Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that, in 2019, the U.S. Attorney’s Office charged 65 defendants with unlawful possession of a firearm.  These indictments emphasize prosecution against individuals convicted of felonies or misdemeanor crimes of domestic violence, and who would therefore be prohibited from possessing firearms. 

Unlawful possession of a firearm carries a maximum sentence of up to 10 years in federal prison.  To date, nine of the 65 defendants face additional charges for their alleged participation in varied criminal conduct that involved firearms, including bank robbery and armed drug trafficking. 

“Violent crime remains a critical problem in Alaska,” said U.S. Attorney Schroder. “The U.S. Attorney’s Office has made prosecution of gun crimes one of our highest priorities.  As a result of these efforts, we have taken over 200 gun carrying criminals off the streets since 2017.”

The charges are a result of initiatives stemming from Project Safe Neighborhoods (PSN), the Department of Justice’s signature gun and gang reduction program, and the District’s Anti-Violent Crime Strategy, which brings together local, state, and federal authorities to combat rising crime in Alaska.  As part of this strategy, the Anchorage Police Department is also utilizing ATF’s National Integrated Ballistic Information Network (NIBIN), which is the only national network that allows for the capture and comparison of ballistic evidence.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.

These cases are often developed through cooperation with the State of Alaska Department of Law, and investigated by local, state, and federal authorities to include the Anchorage Police Department (APD), Alaska State Troopers (AST), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI). In addition, and in partnership with the Municipality of Anchorage, an Assistant Municipal Prosecutor has been appointed to the U.S. Attorney’s Office to prosecute firearm and drug offenses as a Special Assistant U.S. Attorney (SAUSA).

Last month, the Department of Justice announced the launch of Project Guardian, a nationwide strategic plan to reduce gun violence.  Project Guardian serves as a complementary effort to the success of PSN, and emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Eric Dreiband, Assistant Attorney General for Civil Rights, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that GRAFTON THOMAS has been charged with five counts of obstructing the free exercise of religion in an attempt to kill, a federal hate crime, related to his machete attack during Hanukkah observances at a rabbi’s home in Monsey, New York, on the night of December 28, 2019.  THOMAS is expected to be presented in White Plains federal court later today.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Grafton Thomas targeted his victims in the midst of a religious ceremony, transforming a joyous Hanukkah celebration into a scene of carnage and pain.  Today is the eighth day of Hanukkah, the festival of lights that commemorates Jews’ struggle to practice their faith more than two millennia ago, and we are about to welcome in a new year.  Even in the face of tragedy, both milestones are an occasion for renewed hope and resolve:  To combat bigotry in all its forms – and to bring to justice the perpetrators of hate-fueled attacks.”

Assistant Attorney General Eric Dreiband said:  “Every American should be free to live and worship in safety.  The Department will vigorously prosecute those who commit hate crimes, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”

FBI Assistant Director William F. Sweeney Jr. said:  “When an individual’s actions cross the threshold of a federal crime, as we allege Mr. Grafton did here, we will act swiftly.  The message from today’s charges should be crystal clear – the FBI won’t tolerate violence against anyone.  Working with our partners, we will hold anyone who commits a crime like this accountable for their actions.  The federal penalties for this type of attack are severe and justified.  In this instance, the local community was engaged, and their actions were essential to saving lives and led directly to Mr. Grafton’s capture.  It’s the rest of our community’s joint responsibility to step up and engage as well – don’t give hate a platform to propagate and don’t dismiss this type of behavior as someone else’s problem, address it and immediately report suspicious activity to authorities.” 

According to the Complaint^[[1]] unsealed today in White Plains federal court:

On December 28, 2019, THOMAS entered a Rabbi’s home in Monsey, New York, which is adjacent to the Rabbi’s synagogue, during observances related to the end of Shabbat and the seventh night of Hanukkah.  THOMAS declared to dozens of assembled congregants, “no one is leaving,” and attacked the group with an 18-inch machete.  At least five victims were hospitalized with serious injuries, including slash wounds, deep lacerations, a severed finger, and a skull fracture. 

Following the attack, Thomas traveled in a car to New York City, and he was stopped in Harlem by members of the New York City Police Department.  The responding officers observed what appeared to be blood on THOMAS’s hands and clothing, and smelled bleach coming from his vehicle.  A search of THOMAS’s vehicle led to the seizure of, among other things, a machete that appeared to have traces of dried blood on it.  Law enforcement subsequently searched THOMAS’s residence and cellphone pursuant to warrants.  The residence contained handwritten journals with several pages of anti-Semitic references.  THOMAS’s cellphone contained Internet searches dating back to at least November 2019 for terms such as “Zionist Temples” in Staten Island and New Jersey, as well as a webpage visit on the day of the attack to an article titled, “New York To Increase Police Presence After Anti-Semitic Attacks.”  

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THOMAS, 37, is charged with five counts of obstructing the free exercise of religion in an attempt to kill, in violation of Title 18, United States Code, Section 247.  Each of the five counts carries a maximum prison term of life.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Berman praised the outstanding efforts of the FBI, the Rockland County District Attorney’s Office, the Ramapo Police Department, the Rockland County Sherriff’s Office, the New York State Police, the Clarkstown Police Department, and the New York City Police Department, as well as the U.S. Department of Justice’s Civil Rights Division.

This case is being handled by the Office’s Terrorism and International Narcotics Unit, its White Plains Division, and the Civil Rights Unit of the Office’s Civil Division.  Assistant U.S. Attorneys Michael K. Krouse, Lindsey Keenan, and Lara Eshkenazi are in charge of the prosecution.

The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.

A nineteen-year-old man was sentenced today to over three years in federal prison for his role in trafficking more than 100 grams of heroin in the Cedar Rapids, Iowa, area.

Walter Murray, Jr., age 19, from Junpion City, Arizona, and previously residing in Cedar Rapids, received the prison sentence after his June 25, 2018 guilty plea to conspiracy to distribute heroin.  According to sentencing documents and information disclosed during the sentencing hearing, Murray were involved with a group of heroin dealers in Cedar Rapids from at least January 2019 to April 2019.  During that time, the group sold more than 100 grams of heroin.  Murray was responsible for selling heroin to multiple individuals during that time.

On February 13, 2019, Murray was driving a car in Cedar Rapids.  Police officers attempted to stop the car.  Murray did not stop, instead fleeing from the officers.  During the chase, Murray reached 60 miles per hour in a 30 miles per hour speed zone.  Murray hit another occupied car, drove down a bike trail, and onto the frozen Cedar River before leaving the car in someone’s backyard and running.  While running, Murray threw away approximately 30 grams of heroin, which law enforcement found shortly after locating and arresting Murray.   

Murray was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Murray was sentenced to 37 months’ imprisonment followed by a three-year term of supervised release.  There is no parole in the federal system.  Murray is being held in the United States Marshal’s custody until they can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Ashley Corkery and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and the United States Marshal’s Service. 

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

The case file number is 19-CR-45. 

Follow us on Twitter @USAO_NDIA.

Evan Jamon Woodard, 34, of Tulsa, was sentenced Monday in U.S. District Court for two firearms violations and for possession with intent to distribute cocaine, marijuana and heroin, announced U.S. Attorney Trent Shores.

U.S. District Judge Gregory K. Frizzell sentenced Woodard to 14 years in federal prison to be followed by five years of supervised release.

“It’s appropriate we close out this year with a gun and drug related sentencing of a seven-time repeat felon. Project Safe Neighborhoods is designed to protect communities from these types of career criminals,” said U.S. Attorney Trent Shores. “The U.S. Attorney’s Office and our law enforcement partners work together to send individuals, like Mr. Woodard, to federal prison to account for the harm they repeatedly inflict in our communities.”

In September, a jury found Woodard guilty of seven felony charges. Woodard was convicted of being a felon in possession of a firearm and ammunition; possession with intent to distribute cocaine (2 counts), possession with intent to distribute heroin; possession with intent to distribute marijuana (2 counts); and possession of a firearm in furtherance of drug trafficking crimes.

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

Woodard’s arrest and conviction were the result of a coordinated effort involving the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa and Bartlesville Police Departments, and Assistant U.S. Attorneys Victor Régal and Edward Snow.

Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools.  The initiative involves a partnership of federal, state and local authorities, uniting their efforts and leveraging existing and new resources at all levels.  Each United States Attorney’s Office will create a specialized unit that tailors its approach to the unique needs of its own district and targets the most significant gun crime problems within that district to maximize the impact of the initiative and help ensure the safety of the community.

OKLAHOMA CITY – LaForge & Budd Construction Company, Inc. ("LaForge"), has agreed to pay $3 million to settle civil claims stemming from allegations that it submitted false claims to the United States Army, announced United States Attorney Timothy J. Downing.

In 2010, LaForge, a Kansas company, entered into a contract to perform work on a dam on Lake George, at the Fort Sill Army Post in Lawton, Oklahoma.  The work included raising the elevation of the dam and required LaForge to perform the work in accordance with the plans and specifications provided in the contract.  The United States alleges LaForge submitted false claims for progress payments for work done on the dam’s embankment.  More specifically, LaForge represented that the fill it placed in the embankment of the Dam complied with the specifications, terms, and conditions of the contract when, according to the government’s allegations, unsatisfactory materials such as pieces of concrete, concrete rubble, and metal rebar were placed in the embankment.  On April 12, 2019, the United States filed an action against LaForge in the United States District Court for the Western District of Oklahoma, No. CIV-19-336-G.

To resolve these allegations, LaForge agreed to pay $3,000,000 to the United States.

In reaching this settlement, LaForge did not admit liability, and the government did not make any concessions about the legitimacy of the claims.  The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.

This case was investigated by the Defense Criminal Investigative Service.  Assistant U.S. Attorneys Ronald R. Gallegos and Don Evans prosecuted the case.  To download a photo of U.S. Attorney Downing, click here.

BOSTON – A Chelsea man was arrested on Dec. 27, 2019, and charged with being a felon in possession of a firearm.

Semaj Leary was charged in an indictment with one count of being a felon in possession of a firearm. Following an initial appearance and arraignment in federal court in Boston today, Leary was detained pending a detention hearing set for Jan. 2, 2020.

According the indictment, on Aug. 15, 2019, Leary was found in possession of a 9mm Glock semi-automatic pistol, seven rounds of R-P 9mm caliber ammunition, four round of WIN 9mm caliber ammunition, two rounds of VPT 9mm caliber ammunition, one round of WCC 9mm caliber ammunition, and one round of Tulammo 9mm caliber ammunition. Leary had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail, and therefore was prohibited from possessing firearms.

The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Suffolk County District Attorney Rachel Rollins; and Boston Police Commissioner William Gross made the announcement today. 

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.

United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with False Statement During Purchase of a Firearm.

Uriah Lafferty, age 34, was charged on December 17, 2019.  Lafferty appeared before U.S. Magistrate Judge Daneta Wollmann on December 27, 2019, and pleaded not guilty to the charge.  The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and a $100 assessment to the Federal Crime Victims Fund.  Restitution may also be ordered.

The charge relates to Lafferty knowingly making a false written statement in order to purchase a firearm in October 2019 at Rapid City.  The charge is merely an accusation and Lafferty is presumed innocent until and unless proven guilty. 

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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.

The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Assistant U.S. Attorney Ben Patterson is prosecuting the case.

Lafferty was detained pending trial.  A trial date has not been set. 

United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man was sentenced on December 27, 2019, by U.S. District Judge Charles B. Kornmann.

Brendon Javon Jacob Rodlund, age 30, was sentenced to 157 months in federal prison, to be followed by 10 years of supervised release.  He was also ordered to pay $100 to the Federal Crime Victims Fund. 

According to court documents, April 30 and May 1, 2016, Rodlund knowingly engaged in a sexual act with a juvenile victim, while the victim was physically incapable of declining participation in and communicating her unwillingness to engage in the sexual act.  Rodlund knew the victim was incapacitated.  During the investigation of this sexual assault, Rodlund also lied under oath to the U.S. District Judge while testifying at a federal court hearing involving the victim and others.  Rodlund’s untruthful testimony was used to enhance his sentence for the sexual assault of the victim. 

This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorney Jeremy Jehangiri prosecuted the case.       

Rodlund was remanded to the custody of the U.S. Marshals Service.

DENVER – United States Attorney Jason R. Dunn announced today that Saskia Iona Mesmer, age 25, of Denver, Colorado was sentenced to serve 130 months (nearly 11 years) in federal prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.  The sentence was pronounced by Chief U.S. District Court Judge Philip A. Brimmer.  Mesmer appeared at the sentencing hearing in custody, and was remanded at its conclusion.  The DEA joined in today’s announcement. 

According to the stipulated facts contained in the defendant’s plea agreement, on February 6, 2018, the Denver Police Department executed a state search warrant at Mesmer’s residence based on information that she previously sold methamphetamine to a confidential informant.  While executing the warrant, officers determined that she had a stolen loaded handgun, 55.87 grams of methamphetamine, 39.95 grams of heroin, $2,850 in cash, 43 Alprazolam pills and a digital scale.

“The defendant was a drug dealer, selling dangerous narcotics while carrying a loaded firearm,” said U.S. Attorney Jason Dunn.  “Thanks to the Denver Police Department, the DEA and prosecutors from this office, Ms. Mesmer will no longer pose a danger to the community.”

“This case shows the great partnership between local and federal law-enforcement,” said DEA Denver Division Special Agent in Charge Deanne L. Reuter.  “Ms. Mesmer prayed on the community we live in and will now face the consequences of her actions.”

Mesmer was indicted by a federal grand jury in Denver on June 6, 2018.  She pleaded guilty before Chief Judge Brimmer on August 28, 2019.  She was sentenced on December 30, 2019.

This case was investigated by the Denver Police Department and the DEA Denver Division.  The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster.

CHARLESTON, W.Va. – A Detroit, Michigan man was sentenced to federal prison for distribution of oxycodone and oxymorphone, announced United States Attorney Mike Stuart.  Ricky Walker was sentenced to 30 months in prison followed by a three year term of supervised release for distributing both drugs to an undercover Drug Enforcement Administration Task Force Officer on November 2, 2012 on the parking lot of the Comfort Inn in Cross Lanes.

“Another Detroit drug dealer is on his way to federal prison for peddling opiates in West Virginia,” said United States Attorney Mike Stuart.  “We continue to work with a sense of urgency to hold poison peddlers like Walker accountable.”

Walker previously pled guilty in October 2019, admitting that he knowingly distributed the drugs, which he had transported from Detroit to the Comfort Inn parking lot in Cross Lanes, to someone who he later learned was an undercover law enforcement officer. 

Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. The Drug Enforcement Administration conducted the investigation.  Assistant United States Attorney John J. Frail handled the prosecution.

Follow us on Twitter:SDWVNewsand USAttyStuart

 
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HOUSTON – A 34-year-old Nigerian man who resided in Houston has been charged with conspiracy, bank fraud and aggravated identify theft, announced U.S. Attorney Ryan K. Patrick.

Julius Joachim Ohumole is set to appear at 10 a.m. today before U.S. District Judge Dena Hanovice Palermo. A Houston grand jury returned the seven-count indictment Dec. 19. He was originally charged by criminal complaint Nov. 8 and later taken into custody.

Ohumole is charged with one count of conspiracy, four counts of bank fraud and two counts of aggravated identify theft.

The charges allege Ohumole opened a bank account in the name of Mars Construction (MARS) Dec. 5, 2018, at Regions Bank in Houston. At that time, he allegedly used false identification documents which identified him as someone else.   

Later than month, Ohumole accompanied another individual to Regions who used false identification documents to appear as an actual accountholder with the bank, according to the allegations. Ohumole allegedly requested that person be added as a co-signor to the MARS account which then allowed it to be linked to the real accountholder.

According to the allegations, an unknown individual transferred $274,000 from the real Regions account to the MARS account without the true person’s consent, knowledge or authorization. The same day, all but $1,000 of those funds were allegedly wired transferred to a bank account in New York and subsequently out of the country. A similar set of transactions involving approximately $200,000 occurred a few days later, according to the charges.  

The allegations also state Ohumole allegedly went to another Regions Bank and again used false identification documents to open a separate account, this time in the name of JMW Holt Constructions (JMW). Similarly, he allegedly accompanied another person who used fake documents to appear as a bank accountholder and requested their addition as a co-signor. Again, the scheme involved the transfer of thousands of dollars – approximately $805,000 – from the real account to the JMW account, then to an account in New York and out of the United States, according to the charges.  

Each count of conspiracy and bank fraud carries a possible sentence of up to 30 years in federal prison and the aggravated identify theft charge carries up to two years, upon conviction. Each conviction also carries a possible $1 million maximum fine.

The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.

LAS VEGAS, Nev. – The second main co-conspirator in a large-scale timeshare resale scam was sentenced today to 70 months in federal prison for defrauding more than 1,000 victims — many of them elderly — out of more than $3.3 million, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Paul Michael Marciniak, 34, of Orlando, Florida, pleaded guilty to conspiracy to commit mail fraud and wire fraud. In addition to the prison term, U.S. District Judge Jennifer Dorsey sentenced Marciniak to three years of supervised release and ordered him to pay $3.37 million in restitution to the victims of the fraud scheme.

According to court documents, from October 2010 to April 2012, Marciniak and his co-conspirators (including Daniel Boyar, the leader of the scheme) devised and participated in a telemarketing scam to defraud over 1,000 timeshare owners out of more than $3.3 million dollars. They used stolen data to identify timeshare owners and promised to sell the timeshares in return for the owners paying in advance half of the costs associated with the purported sales. But there were no buyers and the timeshare sales never occurred. This is a common criminal telemarketing scheme known as “the buyer’s pitch.”

The scam operated out of Orlando, Florida, under several different business names including Holiday Advertising, First Capital Financial Services Corporation, Great West Funding Incorporated, Beneficial Business Solutions, Vacation Funding Partners LP, and Property, People, Travel, using fake front companies in various cities across the country, including Las Vegas. The co-conspirators would buy inactive companies that had previously been licensed in their target state, use false identities, and lease temporary office spaces. The co-conspirators created websites with false information including customer testimonials, company officers, and press releases.  They also used telephone numbers that made it appear as if they were calling from the location of the fake front company. These actions were intended to mislead the victims and make the scam appear legitimate. 

20 of Marciniak’s co-conspirators were charged and have pleaded guilty for their involvement in this fraud scheme. 17 of these co-conspirators have been sentenced and the remainder await sentencing.

The case resulted from investigation by the FBI, the U.S. Postal Inspection Service, and the Florida Department of Agriculture and Consumer Services. Assistant U.S. Attorney Dan Cowhig prosecuted the case.

Consumers should use caution when previously unknown telemarketers offer unsolicited services. It is relatively easy for scam artists to create the appearance of legitimacy for a fraudulent business front by manipulating information available through the Internet. Fraudsters frequently are able to buy or steal information related to an intended victim that the victim believed was confidential, helping the fraudster trick the victim into believing the fraudster is part of a legitimate business.

Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that Bucks County dentist Dr. Pranathi V. Reddy will pay $150,000 and stop prescribing Schedule II opioids for four years to resolve allegations that she diverted controlled substances for personal use and overdosed on one occasion, and that she failed to comply with various record-keeping requirements for controlled substances.

The settlement resolves allegations that, on October 14, 2018, Reddy diverted a package of controlled substances for her personal use, which resulted in an overdose and her transport to the hospital. It also resolves allegations that, from June 2017 through November 2018, she failed to maintain various records of the controlled substances she used in her professional practice as a dentist. For example, the settlement resolves allegations that Reddy failed to maintain an initial inventory of her controlled substances, document the transfer of controlled substances on the required forms, and failed to maintain the controlled substances at her registered locations.

In addition to the $150,000 penalty, Reddy is now barred from purchasing, prescribing, or dispensing any Schedule II controlled substances for at least the next four years. She is also subject to a number of monitoring requirements, including reporting her controlled substance purchasing, dispensing, and prescribing to the Drug Enforcement Administration.

“Controlled substances, especially opioids, pose extraordinary risks to our communities, including to healthcare providers,” said First Assistant U.S. Attorney Williams. “When providers are granted the privilege of purchasing and prescribing controlled substances, they also accept the weighty responsibilities that come along with those privileges, including ensuring that controlled substances are used for a legitimate medical purpose and generating the records necessary for accountability and transparency. When providers fail to comply with these critical responsibilities, our Office will work with our law enforcement partners and use all available enforcement tools to hold these providers responsible.”

“Dr. Reddy, like all DEA registrants that are licensed and entrusted with the safe handling of powerful controlled substances, failed to accurately document and secure these same controlled substances in accordance with federal regulations,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “In the midst of the current opioid crisis, even medical professionals are not immune from the perils of substance use disorder.”

This investigation was conducted with the Pennsylvania Department of State’s Bureau of Enforcement and Investigation and the Drug Enforcement Administration’s Philadelphia Field Division and Camden, New Jersey Resident Office. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano handled the investigation and settlement.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

PROVIDENCE – An individual who allegedly broke into a Woonsocket manufacturing plant and set fires in several locations, and whose identity became known after a surveillance photograph of him was posted to Rhode Island’s Most Wanted website, was indicted today by a federal grand jury on a charge of arson.

Woonsocket Police Department personnel responded to an alarm at Sports Systems Custom Bag Corporation in the early morning hours of April 5, 2019, and discovered smoke in the building and water flowing from sprinkler heads in the basement and first floor. A small fire inside a desktop computer lying on the floor in the basement and smoldering papers on a desk in a first floor office were quickly extinguished. The sprinkler system had contained or extinguished most of the fire prior to the fire department’s arrival.

Investigators also observed evidence of forced entry, smashed computers, ransacked offices, and an attempted forced entry into a safe.

Investigators also retrieved a smashed and badly damaged DVR used to record security camera images. According to court documents, recovered video surveillance shows a person using a ladder to access the building. The same person is seen walking around the building collecting various items and placing them into bags, which he obtained from within the facility.

At one point the person takes down an American flag hanging in the building, folds it in a military fashion, and then places it into his backpack.

According to court documents, the individual seen in the video initially touches several items in the building then puts on a pair of gloves and wipes down those places he previously touched. He also disabled and destroyed several surveillance cameras.

Images of the individual captured on video and retrieved from the security camera DVR were posted by law enforcement to Rhode Island’s Most Wanted website. Information from the public assisted law enforcement in identifying the person as allegedly being Jacob E. Lahousse, 20, who has no known address. Law enforcement located and arrested Lahousse on December 26, 2019. He was ordered detained in federal custody by U.S. District Court Magistrate Judge Patricia A. Sullivan.

Lahousse’s indictment, returned today, is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady, Woonsocket Police Chief Thomas Oates, and Rhode Island State Fire Marshal Timothy McLaughlin.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.

The matter was investigated by the Woonsocket Police Department, the Office of the State Fire Marshal, and ATF.

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Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Eric Dreiband, Assistant Attorney General for Civil Rights, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that GRAFTON THOMAS has been charged with five counts of obstructing the free exercise of religion in an attempt to kill, a federal hate crime, related to his machete attack during Hanukkah observances at a rabbi’s home in Monsey, New York, on the night of December 28, 2019.  THOMAS is expected to be presented in White Plains federal court later today.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Grafton Thomas targeted his victims in the midst of a religious ceremony, transforming a joyous Hanukkah celebration into a scene of carnage and pain.  Today is the eighth day of Hanukkah, the festival of lights that commemorates Jews’ struggle to practice their faith more than two millennia ago, and we are about to welcome in a new year.  Even in the face of tragedy, both milestones are an occasion for renewed hope and resolve:  To combat bigotry in all its forms – and to bring to justice the perpetrators of hate-fueled attacks.”

Assistant Attorney General Eric Dreiband said:  “Every American should be free to live and worship in safety.  The Department will vigorously prosecute those who commit hate crimes, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”

FBI Assistant Director William F. Sweeney Jr. said:  “When an individual’s actions cross the threshold of a federal crime, as we allege Mr. Thomas did here, we will act swiftly.  The message from today’s charges should be crystal clear – the FBI won’t tolerate violence against anyone.  Working with our partners, we will hold anyone who commits a crime like this accountable for their actions.  The federal penalties for this type of attack are severe and justified.  In this instance, the local community was engaged, and their actions were essential to saving lives and led directly to Mr. Thomas’s capture.  It’s the rest of our community’s joint responsibility to step up and engage as well – don’t give hate a platform to propagate and don’t dismiss this type of behavior as someone else’s problem, address it and immediately report suspicious activity to authorities.” 

According to the Complaint^[[1]] unsealed today in White Plains federal court:

On December 28, 2019, THOMAS entered a Rabbi’s home in Monsey, New York, which is adjacent to the Rabbi’s synagogue, during observances related to the end of Shabbat and the seventh night of Hanukkah.  THOMAS declared to dozens of assembled congregants, “no one is leaving,” and attacked the group with an 18-inch machete.  At least five victims were hospitalized with serious injuries, including slash wounds, deep lacerations, a severed finger, and a skull fracture. 

Following the attack, Thomas traveled in a car to New York City, and he was stopped in Harlem by members of the New York City Police Department.  The responding officers observed what appeared to be blood on THOMAS’s hands and clothing, and smelled bleach coming from his vehicle.  A search of THOMAS’s vehicle led to the seizure of, among other things, a machete that appeared to have traces of dried blood on it.  Law enforcement subsequently searched THOMAS’s residence and cellphone pursuant to warrants.  The residence contained handwritten journals with several pages of anti-Semitic references.  THOMAS’s cellphone contained Internet searches dating back to at least November 2019 for terms such as “Zionist Temples” in Staten Island and New Jersey, as well as a webpage visit on the day of the attack to an article titled, “New York To Increase Police Presence After Anti-Semitic Attacks.”  

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THOMAS, 37, is charged with five counts of obstructing the free exercise of religion in an attempt to kill, in violation of Title 18, United States Code, Section 247.  Each of the five counts carries a maximum prison term of life.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Berman praised the outstanding efforts of the FBI, the Rockland County District Attorney’s Office, the Ramapo Police Department, the Rockland County Sherriff’s Office, the New York State Police, the Clarkstown Police Department, and the New York City Police Department, as well as the U.S. Department of Justice’s Civil Rights Division.

This case is being handled by the Office’s Terrorism and International Narcotics Unit, its White Plains Division, and the Civil Rights Unit of the Office’s Civil Division.  Assistant U.S. Attorneys Michael K. Krouse, Lindsey Keenan, and Lara Eshkenazi are in charge of the prosecution.

The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that Bucks County dentist Dr. Pranathi V. Reddy will pay $150,000 and stop prescribing Schedule II opioids for four years to resolve allegations that she diverted controlled substances for personal use and overdosed on one occasion, and that she failed to comply with various record-keeping requirements for controlled substances.

The settlement resolves allegations that, on October 14, 2018, Reddy diverted a package of controlled substances for her personal use, which resulted in an overdose and her transport to the hospital. It also resolves allegations that, from June 2017 through November 2018, she failed to maintain various records of the controlled substances she used in her professional practice as a dentist. For example, the settlement resolves allegations that Reddy failed to maintain an initial inventory of her controlled substances, document the transfer of controlled substances on the required forms, and failed to maintain the controlled substances at her registered locations.

In addition to the $150,000 penalty, Reddy is now barred from purchasing, prescribing, or dispensing any Schedule II controlled substances for at least the next four years. She is also subject to a number of monitoring requirements, including reporting her controlled substance purchasing, dispensing, and prescribing to the Drug Enforcement Administration.

“Controlled substances, especially opioids, pose extraordinary risks to our communities, including to healthcare providers,” said First Assistant U.S. Attorney Williams. “When providers are granted the privilege of purchasing and prescribing controlled substances, they also accept the weighty responsibilities that come along with those privileges, including ensuring that controlled substances are used for a legitimate medical purpose and generating the records necessary for accountability and transparency. Unfortunately, sometimes they fail to comply with these critical responsibilities, and that is when it is necessary for our Office to step in and work with our law enforcement partners to use all available enforcement tools to hold these providers responsible.”

“Dr. Reddy, like all DEA registrants that are licensed and entrusted with the safe handling of powerful controlled substances, failed to accurately document and secure these same controlled substances in accordance with federal regulations,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “In the midst of the current opioid crisis, even medical professionals are not immune from the perils of substance use disorder.”

This investigation was conducted with the Pennsylvania Department of State’s Bureau of Enforcement and Investigation and the Drug Enforcement Administration’s Philadelphia Field Division and Camden, New Jersey Resident Office. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano handled the investigation and settlement.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

NEW ORLEANS, LOUISIANA – INDIAN RIDGE SEAFOOD COMPANY, LLC, a Louisiana Limited Liability Company located in Terrebonne Parish, Louisiana, was charged on December 30, 2019 in a one count Bill of Information for the illegal sale of oysters in violation of the Lacey Act.   

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BILLINGS – The owners of Kisling Quality Builders today admitted they evaded paying more than $320,000 in taxes in a scheme in which they used the construction of a Billings mansion to avoid reporting more than $800,000 in profits, U.S. Attorney Kurt Alme said.

James Kisling, 51, and his wife, Timilynn Kisling, 44, of Billings, each pleaded guilty to an information charging them with two counts of tax evasion.  The Kislings face a maximum five years in prison, a $100,000 fine, costs of prosecution and three years of supervised release.

U.S. Magistrate Judge Timothy J. Cavan presided and will recommend the couple’s pleas be accepted by U.S. District Judge Susan P. Watters, who is hearing the case. The Kislings were released pending further proceedings. A sentencing date has not yet been set.

 Prosecutors said in court records that the Kislings, who own KQB, arranged with Larry Wayne Price, Jr., to hide income when Price hired the company in 2014 to build his house—one of the largest residential mansions every constructed in Billings. KQB agreed to construct the house at cost plus 9 percent, making KQB’s profit an additional 9 percent of the cost.

Price, a former vice president of Signal Peak Energy, a Montana coal company, is awaiting sentencing for his guilty pleas to wire fraud, money laundering and false statements for defrauding coal companies of about $20 million and lying to investigators about a fake abduction. Price’s Billings mansion is among properties to be forfeited at sentencing as part of an agreement with the government.

The Kislings committed tax fraud with Price’s cooperation and knowledge, prosecutors said in court documents. In 2014, the Kislings began building a home for themselves. Instead of paying for this house with their income, the Kislings arranged with Price to make it appear as if the cost of their personal house was part of construction costs of Price’s mansion. The Kislings referred to their house as the “Price Guest House” in work documents for the mansion, and they deducted construction costs for this house from the 9 percent profits they were supposed to receive from Price. Rather than pay the Kislings their profit for building the mansion, Price and the Kislings agreed that Price would simply not pay them approximately $526,132, which was the cost of constructing their personal home, but that the Kislings would still credit him for doing so.

Through this arrangement, the Kislings disguised $526,132 of profits on the Price mansion and deliberately did not report this income to the IRS on their 2014 tax return as required.

In 2015, a similar transaction occurred when the Kislings needed a $275,000 loan on a short time frame for a land transaction in Wyoming. Instead of going to a bank for financing, the Kislings asked Price for the money. Price agreed to the loan and provided the funds. And in an arrangement similar to the Kislings’ personal house construction, the repayment of this loan was disguised as expenses related to the “Price Guest House” and deducted from the 9 percent Price was supposed to pay the Kislings. As a result, the Kislings disguised $275,000 of profits for their work on the Price mansion. The Kislings deliberately did not report this income to the IRS on their 2015 tax return as required.

In an interview with Department of Justice representatives, the Kislings acknowledged that they knowingly and willfully omitted profits from their 2014 and 2015 tax returns and that they both participated in the scheme. The scheme enabled the Kislings to hide approximately $801,132 in income from the IRS.

The parties disagree on the amount of the government’s loss from the fraud but hope to resolve the difference before sentencing. The IRS has calculated the tax due and owning as $327,664, not including penalty and interest, while the Kislings’ accountant has calculated the tax due as $320,102, not including penalty and interest.

Assistant U.S. Attorneys Colin Rubich, Zeno Baucus and Tim Tatarka are prosecuting the case, which was investigated by the IRS and FBI.

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 A Tulsa man was sentenced today for making a false statement in a bankruptcy proceeding, announced U.S. Attorney Trent Shores.

Chief U.S. District Judge John E. Dowdell sentenced Michael J. Fletcher, 55, to three years probation for lying during his bankruptcy proceeding.

“Mr. Fletcher defrauded the U.S. Bankruptcy Court and creditors. He corrupted the bankruptcy process by lying to the court and convincing family members to lie on his behalf. He further showed a history of avoiding substantial income and payroll tax obligations,” said U.S. Attorney Trent Shores. “This prosecution should serve as a warning to white collar criminals that the U.S. Attorney’s Office will diligently pursue justice and hold unscrupulous individuals accountable for their crimes.”

According to the information and written plea agreement filed in the case, Fletcher filed a bankruptcy petition in August of 2011 in which he stated that he had no legal or equitable interest in any real property. In November 2011, the Department of Justice filed a complaint objecting to the discharge of Fletcher’s federal income tax debts on the grounds that Fletcher had concealed his $235,000 interest in real property located on 110th Street in Tulsa, Oklahoma.  During the trial in that matter in October 2014, Fletcher testified that his parents owned the house on 110th Street and that the down payment for the purchase was funded by a loan from his daughters to his father.  In pleading guilty, Fletcher admitted that he was the source of the funds used for the down payment, and that he lied during his bankruptcy court testimony when he denied this fact

The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorneys Charles M. McLoughlin and Victor A.S. Régal prosecuted the case.

Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found on the division’s website. 

A man who illegally possessed a firearm pled guilty December 30, 2019, in federal court in Sioux City.

Marcelino Delangel, 47, from Carroll, Iowa, was convicted of being a felon in possession of a firearm.  Delangel had been previously convicted of three felony crimes in Mower County, Minnesota, in 2003, 2006 and 2010, respectively.

At the plea hearing, Delangel admitted to illegally possessing a .22 caliber pistol, which was seized from his vehicle that he was driving when stopped by law enforcement on November 7, 2018.  Evidence at the hearing, showed the pistol was loaded with four rounds of ammunition and had been stolen during a burglary in Carroll, Iowa in October 2018.  

Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared.  Delangel remains in custody of the United States Marshal pending sentencing.  Delangel faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than 3 years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement,  Bureau of Alcohol, Tobacco, Firearms and Explosives, Carroll County Sheriff’s Office, and Carroll, Iowa Police Department.

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

The case file number is 18-3054.  Follow us on Twitter @USAO_NDIA.