Drug Dealing Husband and Wife Sentenced to Federal Prison

Source: United States Department of Justice News

EUGENE, Ore.—A Douglas County couple known for distributing drugs was sentenced to federal prison today after they were linked to the overdose death of man to whom they had sold drugs to for more than a year.

Brian Joseph Ramos, 49, and Christine Marie Ramos, 41, residents of Yoncalla, Oregon, were sentenced to 70 and 51 months in federal prison, respectively. The Ramoses must also serve five-year terms of supervised release following the completion of their prison sentences.

According to court documents, in May 2018, detectives from the Douglas Interagency Narcotics Team (DINT) learned that an adult male stopped by the Ramoses home in Yoncalla after his release from a residential drug treatment program. Later the same day, the man tragically died of fentanyl poisoning. The next day, investigators interviewed the Ramoses who confirmed the man was at their residence the day prior, but denied giving him drugs. Christine Ramos, who was at work when the man stopped by their residence, admitted to selling the man pills for up to two years prior to his overdose. At one point after learning the man was injecting the pills she sold him, Christine Ramos stopped selling him drugs, but resumed thereafter.

Detectives searched the Ramoses’ residence and found several dozen grams of methamphetamine, 260 pills, drug paraphernalia, and digital scales. Several pills that later tested positive for fentanyl were found in the Ramoses’ vehicles. Evidence recovered from Brian Ramos’s phone revealed that he had in fact sold a pill to the man who succumbed to the fatal overdose.

On August 30, 2018, the Ramoses were charged by criminal complaint with conspiring with one another to possess with intent to distribute methamphetamine, oxycodone, and hydromorphone. On March 29, 2021, both waived indictment and pleaded guilty.

This case was investigated by DINT and the U.S. Drug Enforcement Administration. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.

Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.

Detroit Area Software Developer Pleads Guilty to Employment Tax Violations

Source: United States Department of Justice News

A Michigan business owner pleaded guilty today to willful failure to collect and pay over employment taxes on behalf of his employees.

According to court documents and statements made in court, Yigal Ziv owned and operated Multinational Technologies, Inc. (MTI), a software developer based in Walled Lake. Ziv was responsible for filing MTI’s quarterly employment tax returns and collecting and paying to the IRS payroll taxes withheld from employees’ wages. From the first quarter of 2014 through the first quarter of 2018, Ziv collected approximately $691,000 in employment taxes from MTI’s employees, but did not file employment tax returns or pay the withheld taxes to the IRS. Even after learning of the IRS’s ongoing criminal investigation in May 2018, Ziv did not file MTI’s employment tax returns from the 4th quarter of 2019 through the 4th quarter of 2020 and did not pay over to the IRS approximately $199,000 in payroll taxes withheld from MTI’s employees. During the same period he did not pay over taxes to the IRS, Ziv caused MTI to spend hundreds of thousands of dollars for his personal benefit, including home mortgage payments, luxury auto lease payments and department store purchases.

Ziv is scheduled to be sentenced on Feb. 22, 2023, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, monetary penalties and restitution. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan, and Acting Special Agent in Charge Charles Miller of IRS-Criminal Investigation Detroit Field Office made the announcement.

IRS Criminal-Investigation is investigating the case.

Trial Attorneys Kenneth C. Vert and George Meggali of the Justice Department’s Tax Division are prosecuting the case.

Government Contractor Agrees to Pay $8.4 Million to Resolve Claims Related to its Failure to Disclose Cost or Pricing Data

Source: United States Department of Justice News

The Department of Justice announced today that PowerSecure, Inc. (PowerSecure), located in Durham, North Carolina, has agreed to pay $8.4 million to resolve allegations that it violated the False Claims Act arising from its failure to provide certified cost or pricing data when negotiating rates with the U.S. Army Corps of Engineers (USACE) in connection with a sole source contract for the repair and restoration of Puerto Rico’s power grid following the damage caused by Hurricane Maria in September 2017.

The Truth in Negotiations Act (TINA) was enacted in 1962 to help level the playing field in sole source contracts – where there is no price competition – by making sure that government negotiators have access to the cost or pricing data that the offeror used when developing its proposal. Here, the United States alleged that PowerSecure violated the False Claims Act by knowingly failing to disclose cost or pricing data, as required by the TINA, regarding the rates that PowerSecure had used for “basecamp services” on a recent restoration project in Florida and Georgia following Hurricane Irma. The United States further alleged that PowerSecure failed to disclose cost or pricing data relating to labor and equipment costs in violation of TINA. The settlement resolves allegations that PowerSecure’s failures to disclose this information caused USACE to agree to inflated rates for labor, equipment and basecamp services. 

“Where government contractors seek the award of a sole source contract, they have an obligation to be fully transparent with the government regarding the basis for their proposed pricing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to holding accountable those who knowingly violate this important safeguard against the misuse of taxpayer funds.”

“With the recent passage and destruction of Hurricane Fiona serving as a backdrop, this settlement demonstrates our resolve to ensure that individuals and companies fully comply will all laws and regulations relating to the provision of disaster relief,” said U.S. Attorney Stephen Muldrow for the District of Puerto Rico. “This settlement also underscores the Justice Department’s use of all enforcement remedies at its disposal, including not only criminal and administrative penalties, but also civil enforcement actions as reflected by the settlement in this case.”

“This settlement is an example of the need for transparency and accountability in proposed pricing when negotiating sole source contracts,” said Acting Inspector General Sean O’Donnell for the Department of Defense. “Our auditors and investigators are committed to protecting the integrity of the procurement process through cooperation with our partners at the Department of Justice.”

“I appreciate the continued partnership with our law enforcement partners and the Justice Department’s Civil Division,” said Inspector General Joseph V. Cuffari for the U.S. Department of Homeland Security. “DHS OIG is committed to robust oversight of the federal acquisition process, and this settlement sends a strong message to individuals intent on procurement fraud.”

“DCAA appreciates the opportunity to support the Justice Department and our law enforcement partners by providing expert financial assistance regarding enforcement of the Truth in Negotiations Act,” said Defense Contract Audit Agency Investigative Support Division Chief Michael Mandolfo. “This interagency cooperation provides a strong safeguard for the warfighter and taxpayer.”

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Puerto Rico, with assistance from the Defense Criminal Investigative Service, the Department of Homeland Security Office of Inspector General, and the Defense Contract Audit Agency.

The matter was handled by Trial Attorney Jason M. Crawford of the Civil Division and Assistant U.S. Attorney David O. Martorani-Dale for the District of Puerto Rico.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Leader of Oath Keepers and Oath Keepers Member Found Guilty of Seditious Conspiracy and Other Charges Related to U.S. Capitol Breach

Source: United States Department of Justice News

Elmer Stewart Rhodes III, the founder and leader of the Oath Keepers, and Kelly Meggs, the leader of the Florida chapter of the organization, were found guilty by a jury today of seditious conspiracy and other charges for crimes related to the breach of the U.S. Capitol on Jan. 6, 2021. Their actions disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election.

Three additional defendants, who were leaders and associates of the organization – Kenneth Harrelson, Jessica Watkins, and Thomas Caldwell – were found guilty of related felony charges. The verdict followed an eight-week trial and three days of deliberations. No sentencing date was set.

“Today the jury returned a verdict convicting all defendants of criminal conduct, including two Oath Keepers leaders for seditious conspiracy against the United States,” said Attorney General Merrick B. Garland. “The Justice Department is committed to holding accountable those criminally responsible for the assault on our democracy on January 6, 2021. The prosecutors and agents on this case worked tirelessly, with extraordinary skill, and in the best traditions of the Department of Justice.”

“As this case shows, breaking the law in an attempt to undermine the functioning of American democracy will not be tolerated,” said FBI Director Christopher Wray. “The FBI will always uphold the rights of all citizens who peacefully engage in First Amendment protected activities, but we and our partners will continue to hold accountable those who engaged in illegal acts regarding the January 6, 2021, siege on the U.S. Capitol.”

“This case reaffirms the strength of our democracy and the institutions that protect and preserve it, including our criminal justice system,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Over a period of many weeks, a fair and impartial jury heard evidence in a search for the truth of the conduct of these defendants before, during, and after the events of Jan. 6, 2021.”

“Democracy depends on the peaceful transfer of power. By attempting to block the certification of the 2020 presidential election results, the defendants flouted and trampled the rule of law,” said Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office. “This case shows that force and violence are no match for our country’s justice system.”

Rhodes, 57, of Granbury, Texas, also was found guilty of obstruction of an official proceeding and tampering with documents and proceedings. Meggs, 53, of Dunnellon, Florida, also was found guilty of conspiracy to obstruct an official proceeding, obstruction of an official proceeding, conspiracy to prevent an officer from discharging duties, and tampering with documents or proceedings.

Harrelson, 42, of Titusville, Florida, was found guilty of obstruction of an official proceeding, conspiracy to prevent an officer from discharging duties, and tampering with documents or proceedings. Watkins, 40, of Woodstock, Ohio, was found guilty of obstruction of an official proceeding, interfering with law enforcement officers during a civil disorder, conspiracy to prevent an officer from discharging duties, and tampering with documents or proceedings. Caldwell, 68, of Berryville, Virginia, was found guilty of obstruction of an official proceeding, and tampering with documents or proceedings.

According to the government’s evidence, the Oath Keepers are a large but loosely organized collection of individuals, some of whom are associated with militias. Following the Nov. 3, 2020, presidential election, Rhodes, Meggs, and others began plotting to oppose by force the lawful transfer of presidential power. Beginning in late December 2020, via encrypted and private communications applications, Rhodes, Meggs, Harrelson, Watkins, Caldwell, and others coordinated and planned to travel to Washington, D.C., on or around Jan. 6, 2021, the date of the certification of the electoral college vote.

The defendants also, collectively, employed a variety of manners and means, including: organizing into teams that were prepared and willing to use force and to transport firearms and ammunition into Washington, D.C.; recruiting members and affiliates; organizing trainings to teach and learn paramilitary combat tactics; bringing and contributing paramilitary gear, weapons, and supplies – including knives, batons, camouflaged combat uniforms, tactical vests with plates, helmets, eye protection, and radio equipment – to the Capitol grounds; breaching and attempting to take control of the Capitol grounds and building on Jan. 6, 2021, in an effort to prevent, hinder, and delay the certification of the electoral college vote; using force against law enforcement officers while inside the Capitol on Jan. 6, 2021; continuing to plot, after Jan. 6, 2021, to oppose by force the lawful transfer of presidential power, and using websites, social media, text messaging and encrypted messaging applications to communicate with each other and others.

On Jan. 6, 2021, a large crowd began to gather outside the Capitol perimeter as the Joint Session of Congress got under way at 1 p.m. Crowd members eventually forced their way through, up, and over U.S. Capitol Police barricades and advanced to the building’s exterior façade. Shortly after 2 p.m., crowd members forced entry into the Capitol by breaking windows, ramming open doors, and assaulting Capitol police and other law enforcement officers. At about this time, according to the government’s evidence, Rhodes entered the restricted area of the Capitol grounds and directed his followers to meet him at the Capitol.

At approximately 2:30 p.m., according to the government’s evidence, Meggs, Harrelson, and Watkins, along with other Oath Keepers and affiliates – many wearing paramilitary clothing and patches with the Oath Keepers name, logo, and insignia – marched in a “stack” formation up the east steps of the Capitol, joined a mob, and made their way into the Capitol. Rhodes and Caldwell remained outside the Capitol, where they coordinated activities.

While certain Oath Keepers members and affiliates breached the Capitol grounds and building, others remained stationed just outside of the city in quick reaction force (QRF) teams. According to the government’s evidence, the QRF teams were prepared to rapidly transport firearms and other weapons into Washington, D.C., in support of operations aimed at using force to stop the lawful transfer of presidential power.

Rhodes was arrested on Jan. 13, 2022, in Texas. Meggs was arrested on Feb. 17, 2021, in Florida.  Harrelson was arrested on March 10, 2021, in Florida. Watkins was arrested on Jan. 18, 2021, in Ohio. Caldwell was arrested on Jan. 19, 2021, in Virginia.

The charges of seditious conspiracy, conspiracy to obstruct an official proceeding, obstruction of an official proceeding, and tampering with documents or proceedings each carry a statutory maximum penalty of 20 years in prison. The charge of conspiracy to prevent an officer from discharging duties carries a statutory maximum of six years in prison. The charge of interfering with law enforcement officers during a civil disorder carries a statutory maximum of five years in prison. All of the charges also carry potential financial penalties. Each defendant was convicted of at least one offense that carries a statutory maximum penalty of 20 years in prison.  The Court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The case is being investigated by the FBI Washington Field Office with valuable assistance provided by numerous FBI offices throughout the country, including the Dallas, Cincinnati, Tampa, Jacksonville, and Richmond Field Offices.

This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice’s National Security and Criminal Divisions. Valuable assistance was provided by numerous U.S. Attorney’s Offices throughout the country.

In the 22 months since Jan. 6, 2021, over 900 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 275 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Two Leaders of Oath Keepers Found Guilty of Seditious Conspiracy and Other Charges Related to U.S. Capitol Breach

Source: United States Department of Justice Criminal Division

Three Other Defendants Also Found Guilty of Multiple Felonies Following Eight-Week Trial

            WASHINGTON – Elmer Stewart Rhodes III, the founder and leader of the Oath Keepers, and Kelly Meggs, the leader of the Florida chapter of the organization, were found guilty by a jury today of seditious conspiracy and other charges for crimes related to the breach of the U.S. Capitol on Jan. 6, 2021. Their actions disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election.

            Three additional defendants, who were leaders and associates of the organization –Kenneth Harrelson, Jessica Watkins, and Thomas Caldwell – were found guilty of related felony charges. The verdict followed an eight-week trial and three days of deliberations. No sentencing date was set.

            “Today the jury returned a verdict convicting all defendants of criminal conduct, including two Oath Keepers leaders for seditious conspiracy against the United States,” said Attorney General Merrick B. Garland. “The Justice Department is committed to holding accountable those criminally responsible for the assault on our democracy on January 6, 2021. The prosecutors and agents on this case worked tirelessly, with extraordinary skill, and in the best traditions of the Department of Justice.”

            “As this case shows, breaking the law in an attempt to undermine the functioning of American democracy will not be tolerated” said FBI Director Christopher Wray.  “The FBI will always uphold the rights of all citizens who peacefully engage in First Amendment protected activities, but we and our partners will continue to hold accountable those who engaged in illegal acts regarding the January 6, 2021, siege on the U.S. Capitol.”

            “This case reaffirms the strength of our democracy and the institutions that protect and preserve it, including our criminal justice system,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Over a period of many weeks, a fair and impartial jury heard evidence in a search for the truth of the conduct of these defendants before, during, and after the events of Jan. 6, 2021.”

            “Democracy depends on the peaceful transfer of power. By attempting to block the certification of the 2020 presidential election results, the defendants flouted and trampled the rule of law,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “This case shows that force and violence are no match for our country’s justice system.”

            Rhodes, 57, of Granbury, Texas, also was found guilty of obstruction of an official proceeding and tampering with documents and proceedings. Meggs, 53, of Dunnellon, Florida, also was found guilty of conspiracy to obstruct an official proceeding, obstruction of an official proceeding, conspiracy to prevent an officer from discharging duties, and tampering with documents or proceedings.

            Harrelson, 42, of Titusville, Florida, was found guilty of obstruction of an official proceeding, conspiracy to prevent an officer from discharging duties, and tampering with documents or proceedings. Watkins, 40, of Woodstock, Ohio, was found guilty of obstruction of an official proceeding, interfering with law enforcement officers during a civil disorder, conspiracy to prevent an officer from discharging duties, and tampering with documents or proceedings. Caldwell, 68, of Berryville, Virginia, was found guilty of obstruction of an official proceeding, and tampering with documents or proceedings.

            According to the government’s evidence, the Oath Keepers are a large but loosely organized collection of individuals, some of whom are associated with militias. Following the Nov. 3, 2020, presidential election, Rhodes, Meggs, and others began plotting to oppose by force the lawful transfer of presidential power. Beginning in late December 2020, via encrypted and private communications applications, Rhodes, Meggs, Harrelson, Watkins, Caldwell, and others coordinated and planned to travel to Washington, D.C., on or around Jan. 6, 2021, the date of the certification of the electoral college vote.

            The defendants also, collectively, employed a variety of manners and means, including: organizing into teams that were prepared and willing to use force and to transport firearms and ammunition into Washington, D.C.; recruiting members and affiliates; organizing trainings to teach and learn paramilitary combat tactics; bringing and contributing paramilitary gear, weapons, and supplies – including knives, batons, camouflaged combat uniforms, tactical vests with plates, helmets, eye protection, and radio equipment – to the Capitol grounds; breaching and attempting to take control of the Capitol grounds and building on Jan. 6, 2021, in an effort to prevent, hinder and delay the certification of the electoral college vote; using force against law enforcement officers while inside the Capitol on Jan. 6, 2021; continuing to plot, after Jan. 6, 2021, to oppose by force the lawful transfer of presidential power, and using websites, social media, text messaging and encrypted messaging applications to communicate with each other and others.

            On Jan. 6, 2021, a large crowd began to gather outside the Capitol perimeter as the Joint Session of Congress got under way at 1 p.m. Crowd members eventually forced their way through, up, and over U.S. Capitol Police barricades and advanced to the building’s exterior façade. Shortly after 2 p.m., crowd members forced entry into the Capitol by breaking windows, ramming open doors, and assaulting Capitol police and other law enforcement officers. At about this time, according to the government’s evidence, Rhodes entered the restricted area of the Capitol grounds and directed his followers to meet him at the Capitol.

            At approximately 2:30 p.m., according to the government’s evidence, Meggs, Harrelson, and Watkins, along with other Oath Keepers and affiliates – many wearing paramilitary clothing and patches with the Oath Keepers name, logo, and insignia – marched in a “stack” formation up the east steps of the Capitol, joined a mob, and made their way into the Capitol. Rhodes and Caldwell remained outside the Capitol, where they coordinated activities.

            While certain Oath Keepers members and affiliates breached the Capitol grounds and building, others remained stationed just outside of the city in quick reaction force (QRF) teams. According to the government’s evidence, the QRF teams were prepared to rapidly transport firearms and other weapons into Washington, D.C., in support of operations aimed at using force to stop the lawful transfer of presidential power.

            Rhodes was arrested on Jan. 13, 2022, in Texas. Meggs was arrested on Feb. 17, 2021, in Florida.  Harrelson was arrested on March 10, 2021, in Florida. Watkins was arrested on Jan. 18, 2021, in Ohio. Caldwell was arrested on Jan. 19, 2021, in Virginia.

            The charges of seditious conspiracy, conspiracy to obstruct an official proceeding, obstruction of an official proceeding, and tampering with documents or proceedings each carry a statutory maximum penalty of 20 years in prison. The charge of conspiracy to prevent an officer from discharging duties carries a statutory maximum of six years in prison. The charge of interfering with law enforcement officers during a civil disorder carries a statutory maximum of five years in prison. All of the charges also carry potential financial penalties. Each defendant was convicted of at least one offense that carries a statutory maximum penalty of 20 years in prison.  The Court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice’s National Security and Criminal Divisions. Valuable assistance was provided by numerous U.S. Attorney’s Offices throughout the country.

            The case is being investigated by the FBI’s Washington Field Office with valuable assistance provided by numerous FBI offices throughout the country, including the Dallas, Cincinnati, Tampa, Jacksonville, and Richmond Field Offices.

            In the 22 months since Jan. 6, 2021, over 900 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 275 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.