WASHINGTON – The former office manager of a trade association management company pled guilty today to a federal charge of wire fraud for embezzling more than $1.5 million from the firm, announced U.S. Attorney Jessie K. Liu and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.

            Leunea D. Myers, 38, of Clinton, Md., pled guilty in the U.S. District Court for the District of Columbia. The Honorable Christopher R. Cooper scheduled sentencing for June 28, 2018. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Myers faces a likely range of 51 to 63 months in prison and a fine of up to $150,000. The plea agreement calls for her to pay $1,550,075 in restitution to her former employer and an identical amount in a forfeiture money judgment.

            According to a statement of offense filed as part of the plea, Myers worked from February 2015 to November 2017 as the office manager and bookkeeper for a company identified in court documents as “Company A.” This company is a professional trade association management company in the District of Columbia that has been in business for more than 40 years. Myers’s responsibilities included tracking client billings and receipts, depositing money, and reconciling clients’ bank accounts, drafting checks, and preparing financial statements.

            From April 2015 through November 2017, Myers embezzled funds by making unauthorized charges on company credit cards and by writing fraudulent checks directly to herself or to pay third parties to pay bills that she owed. 

            In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Special Assistant U.S. Attorney Sean Welsh, who assisted with forfeiture issues; former Paralegal Specialist Kate Abrey, and Assistant U.S. Attorney John P. Marston, who is prosecuting the case.

CHARLESTON, W.Va. – A Logan County man pled guilty today to a federal gun crime, announced United States Attorney Mike Stuart. Joshua Edie, 34, of Chapmanville, entered his guilty plea to being a prohibited person in possession of firearms. U.S. Attorney Stuart commended the investigative efforts of the Chapmanville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

“I support our Second Amendment rights wholeheartedly,” said U.S. Attorney Stuart. “I also firmly believe in protecting our gun rights by keeping firearms out of the hands of drug users, domestic abusers, and felons. We will keep working with our law enforcement partners to prosecute criminals who ignore and violate our gun laws.”

Edie admitted that around January 30, 2017, he possessed five firearms in his apartment in Chapmanville. He further admitted that, at the time, he was a user of methamphetamine and that he had been convicted of a misdemeanor crime of domestic violence in Ohio in 2010.

Edie faces up to 10 years in federal prison when he is sentenced on May 30, 2018.

Assistant United States Attorney Gabriele Wohl is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.

This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.

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PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of possession of material depicting the exploitation of a minor, United States Attorney Scott W. Brady announced today.

Abhijeet Das, 27, of Pittsburgh, Pennsylvania, pleaded guilty on March 6 to one count before United States District Judge Mark R. Hornak.

In connection with the guilty plea, the court was advised that on November 8, 2017, Das unlawfully possessed computer graphic files containing approximately 1,000 photographs and 380 videos depicting minors engaged in sexually explicit conduct.

Judge Hornak scheduled sentencing for July 19, 2018 at 9:30 am. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court released Das on a $25,000 bond.

Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.

The Western Pennsylvania Crimes Against Children Task Force conducted the investigation that led to the prosecution of Das.

GREAT FALLS – On Monday, Jaycob Tyler Kutzera, 24, from Redlands, California, was scheduled to appear for a jury trial in U.S. District Court.  Kutzera was charged with 35 counts of sexual exploitation of a child in violation of federal law.  Shortly before the trial was set to commence, Kutzera pleaded guilty to three counts of sexual exploitation of a child and the United States agreed to dismiss the remaining counts.  In court filings, Assistant U.S. Attorney Cyndee Peterson stated that in April 2016, the mother of a 12-year old girl contacted the Great Falls Police Department.  The mother, formerly of Great Falls, stated that she had looked through her daughter’s cell phone and saw sexually explicit communications between her 12-year old daughter and a male.  The mother also saw sexually explicit images.  During its investigation, the Great Falls Police Department determined the 12-year old girl engaged in sexually explicit communications with Kutzera via Facebook and other online applications.  Kutzera requested sexually explicit images of the girl during their online chats.  Great Falls Police Detective Jesse Slaughter traveled to California, seized Kutzera’s cellular phone and computer pursuant to a search warrant, and interviewed Kutzera.  During the interview, Kutzera admitted that he knew the girl was 12 years old, yet he continued to engage in the sexually explicit communications with her.   He also continued to receive images and videos of the child engaged in sexual conduct.  He also sent the child images of himself masturbating.  Kutzera’s conduct continued from April through October 2016. 

Sentencing is set on June 13, 2018.  Kutzera faces a mandatory minimum of 15 years and up to 30 years in prison, a $250,000 fine, and not less than 5 years of supervised release on each count.  U.S. District Court Judge Brian Morris ordered Kutzera released pending sentencing. 

This case was investigated by members of the Montana Internet Crimes Against Children Task Force, the Great Falls Police Department, Homeland Security Investigations and FBI Regional Computer Forensic Laboratory.   

A federal grand jury returned an indictment charging Dwayne B. Sheron, 36, of Maple Heights, for being a felon in possession of a firearm and ammunition. 

Sheron possessed a 9 mm firearm after having previously been convicted on three prior occasions of drug trafficking, which makes it illegal for him to have a firearm, according to the indictment. 

Assistant United States Attorney Brian S. Deckert is prosecuting the case following an investigation by the Bureau of Alcohol, Tobacco and Firearms and the Cleveland Division of Police.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.  In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

An indictment is only a charge 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.

A Cleveland man was indicted for selling fentanyl and crack cocaine and using a firearm as part of his drug trafficking, said U.S. Attorney Justin E. Herdman.

Steven Riddle, 26, was indicted on one count each of distribution of fentanyl, distribution of crack cocaine, using a firearm in relation to drug trafficking and being a felon in possession of a firearm.

Riddle possessed fentanyl and crack cocaine on Dec. 5, 2017, as well as a FNH 9 mm pistol. Riddle is prohibited from having a firearm because of previous convictions for drug trafficking, attempted drug trafficking, burglary and drug trafficking, according to the indictment.

The investigation was conducted by the ATF, U.S. Marshal Service and Cleveland Division of Police.  The case is being prosecuted by Assistant U.S. States Attorneys Kelly Galvin and Scott Zarzycki.

If convicted, the defendants sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violations.  In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

An indictment is only a charge 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.

            WASHINGTON – Tyrone Hunter, 25, of Washington, D.C., was found guilty by a jury today of a series of armed robberies that took place within a two-day period last year in Northwest and Northeast Washington, U.S. Attorney Jessie K. Liu announced.

            Hunter was found guilty of eight counts of armed robbery, one count of conspiracy to commit robbery, fleeing and eluding police, reckless driving, and related weapons offenses and other charges. The verdict followed a five-week trial, with testimony from more than 50 witnesses, in the Superior Court of the District of Columbia. Hunter is to be sentenced on May 2, 2018, by the Honorable Robert A. Salerno.

            According to the government’s evidence, on Jan. 15, 2017, at approximately 1:30 a.m., a 2016 grey Audi sedan was stolen from a parking garage in the 400 block of K Street NW. Over the next two days, the stolen Audi was used as the getaway vehicle in eight armed robberies in Northwest and Northeast Washington. In each instance, Hunter exited the front passenger seat and robbed the victims at gunpoint of their personal belongings before fleeing in the stolen car. According to the evidence at trial, the first robbery took place before dawn on Jan. 15, 2017, and the crimes continued into the night of Jan. 16, 2017.

            On Feb. 8, 2017, law enforcement observed Hunter driving the stolen Audi.  Following a brief chase that resulted in the stolen Audi crashing into numerous vehicles, Hunter exited the vehicle and fled from the police.  Law enforcement soon located and arrested Hunter. Following his arrest, several victims identified him as the gunman who robbed them. Hunter has been in custody since his arrest.

            In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team and the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Paralegal Specialists Zoe Antwi and Antoinette Sakamsa; Victim/Witness Advocates Diana Lim and Jennifer Clark; Victim/Witness Services Coordinator Katina Adams-Washington, and Litigation Technology Specialists Leif Hickling, Anisha Bhatia, William Henderson, and Ron Royal. Finally, she commended the work of Assistant U.S. Attorneys Vivien Cockburn and Ellen D’Angelo, who investigated and prosecuted the case.

BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman, announced the sentencing, of a Simpson County, Kentucky resident, in United States District Court yesterday, by United States District Judge Greg N. Stivers, to twenty years in prison, without the possibility of parole, for making and possessing illegal firearms, commonly known as Molotov cocktails.

“In this case, a phone call to law enforcement, and quick response by the Franklin Police Department and the ATF, may have saved Simpson County from untold harm,” stated United States Attorney Russell Coleman. “A vigilant public, aggressive law enforcement, and a significant punishment – twenty years – is the right formula for protecting our communities.”   

Trey Alexander Gwathney-Law, 20, of Franklin, Kentucky, pleaded guilty to counts one and two of a superseding indictment, on June 16, 2017, before Judge Stivers and at that time was remanded to the custody of the United States Marshal Service. Gwathney-Law admitted to making and possessing five illegal firearms. According to court records and report by the Franklin Police Department, Gwathney-Law relayed to an acquaintance that he had made the devices in order to blow-up Franklin-Simpson County Middle School.

Specifically, according to the plea agreement, on September 27, 2015, Gwathney-Law knowingly made five illegal firearms. All were made using glass bottles. Four of the bottles (one Mountain Dew, one Sprite, and two Dr. Pepper) contained a dark gas/oil mixture liquid with a cloth wick stuffed in the bottle opening.  Commonly referred to as a Molotov cocktail. A fifth, illegal firearm was made using a glass Root Beer bottle and contained a dark gas/oil mixture liquid with a piece of green pyrotechnic fuse attached to the opening with an epoxy sealant.  The bottle contained a silver CO² cartridge in the top of the bottle, under the pyrotechnic fuse.  The CO² cartridge contained explosive powder and small pieces of paper which appeared to have been soaked in the same flammable liquid found inside the bottle.  Commonly referred to as a Molotov cocktail. Further, Gwathney-Law admitted to possessing the illegal firearms.

At sentencing, the United States moved to dismiss counts three and counts four of the superseding indictment and agreed that a sentence of 20 years, followed by a three year period of supervised release was the appropriate disposition in this case.

This case was prosecuted by Assistant United States Attorney Jo Lawless and was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kentucky State Police (KSP) and the Franklin, Kentucky Police Department.

A federal grand jury returned a two count indictment charging Raynard Clayton, 34, of Akron, with interstate communications of threats and witness tampering, said U.S. Attorney Justin Herdman and FBI Special Agent in Charge Stephen D. Anthony.

Clayton was arrested on a criminal complaint last month. On Feb. 5, he sent a Facebook live post threatening to injure and kill someone identified in charging documents as B.T., with the intent to prevent communication to a law enforcement officer information about commission of a federal offense, according to the indictment.

If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations.  In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

The matter is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the FBI.

An indictment is only a charge 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.

LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced Wednesday the indictment of Alexander Joseph Jordan, 21, of Little Rock, for possessing the deadly biological toxin ricin.

Jordan was initially arrested on a federal complaint on February 27, 2018. A federal grand jury returned an indictment against Jordan on Wednesday for one count of knowingly possessing ricin without obtaining a registration, as required by the Public Health Service Act. Jordan is currently in federal custody and will be seen by a United States Magistrate Judge at a later date.

“Any time there is information that a deadly substance like ricin is present in our communities, our law enforcement partners will work together to take immediate and decisive action to eliminate the threat,” Hiland said. “Now that the immediate threat to public safety has been contained, we turn our attention to prosecuting the person responsible for creating this dangerous situation.”

According to the complaint affidavit, late on February 22, paramedics and police officers were dispatched to Jordan’s residence on Horseshoe Loop in Little Rock following a 9-1-1 call that described Jordan in distress. In the early morning hours of February 23, officers transported Jordan to the University of Arkansas for Medical Sciences (UAMS), where he stated that he had ingested ricin. Ricin is a highly toxic, naturally occurring protein that is produced in the seeds of the castor oil plant. A dose of purified ricin powder the size of a few grains of common table salt can kill an adult human.

Jordan told police officers at the hospital that he produced two mason jars of the ricin mixture, and the ricin and production materials were still at his house. He stated that he learned how to make the substance on the internet and got the idea from watching the television show Breaking Bad. Jordan said he combined ingredients needed to make the ricin in a blender. Little Rock Fire Department (LRFD) hazardous material (HAZMAT) teams were immediately dispatched to the residence. At the residence LRFD located two small mason jars containing a white substance.

Later on February 23, members of the FBI and Arkansas National Guard Weapons of Mass Destruction, 61st Civil Support Team (CST), executed a federal search warrant at Jordan’s residence. There they located, in addition to the mason jars, a blender in a trash can. Tests conducted by the clinical microbiology supervisor at the public health laboratory at the Arkansas Department of Health on samples from the blender and both mason jars confirmed positive for ricin.

Agents also recovered an Amazon.com receipt for 50 castor beans and paperwork that appeared to be a shopping list and instructions for ricin production.

“Jordan produced and possessed ricin, a deadly and highly toxic substance, which could have severely affected the safety of our citizens,” SAC Upchurch said. “We appreciate the immediate response of our law enforcement partners and their combined and committed efforts to contain the threat and safeguard our community.”

A violation of possessing a select agent, in this case ricin, under Title 18, United States Code, Section 175b(c) and 42 CFR § 73.3, carries a maximum penalty of not more than five years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release.

Multiple agencies, led by the FBI, assisted with this public health issue, including LRFD HAZMAT Team, Arkansas National Guard 61st CST, Saline County Sheriff’s Office, Arkansas State Police, Arkansas Department of Health, and UAMS Police Department. Assistant United States Attorney Stacy Williams is prosecuting the case.

            CONCORD– United States Attorney Scott W. Murray announced that Ian Chase, 28, of Littleton, New Hampshire was sentenced to serve 60 months in federal prison for unlawfully manufacturing methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.

            Court documents and statements in court showed that on April 8, 2016, members of the Drug Enforcement Administration (DEA) arrested Chase at his former residence located in Bethlehem after discovering Chase was actively manufacturing methamphetamine in a shed located on the property.  At the time of his arrest, Chase was in possession of a .25 caliber pistol.  A search of the property resulted in the seizure of 77.98 grams of methamphetamine, five additional firearms, and numerous chemicals Chase utilized to manufacture methamphetamine.  Under the terms of the plea agreement, Chase forfeited the firearms to the United States.

            Chase was arrested on July 21, 2016 and pleaded guilty to the charges on December 1, 2016.

            “The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to target individuals who are manufacturing illegal drugs in New Hampshire,” said U.S. Attorney Murray.  “While those who suffer from addiction need access to treatment, those who seek to manufacture methamphetamine and other deadly drugs will be prosecuted aggressively. 

            “This sentence reflects DEA’s strong commitment to bring to justice those that manufacture methamphetamine,” said DEA Special Agent in Charge Michael J. Ferguson.  “DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.  This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone who manufactures this poison.”

            The investigation was conducted by the: (1) DEA; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) Littleton Police Department; and (5) Bethlehem Police Department.  Assistant United States Attorney Jennifer Cole Davis prosecuted the case.

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DENVER - The United States Attorney’s Office for the District of Colorado today announces that Katherine O’Neal, a former member of the United States Army stationed at Fort Carson, was convicted in the United States District Court for smuggling goods from the United States, specifically exporting firearms to the Dominican Republic.  A Colorado jury returned the verdict in federal court, convicting O’Neal of this felony offense on March 6, 2018.  O’Neal was acquitted on other counts alleging false information on firearm purchase forms and money laundering.

At trial, before United States District Court Judge William J. Martinez, the Government introduced evidence showing that O’Neal made multiple trips to the Dominican Republic shortly after purchasing firearms in Denver and Colorado Springs, including one trip where she flew from Denver to the Dominican Republic with 11 firearms in her luggage in early June 2015.  She declared the firearms to the airline, but did not obtain the required State Department export license.  Her bags had been misdirected by the airline and were not on her flight.  When the bags arrived later, Dominican Republic officials noticed the handguns during an examination of the baggage.  When she arrived at the airport to claim her luggage, she was arrested.  The Dominican Republic has a ban on all imported firearms.   A Denver jury found her guilty of violating 18 U.S.C. § 554(a), which prohibits smuggling goods from the United States.

Defendant O’Neal will be sentenced in August 2018.  The case is captioned, United States of America v. Katherine O’Neal, Case No. 15-cr-0353-WJM.

The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms, as well as the Dominican Republic, where charges are pending her extradition to that country.

Assistant United States Attorneys Robert Brown and Kurt Bohn are prosecuting this matter for the United States.           

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OAKLAND – Two members of the West Oakland gang, Acorn, were sentenced to 43 years in prison for their respective roles in a criminal racketeering conspiracy, announced Acting United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The Honorable Phyllis J. Hamilton, Chief United States District Judge, sentenced Dionte Houff, a/k/a “Bird,” a/k/a “Birdman,” a/k/a “Tay,” and Houston Nathaniel, III, a/k/a “No No,” a/k/a “Lil No,” yesterday, following guilty pleas entered by the defendants on August 9, 2017.  Both defendants admitted being involved with murder, distribution of controlled substances, and use of firearms.  

According to his plea agreement, Nathaniel, 28, of Oakland, admitted that he became involved with the Acorn gang in or before 2008.  He acknowledged that he agreed to participate in the Acorn gang’s activities to help achieve its objectives, such as shooting members of rival gangs and distributing drugs.  Among the crimes Nathaniel committed for Acorn were two shootings that occurred on November 6, 2011, and another shooting on November 28, 2011.  Nathaniel admitted that on the morning of November 6, he carried a firearm to a rival gang’s neighborhood and shot a victim.  That victim suffered multiple gunshot wounds and has permanent injuries inhibiting his ability to walk.  On the evening of the same date, Nathaniel shot a second victim.  That victim was riding a bicycle through an area in West Oakland that the Acorn gang claims as its territory.  Nathaniel also admitted his involvement in a shooting that occurred on November 28, 2011.  On that day, Nathaniel knew a large group of people had gathered to film a music video.  Nathaniel and other Acorn members believed that the music video was being filmed in an area where rival gang members lived and that the music video disrespected the Acorn gang.  Nathaniel and others drove to the area with firearms and fired into the crowd.  As a result, seven people suffered gunshot wounds, including a child who later died from the gunshot wound.  

A federal grand jury indicted Nathaniel on July 19, 2012, and a superseding indictment was subsequently filed on June 18, 2015.  On August 9, 2017, Nathaniel pleaded guilty to the following charges from that superseding indictment: racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); maiming in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(2); assault with a dangerous weapon in aid of racketeering, in violation of 18U.S.C. § 1959(a)(2); attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); using a firearm during and in relation to a crime of violence causing death, in violation of 18 U.S.C. § 924(j)(1); and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).  

Houff, 36, of Oakland, also admitted he was a member of the Acorn gang.  Houff admitted he participated in the November 28, 2011 shooting that resulted in the death of a child and gunshot wounds to six others.  For his part, Houff admitted he got into a car with other Acorn-affiliated persons and rode to the area where the music video was being filmed.  Houff acknowledged he got out of the car, walked toward the group of people, and fired his gun into the group.  Houff also admitted he was engaged in narcotics trafficking as part of his support for the Acorn gang.

Houff was named as a defendant in the July 19, 2012 indictment, and the June 18, 2015, superseding indictment.  On August 9, 2017, Houff pleaded guilty to the following charges from the superseding indictment: racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); assault with a dangerous weapon in aid of racketeering, in violation of 18U.S.C. § 1959(a)(3); attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); using a firearm during and in relation to a crime of violence causing death, in violation of 18 U.S.C. § 924(j)(1); and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).  

In addition to the prison terms, Chief District Judge Hamilton also ordered each of the defendants to serve five years of supervised release.  

The case is the result of an investigation by the ATF and the Oakland Police Department (OPD). 
 

SAN FRANCISCO– Jeffrey Wertkin was sentenced this afternoon to 30 months in prison for obstruction of justice and transportation of stolen property, announced Acting United States Attorney Alex G. Tse; Department of Justice Office of the Inspector General, Fraud Detection Office Special Agent in Charge Lewe Sessions; and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.  The Honorable Maxine M. Chesney, U.S. District Judge, handed down the sentence after Wertkin pleaded guilty to the charges last November.    

“Mr. Wertkin has betrayed the trust placed in him by the Department of Justice, his colleagues, and the American people,” said Acting U.S. Attorney Alex Tse. “Today’s sentence hopefully restores the confidence in public servants who take an oath to serve their government and demonstrates that no one is above the law.  Those who run afoul of the rules established to ensure the proper function of government will be prosecuted without fear or favor.”

“Wertkin abused his position for personal gain and violated the nation’s trust.  The DOJ-OIG will continue to work tirelessly with its partners at the FBI and the U.S. Attorney’s Offices to ferret out corruption and hold accountable those who engage in theft and obstruction of justice,” stated DOJ-OIG Fraud Detection Office Special Agent in Charge Lewe F. Sessions.

According to his plea agreement, Wertkin, 41, of Washington, D.C., worked for the Civil Fraud Section of the Department of Justice from October 24, 2010, until April 12, 2016.  During that time, he worked on qui tam actions pursuant to which the government investigated companies suspected of breaking the law.  Federal courts often order qui tam complaints “sealed” and therefore kept from public view until it is appropriate for the complaints to become public.  In his plea agreement, Wertkin admitted that during the last month of his employment as a trial attorney with the Department of Justice, he began secretly reviewing and collecting sealed qui tam complaints that were not assigned to him.  Further, Wertkin has admitted that after he left the Department of Justice, he used the stolen information improperly to solicit clients that were the subject of the sealed complaints.  Wertkin acknowledged that in one instance, he was successful in using the information from a sealed complaint to convince the company that it was the subject of a lawsuit and to retain him as an attorney to represent it in the lawsuit.  Wertkin also acknowledged he lied to the Department of Justice in documents he completed during his exit process regarding whether he stole the complaints.

The plea agreement also describes two occasions in which Wertkin attempted to sell information to companies that were the subject of government investigations.  On November 30, 2016, Wertkin offered to sell a complaint to the corporation named in the lawsuit.  Then, between November 30, 2016, and January 31, 2017, Wertkin engaged in multiple conversations with a representative of the corporation to negotiate the sale of the sealed complaint for $310,000.   Similarly, on January 23, 2017, Wertkin contacted a second corporation and offered to mail to the representative a copy of the face sheet of the complaint.  Wertkin actually mailed a redacted copy of the face sheet and promised that, for a fee, he would provide the entire complaint.

Wertkin was arrested on January 31, 2017, after traveling from the Washington, D.C. Area to the San Francisco Bay Area with a copy of a sealed complaint.  On that day, Wertkin believed he was meeting at a Cupertino hotel with a representative from a company and that he was exchanging the complaint for a duffel bag filled with $310,000.  In truth, Wertkin was meeting with an undercover employee of the FBI.  Wertkin described the meeting in his sentencing memorandum as follows: “As part of his escapist fantasy, Mr. Wertkin donned a wig and sunglasses and went to a hotel in Sunnyvale with complaint in hand, whereupon he was arrested by the FBI.” 

Further, Wertkin admitted that after his arrest, he took steps in an effort to obstruct the ongoing criminal investigation.  Specifically, after being released from custody, Wertkin returned to his office, purportedly to retrieve his personal belongings, and removed and destroyed documents from his office that he knew could further incriminate him.  Wertkin also acknowledged he “placed two complaints in a used FedEx envelope in an attempt to make it appear that sealed complaints had been accidentally mailed to him by a DOJ employee.”  Wertkin acknowledged he took these and additional other steps in an effort to corruptly obstruct the ongoing investigation and proceedings against him.

In sum, on November 1, 2017, Wertkin was charged by information with two counts of obstruction of justice, in violation of 18 U.S.C. § 1505, and one count of interstate transportation of stolen goods, in violation of 18 U.S.C. § 2314.  Pursuant to his plea agreement, Wertkin pleaded guilty to all counts.  

Assistant U.S. Attorneys Robin L. Harris and William Frentzen are prosecuting the case.  The prosecution is the result of an investigation by the FBI and the Department of Justice Office of the Inspector General.  
 

ALBANY, NEW YORK – David H. Carlton, age 47, of Glens Falls, New York, pled guilty today to selling a firearm to a felon.

The announcement was made by United States Attorney Grant C. Jaquith; Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and New York State Police Superintendent George P. Beach II.

As part of his plea, Carlton admitted that in the spring of 2016, he sold a Mossberg shotgun to George Allen, whom he knew to be a felon.  Carlton purchased the shotgun online for $175 and sold it to Allen for $250.  Allen was found with the shotgun – which was loaded -- in his vehicle during a traffic stop by New York State Police on August 1, 2016 in Queensbury, New York.

Allen pled guilty on June 5, 2017 to being a felon in possession of a firearm and ammunition, and is scheduled to be sentenced on April 3, 2018.  Carlton’s sentencing is scheduled for August 1, 2018 before Senior United States District Judge Frederick J. Scullin, Jr..

Carlton and Allen each face up to 10 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine.  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. 

This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.

U.S. Attorney Duane A. Evans announced that SHANNON CHRISTOPHER CEASAR, M.D., age 45, a physician and former co-owner who operated Gulf South Physician’s Group in Metairie and resided in New Orleans, was sentenced today after previously pleading guilty for his role in illegally dispensing and distributing controlled substances, threatening to assault or murder federal law enforcement officers, and health care fraud.

According to court documents, on April 5, 2017, CEASAR pled guilty to Counts 1, 2, and 3 of a Superseding Bill of Information. Count 1 charged him with conspiracy to distribute and dispense, outside the scope of professional practice and not for a legitimate medical purpose, quantities of Oxycodone, a Schedule II drug controlled substance.  CEASAR ran what was, in essence, a “pill mill,” i.e., an operation in which he prescribed controlled substances to drug seekers and drug abusers without a legitimate medical purpose and in exchange for a flat fee. 

CEASAR also pled guilty to and was sentenced for threatening to assault or murder federal law enforcement officers with the intent to impede, intimidate or interfere with such officers while they were engaged in the performance of their official duties, or with the intent to retaliate.  On or about July 20, 2016, at a time when CEASAR suspected he was under investigation, he made repeated recorded threats to kill federal law enforcement officers, in particular officers with the Drug Enforcement Administration.

Lastly, CEASAR pled guilty to and was sentenced for committing and attempting to commit health care fraud.  In total, as a result of CEASAR’s knowing and fraudulent issuance of prescriptions for Schedule II, III, and IV narcotics that he knew were medically unnecessary, health care benefit programs lost approximately $150,000.

U.S. District Judge Martin L.C. Feldman sentenced CEASAR to 120 months imprisonment on all three counts, to be served concurrently, followed by a three-year term of supervised release. CEASAR was also ordered to pay restitution in the amount of $150,788.33 to Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana for losses suffered.  As part of his plea agreement, CEASAR also agreed to suspension of his Louisiana medical license and, among other property, the voluntary forfeiture of 33 firearms that were seized upon his arrest on July 22, 2016.

“Operating as a physician in the New Orleans area, Shannon Ceasar violated the trust of his patients and abused his position, which ultimately endangered the lives of many within our community.  Based on his greed, Caesar operated the equivalent of a street level pharmacy, peddling opioids for sex and money. The FBI, along with our federal, state, and local partners will continue to investigate the illegal distribution of opioids in Louisiana and help put an end to the suffering that so many victims continue to endure,” said Special Agent in Charge Eric J. Rommal, Federal Bureau of Investigation, New Orleans Field Office.

“The sentence imposed today affirms our commitment that HHS-OIG Special Agents will work closely with our law enforcement partners to identify and bring to justice medical providers who deliberately manipulate the system to fraudulently obtain crucial Medicare and Medicaid dollars,” said Special Agent in Charge C.J. Porter, Department of Health and Human Services, Office of Inspector General’s Dallas Region. “The sentence also demonstrates that threats of violence against law enforcement agents will not deter us from our commitment to pursue and bring to justice the providers who are contributing to the nation’s opioid epidemic for their own enrichment.”

 U.S. Attorney Duane A. Evans praised the work of the Special Agents of the Federal Bureau of Investigation, U.S. Department of Health and Human Services OIG, and Drug Enforcement Administration, as well as the Jefferson Parish Sherriff’s Office and Louisiana State Police in investigating this matter.  Assistant United States Attorneys Shirin Hakimzadeh, Jordan Ginsberg, and Myles Ranier were in charge of the prosecution.

GREENSBORO, N.C. B A Florida businessman who provided financial services to professional athletes pleaded guilty today to conspiracy to commit wire fraud and money laundering, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.

Jason Christopher JERNIGAN, age 43, a resident of Miramar, Florida, pleaded guilty to one count of conspiracy to commit wire fraud and money laundering.

According to court documents, JERNIGAN, along with his business partner Michael Rowan, operated Capital Management Wealth Advisors, Inc. (“CMG”) and APS Management, LLC (“APS”) in High Point, North Carolina. Through CMG and APS, JERNIGAN and Rowan provided financial and investment services to professional athletes, including players in the National Football League. From 2008 through 2014, JERNIGAN used his access to his clients’ bank accounts to convert and misappropriate approximately $1.48 million.

JERNIGAN’s business partner, Michael Rowan, was sentenced in April 2017 to 65 months in prison for wire fraud and filing a false 2011 tax return.

Sentencing is scheduled for June 1, 2018, at 2 p.m. in Greensboro. JERNIGAN faces a statutory maximum sentence of 5 years in prison. He also faces monetary penalties, supervised release, and restitution.

U.S. Attorney Martin commended special agents of IRS-Criminal Investigation and US Postal Inspection Service, who investigated the case, and Assistant United States Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who prosecuted this case.

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SANDRA RAVEN, age 51, a resident of Laplace, Louisiana, was charged by a federal grand jury in a six Count Indictment for Wire Fraud and Aggravated Identity Theft, announced U.S. Attorney Duane A. Evans.

According to court documents, RAVEN owned and operated S & R Tax Service out of her home in Laplace, Louisiana. Beginning in 2012, RAVEN filed fraudulent tax returns with the IRS using stolen identities. The tax returns claimed false wages, and RAVEN directed the tax refunds and tax preparation fees to her custody and control without the knowledge or consent of the individuals named on the tax returns.   

If convicted, the defendant faces 20 years of imprisonment as to Counts 1 through 3. As to Counts 4 through 6, the defendant faces a mandatory additional two-years of imprisonment to be served consecutively to any sentence imposed as to Counts 1 through 3. RAVEN also faces a $250,000 fine.   

The case was investigated by the Internal Revenue Service, Criminal Investigations Division. 

U.S. Attorney Duane Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. 

The case is being prosecuted by Assistant U. S. Attorney G. Dall Kammer, Deputy Chief of the Fraud Unit.

According to court documents, JORDAN willfully attempted to evade tax due and owing for tax year 2011, by filing a false IRS form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return), which falsely stated that her total estimated tax liability was $0 and that she had made $10,000 in payments to the IRS, despite knowing that she had received $493,266 in taxable income that year. JORDAN then failed to file a tax return for the 2011 tax year.

JORDAN faces a maximum term of imprisonment of five years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee. As part of her plea agreement, JORDAN agreed to pay $313,899 to the IRS, for taxes due and owing for the 2009-2014 tax years. United States District Court Judge Ivan L.R. Lemelle set sentencing for June 6, 2018.

U.S. Attorney Evans praised the work of IRS-Criminal Investigations, United States Secret Service, and the Slidell Police Department in investigating this matter. Assistant United States Attorney Jon Maestri and DOJ Tax Division Trial Attorney Grace Albinson are in charge of the prosecution.