Category: US Department of Justice

Source: United States Department of Justice Criminal Division

A federal judge sentenced former Savanna Oklahoma Police Officer (SPD), Jeffrey Scott Smith, 35, to 40 years in prison for sexually assaulting a woman during a traffic stop and obstructing justice by turning off his body-worn camera and dash camera in an effort to avoid recording the assault. This case represents the first sexual assault conviction and sentence under the 2022 Reauthorization of the Violence Against Women Act that added enhanced penalties for civil rights offenses involving sexual misconduct.

Evidence presented at trial established that on Nov. 2, 2022, Smith, working his first solo shift for SPD, conducted a traffic stop of the victim, K.H., and her then-boyfriend, J.G. After running their licenses, Smith realized that J.G.’s license had recently expired. He had J.G. and K.H. get out of J.G.’s car to switch who was driving. Smith issued J.G. a speeding ticket, and then began asking personal questions, including how long they had been in their relationship. At this point, while still speaking to J.G. and K.H., Smith manually deactivated his SPD body worn camera (BWC).

Smith then asked K.H. what she did for work. K.H. reluctantly admitted that she danced at a gentlemen’s club. Upon hearing K.H.’s answer, Smith asked to search J.G.’s car. During the search, Smith looked in K.H.’s purse and found a pre-rolled promotional marijuana cigarette from K.H.’s work. Rather than arrest her, or issue her a ticket, Smith walked back to his patrol car and manually deactivated his dashboard camera. Once the defendant had K.H. in his vehicle he sexually assaulted her.

“Smith’s despicable acts traumatized the victim and soiled the reputation of the law enforcement community,” said United States Attorney Christopher J. Wilson for the Eastern District of Oklahoma. “The sentence imposed is just punishment, and I am thankful to the FBI, the OSBI, and the prosecutors for their exceptional work in holding the defendant accountable for his crimes.”

“The entire law enforcement profession is disparaged when an officer betrays the oath to protect and serve. That is exactly what Mr. Smith did on his first solo shift as a police officer,” said Special Agent in Charge Doug Goodwater of the FBI Oklahoma City Field Office. “I am proud of the joint effort by the FBI, OSBI, and US Attorney’s Office to hold Smith accountable for his despicable actions. The sentence handed down today represents our commitment to pursuing justice for victims, and to protecting the reputation of those who wear the badge with integrity.”

The Oklahoma City FBI Field Office investigated the case with the assistance of the Oklahoma State Bureau of Investigation.

Trial Attorney Laura Gilson of the Civil Rights Division and Assistant U.S. Attorneys Nicole Paladino and Clay Compton for the Eastern District of Oklahoma prosecuted the case.

Source: United States Department of Justice Criminal Division

The U.S. Department of Justice today announced that eight defendants have pleaded guilty for their conduct in a long-running and violent conspiracy to monopolize the transmigrante forwarding agency industry in the Los Indios, Texas, border region near Harlingen and Brownsville, Texas. The three remaining defendants to the superseding indictment remain at large as fugitives. Transmigrantes are individuals who transport used vehicles and other goods from the United States through Mexico for resale in Central America. Transmigrante forwarding agencies are U.S.-based businesses that provide services to transmigrante clients, including helping those clients complete the customs paperwork required to export vehicles into Mexico.

“The Criminal Division is committed to holding violent criminal organizations accountable in whatever markets in which they operate,” said Matthew R. Galeotti, head of the Justice Department’s Criminal Division. “Transnational criminal organizations that use violence to dominate industries will be prosecuted to the fullest extent of the law.”

“These guilty pleas bring to justice individuals who used violence and extortion to fix prices and monopolize the market for essential services that Americans rely on to earn a living,” said Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to use every tool at its disposal to protect the public by prosecuting violent criminals – including those who aim to corrupt America’s free markets.”

“Price fixing harms both the public and the business community,” said U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas. “Schemes like this artificially drive up prices, forcing consumers to pay more than they ordinarily would. At its core, such market collusion is nothing more than theft from consumers.”

“These defendants tried to rule through fear, using threats, violence and intimidation to eliminate competition,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Their guilty pleas send a clear message that price fixing and market allocation are serious crimes, and we will hold those accountable who put profits over the law and fair commerce.”

“Today’s pleas reflect the relentlessness of the federal government’s pursuit of transnational criminal organizations that exploit international trade and the U.S. economy,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) San Antonio. “This violent scheme was fueled by greed that undermined the safety and economic security of the border region; HSI has prioritized significant resources to protect the U.S. and our legitimate trade.”

According to documents filed in the U.S. District Court in Houston, defendants Carlos Martinez also known as “Cuate,” Pedro Antonio Calvillo Hernandez, Roberto Garcia Villareal, Sandra Guerra Medina, and Mireya Miranda pleaded guilty to one count of conspiracy to fix prices and allocate the market for transmigrante forwarding agency services in violation of Section 1 of the Sherman Act, and one count of conspiracy to monopolize the same market in violation of Section 2 of the Sherman Act. The conspirators fixed the prices for transmigrante forwarding agency services and created a centralized entity known as the “Pool” to collect and divide revenues among the conspirators, limit competition from other agencies, and increase prices for their services. Market participants who were not part of the conspiracy had to join and pay into the Pool. Pool members enforced the rules of the Pool by monitoring whether forwarding agencies were charging the agreed-upon prices, including by posting prices publicly on social media, and monitoring whether agencies were paying into the Pool as required.

Martinez, Calvillo, Villareal, and Carlos Yzaguirre pleaded guilty to one count of conspiracy to interfere with commerce by extortion. Martinez also pleaded guilty to one count of interference with commerce by extortion. The defendants conspired to force forwarding agencies to pay money to the Pool and to pay other extortion fees, including a “piso” for every transaction processed in the industry as well as a “fine” for operating in the market outside of Pool rules. The conspirators perpetrated acts of intimidation, coercion, and violence in furtherance of the antitrust and extortion conspiracies. Defendant Martinez was responsible for at least $9.5 million in extortion payments.

Martinez and Jose de Jesus Tapia Fernandez also pleaded guilty to a money laundering conspiracy, through which they laundered extortion proceeds. Cash obtained from the extortion conspiracy was deposited into bank accounts controlled by Martinez and his family, and those deposits were made to conceal and disguise the nature, source, ownership, and control of the proceeds. Juan Hector Ramirez Avila pleaded guilty to one count of structuring a financial transaction to evade reporting requirements.

Martinez agreed to forfeit four real properties and $375,000 in seized U.S. currency, to pay a fine, and to pay full restitution to extortion victims. Guerra, Miranda, Calvillo, and Villareal have also agreed to pay fines as part of their plea agreements.

Rigoberto Brown and Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto were also charged in the superseding indictment and remain fugitives. Anyone with information about their whereabouts is asked to contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.

Conspiracies to allocate the market, fix prices, or monopolize in violation of the Sherman Act carry a maximum penalty of 10 years’ imprisonment and a maximum $1 million fine for an individual. Conspiracy to interfere with commerce by extortion in violation of the Hobbs Act carries a maximum penalty of 20 years’ imprisonment and a maximum $250,000 fine. Money laundering conspiracy carries a maximum penalty of 20 years’ imprisonment and a maximum $500,000 fine. Structuring a financial transaction to evade reporting requirements carries a maximum penalty of five years’ imprisonment and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Justice Department’s Antitrust Division, the Criminal Division’s Violent Crime and Racketeering Section (VCRS), the U.S. Attorney’s Office for the Southern District of Texas, HSI, and the FBI are investigating the case.

Trial Attorneys Brittany E. McClure, Anne Veldhuis, and Michael G. Lepage of the Antitrust Division, Trial Attorney Christina Taylor of VCRS, and Assistant U.S. Attorney Alexander L. Alum for the Southern District of Texas are prosecuting the case.

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.

Source: United States Department of Justice Criminal Division

Cameron Monte Smith, 50, a Canadian citizen, was sentenced today to 150 months in prison per count, to be served consecutively, for two counts of destroying an energy facility — one incident in the District of North Dakota and another in the District of South Dakota.Smith was also ordered to pay $2.1 million in restitution.

According to court documents, on Sept. 11, 2024, Smith pleaded guilty to the two offenses where he admitted to damaging the Wheelock Substation, located near Ray, North Dakota, in an amount exceeding $100,000, in May 2023. The Wheelock substation is operated by Mountrail-Williams Electric Cooperative and Basin Electric Power Cooperative.

Smith also admitted to damaging a transformer and pumpstation of the Keystone Pipeline located near Carpenter, South Dakota, in an amount exceeding $100,000, in July 2022. Smith damaged the Wheelock substation and the Keystone Pipeline equipment by firing multiple rounds from a high-power rifle into the equipment resulting in disruption of electric services to the North Dakota customers and resulting in disruption of the Keystone Pipeline in South Dakota.

Sue Bai, head of the Justice Department’s National Security Division; Acting U.S. Attorney Jennifer Klemetsrud Puhl for the District of North Dakota; U.S. Attorney Alison Ramsdell for the District of South Dakota; and Assistant Director David J. Scott of the FBI’s Counterterrorism Division made the announcement.

The FBI investigated the case with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Williams County (North Dakota) Sheriff’s Office, the South Dakota Division of Criminal Investigation, the Clark County (South Dakota) Sheriff’s Department, and the Beadle County (South Dakota) Sheriff’s Department.

Assistant U.S. Attorneys David D. Hagler and Jonathan J. O’Konek for the District of South Dakota, Assistant U.S. Attorney Jeremy Jehangiri for the District of North Dakota, and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section prosecuted the case.

Source: United States Department of Justice Criminal Division

A federal grand jury in Los Angeles recently returned an indictment charging a California man with tax evasion.

According to the indictment, Edward Michael Greer, of Newport Beach, owned an insurance salvage company, Greer & Kirby Co. Inc. From 2017 through 2020, Greer allegedly used the business’s bank accounts to pay for personal expenses, including payments to bookmakers Wayne Nix and Ken Arsenian to cover sports gambling losses, and to purchase a 2021 Mercedes Benz. The indictment further alleges that Greer concealed these personal payments in the business records, and in many cases directed the payments to be recorded as business expenses to reduce its income.

Wayne Nix and Ken Arsenian previously pleaded guilty for their roles in operating an illegal sports gambling business. 

If convicted, Greer faces a maximum penalty of five years in prison for each count of evasion. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Joseph T. McNally for the Central District of California made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Julia Rugg and Mahana Weidler of the Tax Division and Assistant U.S. Attorney Jeff Mitchell for the Central District of California are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

Two owners of a clinical research facility pleaded guilty today in the U.S. District Court for the Southern District of Florida to conspiracy to commit wire fraud in connection with their work on two clinical trials testing drugs designed to treat asthma.

According to court documents, Angela Baquero, 49, and Ricardo Acuna, 52, both of Weston, Florida, owned A&R Research Group (A&R), located in Pembroke Pines, Florida. A&R was a medical research facility that conducted clinical trials of prospective new drug treatments on behalf of drug sponsors seeking approval from the U.S. Food and Drug Administration (FDA). Baquero served as A&R’s clinical research director and study coordinator. Acuna served as A&R’s regulatory and contract affairs manager.

Pursuant to their plea agreements, Baquero and Acuna admitted to conspiring to unlawfully enrich themselves by making fraudulent representations to the asthma drug trial sponsor regarding subject eligibility, and falsifying and fabricating material documents and data, including case histories, spirometry readings, and echocardiogram data. As a result of the conspiracy, A&R provided fraudulent clinical research data to the drug trial sponsor and to an FDA investigator. According to the plea agreements, fraudulently enrolling subjects who did not qualify, and submitting data for subjects who were not participating, allowed A&R to inflate payments due from the sponsor.

“Clinical trials are essential to evaluating the safety and efficacy of potential drug treatments,” said Acting Assistant Attorney General Yaakov Roth of the Justice Department’s Civil Division. “The Justice Department will continue to work with the FDA to investigate and prosecute those who illegally undermine the integrity of the clinical trial process to facilitate fraudulent payments.”

The guilty pleas by Baquero and Acuna follow a March 3 guilty plea to a separate criminal information by Dr. Matthew Teltser, 70, of Hollywood, Florida, who served as the clinical investigator for numerous A&R clinical trials. Teltser pleaded guilty to making false statements to an FDA investigator regarding his work on the trials. According to his plea agreement, Teltser was the clinical investigator responsible for performing physical examinations on subjects and maintaining accurate records of data pertinent to the clinical trial. Teltser admitted that, during an FDA inspection, he knowingly and falsely told the FDA investigator that he had been present at every subject visit during the two asthma clinical trials.

Baquero and Acuna’s matters are set for further hearings before U.S. District Judge David S. Leibowitz on Sept. 19. Teltser is scheduled to be sentenced by U.S. District Judge Raag Singhal on June 10. Each defendant faces a maximum penalty of five years in prison.

FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case.

Trial Attorneys Andrew K. Crawford and Brianna M. Gardner of the Justice Department’s Consumer Protection Branch are prosecuting the case. The United States Attorney’s Office for the Southern District of Florida has provided critical assistance.