Milwaukee, WI

We are now adding 40 slots across the country, but this is just the beginning of our push to increase the tooth-to-tail ratio at this Department to drive down violent crime.  We plan to push out an additional 260 AUSAs in the months to come.  

To do that, we are asking Congress to support these efforts, and to invest in you, too.

And as we’ve sadly seen in New York City just in the last two months, these are national security issues as well. So I urge Congress to take these matters seriously, to support our law enforcement in the work that we’ve asked them to do, including our immigration officers, and not to shut down the government to obstruct the President’s agenda to reduce crime and have a lawful system of immigration.  We need to keep the government open—and we need to fund these priorities.

Violent crime has been increasing here in Milwaukee, and that is deeply troubling.  But thanks to our law enforcement officers, this is not hopeless.  We can make America safe again.

Remarks as prepared for delivery

Thank you, Greg for that introduction, and thank you for 15 years of service to the Department of Justice. 

You’ve got a lot to be proud of.  I’ve heard about that big visa fraud case you prosecuted several years ago.  That was terrific work.

I’ve visited 31 U.S. Attorney’s offices since January and each time I am immediately buoyed by the dedication of career prosecutors and all that you accomplish on a daily basis.  It does my heart good to be out here with the troops on the front line.  Thank you for that—you all are incredible emissaries for the rule of law and the Department that I am honored to lead.

On behalf of the President, I want to thank all of our Assistant U.S. Attorneys, the support staff here, and our state and local law enforcement officers.  Thank you for all you do, day in and day out. 

In particular I want to thank Special Agent in Charge Justin Tolomeo of the FBI, U.S. Marshal Kevin Carr, Milwaukee Police Chief Edward Flynn, and South Milwaukee Police Chief Ann Wellens.  And Ann, I want to wish you a blessed retirement.  With nearly three decades of service, you have earned it.

To all of our law enforcement officers: the President and I stand with you.

On Friday the President spoke at the FBI National Academy Graduation ceremony.  He’s the first President to do so in 46 years.  He said, loud and clear, “America’s police have a true friend and loyal champion in the White House…The President of the United States has your back 100 percent.”

President Trump was elected as the law and order President.  He was elected to make America safe again and to have the backs of our men and women in blue. 

That mission has never been more important.

Thanks to dedicated law enforcement officials like you, crime declined in America for 20 years.  It wasn’t easy.  It took important legal reforms, the development of new and innovative policing strategies, and decades of hard and dangerous work—but it saved lives and made a difference in countless communities.

But over the last two years, that trend has reversed.  The violent crime rate is up by nearly seven percent.  Robberies are up.  Assaults are up nearly 10 percent.  Rape is up by nearly 11 percent.  Murder is up by more than 20 percent.

According to the Department of Justice study, nearly a quarter of the increase in homicides is the result of the increase in drug-related homicides.  It’s why I keep saying that drug trafficking is an inherently violent business.

Meanwhile, more Americans are dying because of drugs than ever before.  Last year, an estimated 64,000 Americans died of drug overdose—one every nine minutes.  That’s nearly the population of Janesville.

Millions of Americans are living with the daily struggle of addiction.  And for Americans under the age of 50, drug overdoses are now the leading cause of death.

These trends are not a blip or an anomaly.  I fear that, if we do not act now and smartly, this nation could see decades of progress reversed.

Sadly, this beautiful city has not been immune to these problems.  In Milwaukee, rape is up 21 percent in just two years.  Assault is up nine percent.  And murders are up an astonishing 57 percent. We cannot accept these trends.

As we all know, these are not just numbers—these are moms, dads, daughters, spouses, friends, and neighbors.  These are empty places at Christmas dinner this year and holes in the hearts and souls of victims’ families that will never close.

The victims include Clarence Taper, a 60-year-old father, grandfather, and hardworking employee at a restaurant here in Milwaukee, who was robbed and shot to death in September while making a delivery.

Almost a year ago today, a young man in Milwaukee was beaten to death by three attackers, who forced him to eat cat litter and feces.  The assailants filmed themselves taking turns beating and urinating on him before leaving him to die in a snowbank.

And early last year, Tamecca Perry, a 23-year-old mother of two who was nine months pregnant with her third child, was shot to death in her home because of a dispute over loud music.  Her young children watched her die, just days before her unborn baby was due.

But let me tell you this: we will not allow the progress made by our women and men in blue over the past two decades to simply slip through our fingers now.  Plain and simple: we will not cede a community, a block, or a street corner to violent thugs or poison peddlers.

As soon as I was sworn in as Attorney General, President Trump sent me an executive order to reduce crime in America. 

At the Department of Justice, we embrace that goal.  And you and I know from experience that it can be achieved.

Over these last 10 months, the Department has taken aggressive action to implement the President’s agenda.

This year alone, we have secured convictions against more than 1,000 gang members.  With our Central American partners we have charged 4,000 members of the vicious MS-13.  We have secured 200 human trafficking convictions, as well as four convictions for material support of terrorism.

I could go on.  There’s a lot more we could talk about. 

These are major accomplishments that benefit the American people.

And these are your accomplishments.  We could not have done it without you.

Many of our successes have been achieved in this office.  Earlier this month, a man was sentenced to 16 years in prison for stealing a 73-year-old woman’s car after threatening her at gunpoint.

Last month, a man was found guilty for distributing heroin that took at least one life.  He now faces a mandatory life sentence.

And in September, five siblings were sentenced to prison for robbing several banks and businesses at gunpoint.  Thanks to you, they now face a total of 50 years of prison time.

I’m grateful for the hard work of those in this office who prosecuted these cases, especially dedicated Assistant U.S. Attorneys like Maggie Honrath, Laura Kwaterski, Daniel Humble, and Andrew Maier.  Great job.

We are right to be proud of these victories.  But we still have more work to do.

As we know, 85 percent of law enforcement is state, local, and tribal.  To be effective, we must utilize this force multiplier.  These are the authorities that have the critical street level intelligence regarding the criminal element.

We are most effective when these experienced state and local investigators are united with the resources and expertise of the 15 percent that are our federal law enforcement.  Put simply, this combined task force model is what truly works to reduce violent crime and that is precisely what we have established with our reinvigorated Project Safe Neighborhoods program.

PSN brings together Federal, State, Local, and Tribal collaboration, targeting the violent offenders who commit a disproportionate amount of violent crime.

Led by our 94 U.S. Attorney’s offices, Project Safe Neighborhoods task forces are hitting the streets across America to apprehend and bring violent criminals to justice.  I’ve asked Congress for additional funding for these task forces next year because I believe nothing will be more effective.

Under this program, I am asking a great deal of our U.S. Attorneys.  I am empowering them—but I’m holding them accountable for results. 

To put them in the best position to impact and reduce violent crime, through a re-allocation of resources, we will enlist and deploy 40 additional violent crime prosecutors across the United States—including two right here in this office.

These additional Assistant United States Attorneys can make an immediate impact.  I know: as a former AUSA myself, I have seen it firsthand. 

A committed AUSA can supervise multiple investigations, who in turn can apprehend and dismantle multiple criminal organizations simultaneously.  And that means fewer violent criminals on the streets, which means it’s even easier to concentrate resources on the bad actors who are left. That is how you reduce crime.

I know this is an investment that will pay dividends for years to come and one that will make a discernible impact in communities struggling with violence.

We are in tight budget times. Crime is rising.  I am determined to move resources to the most productive areas.

We have a saying around my office that a new federal prosecutor is “the coin of the realm.”  That means when we can eliminate less productive or wasteful spending, we ask whether this will allow us to deploy another AUSA to a violence-plagued district.

We are now adding 40 slots across the country, but this is just the beginning of our push to increase the tooth-to-tail ratio at this Department to drive down violent crime.  We plan to push out an additional 260 AUSAs in the months to come. 

To do that, we are asking Congress to support these efforts, and to invest in you, too.

And as we’ve sadly seen in New York City just in the last two months, these are national security issues as well. So I urge Congress to take these matters seriously, to support our law enforcement in the work that we’ve asked them to do, including our immigration officers, and not to shut down the government to obstruct the President’s agenda to reduce crime and have a lawful system of immigration.  We need to keep the government open—and we need to fund these priorities.

Violent crime has been increasing here in Milwaukee, and that is deeply troubling.  But thanks to our law enforcement officers, this is not hopeless.  We can make America safe again.

I want to personally express my deep appreciation and profound thanks to all the women and men of law enforcement—state and local—and their families, for sacrificing so much and putting your lives on the line every day, so that the rest of us may enjoy the safety and security you provide.  We love you and honor your work.

Know this: we have your back and you have our thanks.

Merry Christmas and Happy Holidays.

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PROVIDENCE – A Westerly man will continue to be held in federal custody following his arraignment on a superseding indictment charging him with receipt, possession and distribution of child pornography, enticement of a minor to engage in illicit sexual activity, and transferring obscene material to a minor.

Jonathan Breslin, 32, of Westerly, pleaded not guilty on Monday before U.S. District Court Magistrate Judge Patricia A. Sullivan to a five-count superseding indictment charging him with the one count each of possession, receipt and distribution of child pornography, transfer of obscene material to a minor, and enticement of a minor to engage in illicit sexual activity. The superseding indictment was returned on December 6, 2017.

Breslin has been detained since his arrest on August 11, 2017, after a court authorized search of his residence by agents from Homeland Security Investigations (HSI), the Rhode Island State Police Internet Crimes Against Children Task Force, and members of the Westerly and Warwick Departments resulted in the seizure of a computer, a digital media storage device and cell phone allegedly containing child pornography. 

Breslin’s arraignment and detention are announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Westerly Police Chief Richard G. Silva; and Warwick Police Chief Colonel Stephen M. McCartney.

According to court documents, it is alleged that in late March 2016, a law enforcement officer in Saskatchewan, Canada, arrested an individual in an unrelated matter. A search of a cell phone belonging to the individual resulted in the discovery of an online mobile chat application allegedly used to discuss and share child pornography images and videos to a network of users. Saskatchewan law enforcement agents identified 78 unique users who allegedly shared and/or communicated about child pornography. The information was provided to Homeland Security Investigations, who, through further investigation, identified IP addresses in the United States that were allegedly used to participate in some of the conversations, and/or to upload and view child pornography. Among the IP address identified was one allegedly belonging to Breslin.

Further investigation by an HSI agent in Rhode Island included online chats between Breslin and the agent posing as an individual interested in discussing, viewing and sharing child pornography. It is alleged that Breslin discussed viewing, possessing and attempted production of child pornography. Additionally, according to the superseding indictment, it is alleged that Breslin transferred obscene material to a person under the age of 16 and attempted to entice a minor to engage in illicit sexual activity.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Possession of child pornography and transfer of obscene material to a person under the age of 16 are punishable by statutory penalties of up to 10 years in federal prison. Receiving and distribution of child pornography are punishable by statutory penalties of 5-20 years in federal prison. Enticing a minor to engage in illicit sexual activity is punishable by statutory penalties of between 10 years- life in federal prison.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

The Rhode Island ICAC Task Force is comprised of law enforcement personnel from the Rhode Island State Police, Homeland Security Investigations, United States Postal Inspection Services, and the Warwick, Cranston, East Providence, Newport, Pawtucket, North Kingstown, Portsmouth, and Woonsocket Police Departments.

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BOSTON – The former owner of a Boston forensic accounting firm was sentenced yesterday in federal court in Boston for understating his income by hundreds of thousands of dollars on his personal income tax returns.

James Carey, 50, was sentenced by U.S. District Court Judge Allison D. Burroughs to 18 months in prison, one year of supervised release and ordered to pay restitution of $355,535. In September 2017, Carey pleaded guilty to two counts of making material misstatements on his 2009 and 2010 personal income tax returns. 

Carey, a certified public accountant, owned Carey & Company, a forensic accounting firm in Boston. Carey & Company administered bank accounts on behalf of insurance companies into which the insurance companies and their clients could make deposits, and from which payments could be made on behalf of and to the insurance companies.  In November 2009, a customer of one of the insurance companies sent Carey & Company a payment of $594,217 intended for the insurance company, but during the months that followed, Carey transferred almost all of that money out of the account and used it for his own purposes.  The money Carey misappropriated from the insurance company was taxable income, which Carey failed to report on his personal income tax return. In addition, in 2010, Carey reported less than one-third of his business’s actual income on his personal income tax return.

Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Stephen Heymann and Sara Bloom of Weinreb’s Economic Crimes Unit prosecuted the case.

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Amanda Brown, 31, Fullerton, Calif., was sentenced on December 15 by U.S. District Judge William M. Conley to 30 months in prison for conspiring to distribute methamphetamine.   Brown pleaded guilty to this charge on October 3, 2017.

The amount attributable to Brown was approximately three pounds of pure methamphetamine.  During sentencing, Judge Conley described Brown as facilitating the sale of large quantities of pure methamphetamine.  Brown assisted her brother, Sean Brown, who shipped multiple, pound-level packages of methamphetamine from California to Wisconsin.

Amanda Brown and seven other individuals were charged in an indictment returned by a federal grand jury in March for their roles in this methamphetamine distribution conspiracy.  Seven of the eight defendants have pleaded guilty; Amanda Brown is the fifth to be sentenced.  The others who have been sentenced include: 

1. Christopher Dutton, Madison, Wis., sentenced October 24 to 15 years;
2. Sean Brown, Los Angeles, sentenced November 2 to 11 years;
3. James Nehls, Lone Rock, Wis., sentenced November  16 to 7 years; and
4. Brandon Frank, Argyle, Wis., sentenced on November 21 to 148 months

The charge against Amanda Brown was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation; Drug Enforcement Administration- Madison and Los Angeles; Dane County Narcotics Task Force; Dane County Sheriff’s Department; Madison Police Department; UW-Madison Police Department; U.S. Postal Inspection Service; Sauk County Drug Task Force; Richland-Iowa-Grant Drug Task Force; Lafayette County Sheriff’s Office; State Line Area Narcotics Team; and Rock County Special Investigations Unit.  The prosecution of the case has been handled by Assistant U.S. Attorneys David Reinhard and Diane Schlipper. 

Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that two Shawano men were recently sentenced to prison sentences after convictions for firearms offenses in Northeastern Wisconsin. On December 12, 2017, Gary W. Hancock (age: 24) was sentenced to 15 months in prison and 36 months of supervised release. On December 18, 2017, Jesus Zepeda (age: 29) was sentenced to 12 months and 1 day in prison and 24 months of supervised release. The sentences were the result of guilty pleas in September 2017 to a count of Making False Statements During the Purchase of a Firearm, a violation of Title 18 United States Code, section 922(a)(6). The two men received the sentence from Chief United States District Judge William C. Griesbach.

The investigation revealed that on three separate dates in 2014, Hancock engaged in the straw purchase of three firearms at the urging of Zepeda, who assisted Hancock in obtaining the firearms from licensed dealers in the Green Bay area. Hancock made false statements on forms required as part of the firearms background check, and transferred the firearms, with assistance from Zepeda, to individuals who were prohibited from possessing the weapons under federal law. Two of the firearms were among a total of 16 recovered by US Customs and Border Patrol in August 2015 from a vehicle attempting to transport them into Mexico from the United States. Another was recovered in August 2015 as part of a drug-related search warrant executed at a residence in California.

In sentencing Hancock and Zepeda, Chief Judge Griesbach noted the serious nature of the offense, stating to Hancock “you didn’t pull the trigger, but your actions could have allowed someone else to.” During the sentencing hearing for Zepeda, Chief Judge Griesbach remarked that “a message needed to be sent to those who would buy firearms in order to transfer them” to people who cannot possess them lawfully.

The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Customs and Border Patrol; and Shawano County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Andrew J. Maier.

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For Additional Information Contact:

Public Information Officer Dean Puschnig 414-297-1700

DALLAS— Octavius Williams, 32, of Irving, Texas, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 168 months in federal prison, following his guilty plea in November 2015 to one count of conspiracy to possess with intent to distribute a controlled substance, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Williams has been in custody since his arrest in July 2015.

According to the plea agreement factual resume filed in the case, in 2014, Williams worked with associates of the Los Caballeros Templarios Mexican cartel to obtain and distribute multiple kilograms of cocaine throughout Dallas, Atlanta, Louisiana, Seattle, Oklahoma, and New York. Williams would distribute approximately 30 kilograms of cocaine per month, charging $800 to $900 per ounce. He kept between $159,000 to $200,000 cash at his house for multi-kilogram transactions.

Six Firearms, 551 rounds of ammunition, and approximately $103,354.00 were seized and forfeited as a result of Williams’ arrest.

The FBI, Dallas Police Department and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.

Assistant U.S. Attorneys George Leal and John DeLaGarza were in charge of the prosecution.

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BOSTON – A former New Bedford seafood wholesaler pleaded guilty yesterday in federal court in Boston to failing to file tax returns and filing a false tax return for his business’ income.

George F. Estudante, 57, formerly of Marion, Mass., pleaded guilty to two counts of failing to file tax returns and one count of filing a false income tax return. U.S. District Court Judge William G. Young scheduled sentencing for March 13, 2018.

Estudante failed to file an income tax return for 2010, even though his business, Basic Fisheries, received approximately $1,418,629 in payments.  He also failed to file a tax return for 2011, although his business received approximately $1,607,726 in payments that year.  Furthermore, Estudante falsely swore on his 2012 tax return that he had received approximately $533,078 in gross receipts when his bank account reflected that he had received over $740,000.

The charge of failing to file an income tax return provides for a sentence of no greater than one year in prison, one year of supervised release and a fine of $25,000. The charge of filing a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000.  Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement.  Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case. 

PROVIDENCE, RI –Hector M. Figueroa, 34 of Providence, was sentenced to 45 months in federal prison today for attempting to receive 50 doses of Suboxone, a prescription medicine for treatment of opioid addiction, and for possessing approximately 300 grams of cocaine.

Suboxone, a controlled substance, helps to reduce withdrawal symptoms and curb cravings for opioids by tricking the brain into thinking that the individual has used heroin or oxycodone.

At sentencing, U.S. District Court Chief Judge William E. Smith ordered Figueroa to also serve 3 years of federal supervised release upon completion of his term of incarceration. Figueroa pleaded guilty on October 5, 2017, to a two-count information charging him with possession with the intent to distribute cocaine and possession with intent to distribute buprenorphine (Suboxone). The U.S. Sentencing Guidelines range of imprisonment in this matter is 46-57 months. The government recommended the court impose a sentence of 45 months in prison.

Figueroa will begin serving his sentence after he completes serving a 15-month prison sentence imposed on October 5, 2017, for violating terms of supervised release on a previous federal conviction for trafficking heroin.

Hector Figueroa’s sentence is announced by Acting U.S. Attorney Stephen G. Dambruch; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.

According to information presented to the Court, on March 28, 2017, U.S. Postal Inspectors executed a court-authorized search warrant on a package addressed to the defendant. The package contained 50 Suboxone strips. U.S. Postal Inspectors then obtained an anticipatory court authorized search warrant for Figueroa’s residence. After the package was delivered and accepted by the defendant’s father on March 29, the federal search warrant was executed and the package was seized. During the search of the residence, U.S. Postal Inspectors and members of the Rhode Island State Police High Intensity Drug Trafficking Area Task Force discovered and seized approximately 300 grams of cocaine, drug packaging paraphernalia and $17,000 in cash.

Figueroa was not at his residence at the time of the search and an arrest warrant was issued for him. After attempting repeatedly to locate Figueroa, the U.S. Marshals and Rhode Island States Police Fugitive Task Force arrested the defendant in late July. He has been detained since his arrest.

Previously, officers of the U.S. Customs and Border in San Juan, Puerto Ricco assisted the U.S. Postal Inspection Service with the seizure of two packages which led to the discovery and seizure of approximately $16,000 in U.S. currency. A review of video surveillance at two difference post offices by U.S. Postal inspectors determined that the packages were mailed by Hector Figueroa.

The case was prosecuted by Assistant U.S. Attorney William J. Ferland.

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BOSTON – A Dominican national was arrested yesterday and charged with fentanyl distribution and Social Security fraud.

Domingo Garcia Suero, 53, a Dominican national residing in Haverhill, was charged in a criminal complaint unsealed today with one count of possession with intent to distribute and distribution of a controlled substance, specifically fentanyl, and one count of Social Security fraud. Garcia Suero will appear today before U.S. District Court Magistrate Judge Donald L. Cabell.   

The criminal complaint alleges that in the fall of 2017, Garcia Suero sold fentanyl on four occasions. Garcia Suero also allegedly filed an application with the Registry of Motor Vehicles to renew his driver’s license in which he provided a name and a social security account number belonging to an individual in Puerto Rico.

The charge of possession with intent to distribute and distribution of a controlled substance provides for a sentence of no greater than 30 years in prison, at least six years of supervised release and a fine of $2 million. The charge of Social Security fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Garica Suero will also face deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.  

Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office made the announcement today. The case was also investigated by the DEA Cross Borders Initiative Task Force 4; U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Homeland Security Investigations in Boston; and the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office. Valuable assistance was also provided by the Haverhill Police Department, Lowell Housing Authority Police, Lowell Police Department, Massachusetts State Police, and the State Auditor of the Commonwealth of Massachusetts. Assistant U.S. Attorney Maxim Grinberg of Weinreb’s Criminal Division is prosecuting the case.

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.

Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Billy Lee Stevens, age 48, of Spokane, Washington, was sentenced for possessing heroin with the intent to distribute it and for possessing firearms in furtherance of a drug trafficking offense. United States District Judge Stanley A. Bastian, who noted Stevens’ extensive criminal history, sentenced him to a 137-month term of imprisonment and a four-year term of court supervision following release from Federal prison.

According to information disclosed during court proceedings, law enforcement officers with the Pacific Northwest Violent Offender Task Force (PNWVOTF) observed Stevens driving a pickup truck in the 1500 block of East Sharp Avenue in Spokane, Washington. The officers initiated a traffic stop of the truck because Stevens had an active felony warrant for his arrest – he has over 25 felony previous convictions. After the officers made contact with Stevens they sought judicial authorization by way of a warrant to search the vehicle. A judge issued the search warrant and the officers discovered over 228 grams of black tar heroin, along with cocaine and methamphetamine inside the truck. The officers also discovered a pistol-grip Remington shotgun and Derringer pistol next to the drugs. In the center console of the truck, officers located a Smith & Wesson 9mm pistol. They discovered a Walther PK380 pistol and a fully automatic Special Weapon MP5 machine gun in the bed of the truck.

Joseph H. Harrington said, “Prosecuting firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. Previously convicted felons should be aware that there are serious criminal penalties for possessing any firearm, but particularly a fully automatic firearm. This Office is committed to prosecuting aggressively firearm-related cases and violent crime occurring in this District.”

This case was investigated by the Spokane County Sheriff’s Office, the Spokane Police Department Patrol Anti-Crime Team (PACT), the PNWVOTF, and the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.

ASHLAND, Ky.– On Monday, a former bank executive admitted in federal court that he executed a 17-year scheme to defraud Town Square Bank of more than a million dollars.

Martin Ross, 52, pleaded guilty to one count of bank fraud before United States District Court Judge Bunning.  Ross admitted he developed and executed a scheme to defraud Town Square Bank, where he used to work.  Ross admitted that between May 2000 and July 2017, he used fake names and documentation to obtain fraudulent loans that he would then use to pay his personal debts and expenses.  According to the plea agreement, Ross obtained 15 fraudulent loans over the past 10 years, with an outstanding loss of $1,415,082.

Ross was charged by way of information, waiving his right to indictment by a federal grand jury. 

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Joseph E. Moriarty, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Investigations, Chicago Region, Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office and Todd Kelly, Chief of Police, Ashland Police Department, jointly announced the guilty plea.

The investigation was conducted by the Ashland Police Department, the FDIC, and the FBI.  The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Kate K. Smith.  

Ross is scheduled to be sentenced on April 16, 2018.  He faces up to 30 years in prison and a maximum fine of $1,000,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.  

HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony “Tony” D’Ambrosio, age 35, of Chambersburg, Pennsylvania, and Armando Delgado, age 21, of Chambersburg, Pennsylvania were convicted on December 18, 2017, after a two-week jury trial in Harrisburg before Chief U.S. District Court Judge Christopher C. Conner on all charges.  Both D’Ambrosio and Delgado were convicted of sex trafficking of children, conspiracy to transport any individual to engage in prostitution, transportation of any individual to engage in prostitution, conspiracy to transport a minor to engage in prostitution, conspiracy to distribute and possess with the intent to distribute oxycodone, cocaine and marijuana, and distribution and possession with the intent to distribute oxycodone.

According to United States Attorney David J. Freed, the jury returned with a verdict of guilty after approximately three hours of deliberation.  D’Ambrosio, Delgado and their co-conspirators recruited and transported girls and young women between the ages of 13 and 21 years old to engage in commercial sex acts in Pennsylvania, Maryland, Virginia, West Virginia, Florida, Rhode Island and the District of Columbia and frequently paid them in drugs.

Following the entry of the verdict, Chief Judge Conner remanded D’Ambrosio to the custody of the U.S. Marshals, at the request of the U.S. Attorney’s Office.  Delgado has been incarcerated on the superseding indictment since March 12, 2015.

D’Ambrosio, Delgado and their co-defendants, who previously pleaded guilty, participated in a conspiracy that began in approximately July 2012, and continued to January 2015.  D’Ambrosio, Delgado and the others rented motel rooms and posted “escort” advertisements and photographs on backpage.com from July 2012 through January 2015.  D’Ambrosio and the others would take the majority of the money made during the course of the prostitution business, and distributed various drugs to the women, including oxycodone, cocaine and marijuana.  

Albert E. “Pipo” Martinez, age 35, of Chambersburg, Pennsylvania, pleaded guilty to all charges on March 31, 2016.  On Tuesday, December 5, 2017, Keanu Martinez, age 21, of Chambersburg, Pennsylvania, son of Albert Martinez, pleaded guilty to one count of transporting minors to engage in prostitution.  A sentencing date has not been set for either Martinez yet.  Brandon Hill, age 30, of Harrisburg, Pennsylvania, previously pleaded guilty to drug trafficking counts and received a 37-month sentence. 

This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorneys Meredith A. Taylor and Scott Ford prosecuted the case.

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

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty for the sex trafficking offenses is life imprisonment and includes a mandatory minimum sentence of ten years imprisonment.  The maximum penalty for the drug trafficking offenses is a term of imprisonment of 20 years.  Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs.  For these reasons, the statutory maximum penalty for the offense is not an accurate indicate of the potential sentence for a specific defendant.

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 Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Daniel Lee Dove, age 36, of Airway Heights, Washington, was sentenced after having previously pleaded guilty on November 30, 2016, to Possession of Child Pornography. Senior United States District Judge Wm. Fremming Nielsen sentenced Dove to a nine-year term of imprisonment for possession of child pornography, and a one-year term of imprisonment for violating his supervised release conditions, for a total sentence of imprisonment of ten years, to be followed by a life-year term of court supervision after he is released from Federal prison. In addition, Judge Nielsen ordered Dove to pay $5,000 to the Justice for Victims of Trafficking Act fund. Dove agreed to the forfeiture to the United States of his cell phone that he used to possess and distribute child pornography images. Upon release from prison, Daniel Lee Dove will be required to register as a Sex Offender.  

According to information obtained initially from the Federal Bureau of Investigation (FBI) Miami Division, Dove was communicating with an individual in Miami using the messaging application KIK. The KIK communications revealed that Dove was exchanging graphic descriptions of infant and toddler-aged child pornography, as well as discussing sexual contact offenses of similarly-aged children. The FBI in Spokane assisted United States Probation Officers in searching Dove’s residence and cell phone to determine if he was in compliance with his Federal supervised release conditions. A forensic examination of Dove’s cell phone revealed approximately 444 images of child pornography. The images were primarily of children under the age of twelve years of age, however, approximately 10 images were pornographic images of babies, and approximately 15 images were pornographic images of toddler-aged children. In addition, the material located on Dove’s cell phone involved material that portrayed sadistic or masochistic conduct or other depictions of violence. 

Joseph H. Harrington stated, “The sentence handed down by the Judge Neilsen provides just punishment and I commend the excellent work of the FBI Special Agents who investigated this case. Prosecuting offenders who possess child pornography is one of the priorities of the United States Attorney’s Office for the Eastern District of Washington. This Office will continue to prosecute aggressively and seek appropriate punishment for child pornography crimes.”  

This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:  

• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;

• Participation of PSC partners in coordinated national initiatives;

• Increased federal enforcement in child pornography and enticement cases;

• Training of federal, state, and local law enforcement agents; and

• Community awareness and educational programs.  

For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”  

This investigation was conducted by the Federal Bureau of Investigations. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian Tate, age 35, of Gordon, Pennsylvania, was sentenced on December 18, 2017, by Senior U.S. District Court Judge A. Richard Caputo to 156 months’ imprisonment for attempting to entice a minor to engage in illegal sexual activity.

According to United States Attorney David J. Freed, Tate previously pleaded guilty to traveling to a hotel to engage in sex with a six-year-old female. Between October 17, 2016 and November 9, 2016, Tate used the internet to arrange for the minor to be brought to the hotel to meet him for sex. Tate was arrested after he arrived at the hotel on November 9.

Judge Caputo also ordered that Tate serve 10 years on supervised release following his prison sentence. Tate must also comply with the Sex Offender Registration and Notification Act.

Tate was indicted by a grand jury in November 2016, following an investigation by agents of Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.

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

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John H. Durham, United States Attorney for the District of Connecticut, today announced that UNITED TECHNOLOGIES CORPORATION (“UTC”) has entered into a civil settlement agreement with the federal government and paid $1,060,000 to resolve federal False Claims Act violations involving Goodrich Pump and Engine Controls Systems, a company UTC indirectly owned from July 2012 through March 2013. 

As alleged in the settlement agreement, Rolls-Royce was a prime contractor to the U.S. Army, and Goodrich Pump and Engine Controls Systems (GPECS) was a subcontractor to Rolls Royce.  GPECS sold its Full Authority Digital Engine Control Units, which includes the Engine Control Unit (FADEC/ECU), to Rolls-Royce Corporation for installation into its M-250 series engines.  The M-250 series engines were then sent to the U.S. Army for installation into U.S. Army helicopters, specifically the OH-58 Kiowa Warrior aircraft and A/MH-6M Mission Enhanced Little Bird (MELB).  From 2005 to 2012, GPECS purchased, shipped and caused counterfeit microprocessors to be integrated into FADEC/ECU assemblies, which were then incorporated into the M-250 series engine, ultimately for the Kiowa Warrior aircraft and MELB.

It is further alleged that from 2005 through 2012, GPECS provided to the government numerous false certifications as to the authenticity of the FADEC/ECU assemblies, and that 172 false certifications occurred between 2011 and 2012, alone.

“Federal contractors must abide by the certification requirements set forth in government contracts so that taxpayer dollars are not wasted, and our national security is not threatened,” said U.S. Attorney Durham.  “Vulnerabilities caused by counterfeit parts will not be tolerated.  We thank the Defense Criminal Investigative Service and U.S. Department of Transportation Office of Inspector General for thoroughly investigating this matter, and UTC for cooperating with the government’s investigation.”

“This settlement agreement is the direct result of a successful investigation conducted by the Defense Criminal Investigative Service (DCIS), the DOT-OIG and the U.S. Attorney’s Office, District of Connecticut,” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office.  “The integrity of the DoD’s supply chain is of critical importance to America’s national security and DCIS is committed to working with the DOJ and its law enforcement partners to ensure that counterfeit materials do not endanger U.S. military forces.”

This matter was investigated by the Defense Criminal Investigative Service and the U.S. Department of Transportation’s Office of Inspector General, and was handled within the U.S. Attorney’s Office by Assistant U.S. Attorney Ndidi N. Moses.

CORPUS CHRISTI, Texas -  A federal judge in Corpus Christi has issued a guilty verdict against a 25-year-old Corpus Christi resident on charges of sex trafficking of a child, announced Acting U.S. Attorney Abe Martinez.

The one-day trial occurred Dec. 14, 2017, before U.S. District Judge Nelva Gonzales Ramos. The court returned its verdict late yesterday against Marcus Anthony Tunchez.

During trial, U.S. District Judge heard about a joint investigation targeting gang members in the Corpus Christi area involved in narcotics trafficking and the sex trafficking of children. Tunchez was one of those identified as a member of the Mexican Mafia gang involved in both methamphetamine distribution and sex trafficking. 

In May 2017, Tunchez began selling methamphetamine to an undercover officer and said he acted as a pimp to several young women. Tunchez explained he created and posted advertisements on a commercial sex website for the young women who then gave half the proceeds from their commercial sex acts to Tunchez.  

In September 2017, Tunchez met with the undercover officer for the purpose of sex trafficking a child he believed was a 14-year-old girl. Tunchez expected to meet the child and transport her to a hotel where she would engage in a commercial sex act. Tunchez expected to receive 20 percent of the proceeds. He was taken into custody upon his arrival at the designated meeting place.

At trial, he attempted to convince the court that he intended to rob the undercover officer and not commit a sex trafficking crime.

Judge Ramos did not believe his claims and found him guilty as charged.

On Dec. 7, 2017, Tunchez entered a guilty plea on the narcotics charges and an unrelated gun charge before Judge Ramos.

Sentencing will be set at a later date. At that hearing, Tunchez faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine. Upon completion of any prison term imposed, Tunchez also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children. He also faces up to 40 years for the drug charges as well as another 10 years for the firearms offense.

Tunchez was arrested on federal charges in September 2017 and has been in custody since that time where he will remain pending his sentencing hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.

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

CHICAGO — The United States has filed a civil lawsuit accusing a north suburban diagnostics company of defrauding Medicare out of millions of dollars through kickbacks and unnecessary home sleep testing.

The suit alleges that SNAP DIAGNOSTICS LLC, its founder, GIL RAVIV, and its marketing vice president, STEPHEN BURTON, violated the federal False Claims Act by fraudulently billing Medicare for medically unnecessary services and for services that were occasioned by kickbacks.   The suit alleges that Raviv directed SNAP to submit claims for Medicare recipients’ second and third nights of home sleep testing when, in fact, the company knew that only a single night of testing was needed to effectively diagnose obstructive sleep apnea and it routinely tested and claimed only the one night for non-Medicare beneficiaries.  SNAP’s business model also relied on several unlawful kickback schemes, which incentivized physicians and their staffs to refer all of their home sleep testing services to SNAP, the suit alleges.

The government’s complaint was filed Monday in U.S. District Court in Chicago.  On Oct. 18, 2017, the government notified the Court that it was intervening in two separate lawsuits, each initially filed under seal by a private citizen pursuant to the qui tam, or whistleblower, provisions of the False Claims Act.

The lawsuit was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The U.S. Department of Health and Human Services, the U.S. Railroad Retirement Board, and the U.S. Office of Personnel Management assisted in the investigation.  The government is represented by Assistant U.S. Attorney Sarah J. North.

Wheeling-based SNAP is a nationwide provider of home sleep testing diagnostic services.  SNAP’s home sleep tests are covered by Medicare when medically necessary to diagnose obstructive sleep apnea, a common disorder in which airflow is obstructed during sleep.  Home sleep testing utilizes a portable monitor, unattended and initiated by the patient, to collect information about breathing and oxygen levels while the patient sleeps at home.  The testing assists physicians in diagnosing apnea and establishing a treatment plan.

According to the government’s lawsuit, SNAP paid commissions and bonuses to its sales force for selling the multi-night testing to providers, and it gave free home sleep tests to physicians and their families to induce referrals.  After the testing was performed, SNAP personnel interpreted the results and gave unsigned reports to referring physicians, who in turn would bill as if the physicians had performed the professional service of interpreting the results themselves, the suit states.  The suit contends that SNAP intentionally allowed physicians to fraudulently bill for this service as a way of increasing referrals and driving the volume of SNAP’s business. 

Since Medicare began covering home sleep testing in 2009, SNAP has received nearly $9 million from Medicare, almost all of it the result of fraud and kickbacks, according to the suit.

The False Claims Act permits private individuals to sue for false claims on behalf of the government and to share in any recovery.  The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times its damages plus civil penalties ranging from $5,500 to $11,000 for each false claim submitted by the defendants. 

The public is reminded that civil allegations are accusations only, and there has been no determination of liability.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Sunshine Marie McEwen (43, Atlantic Beach) has pleaded guilty to failing to register as a sex offender. She faces up to 10 years in federal prison and a lifetime term of supervised release. A sentencing date has not yet been scheduled.

According to court documents, on August 20, 1998, McEwen was convicted of sexual battery on a minor child in Jacksonville. After her release from state prison in September 2013, she resided in Atlantic Beach. On May 15, 2015, McEwen sold drugs to an individual in Atlantic Beach and later fled to California without updating her sex offender registration. She also failed to register in California as required by the Sex Offender Registration and Notification Act. On November 28, 2015, McEwen was arrested in Palm Springs and extradited to Florida to face her drug charges. On July 6, 2016, she was convicted for selling cocaine within 1,000 feet of a church and was sentenced to 78 months in state prison.    

The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.

This case was investigated by the United States Marshals Service, the Jacksonville Sheriff’s Office, the Atlantic Beach (Florida) Police Department, the Florida Department of Law Enforcement, and the Palm Springs (California) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

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

            CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Mark Gagnon, 54, of Candia, New Hampshire, was sentenced to 48 months in federal prison for possessing heroin with intent to distribute.

            Gagnon was convicted at a jury trial on August 2, 2017.  Testimony during the trial showed that on July 10, 2016, Gagnon and Alfredo Gonzalez traveled from Manchester, New Hampshire to Lawrence, Massachusetts to acquire approximately 500 grams of heroin from a drug trafficking organization led by Alberto Guerrero Marte.  Gagnon and Gonzalez met with Marte at a restaurant in Lawrence at approximately 10:00 p.m. on July 10, 2016.  Gagnon retrieved a shopping bag containing three cans of tomato sauce from Marte’s vehicle.  Gagnon placed the cans in his own vehicle and drove to New Hampshire.  During a traffic stop of Gagnon’s vehicle, a drug detection dog alerted officers that the vehicle contained drugs.  After obtaining a search warrant on the following day, law enforcement officers searched the vehicle and found that the three cans of tomato sauce contained over 500 grams of heroin.

            After serving his prison sentence, Gagnon will be on supervised release for a period of three years.

            Alberto Guerrero Marte is serving a 15-year prison sentence.  Gonzalez was convicted at trial on November 10, 2017.  He is scheduled to be sentenced on February 16, 2018.

            “This case is an example of how federal, state, and local law enforcement officers continue to work together to stop the flow of heroin and other drugs into New Hampshire,” said Acting U.S. Attorney Farley.  “The investigators in this case prevented a large quantity of heroin from being sold in the Granite State.  While we support access to treatment for those who suffer from addiction, individuals like Mr. Gagnon who participate in the distribution of deadly drugs will be prosecuted aggressively.” 

         “Opioid abuse is at epidemic levels in New Hampshire and across the North East,” said DEA Special Agent in Charge Michael J. Ferguson.  “Fentanyl and heroin are causing overdose deaths across the Granite State, and DEA is committed to aggressively pursue and hold accountable anyone who distributes and profits from spreading this misery.  This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”

            This matter was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force.  The case was prosecuted by Assistant U.S. Attorney Donald Feith.

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

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TALLAHASSEE, FLORIDA– After a six-day trial, Lee John Maher, 59, of Orlando, Florida, was convicted yesterday afternoon of conspiracy to commit mail fraud and with retaining and concealing federal funds, knowing that they were wrongly taken.  Co-defendant Larry Kenneth Long, 75, of Simpsonville, South Carolina, previously pled guilty to mail fraud conspiracy.  The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.

Maher and Long were officers of Clean Fuel Lakeland, which operated a biodiesel facility in Lakeland, Florida, in 2009 and 2010.  When federal money became available for energy initiatives under the American Recovery and Reinvestment Act of 2009, the men applied for a $2,480,000 grant from the United States Department of Energy through the Florida Governor’s Energy Office.  The Act was designed to encourage new energy investment by reimbursing grantees for monies invested in energy businesses.  The defendants fraudulently obtained funds under the grant by falsely claiming that Clean Fuel had spent $2,480,000 to buy and install a generator to run the biodiesel plant.  As proof that the generator had been purchased, the defendants submitted eight bogus bank checks to the Governor’s Energy Office, reflecting generator payments that had never actually been made.  Based upon their submissions, $2,232,000 in grant funds were disbursed to the Clean Fuel bank account in December 2010.  Immediately, the grant funds were disbursed through Maher’s other bank accounts, with Long receiving 1%, $22,320.  None of the grant funds were ever spent toward the purchase of a generator.  The defendants kept the fraud going until November 2012, through the submission of false progress reports.  The grant funds were ultimately recovered through federal asset seizure and forfeiture actions.

Maher’s sentencing hearing is scheduled for March 9, 2018, at 9:30 a.m. at the United States Courthouse in Tallahassee.  Maher faces a maximum of 20 years in prison on each count.  Long’s sentencing is scheduled for later this week.

This case resulted from an investigation by the United States Secret Service, the Florida Department of Agriculture and Consumer Services Office of Inspector General, and the United States Department of Energy Office of Inspector General.  Assistant U.S. Attorney Michael T. Simpson prosecuted this case.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.