agent in Charge William T. McDermott.  “Now it is known for marijuana and other illegal manufacturing and distribution of controlled substances.  This investigation highlights that law enforcement and prosecutors are committed to the rule of law and ensuring Colorado returns to its former standing.”

This case was investigated by the North Metro Task Force, the DEA, the 18^th Judicial District Attorney and the 17^th Judicial District Attorney, with support from the following law enforcement agencies: U.S. Marshals Service, FBI, HSI, ATF, IRS, West Metro Drug Task Force, Front Range Task Force, Thornton Police Department, Westminster Police Department, Adams County Sheriff, Broomfield Police Department, Commerce City Police Department, Northglenn Police Department, Brighton Police Department, Federal Heights Police Department, Aurora Police Department, Jefferson County Sheriff, Arapahoe County Sheriff, Arvada Police Department, Wheat Ridge Police Department, Golden Police Department, Lakewood Police Department, Denver Police Department, Weld County Sheriff, Firestone Police Department, Frederick Police Department, Parker Police Department, Castle Rock Police Department, Colorado Bureau of Investigation, Douglas County Sheriff, Mountain View Police Department, Englewood Police Department, Colorado Attorney General’s Office, Colorado State Patrol, Colorado Springs Police Department, Fort Collins Police Department, National Guard, Pueblo Police Department, El Paso County Sheriff, Pueblo County Sheriff, Teller County Sheriff, Longmont Police Department, and the High Intensity Drug Trafficking Area (HIDTA).

Federal defendants are being prosecuted by Assistant U.S. Attorneys Aaron Teitelbaum and Barbara Skalla.  The related forfeiture matters are being handled by Assistant United States Attorneys Elizabeth Young and Tonya Andrews.

The defendants are presumed innocent until proven guilty.

Federal Criminal Case Nos:  19-cr-130, 19-cr-0177, 19-cr-0195, 19-cr-119, 19-cr-0113, 19-cr-0112, 19-cr-083

Federal Forfeiture Case Nos:  18-cv-00121, 18-cv-01880, 18-cv-01344, 18-cv-02064,18-cv-02734, 19-cv-00257

Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Luckner Stimphil (55, Brandon) to four years and nine months in federal prison for conspiracy to defraud the United States. Last week, Stimphil’s daughter, Elwolfine Dufort (31, Riverview), was sentenced to two years in federal prison for her role in the conspiracy. The court also ordered Stimphil and Dufort to pay $11 million in restitution, joint and several, to the United States and imposed a $10,000 fine against Stimphil. Stimphil and Dufort had pleaded guilty in February 2019.

Stimphil and Dufort have agreed to be permanently enjoined from preparing or assisting in the preparation or filing of federal tax returns or other related documents for any other person or entity; from maintaining any association with a tax return preparation business; and from instructing, teaching, or otherwise training any person in the preparation of federal tax returns. Stimphil further consented to pay all taxes, interest, and penalties he owed to the IRS relating to his personal tax returns for years 2012 and 2013.  

According to court documents, Stimphil, the then-pastor at First Calvary Family Life Ministry in Tampa, created and operated Top Popular Tax, a tax return preparer business with offices in Tampa, Winter Haven, and other locations. The business operated from around 2011 through at least mid-2015. Stimphil, Dufort, and others working under Stimphil’s supervision, routinely assisted in and advised in the preparation and presentation to the IRS of false and fraudulent Top Popular Tax clients’ IRS Forms 1040. They included materially false and fraudulent information on the client-taxpayers’ Schedule C Forms (business income or loss) and Forms 8863 (associated with a claim for the American opportunity credit). Some of the forms  submitted to the IRS by Top Popular Tax also included a false and fraudulent claim for a credit for federal tax on fuels.         

“Together, Luckner Stimphil and his daughter, Elwolfine Dufort, were responsible for preparing false tax returns that caused more than $11 million dollars in losses to the IRS, essentially stealing the tax dollars paid by honest Americans,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “As unconscionable as that sounds, the damage did not stop there. Their actions upended the lives of their clients who now must sort out the mess caused by the false returns Stimphil and Dufort filed in their names. We plead with all taxpayers to do their due diligence in selecting a trustworthy and accredited return preparer.”

This case was investigated by IRS-Criminal Investigation. It was prosecuted by Assistant United States Attorney Jay G. Trezevant and Craig R. Gestring.

SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Morris & Dickson Company LLC has agreed to pay the United States $22 million in civil penalties to resolve claims that it violated the Controlled Substances Act by failing to report suspicious orders of hydrocodone and oxycodone. 

“The fight against opioid abuse is among our nation’s most pressing law enforcement and public health initiatives,” said U.S. Attorney David C. Joseph.  “Opioids are now the leading cause of accidental death in the United States – killing approximately 130 Americans every day.  About 40 percent of these deaths involve prescription drug abuse.  This settlement demonstrates the Justice Department’s continued commitment to use all of the tools at its disposal to stem the opioid epidemic.  Louisiana citizens should know that my office and our local DEA agents will continue to investigate and aggressively prosecute any manufacturer, distributor, pharmacy, or doctor who, whether negligently or intentionally, fail in their duty to appropriately control the distribution and use of these deadly drugs.”

In addition to paying $22 million in settlement funds, Morris & Dickson also agreed during the course of the negotiations to make significant upgrades to its compliance program by investing millions of dollars to hire additional staff and implement new protocols and standards to ensure compliance with federal regulations requiring them to report suspicious orders of controlled substances.              

This settlement arises from a Drug Enforcement Administration Office of Diversion Control investigation into Morris & Dickson’s failure to report suspicious orders of hydrocodone and oxycodone.  Since January 2014, DEA Diversion agents have identified more than 12,000 allegedly suspicious retail pharmacy orders that should have been reported.  Under the Controlled Substances Act and its implementing regulations, distributors are required to report suspicious orders to the DEA.  Reporting suspicious orders and maintaining effective controls against diversion of controlled substances are critical components of the government’s effort to stop the illegal distribution and sale of opioids.

DEA Special Agent in Charge Brad L. Byerley said, "The failure to report suspicious orders as required by federal regulations contributes to the opioid epidemic, which has caused devastating harm to individuals and our communities.  The settlement with Morris & Dickson demonstrates the resolve by DEA to use all available tools to address this crisis at every level and reduce the availability of highly addictive, dangerous drugs."

Morris & Dickson is the largest privately owned wholesale pharmaceutical distributor in the United States and the fourth largest wholesale distributor in the country, reporting total revenues of over $4 billion in its fiscal year ending January 31, 2018.  Since January 2014, Morris & Dickson distributed controlled substances to approximately 800 retail pharmacies across 17 states, distributing over 600,000,000 dosage units.  Morris & Dickson services hospitals, alternative and other health care providers, and retail pharmacies out of its Shreveport, Louisiana facility.  

Mr. Joseph thanked the diversion investigators of DEA’s Office of Diversion Control - New Orleans Division for their work in this matter.  Mr. Joseph was assisted in handling this matter by Assistant U.S. Attorney Melissa Theriot and former Assistant U.S. Attorney Shannon Brown.

The Centers for Disease Control and Prevention (“CDC”) estimates that more than 630,000 Americans died from drug overdoses from 1999 to 2016.  In 2016 alone, approximately 42,000 people died of opioid-related causes.  The number of opioid-overdose deaths has reached epidemic proportions:  in 2016 there were five times as many such deaths as there were in 1999. 

For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers.  To report suspected opioid-related crimes, the public is encouraged to contact the DEA at www.deadiversion.usdoj.gov/tips_online.htm.

BOSTON – A Boston man was arrested yesterday and charged in federal court in Boston with illegally possessing a firearm and ammunition.

Rahshjeem Benson, 36, was charged with being a felon in possession of a firearm and ammunition. Benson appeared in federal court in Boston today, and was ordered detained pending a detention hearing scheduled for May 31, 2019.

According to court documents, on April 5, 2019, Benson possessed a Charter Arms Bulldog Pug .44 SPL caliber revolver, and five Smith & Wesson .44 caliber SPL cartridges. Due to a prior felony conviction, Benson is prohibited from possessing firearms or ammunition.

 The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.

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

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

St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Duane Woods, Jr. has been indicted for Receiving Stolen Government Property and Grand Larceny. According to the indictment, Woods, who worked for FEMA at the time, converted FEMA property to his own use, including a generator, phones, monitors, and iPads.

This case is being investigated by the Department of Homeland Security-OIG and the Federal Bureau of Investigations. It is being prosecuted by Assistant United States Attorney Nathan Brooks.

United States Attorney Shappert reminds the public that an indictment is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.

PITTSBURGH – A former resident of Pittsburgh, Pennsylvania, pleaded guilty to one count of possession with intent to distribute cocaine, United States Attorney Scott W. Brady announced today.

Vernon Jackson, 49, pleaded guilty yesterday in front of U.S. District Judge Joy Flowers Conti.

According to information provided to the court, on or about March 8, 2018, detectives from the City of Pittsburgh Narcotics and Vice Unit executed a search warrant at Vernon Jackson’s residence at on Pioneer Avenue in the City’s Brookline neighborhood. Jackson was the only occupant at the home at the time of the search. Detectives recovered multiple bags of cocaine, two digital scales, and drug packaging material from the kitchen of the home. Jackson was on federal supervised release at the time of execution of the search warrant for a prior federal conviction for heroin trafficking.

Judge Conti scheduled sentencing for Sept. 10, 2019. The law provides for a maximum total sentence of not more than 30 years in prison, a fine not to exceed $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Defendant is detained and will be continued to be detained pending sentence.

Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.

St. Croix, USVI – Don-Luke George, 24, of St. Croix, pled guilty on May 23, 2019, in District Court to one count of Conspiracy to Possess Cocaine with Intent to Distribute, United States Attorney Gretchen C.F. Shappert announced.

This federal offense carries a possible sentence of incarceration of 5 to 40 years, a maximum fine of up to $250,000 dollars, and a term of supervised release for at least 4 years. Sentencing is set for September 25, 2019.

According to court documents, on April 12, 2018, Don-Luke George, along with a co-defendant, conspired to bring 2010 grams of cocaine (2.01 kilograms) into the Henry E. Rohlsen Airport with the intent to transport the cocaine to Miami via American Airlines flight #2227. Specifically, George, who was employed at the airport, smuggled four bricks of cocaine into the passenger waiting area of the airport, and delivered them to the co-defendant in the men’s restroom. The co-defendant was a passenger on the outgoing American Airlines flight, but was intercepted with the cocaine prior to boarding his flight by Customs and Border Protection officers.

The case was investigated by Customs and Border Protection and Homeland Security Investigations. The cocaine was analyzed by the DEA Southeast Laboratory in Miami. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.