ALBUQUERQUE – David Torres-Arrellanes, 29, a Mexican national illegally residing in the United States, was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison for his conviction for using a telephone to facilitate a drug trafficking crime and an illegal reentry charge.  Torres-Arrellanes will be deported after he completes his prison sentence

Torres-Arrellanes and seven other residents of Lea County, N.M., including four Mexican nationals, and a resident of Yuma, Ariz., were charged in a 20-count indictment filed in July 2017, with federal drug trafficking and money laundering offenses.  The indictment was the result of a multi-agency investigation into a significant drug trafficking organization allegedly led by Jose Raul Mendivil-Berrelleza, 34, a Mexican national who resided in Hobbs, that allegedly imported methamphetamine and cocaine into Lea County from Mexico through Arizona. 

The  investigation, which was led by the DEA and included HSI and the Lea County Drug Task Force of HIDTA Region 6, was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.  During the course of the investigation, law enforcement authorities seized approximately 13 kilograms (28.6 pounds) of pure methamphetamine and 1.45 kilograms (3.2 pounds) of cocaine, a firearm and $19,000 in cash.

The 20-count indictment charged alleged ringleader Mendivil-Berrelleza and seven co-defendants with conspiracy, methamphetamine and cocaine trafficking, and money laundering offenses.  Count 1 of the indictment charged all eight defendants with participating in a conspiracy to traffic methamphetamine and cocaine in Lea County and elsewhere between Nov. 2016 and July 2017.  Count 2 charged Mendivil-Berrelleza and Roberto Rendon-Duran, 70, of Yuma, Ariz., with participating in an international money-laundering conspiracy.  Counts 3 through 5 charged certain defendants with methamphetamine trafficking offenses and Count 6 charges certain defendants with a cocaine trafficking offense.  Counts 7 through 20 charged certain defendants including Torres-Arrellanes, with using communications devices to facilitate their drug trafficking activity.

On Oct. 25, 2017, Torres-Arrellanes pled guilty to an information charging him with reentry of a removed alien and using a telephone to facilitate a drug trafficking crime.  In entering the guilty plea, Torres-Arrellanes admitted that on May 24, 2017, he had a telephone call with an individual who distributed methamphetamine, and told the individual that $10,000 in drug proceeds was ready to be picked up by a drug courier.  Torres-Arrellanes further admitted that on May 22, 2014, he was deported from the United States, and did not have permission to reenter when he was arrested by federal law enforcement agents on Aug. 2, 2017, in Ariz.

Four of Torrez-Arrellanes’ co-defendants previously have entered guilty pleas.   Jeremy W. Gough, 41, of Hobbs, pled guilty on Dec. 13, 2017, and was sentenced on Feb. 20, 2018, to 120 months in prison followed by five years of supervised release.  Carlos Espinoza-Perez, 28, a Mexican national, pled guilty on Jan. 22, 2018; Reco Curry, 38, of Hobbs pled guilty on Nov. 27, 2017; and Rendon-Duran pled guilty on Oct. 31, 2017.

Two co-defendants have entered pleas of not guilty and are pending trial.  Miguel Angel Luna-Arredondo has yet to be arrested and is considered a fugitive.  Charges in indictments and criminal complaints are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.

This case was investigated by the DEA and HSI offices in Las Cruces and the Lea County Drug Task Force with assistance from the Lea County Sheriff’s Office and the Hobbs Police Department.  Assistant U.S. Attorneys Terri J. Abernathy and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.

The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force.  The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988.  HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.

PITTSBURGH – A resident of Eighty-Four, Pennsylvania, was sentenced in federal court for conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.

United States District Judge Nora Barry Fischer sentenced Donald R. Taylor, 78, to three years’ probation, a $30,000 fine, and 300 hours of community service.

Taylor previously pleaded guilty on October 30, 2017. In connection with his guilty plea, Taylor, the owner of Century Steel Erectors Co. (CSE), admitted that he conspired with Watson L. Maloy, Jr. to use Maloy’s company, W.M.C.C. Inc. (WMCC), as a "front" company to illegally obtain federally funded subcontracts on Pennsylvania Department of Transportation (PennDOT) and Pennsylvania Turnpike Commission (PTC) bridge projects. As part of his guilty plea, Taylor further admitted that the United States Department of Transportation (USDOT), through the Federal Highway Administration, required PennDOT and the PTC to implement USDOT’s disadvantage business enterprise (DBE) program, which was designed, among other things, to promote participation of minority-owned small businesses in federally funded projects. Because CSE was not a certified DBE subcontractor, Taylor and Maloy agreed that they would use WMCC as a means to obtain DBE-eligible bridge subcontracts. Contrary to DBE requirements, however, Taylor admitted that CSE employees, acting at his direction, actually identified, bid, negotiated, and performed the work on DBE-eligible subcontracts. As a means to conceal CSE’s role in handling contracts awarded to WMCC, Taylor admitted that CSE employees used a WMCC email account and phone line, used magnetic WMCC signs to cover the CSE logo on CSE vehicles at job sites, possessed WMCC business cards, and held themselves out as WMCC employees in dealings with general contractors and PennDOT and PTC officials. As a result, Taylor admitted that WMCC and CSE fraudulently obtained nine PennDOT subcontracts between approximately January 2012 and February 2014, resulting in payments to WMCC totaling approximately $1,065,000. In return, Taylor admitted that Maloy was paid a periodic "fee," ranging from $2,000 to $10,000 during the conspiracy.

At the time of his guilty plea, Taylor made full restitution in the amount of $85,221.21 to PennDOT.

Maloy previously pleaded guilty to one count of conspiracy to defraud the United States, and Chief United States District Judge Joy Flowers Conti sentenced him to two years’ probation and a $1,000 fine on February 20, 2018.

Assistant United States Attorneys Robert S. Cessar, Eric G. Olshan, and Christy Criswell Wiegand prosecuted this case on behalf of the government.

The Federal Bureau of Investigation and the United States Department of Transportation – Office of Inspector General conducted the investigation of Taylor and Maloy, with assistance from the Pennsylvania Turnpike Commission – Office of Inspector General.

Orlando, FL – A federal jury today found Francisco Javier Barbot Cabassa (28, Kissimmee) guilty of forcibly assaulting a mail carrier while the carrier was engaged in the performance of his official duties, resulting in physical contact with the mail carrier.

According to testimony and evidence presented at trial, Barbot Cabassa approached the mail carrier, while he was distributing mail, and demanded that the carrier give him a package. The mail carrier requested that Barbot Cabassa provide identification, but Barbot Cabassa refused. As a result, the carrier informed Barbot Cabassa that he would need to go to the post office and provide identification in order to obtain the package. Barbot Cabassa then punched the mail carrier in the face and ultimately took the package.

This case was investigated by the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Alejandro J. Salicrup and Vincent S. Chiu.

ALBANY, NEW YORK – Preston James, age 39, of Brooklyn, New York, was sentenced today to 132 months in prison for distributing crack cocaine on four occasions.

The announcement was made by United States Attorney Grant C. Jaquith; James J. Hunt, Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA); and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

James pled guilty on June 7, 2017.  He admitted that he sold crack cocaine on April 6, April 9, April 21, and April 29, 2015.  The crack cocaine from the four sales weighed more than 95 grams. 

United States District Judge Mae A. D’Agostino also sentenced James to an 8-year term of supervised release, to begin after James is released from prison.

This case was investigated by the DEA and FBI, and prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.

ALBANY, NEW YORK – Damian Quillinan, age 43, of Ballston Spa, New York, was sentenced today to 96 months in prison for receipt and possession of child pornography.

The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

United States District Judge Mae A. D’Agostino also sentenced Quillinan to a life term of supervised release, to begin following his term of imprisonment.  Quillinan will also be required to register as a sex offender upon his release from prison.

Quillinan pled guilty on November 13, 2017.  He admitted that on July 29, 2016, he used his phone to download child pornography from the Internet.  Quillinan further admitted to downloading and storing more than 14,000 child pornography videos and images on various computers and external hard drives in his residence between February 2014 and August 2016.

This case was jointly investigated by the FBI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

This case was prosecuted as 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 http://www.justice.gov/psc/.

In the wake of last night’s events, United States Attorney Brandon J. Fremin stated, “Our prayers and sympathies are with the family, friends, and colleagues of Christopher Lawton, a courageous public servant who served the people of Zachary as both a police officer and firefighter.  His senseless death serves as yet another reminder of the risks that our law enforcement heroes face every day to protect us.  We will devote whatever federal law enforcement resources are necessary to ensure that justice is served.” 

BOISE – Josue Daniel Alfaro, a/k/a Danny Alfaro, a/k/a the “Great Outdoors Bandit,” age 32, of Portland, Oregon, was sentenced today in United States District Court to 63 months in prison, followed by three years of supervised release, for the crimes of bank robbery and attempted bank robbery.  Chief United States District Judge B. Lynn Winmill also ordered Alfaro to pay $31,216 in restitution to the six victim banks and to forfeit $28,930 in unrecovered cash proceeds and $2,826 in recovered cash proceeds.  Previously, on December 20, 2017, Alfaro pleaded guilty to Counts 1, 3, 5, 7, 9, and 11 of the indictment.

According to the plea agreement, Alfaro admitted to robbing and attempting to rob, the following banks on the following dates and in the following amounts:

-On December 21, 2016, the U.S. Bank at 10500 West Overland Road in Boise, Idaho for $3,174;

-On December 21, 2016, the Idaho Central Credit Union at 1615 South Celebration Avenue in Meridian, Idaho for $2,100;

-On March 24, 2017, the Bank of the West at 9140 West Emerald Street in Boise, Idaho for $3,469;

-On May 24, 2017, the Alpine Credit Union at 351 East 800 South in Orem, Utah for $12,736;

-On August 7, 2017, the Bank of the West at 9140 West Emerald Street in Boise, Idaho.  Attempted robbery, no loss;

-On August 7, 2017, the Pioneer Federal Credit Union at 850 East Fairview Avenue in Meridian, Idaho for $9,637;

-On August 7, 2017, the Clarity Federal Credit Union at 555 South Meridian Road in Meridian, Idaho for $100. 

According to the plea agreement, for each of the robberies, Alfaro obscured his face with a baseball cap and black sunglasses.  He provided the tellers with notes demanding money.  One of the notes, provided to the Idaho Central Credit Union on December 21, demanded $40,000 in large bills.  Another note, provided to the Bank of the West on March 24, stated: “Give me money or I will shoot the teller next to you.”  Yet another note, provided to the Pioneer Federal Credit Union on August 7, stated: “give me all of your hundred dollar bills, I have a gun.”

In total, Alfaro robbed $31,216 from the six banks and credit unions, whose deposits were federally insured.   

According to the plea agreement, on August 13, 2017, Alfaro was arrested at Los Angeles International Airport attempting to board an international flight to Brussels, Belgium.  In his carry-on bag, Alfaro possessed $2,826 in cash that he obtained from the robberies.

The case was investigated by the Federal Bureau of Investigation (Boise, Salt Lake City, and Los Angeles field offices), the Boise Police Department, and the Meridian Police Department.

United States Attorney Gregory G. Brooker today announced a federal criminal complaint charging MICHAEL MCWHORTER, 29, JOE MORRIS, 22, and MICHAEL B. HARI, 47, for using an explosive device to maliciously destroy and damage the Dar al-Farooq Islamic Center (“DAF”) in Bloomington, Minnesota. MCWHORTER, MORRIS, and HARI are currently in custody in Urbana, Illinois. MORRIS and HARI made their initial appearance on federal charges related to an attempted bombing in Champaign, Illinois, today at 3:00 p.m. before Magistrate Judge Eric I. Long in U.S. District Court in Urbana, Illinois. MCWHORTER will make his initial appearance in connection with the attempted Illinois bombing at a later date.

The affidavit filed in support of the District of Minnesota criminal complaint alleges that on August 5, 2017, a pipe bomb was thrown through a window of the Dar al-Farooq Islamic Center (“DAF”), located in Bloomington, Minnesota. The pipe bomb, constructed of polyvinyl chloride, known as “PVC,” exploded, causing extensive damage. On January 27, 2018, law enforcement received information from a confidential source indicating that MCWHORTER, MORRIS, and HARI were responsible for the bombing carried out at DAF.

The Federal Bureau of Investigation is leading the investigation.

This case is being prosecuted by Assistant United States Attorneys Julie E. Allyn and John F. Docherty.

Defendant Information:

MICHAEL B. HARI, 47

Clarence, Ill.

Charges:

• Arson, 1 count

 
JOE MORRIS, 22
Clarence, Ill.
 
Charges:

• Arson, 1 count

 
MICHAEL MCWHORTER, 29
Clarence, Ill.
 
Charges:

• Arson, 1 count
   
   

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

COVINGTON, Ky. — Sundiata El-Amin, 69, a physician from Ft. Wayne, Indiana, was convicted today, by a federal jury sitting in Covington, of 173 drug trafficking offenses connected to his operation of the El-Amin Clinic, in Grant County, kentucky.      

After four hours of deliberations, following a six-day trial, the jury convicted El-Amin of conspiracy to illegally distribute controlled substances, maintaining a premises for the illegal distribution of controlled substances, and 171 individual counts of illegally distributing controlled substances.           

According to the evidence at trial, the Defendant conspired with his office manager to unlawfully dispense more than 300,000 oxycodone tablets, outside the scope of professional practice and without a legitimate medical purpose, over a period of approximately one year.  The evidence revealed that he repeatedly issued improper prescriptions for high doses of oxycodone and regularly issued these prescriptions without examining patients.             

El-Amin was indicted in December of 2015.  His office manager, Wendy Price, entered a guilty plea, in February 2018, to conspiring with El-Amin to commit these offenses.

“This is another example of a medical professional being found guilty of choosing profit over medical judgment and callously fueling the opioid epidemic,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “This despicable conduct represents an egregious breach of trust and does enormous damage, both to individuals struggling with addiction and to our communities.  We will continue to make prosecuting this type of conduct a core priority and we want to thank our law enforcement partners for their excellent work in the investigation of this case.”

United States Attorney Duncan and Chris Evans, Special Agent in Charge, Drug Enforcement Administration, Louisville Field Division, jointly announced the jury’s verdict.

The investigation was conducted by the Drug Enforcement Administration. The United States was represented in the case by Assistant U.S. Attorneys Laura Voorhees and Tony Bracke. 

El-Amin will appear for sentencing on July 26, 2017.  He faces a maximum of 20 years in prison for each offense.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a California man was sentenced on Friday, March 9, 2017, for federal drug and gun offenses in Anchorage.

Abreain Terron Dalton, 36, of Victorville, California, was sentenced by Chief U.S. District Judge Timothy M. Burgess, to serve 15 years in prison, followed by a five-year term of supervised release.  Dalton was also ordered to forfeit $4,830.  Dalton previously pleaded guilty on Oct. 10, 2017, to possession with intent to distribute controlled substances and carrying a firearm during and in relation to drug trafficking.

According to court documents, on April 29, 2017, APD responded to a report of a man “passed out” behind the wheel of a running vehicle on Tudor Road.  When officers arrived, they blocked the car, and were eventually able to wake the driver, who was identified as Dalton.  The officers were able to persuade Dalton to turn off his vehicle.  As the officers attempted to convince him to exit, however, Dalton turned the car back on and tried to ram the blocking police cars out of the way, which failed and led to him trying to escape by foot.  While Dalton was attempting to escape from the officers, he discarded a bag.

The investigation revealed that the bag contained distributable amounts of heroin, methamphetamine, and cocaine – in both forms: powder and crack.  The investigation further revealed that Dalton had been in possession of a stolen pistol during the offense.  Upon Dalton’s arrest, he was in possession of approximately $4800 in drug proceeds, which was going to be used to purchase more drugs for future distribution in Alaska. 

The Anchorage Police Department (“APD”) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) conducted the investigation leading to the successful prosecution of this case.  Assistant U.S. Attorney Stephan Collins prosecuted this case.

         LOS ANGELES– A South Los Angeles woman who describes herself on social media as “The Most Hated Hoe in LA” was indicted today on federal sex trafficking charges that include allegations that she used the internet to solicit two minor victims to engage in prostitution.

         Melanie Denae Williams, 22, who uses the moniker “Pretty Hoe” on several social media platforms, was named in a five-count indictment returned today by a federal grand jury.

         The indictment specifically alleges one count of sex trafficking an adult by force, fraud, or coercion; two counts of sex trafficking of a minor; and two counts of enticement of a minor to engage in prostitution.

         Williams has been held without bond in a federal jail since she was taken into custody on February 7 pursuant to a criminal complaint (she was initially arrested by local authorities on December 24). The affidavit in support of the complaint outlines allegations that Williams abused a woman she had recruited through social media to work as a prostitute. In one incident, Williams allegedly ordered the victim to strip off her clothes, and then Williams threw bleach on the woman and beat her with her hands and a broomstick, according to the affidavit.

         The indictment makes new allegations of sex trafficking involving two minor females.

         Williams is scheduled to be arraigned on the indictment on Friday in United States District Court.

         An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

         If convicted of any of the charges in the indictment, Williams would face a potential life sentence. Each of the five charges carries a mandatory minimum sentence. The charge of sex trafficking by force, fraud or coercion carries a mandatory minimum penalty of 15 years in federal, and each of the four counts related to minors carries a mandatory minimum sentence of 10 years.

         The investigation into Williams is being conducted by the Federal Bureau of Investigation and the Los Angeles Sheriff’s Department as part of the Los Angeles Regional Human Trafficking Task Force, as well as the Los Angeles Police Department, South Bureau. 

         This case is being prosecuted by Assistant United States Attorneys Lana Morton-Owens and Joseph Axelrad of the Violent and Organized Crime Section.

PORTLAND, Ore. – On Wednesday, March 7, 2018, the U.S. Senate confirmed Billy J. Williams as the U.S. Attorney for the District of Oregon by voice vote. President Donald J. Trump signed his commission on Tuesday, March 13, 2018.

“I am honored by the confidence of President Trump, Attorney General Sessions, Senators Wyden and Merkley, Congressman Walden and all those who supported me throughout this process” said Williams. “The steadfast commitment and unyielding support of so many dedicated law enforcement leaders in Oregon—sheriffs, chiefs of police, tribal law enforcement, and federal law enforcement—is humbling. It is a privilege,” continued Williams, “to serve the citizens of Oregon and the United States alongside my colleagues at the U.S. Attorney’s Office.”

Williams was named Acting U.S. Attorney in May 2015. He was appointed Interim U.S. Attorney by Attorney General Loretta E. Lynch in December 2015 and re-appointed by Chief U.S. District Judge for Oregon Michael W. Mosman in February 2016. Williams will serve a four-year term as the chief federal law enforcement officer in Oregon.

As Interim U.S. Attorney, Williams served on a variety of Attorney General Advisory Subcommittees. As U.S. Attorney, he will continue to serve on the following subcommittees: Native American Issues Subcommittee, Border and Immigration Subcommittee, Domestic Terrorism Executive Committee and the Marijuana Working Group. He is a member of the Ninth Circuit Fairness Committee and the District of Oregon Implicit Bias Steering Committee.

Williams is an 18-year veteran of the Department of Justice, joining the U.S. Attorney’s Office in October 2000. Prior to his appointment as Acting U.S. Attorney, Williams held multiple leadership positions at the U.S. Attorney’s Office including First Assistant U.S. Attorney, Chief of the Criminal Division, Chief of the Violent Crimes Unit, and as the district’s Indian Country Assistant U.S. Attorney and Tribal Liaison.

Prior to his federal service, Williams served as a Senior Deputy District Attorney in Multnomah County where he supervised the Career Criminal Unit. As a state prosecutor, Williams handled major crimes of violence, including aggravated murder, adult and child sex offenses, domestic violence, narcotics trafficking, vehicular homicide, and officer-involved shootings.

Williams received his bachelor’s degree in criminal justice from Washington State University in 1981 and his law degree from the Willamette University College of Law in 1989.

United States Attorney Trent Shores announced that Joshua Wofford, 33, of Tulsa, was sentenced today by United States District Judge John Dowdell to serve 162 months in federal prison.  A jury previously found Wofford guilty of violating the federal carjacking statute.  The jury acquitted Wofford of a related firearm count.  After release from prison, Wofford must serve three years on supervised release. Parole has been abolished in the federal system. 

On June 4, 2017, Wofford took a Chevrolet truck from a mother and her three children while they were parked in a convenience store parking lot in Tulsa, Oklahoma.  He then led Tulsa Police Officers on a high speed chase and hid in a wooded area until he was captured by Tulsa Police Officers.

United States Attorney Shores stated, “Violent crime can come with big time in the federal system. Carjackers should be on notice that federal prosecutors are working side by side with the Tulsa Police Department and ATF to protect our community. A 13 1/2 year sentence sends a strong message to any would be violent criminal.”

The Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives jointly investigated this matter.  Assistant United States Attorney Eric O. Johnston represented the United States at the jury trial.

CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced today a federal grand jury returned a 98-count superseding indictment against the owners, managers and physicians associated with HOPE Clinic. The superseding indictment added 29 counts of distributing and dispensing controlled substances outside the usual course of professional practice and not for medically legitimate purposes to six different customers on various occasions from 2013 through 2015 by Sanjay Mehta, D.O., Michael T. Moran, M.D., Mark Clarkson, D.O., Vernon Stanley, M.D., Brian Gullett, D.O., William Earley, D.O., Paul W. Burke, Jr., D.O., and Rowsell Tempest Lowry, M.D.  Among the 29 counts added, two counts charge Joshua Radcliffe, the son of PPPFD owner, Mark T. Radcliffe, with aiding, abetting, counseling, commanding and procuring, Sanjay Mehta, D.O., with the distribution of controlled substances on two separate occasions to two separate customers.

“The additional 29 charges were necessary as a result of the facts underlying this terrible case,” said U.S. Attorney Mike Stuart.  “A physician’s first oath is to ‘do no harm,’ but sadly when physicians do not uphold this oath, a lot of irrevocable harm is done.” 

In addition, the superseding indictment charges all defendants with a conspiracy to distribute and dispense controlled substances outside the usual course of professional practice and not for medically legitimate purposes, and charges defendants Blume and Mark Radcliffe with maintaining drug-involved premises in Beckley, Beaver and Charleston.  Included in the superseding indictment are 91 counts charging several physicians with distribution of controlled substances not for legitimate medical purposes and outside the usual course of professional practice. Sanjay Mehta, D.O., a former physician at the Beckley and Beaver HOPE Clinic locations, is also charged with two counts of distribution of controlled substances causing death.  Ten of the defendants are charged with conspiracy to launder drug proceeds by paying bonuses to HOPE Clinic physicians and employees of Patients, Physicians, and Pharmacists Fighting Diversion, Inc. (PPPFD), to encourage continued prescribing of Schedule II narcotics to customers.   

The investigation was conducted by the following agencies:

• U.S. Department of Health and Human Services, OIG
• Internal Revenue Service, Criminal Investigations
• Food and Drug Administration – Office of Criminal Investigations (OCI)
• Federal Bureau of Investigation
• Drug Enforcement Administration
• West Virginia State Police
• Metropolitan Drug Enforcement Network Team (MDENT)
• Beckley Police Department
• Kentucky State Police
• Harrison County (KY) Sheriff’s Department
• Appalachia HIDTA

The additional charges announced today are part of the on-going effort by the United States Attorney’s Office to aggressively target medical professionals involved in the unlawful distribution of opioids and other dangerous controlled substances. 

If convicted on all charges as alleged in the indictment, Dr. Blume and Mark Radcliffe face up to 100 years; Joshua Radcliffe faces up to 60 years; Teresa Emerson faces up to 20 years; Michael Moran faces up to 80 years; Sanjay Mehta faces a forty year mandatory minimum sentence up to life imprisonment; Vernon Stanley faces up to 300 years; Brian Gullett faces up to 380 years; Mark Clarkson faces up to 100 years; William Earley faces up to 300 years; Paul Burke faces up to 200 years; and Roswell Tempest Lowry faces up to 140 years.

This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

Please note:  An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

Follow us on Twitter: @SDWVNewsand @USAttyStuart 
 
 
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A man who conspired to distribute pounds of methamphetamine and launder drug proceeds pled guilty on March 12, 2018, in federal court in Cedar Rapids.

Derek Richard Rath, age 35, of Dubuque, Iowa, was convicted of conspiracy to distribute methamphetamine and conspiracy to commit money laundering.

Evidence at a prior court proceeding showed that Rath received several multi-pound shipments of ice methamphetamine through the mail, which he then resold in Dubuque.  Evidence showed that Anthony McCarron mailed the methamphetamine from Phoenix, Arizona, to Rath from September 2016 to June 2017.  Rath also shipped large quantities of cash to McCarron to pay for each shipment of methamphetamine.  At the plea hearing, Rath admitted that he and McCarron used aliases when shipping the drugs and money.  McCarron previously pled guilty to conspiracy to distribute methamphetamine and conspiracy to commit money laundering on October 30, 2017.

Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared.  Rath remains in custody of the United States Marshal pending sentencing.  Rath faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $40,000,000 fine, and at least 10 years of supervised release following any imprisonment.

The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated by the Dubuque Drug Task Force, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 17-CR-1042-LTS.  Follow us on Twitter @USAO_NDIA.

Two Ravenna men were indicted on firearms and marijuana charges, said U.S. Attorney Justin E. Herdman.

“These indictments demonstrate our commitment to prosecute people who carry firearms when they are not allowed by law to have them,” Herdman said. “We often see drug dealers using firearms as a tool of their trade, which increases the odds of a deadly encounter.”

Damen Winning, 23, was indicted on charges of possessing with intent to distribute marijuana, possessing a firearm in connection drug trafficking and being a felon in possession of a firearm.    

Winning on Nov. 16, 2017 possessed marijuana with the intent to distribute the drug. He also possessed firearms in connection to his drug trafficking. Winning possessed a Glock .40 pistol and ammunition, despite a prior conviction in the Portage County Court of Common Pleas for drug trafficking, according to the indictment.

Richard Lester Thomas, 63, is charged possession with intent to distribute marijuana and being a felon in possession of a firearm.   

Thomas on Sept. 20, 2017 possessed marijuana with the intent to distribute the drug, and a Ruger .22 rifle and ammunition despite prior convictions for attempted possession of chemicals to manufacture controlled substances and possession of chemicals for the manufacture of drugs in the Portage County Court of Common Pleas, according to the indictment.

The cases are unrelated.

Both cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer. The Winning investigation was conducted by the United States Marshal Service, the Akron Police Department and the Bureau of Alcohol, Tobacco and Firearms. The Thomas investigation was conducted by the Portage County Drug Task Force and the ATF.

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 violations.  In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on March 13, 2018, Anthony Diaz, age 48, of East Stroudsburg, Pennsylvania, was charged in a superseding indictment with additional charges of mail and wire fraud.

According to United States Attorney David J. Freed, Diaz, who was a financial advisor, was originally indicted on May 12, 2016, and charged with six counts of wire fraud by using false and misleading statements and misrepresentations to induce his clients to purchase high risk and/or otherwise unsuitable investment products, through which Diaz received substantial fees and commissions to which he was not entitled.  Today’s superseding indictment added five    counts of mail and wire fraud and additional victims.

Diaz allegedly operated the scheme between approximately 2006 and 2015, while he was a registered representative and/or a certified financial planner associated with financial investment firms.  Diaz had his own office, under the name of Financial Planners Group of America, with employees reporting to him during the periods when he was associated with other firms.  From December 2006 through May 2015, Diaz allegedly sold what were called “alternative investment products” to his clients.  Such products are generally high risk, speculative and illiquid (i.e., they cannot readily be converted to cash); may require long holding periods of up to nine years, and have “suitability requirements” related to the net worth and/or income of investors.   

As part of the scheme, Diaz allegedly instructed clients to sign blank or partially completed documents, and provided false information on documents concerning the clients’ net worth, income, risk tolerance and/or investment experience to falsely make it appear that the clients met the applicable requirements to invest in the products.

Diaz also allegedly failed to explain to clients that alternative investment products lacked liquidity and had no public market for resale. He allegedly falsely assured clients they would have access to their funds and falsely told some of them the investments were “guaranteed” to earn a certain rate of return, when, in fact, he knew there was no guaranteed rate of return.

Diaz allegedly told his clients that he voluntarily left the broker dealers he was associated with at various times and for the clients’ benefit, when, in fact, he was terminated or asked to leave.  As a result, some clients incurred additional fees and expenses.

The indictment charges Diaz with seven counts of wire fraud and four counts of mail fraud.  Each count relates to an interstate wire transmission or interstate mailing concerning investments made in connection with the fraud scheme, totaling approximately $611,000 investments, between December 2012 and May 2014.

In May 2015, the Financial Industry Regulating Authority (FINRA), part of the U.S. Treasury Department, permanently banned Diaz from acting as a broker or otherwise associating with firms that sold securities to the public. Shortly thereafter, the Pennsylvania Department of Banking and Securities banned Diaz from representing an issuer or seller of securities in Pennsylvania and from being registered as a broker-dealer, agent or investment advisor in Pennsylvania.

Anyone with information concerning financial services rendered by Diaz and/or Financial Planners Group of America, should contact the U.S. Attorney’s Office at 570-348-2800. 

The investigation was conducted by the Federal Bureau of Investigation.  Assistant United States Attorneys Evan Gotlob, Robert O’Hara and Phillip Caraballo are prosecuting the case.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

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

The maximum penalty under federal law is 30 years of imprisonment for each mail and wire fraud count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.  

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FOR IMMEDIATE RELEASE                               ContactELIZABETH MORSE

www.justice.gov/usao/md                                            at (410) 209-4885      

Greenbelt, Maryland -  Transport Logistics International Inc. (TLI), a Maryland-based company that provides services for the transportation of nuclear materials to customers in the United States and abroad, agreed to resolve criminal charges in connection with a scheme that involved the bribery of an official at a subsidiary of Russia’s State Atomic Energy Corporation and to pay a $2 million criminal penalty.  Three individuals have been charged for their alleged roles in the bribery scheme.  

Acting U.S. Attorney Stephen M. Schenning of the District of Maryland, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Principal Deputy Inspector General April G. Stephenson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington, D.C. Field Office made the announcement.

TLI entered into a deferred prosecution agreement (DPA) with the Department in connection with a criminal information filed in the District of Maryland charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).  In the DPA, TLI and the Department agreed that, because of the company’s financial inability to pay the penalty calculated under the U.S. Sentencing Guidelines, the appropriate criminal penalty is $2 million.  As part of the agreement, TLI also committed to cooperate fully with the Department’s ongoing investigation, and to continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other anti-corruption laws throughout its operations.  In reaching the resolution with the Department, TLI received full credit for its substantial cooperation with the Department’s investigation and for engaging in remedial measures, including terminating the employment of all employees engaged in the misconduct.

“Bribery of foreign officials not only distorts markets and undermines democratic institutions; it can also pervert the incentives of those who are in a position to safeguard the public, as it did in this case involving the transportation of nuclear material,” said Acting Assistant Attorney General Cronan.  “Today’s resolution, along with the related charges against the corporate executives and the Russian official in this matter, underscore the Department’s continued commitment to holding both companies and individuals accountable for their roles in corruption-related crimes and for breaching the public’s trust.”

“The Department of Energy remains committed to ensuring the integrity of our contractors and subcontractors, as well as providing the nation transparency, accountability, and security when it comes to safe and reliable transport of sensitive materials,” said Principal Deputy Inspector General Stephenson.  “We appreciate the efforts of the FBI, the Justice Department’s FCPA Unit and the U.S. Attorney’s Office in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”

“Today’s charges reflect the determination and ability of the FBI to investigate and prosecute companies that engage in foreign corrupt business practices, regardless of how sophisticated or far-flung the scheme may be,” said Assistant Director in Charge Vale.  “No entity is above the law and those that try to perpetrate a similar scheme will be pursued by the FBI.”

According to admissions and court documents, beginning in at least 2004 and continuing until at least 2014, TLI conspired with others to corruptly pay more than $1.7 million to offshore bank accounts associated with shell companies, at the direction of, and for the benefit of, Vadim Mikerin, a Russian official at JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation.  The bribe payments were made to help TLI secure improper business advantages and obtain and retain business with TENEX.   In order to effectuate and conceal the bribe payments, TLI executives and others caused fake invoices to be prepared, purportedly from TENEX to TLI, that described services that were never provided.  TLI then wired payments for those purported services to shell companies in Latvia, Cyprus and Switzerland to further the bribery scheme. 

On June 17, 2015, TLI co-president Daren Condrey pleaded guilty to conspiracy to violate the FCPA and commit wire fraud.  On Aug. 31, 2015, Mikerin pleaded guilty to conspiracy to commit money laundering involving violations of the FCPA, and Mikerin was sentenced to 48 months in prison on Dec. 15, 2015.  On Jan. 12, an 11-count indictment was unsealed against TLI co-president Mark Lambert, which charged Lambert with one count of conspiracy to violate the FCPA and to commit wire fraud, seven counts of violating the FCPA, two counts of wire fraud and one count of international promotion money laundering.  The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The cases against TLI and Lambert are assigned to U.S. District Court Judge Theodore D. Chuang of the District of Maryland. 

The case is being investigated by DOE-OIG and the FBI.  Assistant Chiefs Ephraim Wernick and Christopher J. Cestaro and Trial Attorney Derek J. Ettinger of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys David I. Salem and Michael T. Packard of the District of Maryland, are prosecuting the case.

The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Department also thanks its law enforcement colleagues in Switzerland, Latvia and Cyprus for providing valuable assistance with the investigation and prosecution of the case.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

            WASHINGTON – Elias Hailu, 37, of Washington, D.C., has pled guilty to sexually abusing a stranger on the street in broad daylight last fall in the 14th Street corridor of Northwest Washington, announced U.S. Attorney Jessie K. Liu.  

            Hailu pled guilty on March 13, 2018, in the Superior Court of the District of Columbia, to attempted third-degree sexual abuse. After completing any term of incarceration imposed by the Court, Hailu will be subject to 10 years of registration as a sex offender and a period of supervised release. The Honorable Judith Bartnoff scheduled sentencing for May 9, 2018.

            According to the government’s evidence, Hailu encountered the victim on the afternoon of Nov. 15, 2017, as she was walking on U Street toward 13th Street NW. He began to follow the victim, who was a stranger to him, for several blocks while she proceeded to work. All the while, Hailu made sexually explicit proposals to the victim and ignored her repeated requests that he leave her alone. Hailu sexually abused the victim by forcefully grabbing the victim’s breast with his hand. The victim made an immediate report to law enforcement.

            Surveillance footage that captured a portion of Hailu’s conduct showed Hailu’s distinctive clothing, some of which he had been wearing the day before in the same area. Based on the description provided by the victim and the surveillance footage, the Metropolitan Police Department (MPD) was able to identify Hailu as the perpetrator. He was arrested on Nov. 17, 2017, wearing some of the same clothing he had worn during the sexual assault.

            In announcing the plea, U.S. Attorney Liu praised the work of officers from the Metropolitan Police Department’s Sexual Assault Unit.  She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracy Owusu, Paralegal Specialist Donhue Troy Griffith, and Criminal Investigator John Marsh. Finally, U.S. Attorney Liu commended Assistant U.S. Attorneys J. Matt Williams and Marisa West, who investigated and prosecuted this case.

ATLANTA - Jun Ying has been indicted on federal charges of insider trading relating to his sales of Equifax Inc. securities in advance of its announcement regarding a data breach. 

“This defendant took advantage of his position as Equifax’s USIS Chief Information Officer and allegedly sold over $950,000 worth of stock to profit before the company announced a data breach that impacted over 145 million Americans,” said U.S. Attorney Byung J. “BJay” Pak.  “Our office takes the abuse of trust inherent in insider trading very seriously and will prosecute those who seek to profit in this manner.”

“The alleged actions of this defendant undermine the public’s confidence in the nation’s stock markets,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “By prosecuting cases like this, the FBI and the U.S. Securities and Exchange Commission are sending a strong message to company insiders that they must follow the same rules that govern regular investors. Otherwise, they face the severe consequences for failing to do so.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta, Georgia.  During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million American citizens.  Jun Ying was the Chief Information Officer of Equifax U.S. Information Solutions in August 2017.  In that role, he became aware of information that resulted in him determining that Equifax had been the victim of that data breach before that information was made public. 

On Friday, August 25, 2017, Ying texted a co-worker that the breach they were working on “Sounds bad.  We may be the one breached.”  The following Monday, Ying conducted web searches on the impact of Experian’s 2015 data breach on its stock price.  Later that morning, Ying exercised all of his available stock options held at UBS Financial Services, resulting in him receiving 6,815 shares of Equifax stock, which he then sold.  He received proceeds of over $950,000, and realized a gain of over $480,000.  On September 7, 2017, Equifax publicly announced its data breach, which resulted in its stock price falling.

Jun Ying, 42, of Atlanta, Georgia, will arraigned later this week before U.S. Magistrate Judge Linda T. Walker on the charges.  Ying was indicted by a federal grand jury on March 13, 2018.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the FBI.  The U.S. Securities and Exchange Commission made contributions to the case.

Assistant U.S. Attorneys Christopher J. Huber and Lynsey M. Barron are prosecuting the case.

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.