BIRMINGHAM, Ala. – A family medicine physician pleaded guilty today of drug distribution charges arising out of her prescription of opioid drugs from a medical clinic she operated in Alabama.

            Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama, Special Agent in Charge Derrick L. Jackson for the Office of Inspector General of the U.S. Department of Health and Human Services and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration’s New Orleans Field Division made the announcement.

Celia Lloyd-Turney (Turney), M.D., 66, of Toney, Alabama, who operated Choice Medicine Clinic, pleaded guilty to one count of unlawful distribution of controlled substances.  Sentencing has been scheduled for June 8, 2020 before U.S. District Judge Liles C. Burke of the Northern District of Alabama. 

"Turney operated a family medicine clinic, mass-prescribing opioids without medical justification and taking advantage of patients, many of whom are addicted to opioids, with no regard to the larger pain brought to those individuals, families and communities,” Town said. “After the government had rested its case, and faced with the mountain of evidence presented against her, Dr. Turney didn’t wait for the verdict.  She pleaded guilty, which is the strongest form of proof in our system.  I am grateful to the trial team, Main Justice Criminal Fraud Section, Criminal Division AAG Brian Benczkowski, and the entire ARPO Strike Force team for their efforts in this case.  The citizens of Alabama are safer as a result and the message is clear to medical providers who over-prescribe opioids: the white coat is no shield to federal prosecution.”

"Prescription drug abuse remains a significant problem in this country that destroys countless lives. DEA is fully committed to the pursuit of any individual who abandons their oath as a medical practitioner,” DEA Special Agent in Charge Brad L. Byerley said. “DEA will continue to work with all of our law enforcement partners, the medical community and the public to identify and stop those responsible for endangering lives in our communities and bring them to justice.”

The plea came after a trial while the jury was deliberating, but before they reached a verdict. At trial, evidence showed that from 2015 to 2017, Turney wrote multiple prescriptions for controlled substances to purported patients who were actively abusing other drugs, suffering from addiction, and selling the pills.   

This case was investigated by HHS-OIG and the DEA, with the assistance of the Huntsville, Alabama Police Department.  Trial Attorneys Louis Manzo and Ann Weber Langely of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama are prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force.  Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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            WASHINGTON - Airbus SE (Airbus or the Company), a global provider of civilian and military aircraft based in France, has agreed to pay combined penalties of more than $3.9 billion to resolve foreign bribery charges with authorities in the United States, France and the United Kingdom arising out of the Company’s scheme to use third-party business partners to bribe government officials, as well as non-governmental airline executives, around the world and to resolve the Company’s violation of the Arms Export Control Act (“AECA”) and its implementing regulations, the International Traffic in Arms Regulations (“ITAR”), in the United States.  This is the largest global foreign bribery resolution to date.  

            Airbus entered into a deferred prosecution agreement with the department in connection with a criminal information filed on Jan. 28, 2020 in the District of Columbia charging the Company with conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (“FCPA”) and conspiracy to violate the AECA and its implementing regulations, the ITAR.  The FCPA charge arose out of Airbus’s scheme to offer and pay bribes to foreign officials, including Chinese officials, in order to obtain and retain business, including contracts to sell aircraft.  The AECA charge stems from Airbus’s willful failure to disclose political contributions, commissions or fees to the U.S. government, as required under the ITAR, in connection with the sale or export of defense articles and defense services to the Armed Forces of a foreign country or international organization.  The case is assigned to U.S. District Judge Thomas F. Hogan of the District of Columbia.

           “Airbus engaged in a multi-year and massive scheme to corruptly enhance its business interests by paying bribes in China and other countries and concealing those bribes,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “This coordinated resolution was possible thanks to the dedicated efforts of our foreign partners at the Serious Fraud Office in the United Kingdom and the PNF in France.  The Department will continue to work aggressively with our partners across the globe to root out corruption, particularly corruption that harms American interests.”

            “International corruption involving sensitive U.S. defense technology presents a particularly dangerous combination.  Today’s announcement demonstrates the department’s continuing commitment to ensuring that those who violate our export control laws are held to account,” said Principal Deputy Assistant Attorney General David P. Burns of the Justice Department’s National Security Division.  “The resolution, however, also reflects the significant benefits available under NSD’s revised voluntary self-disclosure policy for companies that choose to self-report export violations, cooperate, and remediate as to those violations, even where there are aggravating circumstances.  We hope other companies will make the same decision as Airbus to report potential criminal exportviolations timely and directly to NSD so that they too can avail themselves of the policy’s benefits.”

            “Today, Airbus has admitted to a years-long campaign of corruption around the world,” said U.S. Attorney Jessie K. Liu of the District of Columbia. “Through bribes, Airbus allowed rampant corruption to invade the U.S. system. Additionally, Airbus falsely reported information about their conduct to the U.S. government for more than five years in order to gain valuable licenses to export U.S. military technology. This case exemplifies the ability of our prosecutors and law enforcement to work with our foreign counterparts to ensure that corruption around the world is prevented and punished at the highest levels.” 

            “Airbus SE, the second largest Aerospace company world-wide, engaged in a systematic and deliberate conspiracy, that knowingly and willfully violated U.S. fraud and export laws,” said Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York.  “Airbus’s fraud and bribery in commercial aircraft transactions strengthened corrupt airlines and bad actors worldwide, at the expense of straightforward enterprises.  Additionally, the bribery of government officials, specifically those involved in the procurement of U.S. military technology, posed a national security threat to both the U.S. and its allies.  The global threats facing the U.S. have never been greater than they are today, and HSI New York is committed to working with our federal and international partners to assure sensitive U.S. technologies are not unlawfully and fraudulently acquired. As this investigation reflects, national security continues to be a top priority not just for Department of Homeland Security, but for HSI New York.”

            The Company’s payment to the United States will be $527 million for the FCPA and ITAR violations, and an additional €50 million (approximately $55 million) as part of a civil forfeiture agreement for the ITAR-related conduct, and the department will credit a portion of the amount the Company pays to the Parquet National Financier (PNF) in France under the Company’s agreement with the PNF.  In addition, the Company has agreed to pay a $10 million penalty to the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC), of which the department is crediting $5 million.  In related proceedings, the Company settled with the PNF in France over bribes paid to government officials and non-governmental airline executives in China and multiple other countries and the Company has agreed to pay more than 2 billion Euros (more than approximately $2.29 billion) pursuant to the PNF agreement.  As part of this coordinated global resolution, the Company also entered into a deferred prosecution agreement with the United Kingdom’s Serious Fraud Office (SFO) over bribes paid in Malaysia, Sri Lanka, Taiwan, Indonesia and Ghana, and the Company has agreed to pay approximately 990 million Euros equivalent (approximately $1.09 billion) pursuant to the SFO agreement.  The PNF and SFO had investigated the Company as part of a Joint Investigative Team.

            According to admissions and court documents, beginning in at least 2008 and continuing until at least 2015, Airbus engaged in and facilitated a scheme to offer and pay bribes to decision makers and other influencers, including to foreign officials, in order to obtain improper business advantages and to win business from both privately owned enterprises and entities that were state-owned and state-controlled.  In furtherance of the corrupt bribery scheme, Airbus employees and agents, among other things, sent emails while located in the United States and participated in and provided luxury travel to foreign officials within the United States. 

            The admissions and court documents establish that in order to conceal and to facilitate the bribery scheme, Airbus engaged certain business partners, in part, to assist in the bribery scheme.  Between approximately 2013 and 2015, Airbus engaged a business partner in China and knowingly and willfully conspired to make payments to the business partner that were intended to be used as bribes to government officials in China in connection with the approval of certain agreements in China associated with the purchase and sale of Airbus aircraft to state-owned and state-controlled airlines in China.  In order to conceal the payments and to conceal its engagement of the business partner in China, Airbus did not pay the business partner directly but instead made payments to a bank account in Hong Kong in the name of a company controlled by another business partner. 

            Pursuant to the AECA and ITAR, the DDTC regulates the export and import of U.S. defense articles and defense services, and prohibits its export overseas without the requisite licensing and approval of the DDTC.  According to admissions and court documents, between December 2011 and December 2016, Airbus filed numerous applications for the export of defense articles and defense services to foreign armed forces.  As part of its applications, Airbus was required under Part 130 of the ITAR to provide certain information related to political contributions, fees or commissions paid in connection with the sale of defense articles or defense services.  The admissions and court documents reveal, however, that the Company engaged in a criminal conspiracy to knowingly and willfully violate the AECA and ITAR, by failing to provide DDTC with accurate information related to commissions paid by Airbus to third-party brokers who were hired to solicit, promote or otherwise secure the sale of defense articles and defense services to foreign armed forces.

            As part of the deferred prosecution agreement with the department, Airbus has agreed to continue to cooperate with the department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, and to enhance its compliance program.

            For the FCPA-related conduct, the department reached this resolution with Airbus based on a number of factors, including the Company’s cooperation and remediation.  In addition, for the FCPA-related conduct, the U.S. resolution recognizes the strength of France’s and the United Kingdom’s interests over the Company’s corruption-related conduct, as well as the compelling equities of France and the United Kingdom to vindicate their respective interests as those countries deem appropriate, and the department has taken into account these countries’ determination of the appropriate resolution into all aspects of the U.S. resolution.

            With respect to the AECA and ITAR-related conduct, the department reached this resolution with Airbus based on the voluntary and timely nature of its disclosure to the department as well as the Company’s cooperation and remediation. 

            HSI’s New York Field Office Counter Proliferation Investigations Group is investigating the case.  Deputy Chief Christopher Cestaro, Assistant Chief Vanessa Sisti and Trial Attorney Elina A. Rubin Smith of the Criminal Division’s Fraud Section, Deputy Chief Elizabeth L. D. Cannon and Trial Attorney David Lim of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys Michelle Zamarin, Gregg Maisel, David Kent, Karen Seifert and Zia Faruqui of the District of Columbia are prosecuting the case.  The Criminal Division’s Office of International Affairs provided assistance.

            The Department of Justice acknowledges and expresses its appreciation of the significant assistance provided by France’s Parquet National Financier and the UK’s Serious Fraud Office. 

            The Fraud Section is responsible for all investigations and prosecutions of the Foreign Corrupt Practices Act, and conducts other investigations into sophisticated economic crimes.  The Counterintelligence and Export Control Section supervises the investigation and prosecution of cases involving the export of military and strategic commodities and technology, including cases under the AECA and ITAR.

RALEIGH– United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, Chief United States District Judge Terrence W. Boyle sentenced NATHANIEL JOSEY, 61, of Wilmington, North Carolina, to 84 months imprisonment, followed by 4 years of supervised release.  On April 2, 2019, JOSEY pled guilty to conspiracy to possess with intent to distribute 500 grams or more of cocaine, two counts of distribution of a quantity of pocaine, possession with intent to distribute a quantity of cocaine and cocaine base (crack), and possession with intent to distribute 500 grams or more of cocaine. 

Previously, Chief United States District Judge Boyle sentenced ANTHONY WILLIAMS, 36, of Wilmington, to 168 months imprisonment and 5 years supervised release.  On January 15, 2019, WILLIAMS pled guilty to conspiracy to possess with intent to distribute 5 kilograms or more of cocaine, possession with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base (crack), and possession of a firearm in furtherance of a drug trafficking crime. 

In May 2017, the FBI’s Coastal Carolina Criminal Enterprise Task Force, which is comprised of the Federal Bureau of Investigation, New Hanover County Sheriff’s Office, Wilmington Police Department, Brunswick County Sheriff’s Office, and North Carolina State Bureau of Investigation, and the Drug Enforcement Administration, initiated an investigation into JOSEY’s drug trafficking activities. 

On May 30 and June 6, 2017, the New Hanover County Sheriff’s Office conducted two controlled purchases of cocaine from JOSEY, both times in the parking lot of a business on Carolina Beach Road in New Hanover County.  After JOSEY completed the June 6 drug deal, detectives conducted a traffic stop on JOSEY’s car. New Hanover Sheriff’s Detectives found quantities of cocaine and cocaine base (crack) and $3,800.  Detectives developed information that JOSEY lived in Brunswick County and had more cocaine at his residence.

New Hanover County Detectives provided this information to the Brunswick County Sheriff’s Office.  Detectives then conducted a consent search of JOSEY’s residence and found several ounces of cocaine and cocaine base (crack), more than $60,000 in drug proceeds, two loaded handguns, and numerous long guns.

During the investigation it was determined that JOSEY was being supplied by WILLIAMS and that JOSEY had recently received cocaine from WILLIAMS.  New Hanover County Detectives obtained a search warrant for a residence associated with WILLIAMS.  Detectives found 10 kilograms of cocaine, more than 380 grams of crack cocaine, items used to convert cocaine into crack cocaine, a loaded semi-automatic handgun, and more than $205,000 in drug proceeds.

The investigation uncovered that WILLIAMS imported anddistributed approximately 60 kilograms of either cocaine and/or crack cocaine during the course of the drug conspiracy.

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

The success of this case is the direct result of the phenomenal partnership between law enforcement agencies and the United States Attorney's Office in the Eastern District of North Carolina.  There is no limit to what the FBI, the New Hanover County Sheriff's Office and the Brunswick County Sheriff's Office can accomplish when it comes to protecting the members of their communities.  Assistant United States Attorney Timothy M. Severo and Special Assistant United States Attorney Murphy Averitt represented the government. 

***

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

GREAT FALLS – A jury on Friday convicted a Fort Belknap man accused of assaulting and strangling a woman in Lodge Pole on the Fort Belknap Indian Reservation last year, U.S. Attorney Kurt Alme said.

The jury found Jordan Alexander Werk, 32, guilty of assault by striking, beating or wounding and of strangulation. The jury acquitted Werk of assault of a dating partner resulting in substantial bodily injury. Werk faces a maximum 10 years, a $250,000 fine and three years of supervised release on the strangulation charge and a maximum one year in prison, a $100,000 fine and one year of supervised release on the assault count.

The trial began on Thursday, with U.S. District Judge Brian M. Morris presiding. Judge Morris set sentencing for June 3 and continued Werk’s detention.

“There is no excuse for assaulting a woman. We know that Native women face higher rates of violence and sexual violence and we are committed to prosecuting those who prey on them. I want to thank Assistant U.S. Attorney Paulette Stewart, the FBI and the Fort Belknap tribal law enforcement for investigating and prosecuting this case,” U.S. Attorney Alme said.

The prosecution presented evidence at trial that Werk assaulted and strangled the victim on April 8, 2019 in Lodge Pole in Blaine County and on the Fort Belknap Reservation. The victim reported on April 8, 2019 that Werk had assaulted her by grabbing her hair and throwing her to the ground. Werk kicked her in the chest, punched her in the head and choked her, causing her to see stars and have trouble breathing.

The victim also told law enforcement that during the assault, Werk told her that he knew how to hit someone to not show bruises and that if she was going to act like a victim, then he would treat her like one. The victim was treated for injuries, including a broken rib, at the Indian Health Service in Harlem.

Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the FBI and Fort Belknap tribal law enforcement.

XXX

ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 18 months in prison for engaging in the business of dealing firearms without a license.

According to court documents, Cornelius Maurice King, Jr., 25, working with co-conspirator Yeakain Yabu Koroma, 26, bought dozens of firearms and then resold them to third parties to turn a profit. Between January and June 2018, King and Koroma resold 26 firearms. Neither King nor Koroma were licensed to sell firearms.

“King illegally trafficked 26 firearms, and the vast majority of those firearms are still out on the street,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Cases like this are representative of precisely why we have partnered with the ATF, D.C. Metropolitan Police Department, and the U.S. Attorney’s Offices in the District of Columbia, Maryland, and the Western District of Virginia on Project Guardian-DMV. We are determined and committed to investigating and enforcing firearms violations not just against the end user, but also against the illicit source of supply. Under Attorney General Barr’s leadership, Project Guardian remains a top Department of Justice priority as we enter 2020.”

Koroma is scheduled to be sentenced by U.S. District Judge Leonie M. Brinkema on February 7.

“The crime King committed has far-reaching effects. Trafficked firearms represent a danger to our community because they can end up in the hands of convicted felons, violent criminals, and many other kinds of people who are prohibited from having firearms,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “We will continue to work diligently alongside our law enforcement partners and the U.S. Attorney’s Office to fulfill the mission of Project Guardian by targeting offenders like King and getting illegally trafficked guns off the street.”

Below is a table that includes the make, model, caliber, and type of firearm illegally trafficked by King.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Patricia T. Giles and Anthony W. Mariano prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-315.

Geoffrey S. Berman, United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, Cyrus R. Vance Jr., New York County District Attorney, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that BAHRAM KARIMI was charged with conspiring to commit bank fraud, bank fraud, and making false statements in connection with his involvement in a joint project initiated by the Governments of Iran and Venezuela in which more than $115 million was illegally funneled through the U.S. financial system for the benefit of various Iranian individuals and entities.  The case is assigned to U.S. District Judge Alison J. Nathan. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Bahram Karimi knowingly and willfully facilitated the circumventing of sanctions against Iran, and then lied about it to FBI agents.  Karimi allegedly enabled the concealed transfer through U.S. banks of more than $100 million from a Venezuelan state-owned company to an Iranian construction firm, and when questioned, told the agents he didn’t know that was prohibited by the sanctions.”

FBI Assistant Director William F. Sweeney Jr. said:  “At the end of the day, these charges reflect the use of our financial system to generate U.S. dollars for Iranians and Iranian entities.  That’s why our government has robust sanctions in place against Iran and Iranian entities who seek to use the U.S. banking system for their own benefit.”

As alleged in the Superseding Indictment and statements made in court filings and proceedings^[[1]]:

In August 2004, the Governments of Iran and Venezuela entered into a Cooperation Framework Agreement, whereby they agreed to cooperate in certain areas of common interest.  The following year, both governments supplemented the Cooperation Framework Agreement by entering into a Memorandum of Understanding regarding an infrastructure project in Venezuela (the “Project”), which was to involve the construction of thousands of housing units in Venezuela. 

The Project was led by Stratus Group, an Iranian conglomerate with international business operations in the construction, banking, and oil industries.  In December 2006, Stratus Group incorporated a company, which was then known as the Iranian International Housing Corporation (“IIHC”), in Tehran.  IIHC was responsible for construction for the Project.  Thereafter, IIHC entered into a contract with a subsidiary of a Venezuelan state-owned energy company (the “VE Company”), which called for IIHC to build approximately 7,000 housing units in Venezuela in exchange for approximately $475,734,000.  Stratus Group created the Venezuela Project Executive Committee to oversee the execution of the Project.  KARIMI was a member of the committee and was responsible for managing the Project in Venezuela.

In connection with his role on the Project, KARIMI worked with others to defraud U.S. banks by concealing the role of Iranian parties in U.S. dollar payments sent through the U.S. banking system.  Specifically, between April 2011 and November 2013, the VE Company made approximately 15 payments to IIHC through two front companies, which were created to conceal the Iranian nexus to the payments, in violation of U.S. economic sanctions.  These 15 payments totaled approximately $115 million. 

In January 2020, KARIMI was interviewed by, among other people, two FBI agents.  During that interview, KARIMI falsely stated that, during the course of the Project, he believed that international sanctions against Iran did not apply to Iranian companies or persons.

*                *                *

KARIMI, 53, of Canada, is charged with (1) conspiring to commit bank fraud, which carries a maximum sentence of 30 years in prison; (2) bank fraud, which carries a maximum sentence of 30 years in prison; and (3) making false statements, which carries a maximum sentence of five years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman and Mr. Demers praised the outstanding investigative efforts of the New York County District Attorney’s Office and the FBI.  Mr. Berman also thanked the New York County District Attorney’s Office for their ongoing assistance in this investigation.

The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Jane Kim, Michael Krouse, and Stephanie Lake, and Special Assistant U.S. Attorney Garrett Lynch, Deputy Chief of the Major Economic Crimes Bureau at the New York County District Attorney’s Office, are in charge of the prosecution, with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.

The charges contained in the Superseding Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

CLARKSBURG, WEST VIRGINIA – Maurice Swift, of Highland Park, Michigan, was sentenced today to 63 months incarceration for his involvement in a heroin, oxycodone, and cocaine distribution operation, U.S. Attorney Bill Powell announced.
 
Swift, age 40, pled guilty to one count of “Distribution of Heroin within 1000 feet of Protected Location” in March 2019. Swift admitted to selling heroin near West Virginia University in June 2017 in Monongalia County. Swift also pled guilty today to one count of “Money Laundering Conspiracy.” Swift admitted to working with others to move money made from the drug distribution from the spring of 2017 to May 2018 in Monongalia County and elsewhere.

Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Internal Revenue Service Criminal Investigations investigated. 

The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

U.S. District Judge Thomas S. Kleeh presided.
 

            WASHINGTON – Rakim Davis, 30, of Washington, D.C. was sentenced today by Judge Ronna L. Beck of the Superior Court of the District of the Columbia to 25 years in prison for sexually assaulting a 12-year-old girl who was walking to a D.C. metro station, U.S. Attorney Jessie K. Liu announced.

            Davis pled guilty in November 2019 to first degree sexual abuse of a child. Upon completion of his prison term, Davis will be placed on lifetime supervised release. He will also be required to register as a sex offender for the rest of his life.

            According to the government’s evidence, on October 12, 2019, the 12-year-old victim was walking to the Congress Heights Metro Station in Washington, D.C. As she entered the 1300 block of Alabama Ave. SE, Davis approached her and asked if he could take her to a traphouse for a massage. When the victim said no, the defendant grabbed her by the arm and told her not to make a scene and that he didn’t want to hurt her. Davis took the victim across the street to an old elementary school that had been converted to a community recreation center. In an isolated corner of the breezeway, he sexually assaulted her. The victim immediately reported the assault to her family members, who brought her to the hospital, at which point the Metropolitan Police Department was notified.

            In announcing the sentence, U.S. Attorney Liu commended the work of the Metropolitan Police Department, including the Youth Division, which investigated the case. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist T.J. McPhail and Victim/Witness Advocate Juanita Harris. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Caroline Burrell, who investigated and prosecuted the case.

Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Christopher Paul Hasson, age 50, of Silver Spring, Maryland, to 160 months in federal prison, followed by four years of supervised release, on four federal charges, including unlawful possession of unregistered silencers, unlawful possession of firearm silencers unidentified by serial number, possession of firearms by an addict to and unlawful user of a controlled substance, and possession of a controlled substance.  Hasson has been detained since his arrest on February 15, 2019.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Art Walker of the U.S. Coast Guard Investigative Service; and Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.

“Preserving our nation’s security against terrorist threats continues to be the Justice Department’s top priority.  Lives were saved due to the skill and dedication of law enforcement in this case.  Christopher Hasson intended to inflict violence on the basis of his racist and hateful beliefs.  As long as violent extremists take steps to harm innocent people, we will continue to use all of the tools we have to prevent and deter them,” said United States Attorney Robert K. Hur.

“The FBI remains committed to combatting terrorism, both domestic and international, and we remain fully prepared to take those actions necessary to safeguard our communities,” said Special Agent in Charge Jennifer Boone. “We will use every tool given to us by the Department of Justice and Congress to disrupt Racially Motivated Violent Extremist activity. However, protection of our communities and our nation is a shared responsibility, and we must combat terrorism as a united force against all forms of violent hate.”

According to his plea agreement, Hasson was a Lieutenant in the United States Coast Guard.  Prior to June 2016, Hasson owned a residence and lived in Currituck, North Carolina.  In approximately June 2016, Hasson moved to a residence in Silver Spring, Maryland, and worked at Coast Guard Headquarters in Washington, D.C. 

As detailed in the government’s sentencing memo and presented to the Court during the sentencing hearing, Christopher Hasson self-identified as a “White Nationalist” for over 30 years and in writings advocated for “focused violence” in order to establish a white homeland.  Review of Hasson’s e-mail accounts, saved documents, text messages, and Internet searches show that he was inspired by racist murderers, stockpiled assault weapons, studied violence, and intended to exact retribution on minorities and those he considered traitors.

Hasson admitted that from at least March 2016 through early February 2019, he used various e-mail accounts, including an overseas encrypted e-mail account, to order Tramadol, which is an opioid, from various illegal Internet-based distributors.  Hasson usually paid for the Tramadol by wiring money to individuals in Mexico, at the direction of the Mexico-based distributor, who then had the Tramadol shipped to Hasson, typically in 100mg pills, at addresses Hasson provided, including his North Carolina and Maryland residences.  Hasson admitted that he then concealed the Tramadol in other packaging at his residence and work and personally took the pills, usually daily, including while he was at work. 

As detailed in his plea agreement, at the time of Hasson’s arrest on February 15, 2019, agents recovered 196 Tramadol pills from Hasson’s backpack.  Search warrants executed the same day recovered 106 Tramadol pills from Hasson’s desk at Coast Guard Headquarters and 122 Tramadol pills from Hasson’s residence.  From Hasson’s residence, law enforcement also recovered the following firearms:  seven rifles; two shotguns; four pistols; two revolvers; an assembled firearm silencer; and a disassembled firearm silencer.  In close proximity to the guns, agents found multiple magazines that could accept more than 15 rounds of ammunition, as well as hundreds of rounds of ammunition.  Hasson ordered the components of the firearm silencers from a company in California and used a drill to complete and assemble one firearm silencer.  Hasson knew the firearm silencers were not registered in the National Firearms Registration and Transfer Record, and that they did not have serial numbers, as required by law.

As detailed in court documents, to prepare himself to take action, in addition to the firearms and silencers referenced above, Hasson purchased holsters, knives, magazines, ammunition, handguards, camping supplies, Meals-Ready-to-Eat, steel body armor plates, plate carriers, tactical vests and pouches, firearm repair kits, and smoke grenades.  Hasson also e-mailed to his Coast Guard computer the manifestos of mass murderer Anders Breivik and Unabomber Ted Kaczynski, as well as the memoir of Eric Rudolph, the 1996 Atlanta Olympics bomber, titled “Between the Lines of Drift: The Memoirs of a Militant.”  Hasson referred to those documents in his own writings.  Hasson registered for an online sniper and sharpshooter forum, studied sniper tactics, and purchased high-end scopes and a sniper rifle.  Internet searches performed by Hasson show that he targeted potential victims, including media personalities and current and former elected officials.

United States Attorney Robert K. Hur commended the FBI, the U.S. Coast Guard Investigative Service, and the ATF for their work in the investigation.  Mr. Hur thanked his office’s national security prosecutors, who handled the case.

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NEW ORLEANS, LOUISIANA – DWAYNE BROWN, age 34, a resident of Laplace, Louisiana, was indicted for being a felon in possession of ammunition, announced U.S. Attorney Peter G. Strasser.

According to court documents, on or about October 1, 2019, the defendant knowingly possessed ammunition after being convicted in the 40th Judicial Court, State of Louisiana, for aggravated flight from an officer, simple criminal damage to property, and unauthorized entry of an inhabited dwelling.

If convicted, the defendant faces 10 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.

United States Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  

U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, and Firearms in investigating this matter.  The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.

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United States Attorney Erica H. MacDonald today announced a federal indictment charging DARNELL DESHAWN STENNIS, 28, with one count of sex trafficking by force, fraud, and coercion, and two counts of transporting individuals to engage in prostitution. STENNIS is scheduled to be arraigned on these charges on February 6, 2020, before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.

According to the allegations in the indictment and documents filed in court, from January 2019 through March 2019, STENNIS recruited, harbored, advertised, solicited, and transported from Minnesota to North Dakota, a victim to engage in commercial sex acts by means of force, fraud, and coercion. From March 21, 2019, through March 25, 2019, STENNIS also transported a second victim from Minnesota to North Dakota with the intent that the victim would engage in commercial sex acts.

According to the allegations in the indictment and documents filed in court, on March 25, 2019, officers with the Bloomington Police Department were dispatched to the La Quinta Inn in Bloomington, Minnesota, following a report that a hotel guest heard yelling and what sounded like someone being thrown against a wall. Upon arrival, officers encountered STENNIS and two other individuals, identified as Victim A and Victim B. Officers checked the hotel room and observed obvious signs of a disturbance, including a toilet seat that was broken into multiple pieces and a towel rack that was bent. Victim A reported to officers that STENNIS had violently assaulted her. Victim A reported that STENNIS choked her, bashed her head into the towel rack, and pushed her down onto the toilet seat. STENNIS, who also had outstanding warrants, was arrested and placed into custody.

This case is the result of an investigation conducted by Homeland Security Investigations and the Bloomington Police Department.

Assistant U.S. Attorney Evan B. Gilead and Manda M. Sertich are prosecuting the case.

Defendant Information:

DARNELL DESHAWN STENNIS, 28

Charges:

• Sex trafficking by force, fraud, and coercion, 1 count
• Transporting individuals to engage in prostitution, 2 counts

###

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

NEW ORLEANS, LOUISIANA – MICHAEL MORGANI, age 32, a resident of New Orleans, pleaded guilty on January 29, 2020 to being a felon in possession of a firearm before United States District Judge Martin L.C. Feldman, announced U.S. Attorney Peter G. Strasser.

According to court paperwork, MORGANI purchased two Extar semi-automatic pistols from an individual who he met on the Northshore.  MORGANI brought them to a body shop in New Orleans, where they were later recovered by the New Orleans Police Department during the execution of a search warrant.  MORGANI was prohibited from possessing firearms because of a prior felony conviction from Jefferson Parish for possession of heroin.

MORGANI faces up to 10 years imprisonment, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment on the gun charge.

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing 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.

This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  The prosecution is being handled by Assistant United States Attorney David Haller.

Seattle – A 21-year-old Palmdale, California, man pleaded guilty today in U.S. District Court in Seattle to federal crimes related to his computer hacking scheme and his possession of child pornography found on his digital devices, announced U.S. Attorney Brian T. Moran.  RYAN S. HERNANDEZ, aka Ryan West, who used the online moniker “RyanRocks,” pleaded guilty to a two-count information.  HERNANDEZ is scheduled for sentencing by U.S. District Judge John C. Coughenour on April 21, 2020.

According to records filed in the case, in 2016, while still a minor, HERNANDEZ and an associate used a phishing technique to steal credentials of a Nintendo employee, which were exploited to gain access to and download confidential Nintendo files related to its consoles and games.  That stolen information, including pre-release information about the anticipated Nintendo Switch console, was leaked to the public.  In October 2017, following an investigation into the hack, FBI agents contacted HERNANDEZ and his parents at their California residence.  HERNANDEZ promised to stop any further malicious activity and confirmed that he understood the consequences of any future hacking.

Nevertheless, from at least June 2018 to June 2019, HERNANDEZ returned to his malicious activities, hacking into multiple Nintendo servers and stealing confidential information about various popular video games, gaming consoles, and developer tools.  HERNANDEZ boasted about his hacking exploits on several online and social media platforms, such as Twitter and Discord, and leaked some of the stolen information to others.  HERNANDEZ further operated an online chat forum called “Ryan’s Underground Hangout” in which he and others discussed Nintendo products and shared information about possible Nintendo network vulnerabilities, and on which he shared some of the confidential information he had stolen.

In June 2019, FBI agents searched HERNANDEZ’s home and seized numerous electronic devices, including computers, hard drives, and circumvention devices used to access pirated video games and software.  On those devices, they discovered thousands of confidential Nintendo files.  Forensic analysis of his devices also revealed that HERNANDEZ had used the internet to collect more than one thousand videos and images of minors engaged in sexually explicit conduct, stored and sorted in a folder directory he labeled “Bad Stuff.”

Under the terms of the plea agreement, prosecutors and defense attorneys, will recommend three years in prison.  However, the ultimate sentence is up to the judge and could be up to the statutory maximums of 5 years in prison for computer fraud and abuse, and 20 years in prison for possession of child pornography.

HERNANDEZ has agreed to pay $259,323 in restitution to Nintendo for the remediation costs caused by his conduct.  Under the terms of the plea agreement, HERNANDEZ also will be required to register as a sex offender following his conviction. 

The case was investigated by the FBI, Seattle Cyber Task Force.  The case is being prosecuted by Assistant United States Attorney Steven Masada.

            ALBUQUERQUE, N.M. – Brian Clayton Charles, 52, of Tucson, Arizona, was sentenced in federal court today to 18 months (542 days) in prison on five counts of mailing threatening communications to officers from the Albuquerque Police Department. 

            Charles pleaded guilty to these offenses on September 10, 2019.  In his plea agreement, Charles admitted sending threatening letters to five officers using the United States Postal Service.  Charles sent three letters on Sept. 26, 2016, and additional letters on Oct. 6, 2016, and Oct. 11, 2016.  All of these victims are Albuquerque police officers, according to a previous criminal complaint and other court documents.  Charles threatened in the letters to “cause the city residents to exterminate you vile men with their guns, and I will pile your bodies in mass graves in the city cemetery.”  The U.S. Department of State’s Diplomatic Security Service (DSS) initiated an investigation into Charles after he allegedly mailed a letter, postmarked March 24, 2016, to the home address of then Secretary of State John Kerry in Washington D.C., which threatened to harm the Secretary of State.

            Charles received 542 credit on his sentence for time already served.  He will not serve any further time in prison. 

            DSS’s Office of Protective Intelligence Investigations and the Environmental Protection Agency’s Office of Inspector General investigated this case jointly with assistance from the U.S. Marshals Service and the Albuquerque Police Department.  Assistant U.S. Attorneys Jack E. Burkhead, Paul H. Spiers, and Kimberly A. Brawley prosecuted the case. 

Eight alleged gang members were arrested in a large-scale takedown Thursday, charged with gun and drug crimes following an investigation led by the DEA Dallas Division, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

“357 Crips” gang members Dwight Alexander Frank, Paul Adron Freeman, Vernon Ray Stiff, Calvin James Thomas, Tyrel Demond Washington, Bernice Lee Woodson, Jr., Bryson Busby, and Michael McCoy were arrested Thursday and charged with conspiracy to possess with intent to distribute cocaine.

Four non-gang members – Alonzo Perez, Jr., Alonzo Perez, Sr., Beatriz Perez, and Max Davis – were also arrested and charged with related drug crimes.

The takedown, led by the DEA, began in the early morning hours Thursday, and stretched into the afternoon. The majority of the defendants were arrested at trap houses across the DFW metroplex, where agents seized roughly 2.5 kilograms of cocaine, 24 guns, and more than $300,000 in cash. (To date, the investigation has netted a total of approximately 7 kilos of cocaine, various other drugs, 37 firearms, and more than $500,000 in cash.

“There should never be any doubt that drug trafficking is a victimless crime.  These gang members sought to profit and expand their influence by peddling drugs throughout South Dallas.  With the dismantlement of this organization, guns are no longer in the hands of these drug dealers and the drugs they sold are now off the streets.  It was only through a tremendous partnership with the Dallas PD, the ATF, and many other area law enforcement agencies that Dallas is safer today than it was yesterday,” said DEA Special Agent in Charge Eduardo A. Chavez.  

“We are grateful to the many law enforcement partners who collaborated to disrupt a drug trafficking ring,” said U.S. Attorney Erin Nealy Cox. “Cocaine continues to wreaked havoc on our community and we will vigorously prosecute those that distribute this deadly drug.”

In addition to the conspiracy count, Mr. Woodson was charged with one count of possession with intent to distribute.

Ms. Perez, Jr., Mr. Stiff, Mr. Washington, and Mr. Woodson were also charged with maintaining drug-involved premises, as was Mr. Perez Jr.’s father.  

Mr. Perez, Jr., Mr. Washington, and Mr. Woodson were also charged with being a convicted felon in possession of a firearm. Mr. Woodson was charged with possession of a firearm in furtherance of a drug trafficking crime.  

Charges are merely allegations of criminal conduct, not evidence. The defendants are presumed innocent unless proven guilty in a court of law.

If convicted, the defendants face 10 years to life in prison on the conspiracy charge. Those charged with maintaining a drug involved premises face an additional 20 years; those charged with being a felon in possession of a firearm face an additional 10 years; and those charged with possession of a firearm in furtherance of a drug trafficking crime face an additional five years.

The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with assistance of the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Dallas Police Department, Rockwall Police Department, Rockwall County Sheriff’s Office, Flower Mound Police Department, Farmer’s Branch Police Department, Garland Police Department, Hunt County Sheriff’s Office, Denton Police Department, Dallas County Sheriff’s Office, Grand Prairie Police Department, and Plano Police Department.  Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.

DENVER – United States Attorney Jason Dunn announced that co-conspirators Guy M. Jean-Pierre, William Sears, and Scott Dittman, were sentenced to federal prison for their roles in the FusionPharm securities and financial fraud scheme, which cost investors more than ten million dollars.  Jean-Pierre, age 60, of the Dominican Republic was sentenced to serve seven years in prison based on his conviction at trial of securities fraud, mail fraud, wire fraud, money laundering, and conspiracy.  William Sears, age 53, of Thornton, Colorado was sentenced to a total of eight years in prison for his role in the conspiracy, as well as for tax violations.  Scott Dittman, age 50, of Franktown, Colorado was sentenced to five years in prison.  All three defendants will serve an additional three years of supervised release at the conclusion of their years of incarceration.

According to information contained in court filings and evidence presented at trial, beginning in late 2010, the defendants sought to establish a business that would retrofit steel shipping containers so that they could be used to grow plants hydroponically. The defendants acquired a dormant publicly traded penny stock company and changed its name to FusionPharm as part of plans to develop and capitalize the business. The main business plan was to resell these repurposed shipping containers, which FusionPharm called “pharm pods,” to hydroponic growers. The pharm pods were, at times, marketed as effective vehicles to get fresh produce, such as lettuce, quickly and efficiently to restaurants and local groceries in urban markets.  Over time, however, the pharm pods were marketed to marijuana or cannabis growers in Colorado and other states.

An object of the conspiracy was to conceal the co-conspirators’ role in the management and operation of FusionPharm, due to Sears’ prior securities felony conviction.   Sears and Dittman falsely represented that neither Sears nor companies related to him were an affiliate or control person of FusionPharm, thereby allowing Sears’ and the related companies’ FusionPharm shares to be treated as unrestricted securities that could be immediately sold in the public securities markets under the ticker symbol FSPM.  Additionally, defendants Sears and Dittman reported to the public that certain sales transactions and revenues for FusionPharm had occurred when, in fact, they had not.

Defendant Jean-Pierre, a graduate of Columbia University Law School, prepared and transmitted documents that allowed FusionPharm to sell stock in violation of securities laws, falsely portrayed deposits of proceeds from the sale of FusionPharm common stock as convertible debt obligations, concealed the role of other co-conspirators in the FusionPharm business, falsely represented that disclosure documents and financial statements constituted adequate current information about FusionPharm, and failed to disclose defendant Jean-Pierre’s role in drafting documents for another attorney to sign and represented as the other attorney’s own work product. 

 In addition to the sentences announced this week, United States District Court Judge William A. Martinez previously entered preliminary orders of forfeiture in the amount of $12,204,172, based on proceeds and assets the defendants obtained from the scheme. 

“Thanks to the tireless work of our prosecutors and law enforcement partners, justice has finally come for the victims of this scheme,” said United States Attorney Jason Dunn.  “Prosecuting a complex financial scheme like this is challenging and lengthy, but it is critical that the public have confidence in the markets and that those who commit securities fraud be dealt with harshly.”

"Today’s sentence will hold these individuals accountable for their criminal actions,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui.  “This complex scheme that involved false entity information to defraud investors to purchase their stock for their sole financial gain and evade their tax obligations will not be tolerated. IRS-CI special agents work diligently to identify and bring to justice those who attempt to profit by providing false and misleading information to innocent individuals.”

“The FBI will continue to aggressively investigate illusory schemes devised to exploit innocent victims.  The recent sentencings of Guy M. Jean-Pierre, William Sears, and Scott Dittman, should send a strong message to anyone considering engaging in white collar fraud schemes,” said FBI Denver Special Agent in Charge Dean Phillips. “We will continue to work with our law enforcement counterparts and United States Attorney’s Office to protect our citizens and economy from those engaged in white collar crime. We would like to thank the Internal Revenue Service and United State Postal Inspection Service for their partnership and efforts on this case.”

“Securities fraud conducted via the U.S. mail through secret arrangements and altered documents can lead to false trust in the markets.  Postal Inspectors will never rest in our fight to prevent criminals from using the mail to further their illegal activities,” said Stephen Sherwood, Acting Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. 

  This case was investigated by the FBI, IRS – Criminal Investigation, and United States Postal Inspection Service.  Assistant United States Attorneys Jeremy Sibert and Robert Brown handled the prosecution.  Assistant United States Attorney Tonya Andrews handled the asset forfeiture issues in this matter.

CASE NUMBER:  17-cr-8 and 16-cr-301

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          SANTA ANA, California– A former Ameriprise financial advisor who ran a Ponzi scheme that defrauded 20 of her clients – including some of her relatives – out of more than $8.1 million was sentenced today to 136 months in federal prison.

          Li Lin Hsu, a.k.a. Yilin Hsu Lee, 42, of Diamond Bar, was sentenced by United States District Judge Andrew J. Guilford, who also ordered her to pay $5,274,277 in restitution to her victims. Hsu pleaded guilty in February 2019 to one count of wire fraud.

          Between February 2014 and May 2018, Hsu lured in her victims with the promise that she would safely invest their money. She gained the trust of her victims – nearly all of whom are members of Southern California’s Chinese community – by speaking to them in their native language and telling them she was part of their community. Other victims included Hsu’s relatives.

          In reality, Hsu failed to invest any of her victims’ money. Instead, she used their funds to buy homes in Diamond Bar and Irvine, a luxury Tesla automobile, a vacation at the Peninsula Hotel in Paris, and thousands of dollars’ worth of luxury goods at high-end stores such as Harry Winston, Chanel and Hermes. In the hallmark of a Ponzi scheme, Hsu also used money she stole from later investors to make lulling payments to early investors.

          Hsu began her scheme while employed at Ameriprise Financial, Inc., as a financial advisor. Ameriprise fired her in 2015 after discovering her misconduct. In 2016, the Financial Industry Regulatory Authority (FINRA) barred Hsu from working in the investment business.

          Shortly after Ameriprise terminated her, Hsu founded her own companies – American Capital Trading Group LLC and, in 2016, American Capital Republic, Inc. – where she sought out additional victim investors and swindled them.

          Hsu told these new clients that their funds would be invested in low-risk municipal bonds. As with her Ameriprise accounts, Hsu failed to invest the funds as promised, but rather spent the funds on herself. She fabricated account statements that showed her victims’ funds were safely invested and lulled her victims into believing the account statements by making nominal “interest payments” that originated from the funds of other victims. She also lied to one of her victims when she said American Capital Trading Group – which she controlled – was an Ameriprise affiliate.

          Through these two companies, Hsu caused losses of $8,191,554 to her victims.

          In 2016, Hsu repeatedly lied under oath to the Securities and Exchange Commission, which had begun investigating her. After the FBI arrested Hsu in April 2018 and in violation of a court order, Hsu met with two of her victims and told them to lie to the FBI that her plan had always been to invest in the two properties she had purchased. She also induced them to give her an additional $450,000, which she then used to pay back another victim.

          The FBI investigated this matter.

          This case was prosecuted by Assistant United States Attorneys Poonam G. Kumar and Alexander C.K. Wyman of the Major Frauds Section, and Katharine Schonbachler and Victor A. Rodgers of the Asset Forfeiture Section.

LAKE CHARLES, La. –Nine defendants charged with various federal drug offenses linked to a large methamphetamine and cocaine distribution ring based in Calcasieu and Beauregard parishes have been sentenced to federal prison for their crimes, announced David C. Joseph, the U.S. Attorney for the Western District of Louisiana. U.S. District Judge Donald E. Walter handed down sentences for nine defendants, with the final sentencings occurring on Monday, January 27, 2020, at the federal courthouse in Lake Charles.

On January 27, 2020:

Antonio Montero, 57, a Cuban national, of Lake Charles, was sentenced to 10 years in prison after pleading guilty on September 24, 2019, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine;

Felix Perez, 56, a citizen of Cuba, was sentenced to five years in prison after pleading guilty on September 25, 2019, to one count of possession with intent to distribute controlled substances (cocaine); and

Lionel Peschier, 49, of Sulphur, Louisiana, was sentenced to three years in prison after pleading guilty on September 24, 2019, to one count of attempted distribution of controlled substances (methamphetamine).

On December 16, 2019:

Julio Elizagarate, 68, a Cuban national, of Lake Charles, was sentenced to six years in prison after pleading guilty on September 5, 2019, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine;

Michael Miers, 57, of DeRidder, Louisiana, was sentenced to 40 months in prison after pleading guilty on February 13, 2019, to one count of conspiracy to distribute and possess with intent to distribute cocaine;

Zetherneal Elizagarate, 57, of Lake Charles, was sentenced to five years of probation after pleading guilty on April 3, 2019, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine;

Juan Gonzalez, 67, a Cuban national, of Leesville, Louisiana, was sentenced to 71 months in prison after pleading guilty on July 3, 2019, to one count of conspiracy to distribute and possess with intent to distribute cocaine;

Gary S. Byrd, 48, was sentenced to five years of probation after pleading guilty on August 15, 2019, to one count of distribution of controlled substances (methamphetamine); and

Angie Perez, 49, was sentenced to two years in prison after pleading guilty on September 13, 2019, to one count of distribution of controlled substances (methamphetamine).

From June 2017 through May 2018, law enforcement agents used controlled purchases and court-authorized wire taps to investigate Antonio Montero and three other Cuban nationals who were dealing large amounts of methamphetamine and cocaine in southwest Louisiana. Law enforcement officers learned of multiple stash houses and identified Antonio Montero and Juan Gonzalez as suppliers of methamphetamine and Michael Miers as a supplier of multiple kilos of cocaine. Five search warrants were executed and agents seized multiple kilograms of cocaine and methamphetamine.

When Miers was arrested at his residence on July 31, 2018, agents found $40,300 in cash proceeds from narcotics transactions, 5,343 grams of cocaine and 3,338 grams of methamphetamine. Miers admitted that he obtained the 3,338 grams of methamphetamine from Julio Elizagarate and Antonio Montero in trade for the same amount of cocaine.

Homeland Security Investigations, DEA, Louisiana State Police, Calcasieu Parish District Attorney’s Office, Calcasieu Parish Sheriff’s Office, Combined Anti-Drug Task Force, Beauregard Sheriff’s Office, Lake Charles Police Department, Iowa Police Department, and DeRidder Police Department participated in the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuted the case.

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     TUCSON, Ariz. – On January 24, 2020, Roberto Ramirez, 23, of Tucson, was sentenced by U.S. District Judge Jennifer G. Zippsto 204 months in prison.  Ramirez previously pleaded guilty on August 8, 2019, to one count of Transportation of Illegal Aliens for Profit Placing in Jeopardy of Life, three separate counts of Assault on a Federal Officer with a Deadly Weapon, and one count of Possession of a Firearm by a Prohibited Person.

     On Christmas Eve 2017, Ramirez transported two undocumented aliens for profit and fled from the Border Patrol checkpoint on I-19 at speeds close to 100 mph.  Three Border Patrol agents were in pursuit when the defendant tried to ram their marked patrol cars with his own car. When that did not stop the pursuit, the defendant fired shots at the agents with a revolver. When his firearm was empty of ammunition, the defendant attempted to reload the weapon but, in doing so, lost control of his car which then rolled multiple times.  One of the undocumented individuals was unrestrained and ejected from the defendant’s vehicle. He suffered head trauma that caused him to be in a coma, and sustained a broken shoulder and collarbone resulting in the permanent disfigurement of one of his shoulders.  The other individual suffered a permanent injury to one of his eyes that will affect his vision for the rest of his life.

     “This case highlights the dangers involved with illegal alien smuggling,” said HSI Special Agent in Charge, Scott Brown. “Recklessly, the driver caused bodily harm to two other people during the rollover, as he callously attempted to flee law enforcement officers while shooting at them. HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.” 

     “We are grateful to the Border Patrol agents who put their lives on the line to stop Ramirez from causing even more harm,” said United States Attorney Michael Bailey. “These smugglers present a danger to everyone, and we will continue to work with Border Patrol, H.S.I., and other law enforcement partners to aggressively prosecute these cases.”

     The investigation in this case was conducted by Homeland Security Investigations. The prosecution was handled byLiza M. Granoff and Matthew C. Cassell, Assistant U.S. Attorneys, District of Arizona, Tucson.

SAN FRANCISCO – Jesus Moises Rochin-Huerta is charged in a criminal complaint with possession with intent to distribute methamphetamine, announced United States Attorney David L. Anderson, Special Agent in Charge, Homeland Security Investigations Tatum King and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux.

An affidavit filed in the case by an agent of the Homeland Security Investigations (HSI) alleges that Rochin-Huerta was caught with the drugs yesterday while driving on Highway 880 in San Jose.  According to the affidavit, Rochin-Huerta’s car had no front license plate and tinted front windows when a California Highway Patrol (CHP) officer pulled him over for the traffic violations.  The CHP officer allegedly observed that Rochin-Huerta was acting nervously and was in possession of two cell phones and so decided to conduct an open-air sniff of the defendant’s car with a K-9.  After the dog gave a positive alert, the CHP officer found two black duffle bags containing drugs in the trunk of the car.  Specifically, in the black bags were 58 packages of a white crystalline substance that was further wrapped in plastic, vacuum-sealed bags.  The white substance tested positive for methamphetamine.  Rochin-Huerta was arrested as a result of the traffic stop.

According to the affidavit, the combined weight of the substance in the trunk of Rochin-Huerta’s car amounts to approximately 66.4 pounds having an approximate wholesale value of between $72, 000 and $81,000.  

Rochin-Huerta is charged with possession with intent to distribute and distribution of 500 grams or more of a mixture and substance containing methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii). 

Rochin-Huerta will make his initial federal court appearance at 1:30 p.m., on January 31, 2020, before U.S. Magistrate Judge Nathanael M. Cousins.     

If convicted, Rochin-Huerta faces a minimum statutory penalty of ten years imprisonment and a maximum statutory penalty of up to life in prison.  A term of supervised release, fines, forfeitures, and restitution also may be ordered, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

The complaint contains allegations only and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Assistant U.S. Attorney Sarah Griswold is prosecuting the case with the assistance of Jessica Leung.  The prosecution is the result of an investigation by HSI with assistance from the DEA, Southern Alameda County Major Crimes Task Force, and California Highway Patrol.