VERNON SWEENEY, JR.(“SWEENEY”),age 52, of Tickfaw, Louisiana, entered a plea of guilty today for possession of child pornography, announced United States Attorney Duane A. Evans.

On October 12, 2017, law enforcement officers with the Louisiana State Police and the U.S. Department of Homeland Security, Homeland Security Investigations, arrested SWEENEY during the execution of a state search warrant at his Tickfaw home after finding that SWEENEY was in possession of several items, including a laptop computer, thumb drives and cellular phones that contained images depicting the sexual victimization of prepubescent children. 

Court records also revealed that SWEENEY was previously convicted in Tangipahoa Parish Criminal District Court for pornography involving juveniles on August 1, 2012.  Due to his prior conviction, if convicted, SWEENEY faces a mandatory minimum penalty of ten (10) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine.

Sentencing will be held on July 12, 2018 before U.S. District Judge Eldon E. Fallon.

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."           

U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police in investigating this matter.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.

ATLANTA - Kesia Quinette Jackson has been sentenced for her role as an organizer in an armed robbery spree that spanned five counties, and target seven Wal-Mart Stores. 

“Jackson led a robbery crew that terrorized business employees, shoppers, and citizens during a crime spree,” said U.S. Attorney Byung J. “BJay” Pak.  “Jackson and her crew calculated their robberies and helped drive violence and fear in multiple counties.  The defendant’s conviction and lengthy sentence resulted from the collaboration of multiple federal and local law enforcement agencies determined to apprehend and aggressively prosecute every member of this robbery crew.”

"For nearly two years Jackson led a robbing crew that rained terror on innocent victims, who just by chance, were in the wrong place at the wrong time,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “The FBI, working together with several local law enforcement agencies and the US Attorney’s Office have put an end to their reign of terror so that the victims can take solace in the fact they won’t be able to traumatize any more innocent people.”

According to U.S. Attorney Pak, the charges and other information presented in court:  Between February 3, 2014, and October 26, 2015, Kesia Quinette Jackson, along with others committed 11 armed robberies throughout the metro-Atlanta area.  Jackson was the organizer of the robberies.  Seven of the robberies targeted Wal-Mart Stores.

Jackson and her co-defendants researched store locations in DeKalb, Gwinnett, Cobb, Clayton and Forsyth Counties, and then surveilled the businesses before and during the robberies, usually between 10:00 pm and midnight. Jackson was captured on surveillance video prior to the robberies while she talked on her cell phone and cased the locations. During each robbery, co-defendant Deanthony Foster was also captured on video surveillance entering the stores wearing a surgical mask, brandishing a firearm, and proceeded to force store employees to empty their cash registers. During the final robbery, Foster fired a shot near store employees when they failed to immediately give him cash.  

In addition to the Wal-Mart store robberies, Jackson also targeted gas stations and convenience stores.  On February 3, 2014, Jackson and her crew robbed a gas station in Gwinnett County. Jackson was inside the business casing the establishment immediately prior to the armed robbery. Within 24 hours after the robbery, proceeds from the robbery were deposited into Jackson’s personal bank account. On June 2, 2014, Jackson and her crew robbed another gas station in DeKalb County, during which a co-defendant shot an employee in the leg. Like the other robberies, Jackson entered the business and cased the business immediately before the robbery.

Jackson’s sentence also involves conduct related to her role in three gas station armed robberies, one on August 27, 2015, one on September 21, 2015, and the third on October 26, 2015, in Cobb and DeKalb counties. During one of the robberies a co-defendant shot a victim employee.   

Kesia Quinette Jackson, 46, of Atlanta, Georgia, has been sentenced to 21 years, three months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $62,315.95.  Jackson pleaded guilty on November 10, 2016.

Co-defendants Deanthony Foster and Eric Lamar Ross were previously sentenced for their respective roles in the robberies.  Foster, a gunman, received a sentence of 32 years in prison. Ross, who acted as a lookout during two of the robberies, received a sentence of five years in prison.

This case was investigated by the FBI, with assistance from the following law enforcement agencies: Cobb County Police Department, DeKalb County Police Department, Gwinnett County Police Department, Hapeville Police Department, Roswell Police Department, Riverdale Police Department, Dunwoody Police Department, and the Forsyth County Sherriff’s Office.

Assistant U.S. Attorneys Katherine M. Hoffer and Jessica C. Morris prosecuted the case.

This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

U.S. Attorney Duane A. Evans announced that MICHAEL PENN, age 41, of Tickfaw, pled guilty today to an Indictment charging him with conspiracy to distribute and possession with the intent to distribute heroin. 

According to court documents, PENN was the target of a narcotics investigation that was investigated by members of the Drug Enforcement Administration and the Hammond Police Department.  On five separate occasions, PENN unknowinglysold heroin to an undercover officer with the Hammond Police Department at various locations within the Hammond area.  Each transaction was audio and video recorded.

Judge Susie Morgan will sentence PENN on June 13, 2018.  PENN faces a maximum sentence of 20 years imprisonment for his participation in the drug conspiracy.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Hammond Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.

On March 2, 2018, Summer B. Kirby, 28, of Johnston City, Illinois, was sentenced to federal prison for methamphetamine and firearm offenses, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.

Kirby, who had previously pled guilty to conspiracy to distribute methamphetamine and using or carrying a firearm during a drug trafficking offense was sentenced to a total sentence of 140 months of imprisonment and four years of supervised release. The offenses occurred between 2015 and April 2017, in Williamson and Franklin Counties. Evidence at the plea and sentencing hearings established that Kirby and co-defendant Clay Kirby were involved with other persons in the distribution of ice in southern Illinois. Ice is methamphetamine, which has a purity level of at least 80 percent. On multiple occasions, the defendants sold ice to a confidential source working for law enforcement. During an April 2017 traffic stop in Johnston City, Summer Kirby was in possession of a loaded firearm. Officers also located methamphetamine, drug scales, and a large amount of U.S. currency in the vehicle. At sentencing, the district court found that Summer Kirby was responsible for the distribution of 735 grams of ice. Co-defendant Clay Kirby was previously sentenced to 188 months of imprisonment for his role in the ice conspiracy.

The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and the Drug Enforcement Administration. The Johnston City Police Department and Marion Police Department also assisted in the investigation.

            CONCORD - Eric Collins, 44, of Epsom, was sentenced to serve 78 months in prison for firearms and drug trafficking offenses, Acting United States Attorney John J. Farley announced today.

             According to court documents and statements made in court, in February of 2017, Concord police officers executed a search warrant for the defendant’s vehicle and recovered two firearms, over $7,500 in cash and various controlled substances, including fentanyl and methamphetamine. As part of the defendant’s plea agreement, he agreed to forfeit his interest in the cash and firearms.

            Collins previously pleaded guilty on November 21, 2017, to using and carrying a firearm during and in relation to a drug trafficking crime and possession of controlled substances with intent to distribute.

           This matter was investigated by the Concord Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.

           The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. 

###

U.S. Attorney Duane A. Evans announced that JUAN CARLOS MOSQUERA-AMARI, age 46, of New Orleans, ALEXANDER MURIEL-DIAZ, age 52, of Houston, Texas, LUIS RAMOS GRAVEDEPERALTA, age 60, of Kenner, CARLOS ALBERTO GONZALEZ VALENCIA, age 36, of Houston, Texas, STEVEN DUNCAN, age 45, of Metairie,and JOSE ANTONIO VALVERDE-CHACON, age 37, of Houston, Texas, were charged in a one-count indictment with conspiracy to distribute heroin, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846.

ELBERT MOORE, age 36, of Houma, Louisiana, pleaded guilty today before the Honorable Susie Morgan to a bill of information charging him with violating the Federal Controlled Substances Act, announced U.S. Attorney Duane Evans.

According to the court records, MOORE conspired to possess with the intent to distribute and to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a quantity of a mixture or substance containing a detectable amount of cocaine, and a quantity of a mixture or substance containing a detectable amount of methamphetamine.  MOORE admitted to being captured on a Title III wire intercept. 

Sentencing is scheduled for June 8, 2018.  MOORE faces a mandatory minimum term of imprisonment of at least 10 years because of a prior drug offense, up to a maximum of life, a fine of $8,000,000 and eight years of supervised release following any term of imprisonment.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA).  The prosecution is being handled by Assistant United States Attorney David Haller.

Columbia, South Carolina-------United States Attorney Beth Drake announced today that a hearing for Thomas Lawton Evans Jr., age 37, of Boiling Springs, South Carolina, has been set for Monday, March 5, 2018, at 1:30 P.M. in the federal courthouse, 85 Broad St., in Charleston, SC,

Evans has been charged in a criminal complaint out of the District of South Carolina with Kidnapping involving a person under the age of eighteen.  Evans was arrested in Mississippi, and has been transported back to Charleston, South Carolina, to be arraigned in federal court on the complaint. 

The case is being investigated by Special Agents with the Federal Bureau of Investigation and by the Charleston Police Department. 

The United States Attorney stated that all charges are merely accusations and that the defendants are presumed innocent until and unless proven guilty.

#####

On March 1, 2018, Joseph Michael Kehrer was charged with the felony offense of failure to notify regulatory authorities prior to removing asbestos material, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Mr. Kehrer pled guilty to the charge. The sentencing hearing is scheduled for June 12, 2018, in the federal district court in Benton.

Mr. Kehrer admitted that around February and March of 2015, he was the owner of a building formerly used as the Okawville Elementary School in Okawville, Washington County, Illinois. During this time and during a renovation activity, Kehrer caused the removal of a combined amount of material containing asbestos greater than 160 square feet. Under such circumstances, he was required by law to notify regulatory authorities at least 10 working days prior to removing asbestos material. In this instance, the appropriate regulatory authority to have been notified was the Illinois Environmental Protection Agency (IEPA). Kehrer admitted to knowingly having failed to provide the prior notification to IEPA.

The offense of failure to notify regulatory authorities prior to removing asbestos material carries up to a maximum of five years of imprisonment, to be followed by up to three years of

supervised release and a fine up to $250,000.

The investigation is being conducted by the U.S. Environmental Protection Agency, Criminal Investigation Division and the U.S. Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney William E. Coonan, with the assistance of David P. Mucha, Regional Criminal Enforcement Counsel, U.S. Environmental Protection Agency.

DES MOINES, Iowa – The United States Attorney’s Office for the Southern District of Iowa recently obtained several convictions against defendants committing offenses against minor children, as part of the United States Department of Justice Project Safe Childhood Initiative, announced United States Attorney Marc Krickbaum.

On March 1, 2018, United States District Court Judge Stephanie M. Rose sentenced Gabriel Espinoza, age 23, of Marshalltown, to 25 years in prison for sexual exploitation of a minor. Upon his release from imprisonment, Espinoza will serve 25 years of supervised release.

The investigation into Espinoza’s crime started in March 2017, when law enforcement in Bucks County, Pennsylvania learned a 10-year-old female had been sexually exploited via social media by Espinoza, a registered sex offender. Within days, Espinoza was located and arrested by the Iowa ICAC Task Force. After additional investigation, law enforcement learned Espinoza had also victimized a minor female in Minnesota. This matter was investigated by the Iowa Internet Crimes Against Children Task Force (ICAC), Bucks County (PA) District Attorney’s Office, Minnesota Bureau of Criminal Apprehension, Iowa Division of Narcotics Enforcement, Iowa State Patrol, Marshalltown Police Department, Ankeny Police Department, and Iowa Division of Intelligence.

On December 8, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Gaspar Jose Francisco, age 27, of Osceola, to 14 years imprisonment for enticement and attempted enticement of a minor to engage in illicit sexual activities. Upon his release from imprisonment, Francisco will serve five years of supervised release.

This investigation was initiated by a report to the Osceola Police Department that alleged possible sexual abuse of a minor child by an adult who lived nearby. Further investigation revealed Francisco used social media to entice a 13-year-old female to engage in illegal sexual activity with him. This matter was investigated by the Iowa ICAC, Osceola Police Department, United States Department of Homeland Security – Homeland Security Investigations, and Iowa Attorney General’s Office.

On November 17, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Jordan Adolfo Turner, age 25, of Muscatine, to 20 years imprisonment for receipt of child pornography. Upon his release from imprisonment, Turner will serve 10 years of supervised release. This investigation was initiated by a tip from an Iowa man to the Federal Bureau of Investigation (FBI), which alleged a 13-year-old boy was being sexually exploited via social media by an adult male. Further investigation by Iowa ICAC revealed Turner solicited and received nude images and/or videos from seven other minors that resided in Iowa. This matter was investigated by the Iowa ICAC, FBI (Minneapolis Field Office and Omaha Field Office), and Muscatine Police Department.

These cases were prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.

Any persons having knowledge of a child being sexually abused are encouraged to call the 24-hour Iowa Sexual Abuse Hotline at 1-800-284-7821. The National Center for Missing and Exploited Children (NCMEC) also operates a Cyber Tip line at www.cybertipline.com that allows parents and children to report child pornography and other incidents of sexual exploitation of children by submitting an online form.

Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that the Ninth Circuit Court of Appeals has upheld the convictions of Craig A. Morgenstern, age 49, of Nine Mile Falls, Washington, that resulted in 12 life terms of imprisonment. In 2016, a federal trial jury found Morgenstern guilty of 12 counts of Aggravated Sexual Abuse of a Child; 18 counts of Production and Attempted Production of Child Pornography; two counts of Travel with Intent to Engage in Illicit Sexual Contact with a Minor; and, one count of Receipt of Child Pornography. Senior United States District Judge W. Fremming Nielsen sentenced Morgenstern to 12 life terms in federal prison for the Aggravated Sexual Abuse of a Child convictions; a 30-year term of imprisonment for each of the Production and Attempted Production of Child Pornography convictions; a 20-year term of imprisonment for each conviction for Travel with Intent to Engage in Illicit Sexual Contact with a Minor; and, a 20-year term of imprisonment for the Receipt of Child Pornography conviction.

According to evidence introduced at trial, Morgenstern sexually assaulted six young boys and produced child pornography images of the assaults from 2008 through 2014. The victims ranged in age from 7 to 15 years old at the time of the assaults. Evidence at trial also established that Morgenstern traveled to Idaho, Mississippi, and Tennessee in order to sexually molest the same victims and produce child pornography images for his own sexual gratification. Evidence also established that Morgenstern would incapacitate his victims using drugs so that the victims were unaware of the sexual abuse and so Morgenstern could continue his crimes and avoid detection.

Evidence at trial also established that Morgenstern’s crimes were discovered after one of his victims, then a minor child less than 14 years old, escaped from Morgenstern’s residence in Stevens County on October 18, 2014 after awaking to Morgenstern sexually assaulting him during the early morning hours. Subsequent investigation and evidence led to the discovery of the additional victims.

Following sentencing, Morgenstern appealed his convictions to the Ninth Circuit Court of Appeals. The Ninth Circuit rejected all of Morgenstern’s arguments, noting that “[t]he jury was presented with an overwhelming amount of digital evidence that depicted Morgenstern performing sex acts on the victims.”

Joseph H. Harrington said “Morgenstern is a sexual predator who used his position as a doctor and the trust of unsuspecting families to prey on children for his own selfish sexual gratification. If not for the brave actions of his last victim, the hard work of the Federal Bureau of Investigation and the Stevens County Sheriff’s Office, and the resilience of all of Morgenstern’s victims and the victims’ families at trial, Morgenstern’s crimes would have gone undiscovered and unpunished. Ultimately, Morgenstern received a just and fair trial and a just and fair sentence and he will never again be able to victimize another child or another unsuspecting family.”

The case was prosecuted 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 case was investigated by the Federal Bureau of Investigation and the Stevens County Sheriff’s Office. The case was prosecuted by Stephanie J. Lister and James A. Goeke, Assistant U. S. Attorneys for the Eastern District of Washington.

FORT WORTH, Texas — Timothy Paul Malone, 39, of River Oaks, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 90 years in federal prison for child pornography offenses, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.

Malone pleaded guilty in November 2017 to two counts of sexual exploitation of children and one count of attempted sexual exploitation of children. Judge O’Connor sentenced Malone to 360 months for each of the three counts, to run consecutively. Malone has been in custody since the time of indictment in September 2017. 

According to documents filed in the case, Malone persuaded and enticed two minor children in Watauga and Haslet, Texas to engage in sexually explicit conduct for the purpose of producing a video. Malone also attempted to use another minor child to create a video of the minor engaged in sexually explicit conduct.

In January 2017, law enforcement conducted a search warrant, according to plea documents, at Malone’s residence and seized a number of electronic devices. An examination of the devices revealed a number of child pornography videos and images including those of the minors previously mentioned.

The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children.  Project Safe Childhood also prioritizes identifying and rescuing victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.  For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”           

River Oaks Police Department, Tarrant County District Attorney’s Digital Forensics Unit, and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney A. Saleem prosecuted.

# # #

WASHINGTON – A federal jury found a Biloxi, Mississippi physician guilty Friday for his role in an approximately $3 million compounding pharmacy fraud scheme.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi, Field Division and Acting Special Agent in Charge Ted Magee of Internal Revenue Service Criminal Investigation’s (IRS-CI) New Orleans Field Office made the announcement.

Albert Diaz, M.D., 78, was convicted of one count of conspiracy to commit health care fraud and wire fraud, four counts of wire fraud, one count of conspiracy to distribute and dispense a controlled substance, four counts of distributing and dispensing a controlled substance, one count of conspiracy to falsify records in a federal investigation and five counts of falsification of records in a federal investigation following a five-day trial.  Sentencing has been scheduled for May 22, 2018 before U.S. District Judge Keith Starrett of the Southern District of Mississippi, who presided over the trial. 

“Communities place extraordinary trust in medical professionals,” said Acting Assistant Attorney General Cronan.  “It is therefore particularly egregious when a physician compromises that trust, as Albert Diaz did when he played a pivotal role in causing millions of dollars in loss to our country’s health care programs.  The prosecution of Albert Diaz exemplifies the Criminal Division’s commitment to holding those involved in fraud schemes accountable for their actions.”

“When individuals defraud our military’s healthcare system TRICARE, harming the health and welfare of our men and women in uniform, they will be met with swift prosecution, severe punishment and the loss of their illicit gains,” said U.S. Attorney Hurst. “I applaud the tireless and determined work of these investigators and prosecutors in securing justice in this case.  Justice prevailed and justice will continue to roll.”

“In the past five years, health care fraud schemes have cost Mississippi taxpayers hundreds of millions of dollars,” said Special Agent in Charge Freeze.  “Today’s verdict should send a strong message that the FBI will continue to expose and investigate those who exploit our health care system at the expense of the taxpayer, and especially physicians who contribute to addiction by prescribing unnecessary controlled substances.”

“The jury found Dr. Albert Diaz guilty of conspiracy to commit healthcare fraud, which sent a message to all criminals seeking to defraud insurance companies – we’re on to you and will hold you responsible for your crimes,” said Acting Special Agent in Charge Magee.  “Dr. Diaz’s scheme to steal from TRICARE and other insurance companies not only cost the American taxpayers, but put the lives of his patients in danger.”

According to evidence presented at trial, between October 2014 and December 2015, Diaz participated in a scheme to defraud TRICARE and other insurance companies by prescribing medically unnecessary compounded medications, some of which included ketamine, a controlled substance, to individuals he had not examined.  The evidence further demonstrated that, based on the prescriptions signed by Diaz, Advantage Pharmacy in Hattiesburg, Mississippi dispensed these medically unnecessary compounded medications and sought and received reimbursement from TRICARE and other insurance companies totaling more than $3 million. The trial evidence further demonstrated that in response to a TRICARE audit, Diaz falsified patient records to make it appear as though he had examined patients before prescribing the medications.

The FBI, IRS-CI, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics and other government agencies investigated the case.  Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.    

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion. 

BOSTON – A Gardner man pleaded guilty today in federal court in Worcester to a federal firearm offense.

Edwin Labaw, 33, pleaded guilty to one count of being a felon in possession of a firearm. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 9, 2018. In November 2017, Labaw was arrested after being charged in a criminal complaint. 

On Sept. 19, 2017, Labaw and another individual, Travis Miller, met with an undercover federal agent in Gardner and sold the agent a double-barrel 12-gauge shotgun, a 9mm Kel-Tech Sub 2000 rifle, and 11 rounds of 12-gauge shotgun ammunition in exchange for $1,200. Miller and Labaw met again with an undercover federal agent on Sept. 27, 2017, in Fitchburg and sold the agent a 7.62x39mm caliber SKS rifle, along with ammunition and magazines, in exchange for $1,800.  

According to court documents, Labaw has prior felony convictions and is therefore prohibited from possessing firearms and ammunition.

Miller was also arrested in November 2018 and charged in federal court in Worcester with being a felon in possession of ammunition and with distributing fentanyl. He has a court hearing scheduled for March 22, 2018.

Labaw faces a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. This case was investigated with assistance from the Worcester Police Department, Gardner Police Department, Fitchburg Police Department, and Massachusetts State Police. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.

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

ALBANY, NEW YORK – George Muzio, Jr., age 36, of Cohoes, New York, was arraigned Friday on a superseding indictment charging him with the production of child pornography. 

The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

The superseding indictment alleges that in 2014 and 2015, Muzio sexually exploited two child victims, ages 11 and 13, for the purposes of producing child pornography.  Muzio also faces charges of distributing and possessing child pornography, for which he was originally indicted in February 2017.  The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

At a detention hearing on Friday, United States Magistrate Judge Daniel J. Stewart ordered Muzio detained pending trial. 

If convicted of producing child pornography, Muzio faces at least 15 years and up to 30 years in prison per count of conviction.  If convicted of distributing child pornography, Muzio faces at least 5 years and up to 20 years in prison per count.   The Court may also impose a fine of up to $250,000, and must impose a term of post-imprisonment supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

If convicted, Muzio would also be required to register as a sex offender.

This case is being investigated by Homeland Security Investigations (HSI) and prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.

This case is prosecuted as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

Assistant U. S. Attorney Timothy Coughlin (619) 546-6768, Special Assistant U.S. Attorney Thomas Endicott, Captain, U.S. Marine Corps (619) 546-8664

NEWS RELEASE SUMMARY– March 2, 2018

SAN DIEGO – A 25-year-old Marine Corporal was found unresponsive on the floor in his Camp Pendleton barracks on Sunday, January 29, 2017. He was lying next to his computer chair, still wearing headphones. He appeared to have been playing video games. Paramedics were unable to revive him.

What followed was an autopsy report that determined the cause of death to be fentanyl toxicity, and a death investigation that has resulted in federal charges against the alleged dealer, 25-year-old Kyle Anthony Shephard of San Marcos.

In a complaint unsealed today, Shephard is charged with Distribution of Fentanyl Resulting in the Death of the Marine, identified in court documents only as Corporal M.C., 1st Marine Division. Shephard was arraigned before U.S. Magistrate Judge, Mitchell D. Dembin today at 2:00 p.m.  He is scheduled to appear for a detention hearing on Tuesday, March 6, 2018 at 1:30 p.m., also before Judge Dembin.

The last known contacts with Corporal M.C. occurred late Friday night, January 26, 2017, two days before his death, and shortly after midnight on Saturday morning. A forensic examination of Corporal M.C.’s computer showed his last computer activity taking place at 1:44 a.m. on January 28, 2017. 

On February 1, 2017, an autopsy was conducted at the Naval Medical Center San Diego.  The toxicology screen was positive for fentanyl.  Colonel Ladd Tremaine, M.D., Medical Corps, U.S. Army, Armed Forces Medical Examiner, determined that Corporal M.C. died of opioid toxicity caused by a fentanyl overdose.

On April 28, 2017 a forensic chemist with the Defense Forensic Science Center, reported that a blue pill seized from Corporal M.C.’s barracks room tested positive for fentanyl. The pill was discovered on the headboard next to a powdery substance and a rolled up dollar bill.   

A complaint alleges that Shephard distributed the fentanyl pills to Corporal M.C. which caused his death.  Text messages obtained from Corporal M.C.’s phone revealed he was first introduced to Shephard in November 2016.  During the next three months – November – December 2016 and January 2017 – they arranged numerous sales of fentanyl and other drugs.  Their conversations included Shephard acknowledging that the pills could lead to an overdose.

Their drug-based relationship culminated on Friday January 27, 2017, when Shephard sold four fentanyl pills to Corporal M.C. for one hundred dollars.  The contents of that text message are included below:

Corporal M.C. – 6:14 PM – Yo whats good bro.

Shephard – 6:15 PM – What’s good?

Corporal M.C. – 6:17 PM – Can u meet up in a lil bit?

Shephard – 6:20 PM – Yes come to esco

Corporal M.C. – 6:21 PM – Do u have the fetanyl ones or the other ones

Shephard – 6:22 PM – I have both but new fet prices are 25 the others are 20 I lost a Plug and had my prices raised significantly with the fet ones

Corporal M.C. – 6:34 PM – Any deals

Corporal M.C. – 6:41 PM – And where do u wanna meet

Shephard – 6:41 PM – If you get quite a bit

Corporal M.C. – 6:44 PM – Kk ill take 4 for a hundo

Corporal M.C. – 6:53 PM – Im omw

Shephard – 6:57 PM - Fasho

Corporal M.C. – 7:25 PM – Where we meeting

Shephard – 7:28 PM – My housr

Corporal M.C. – 7:34 PM – Im in here

Shephard – 7:36 PM – Me too

Corporal M.C. – 7:36 PM – Im near the address 336

An investigation of Shephard’s ongoing criminal activity found that on December 12, 2017, Shephard and a female associate were arrested and charged by the San Diego District Attorney’s Office with distribution of a controlled substance. Law enforcement officers involved in the arrest of Shephard said the controlled substance Shephard was charged with possessing for distribution was approximately 2,000 fentanyl-laced pills.

“What a senseless tragedy that another young life has been lost because of fentanyl,” said U.S. Attorney Adam Braverman. “This Marine was serving his country and had his whole life ahead of him. We are going to hold dealers accountable for the deaths that result from their reckless disregard for human life.”

“NCIS and other law enforcement agencies must do whatever we can to address the nation's ongoing opioid crisis by going after those who are dealing death. Busting a dealer tied to the death of a U.S. Marine will hopefully save the lives of other service members,” said NCIS Pendleton Field Office Special Agent in Charge Todd Battaglia.

In another recent case being prosecuted by the U.S. Attorney’s Office, alleged heroin distributor Max Gaffney was arrested in January 2018 and charged with Distribution of Heroin Resulting in Death.  According to an October 2017 indictment, Gaffney distributed heroin on February 16, 2017, which resulted in the death of a person identified only as K.R.  For further information please see Case Number 17cr3330.

While final numbers have not been released, preliminary estimates reflect that deaths caused by fentanyl analogs doubled in San Diego County in 2017 over 2016.

DEFENDANT                                     Case Number 18-mj-0935-MDD                                            

Kyle Anthony Shephard                        Age: 25           

SUMMARY OF CHARGES

Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(C)

Maximum penalty: Mandatory minimum 20 years in prison up to life

AGENCY

United States Naval Criminal Investigative Service Marine Corp

U.S. Army, Armed Forces Medical Examiner

Defense Forensic Science Center

San Diego County Sheriff’s Department

United States Attorney’s Office

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

ALEXANDRIA, Va. – Six members of the street gang La Mara Salvatrucha, or MS-13, were convicted today by a federal jury for their roles in a kidnapping, murder, and an extortion conspiracy in Northern Virginia.

According to court records and evidence presented at trial, in April and May 2016, MS-13 gang members and associates Dublas Aristides Lazo, Lelis Ezequiel Tremino-Tobar, Carlos Benitez Pereira, Daniel Oswaldo Flores-Maravilla, Andres Alexander Velasquez-Guevara, Manuel Antonio Centeno, Wilmer Viera-Gonzalez, and Miguel Zelaya-Gomez targeted Carlos Otero-Henriquez, an 18-year-old resident of Leesburg, because they believed Otero-Henriquez was a member of the rival 18th Street gang. On the evening of May 21, 2016, the gang members lured Otero-Henriquez into a vehicle occupied by Lazo, Treminio-Tobar, Pereira, Flores-Maravilla, Centeno, Viera-Gonzalez, and Zelaya-Gomez under the pretense that the group was going to a party. Instead, the group drove Otero-Henriquez to an isolated quarry near Harpers Ferry, West Virginia. There, the group severely beat, restrained, and killed Otero-Henriquez, stabbing him more than 50 times with a knife. Afterwards, the gang left the Otero-Henriquez’s body in a nearby ditch, and returned to the home of Shannon Sanchez in Leesburg. Sanchez, another associate of the gang, helped them burn their clothes and destroy other evidence of the crime.   

“The hallmark of MS-13 is extreme violence,” said Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia. “This brutal kidnapping and murder is a tragic reminder of the impact MS-13 has on communities here in Northern Virginia. My hope is that our efforts to investigate and prosecute this case will send a clear message: Violence will be aggressively prosecuted. I want to thank our trial team and investigative partners for their terrific work on this case and for bringing these criminals to justice.” 

According to court records and evidence presented at trial, from January 2016 through April 2016, Juan Carlos Guadron-Rodriguez, Wilmar Javier Viera-Gonzalez, and Miguel Zelaya-Gomez engaged in a conspiracy to extort an individual victim residing in Leesburg, Virginia. As part of the conspiracy, the defendants threatened violence to the victim and the victim’s family unless the victim made regular extortion payments to the gang. The victim’s family contacted law enforcement, and the victim thereafter wore an FBI body wire to record extortion payments the victim made to Guadron-Rodriguez and Zelaya-Gomez in March and April 2016. The FBI conducted surveillance of these payments both to ensure the victim’s safety, and to collect evidence against the gang. Through these investigative steps, the FBI was able to record and photograph Guadron-Rodriguez and Zelaya-Gomez in the act of taking extortion money from the victim.

“This horrendous kidnapping and murder was a senseless and inhumane act committed by MS-13 members,” said Andrew W. Vale, Assistant Director in Charge of the FBI's Washington Field Office. “Today's verdict sends a clear message that the FBI, along with our local, state and other federal law enforcement agencies, will hold violent gang members and murderers fully accountable for their actions. The FBI, along with our partners, work relentlessly to ensure violent gangs and murderers are brought to justice. I would like to thank the agents, analysts, task force officers, and prosecutors for their unwavering efforts to eliminate gang violence in our communities.”

“This unfortunate and disturbing case serves as another example as to why law enforcement must not relent in pursuing criminal gangs such as MS-13, said Gregory C. Brown, Chief of Leesburg Police. “Through our collaborative partnerships, we will continue to aggressively investigate and work with prosecutors to ensure violent gang members receive the maximum punishment as allowed by the law. It is important for those who choose to engage in criminal gang activity to know that they are not welcome in our communities.”

A total of 10 defendants were charged in this case. Of those, six defendants went to trial, and were convicted of all charges. Four defendants pleaded guilty prior to trial. See the table below for additional information on each defendant.

Lazo, Treminio-Tobar, Pereira, and Flores-Maravilla face a mandatory sentence of life in prison for kidnapping resulting in death, in addition to the sentences they receive for conspiracy to commit kidnapping, and conspiracy to commit kidnapping and murder in aid of racketeering. Velasquez-Guevara faces a maximum sentence of life in prison for conspiracy to commit kidnapping. Guadron-Rodriguez faces a maximum sentence of five years in prison for each of the five extortion charges for which he was convicted. Sanchez faces a maximum sentence of 15 years in prison for accessory after the fact. The maximum statutory sentence is prescribed by Congress, and is provided here for informational purposes. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Gregory C. Brown, Chief of Leesburg Police, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorneys Patricia T. Giles, Tobias D. Tobler, and Morris Parker are prosecuting the case.

The Northern Virginia Gang Task Force, Loudoun County Commonwealth’s Attorney’s Office, Loudoun County Sheriff’s Office, U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Fairfax County Police Department provided significant assistance during the investigation.

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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-209.

Orlando, Florida– U.S. District Judge Carlos E. Mendoza has sentenced Juan Almeida (59) and Andrew Cassara (38), both of Boca Raton, to six and seven years in federal prison, respectively, for conspiring to possess with the intent to distribute 100 kilograms or more of marijuana. They pleaded guilty on November 6, 2017.

A third co-conspirator, Wade Jones, Jr., previously pleaded guilty and was sentenced on February 7, 2018, to 13 months’ imprisonment.

According to court documents, in January 2015, the Drug Enforcement Administration began investigating the conspirators’ drug trafficking activities, which involved the distribution of large amounts of high-grade marijuana to individuals and groups. In August 2014, another group of drug traffickers had stolen approximately $250,000 of marijuana from the conspirators. In February 2015, during a recorded meeting, the conspirators discussed recouping their debt from the drug traffickers and continuing their drug distribution activities. A few days later, law enforcement seized more than 1,300 pounds of high-grade marijuana from a storage facility in Orlando and a house linked to Cassara.  

This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Sean P. Shecter.

WICHITA, KAN. – A Parsons woman was sentenced Monday to five years in federal prison for embezzling millions of dollars from a credit union where she worked, U.S. Attorney Stephen McAllister said. She was ordered to pay more than $10 million in restitution.

Nita Rae Nirschl, 66, Parsons, Kan., pleaded guilty to one count of embezzlement, one count of money laundering and one count of attempted tax evasion. In her plea, she admitted the crimes occurred while she was an officer and employee of Parsons Pittsburg Credit Union headquartered in Parsons, Kan. She withdrew money from the assets of the credit union and deposited the money into accounts she controlled. She used the stolen money to buy a car, a house and other items.

McAllister commended the FBI, the Internal Revenue Service and Assistant U.S. Attorney Lanny Welch for their work on the case.

John H. Durham, United States Attorney for the District of Connecticut, announced that MODESTO BARETT-MEDINA, 49, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 42 months of imprisonment, followed by three years of supervised release, for his role in a heroin trafficking ring.

 According to court documents and statements made in court, on October 21, 2016, the Baldwin County Sheriff’s Office in Alabama conducted a motor vehicle stop of a car hauler that was carrying a 2012 Chevrolet Malibu.  A search of the Malibu, which was registered to Onel Arana-Gervacio, revealed that it contained a hidden compartment (“trap”), which is commonly used to conceal and transport illegal contraband, including narcotics, firearms and currency.  Law enforcement officials obtained court authorization to install tracking devices on the vehicle and, between October 2016 and January 2017, HSI agents observed it at various locations in Connecticut and Rhode Island.

On January 17, 2017, agents located the vehicle at 1091 Maple Avenue in Hartford.  On January 20, surveillance officers observed activity on another vehicle located at the Maple Avenue residence consistent with manipulating a mechanical hidden compartment.  Officers then observed Arana placing two duffel bags into that second vehicle and then driving off in the vehicle with BARETT.  At approximately 8:30 p.m., a Hartford Police cruiser pulled the car over.  The vehicle also contained a hidden trap, but a search revealed no contraband.

A subsequent search of 1091 Maple Avenue revealed more than six kilograms of heroin, approximately 500 grams of cocaine and a “finger press,” which is used to process bulk quantities of heroin into 10-gram-bags known as “fingers.”  Agents also seized drug distribution materials, including sifters, grinders, scales, vacuum sealers and kilo wrappers, which were coated in heroin residue and field-tested positive for the presence of fentanyl.

Agents then searched the Malibu, which was located in the garage of 1091 Maple Avenue, and recovered approximately $260,000 in cash from inside the trap.

Laboratory testing of the seized heroin revealed that some of it contained fentanyl.

BARETT has been detained since his arrest on January 20, 2017.  On September 8, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.

BARETT faces immigration proceedings when he completes his prison term.

Arana, who pleaded guilty to related charges, awaits sentencing.

This matter has been investigated by Homeland Security Investigations (HSI), the Hartford Police Department and the Connecticut State Police, with the assistance of the Baldwin County (Ala.) Sheriff’s Office.  The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and David T. Huang.