Source: United States Attorneys General

Headline: British Luxury Knitwear Retailer and CEO Agree to Pay $908,100 to Settle False Claims Act Allegations Concerning Improper Avoidance of Customs Duties

Portland, Maine:  United States Attorney Halsey B. Frank announced today that Pure Collection Ltd. (“Pure”) and its CEO, Samantha Harrison (“Harrison”), both of Harrogate, England, have entered into civil settlement agreements with the U.S. under which they will pay a total of $908,100 to resolve allegations that they violated the False Claims Act (“FCA”). The FCA is the government’s primary civil remedy to redress false claims involving government funds.  

The settlements resolve allegations that Pure and Harrison improperly avoided U.S. customs duties owed on merchandise shipped from the United Kingdom to U.S. customers, including many customers in Maine. See United States ex rel. Patrick v. Pure Collection Ltd., 2:16-cv-00230-GZS (D. Me.).  Generally, U.S. customers owed no customs duties on single shipments of merchandise into the U.S. worth less than $200 (a limit later raised to $800). The complaint alleged that Pure and Harrison improperly evaded customs duties that would have been paid by U.S. customers by breaking up single shipments worth more than those amounts into multiple shipments of lesser value in order to avoid the applicable duties. 

The FCA action was originally filed by Andrew Patrick, a citizen of the United Kingdom, under the Act’s whistleblower, or qui tam, provisions that allow private individuals who have knowledge of fraud committed against the government to file lawsuits on the government’s behalf. The FCA permits the government to recover up to three times the amount of damages incurred by the U.S., in addition to civil penalties for each violation.  The government may also intervene and file its own lawsuit for damages and penalties, as it did in this case.  If the government prevails in the action, the whistleblower, also known as the relator, may receive a share of the recovery. Here, the government will pay the relator, Mr. Patrick, a share of the settlement proceeds.

The government was represented by the U.S. Attorney’s Office for the District of Maine, the National Courts Section of the Department of Justice, and U.S. Customs and Border Protection.  Pure and Harrison cooperated throughout the investigation.

Source: United States Attorneys General

Headline: Former Union Officer Sentenced to 1½ Years for Embezzling over $280,000 in Union Funds

Portland, Maine:  United States Attorney Halsey B. Frank announced that Ryan Jones, 35 of Bath, Maine was sentenced today in U.S. District Court by Judge George Z. Singal to 1½ years in prison and three years of supervised release for embezzling $280,865 from a union during a period when he served as an officer of that union.  He was also ordered to pay $280,865 in restitution.  He pleaded guilty on September 6, 2017.

According to court records, from 2009 until January 2017, the defendant was the Secretary-Treasurer of the International Association of Machinists and Aerospace Workers, Local Lodge S6, a labor union.  The defendant’s tenure ended when he failed to win re-election.  In January, the newly elected union officials discovered discrepancies with union finances.  The ensuing federal investigation revealed that the defendant made almost 200 unauthorized withdrawals from the union’s bank account, he fabricated monthly bank statements to conceal his withdrawals, he provided the fabricated bank statements to union auditors to deceive them, and he embezzled about $280,865 between May 2012 and November 2016. 

The investigation was conducted by the Bath Police Department; the U.S. Department of Labor, Office of Labor-Management Standards; and the Federal Bureau of Investigation.

Source: United States Attorneys General

Headline: Akron man charged with making threats

The Federal Bureau of Investigation and the United States Attorney’s Office, Northern District of Ohio, announce the arrest of Raynard Clayton, 34, of Akron.

Clayton was placed into custody by the Adult Parole Authority on Feb. 8, 2018 without incident.  Clayton was transferred to federal custody by FBI agents assigned to the FBI Akron Resident Agency on Feb. 12.

Clayton is charged with transmitting in interstate commerce a threat to injure another person and also threatening a person with physical force with the intent to hinder, delay, or prevent communication to a law enforcement officer. 

Clayton is alleged to have posted a publicly available Facebook Live video, approximately 21 minutes in length, threatening to assault and kill an individual known to law enforcement.  In the video, Clayton, also known as Raynard Dutch, stated “I’ll shoot you point blank range, no mask……Get you and your family wrapped up.  AR-15, you know what I mean.”  Clayton continues on stating, “…basically what I’m sayin’ to you is keep my name out your mouth fo (before) I take yo (your) life.”  Clayton also stated in the video, “The best type of cop is a dead cop.”

A complaint is only a charge and is not evidence of guilt.  The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Source: United States Attorneys General

Headline: North Tonawanda Man Pleads Guilty To Child Pornography Charge

CONTACT:  Barbara Burns
PHONE:         (716) 843-5817
FAX #:            (716) 551-3051

BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Scott Myers, 26 of North Tonawanda, NY, pleaded guilty to receipt of child pornography, before Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years and a fine of $250,000.

Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in November 2013, the defendant met a 14-year-old female (Victim), on an internet dating site and the two eventually began communicating via text messaging on Kik and Skype. The communications, which were sexually explicit in nature, included Myers requesting sexually explicit phots from the Victim which she sent and he stored on a thumb drive. A subsequent analysis of the thumb drive revealed approximately nine images of child pornography depicting the Victim. Myers was aware that the Victim was a minor at the time she sent the sexually explicit images. The defendant also engaged in online sexual communications with another minor, a 13-year-old female using Kik and text messages.

In addition to the thumb drive, the defendant also possessed other electronic media, which contained child pornography, including a cellular telephone, two laptop computers, and a tablet.

The plea is the result of an investigation by agents of the Federal Bureau of Investigation, at the direction of Kevin P. Lyons, Acting Special Agent-in-Charge, the Cheektowaga Police Department, under the direction of Chief David Zack, and the Blasdell Police Department, under the direction of Lieutenant Joseph Gramaglia.          
       
Sentencing is scheduled for May 23, 2018, at 10:00 a.m. before Judge Skretny.

Source: United States Attorneys General

Headline: Former Niagara Falls Police Officer, Two Co-Defendants Plead Guilty For Their Roles In Drug Conspiracy

CONTACT:  Barbara Burns
PHONE:         (716) 843-5817
FAX #:            (716) 551-3051

BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that former Niagara Falls, NY, Police Officer Stephanie A. Costanzo, 29, pleaded guilty to managing a drug involved premises before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $500,000 fine. In addition, co-defendants Raymond Hopson and Lindsay Carrier pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine which is punishable by a mandatory minimum sentence of five years in prison, a maximum of 40 years and a fine of $5,000,000.

Assistant U.S. Attorney Joel Violanti, who is handling the case, stated that between July 28, 2016, and November 8, 2016, Raymond Hopson made several sales of crack cocaine to an undercover (UC) officer posing as a drug customer. During that time, Hopson was living with Stephanie Costanzo, at her residence on Grand Avenue in Niagara Falls.  Hopson would store some of his cocaine, along with paraphernalia used to weigh and distribute the cocaine, at the residence.  

On November 9, 2016, Special Agents from the Drug Enforcement Administration (DEA), along with the Niagara Falls Police Department executed a search warrant at Costanzo’s residence. Agents and officers recovered approximately 5.6 grams of cocaine, a digital scale used for weighing and distributing the cocaine, and drug paraphernalia used to package and distribute the cocaine. Although she did not participate in the distribution of the controlled substances, Costanzo was aware that Hopson stored his cocaine and paraphernalia at her residence.

Lindsay Carrier conspired with Raymond Hopson to distribute crack cocaine. On five occasions between July 28, 2016, and November 8, 2016, Hopson obtained crack cocaine from Carrier and then sold it to an undercover officer. A search warrant executed at the Willow Avenue residence of Carrier’s mother, resulted in the seizure of quantities of cocaine and crack cocaine.
 
The pleas are the result of an investigation by the Niagara Falls Police department, under the direction of Superintendent Bryan Dalporto, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.

Costanzo is scheduled to be sentenced on May 30, 2018, at 12:30 p.m. before Judge Arcara. Hopson and Carrier are scheduled to be sentenced on May 29, 2018, at 12:30 p.m. and 1:00 p.m. respectively, also before Judge Arcara.

Source: United States Attorneys General

Headline: Federal Inmate Sentenced to More Than a Year in Prison for Escape

A man who escaped from custody at the Gerald Hinzman Center in June 2017 was sentenced on February 12, 2018, to more than a year in federal prison.

Gabriel Mangum, age 41, from Iowa City, Iowa, received the prison term after an August 24, 2017, guilty plea to one count of escape from custody.

At the plea hearing, Mangum admitted that, on June 20, 2017, he was in the custody of the federal government and imprisoned at the Gerald Hinzman Center in Cedar Rapids, Iowa.  He further admitted that on that day he left the Gerald Hinzman Center to go to work, but did not return to the Center on that day.  Mangum was later arrested by the United States’ Marshal Service on July 12, 2017.       

Mangum was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Mangumwas sentenced to 18 months’ imprisonment.  A special assessment of $100 was imposed.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Mangum is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Lyndie Freeman and investigated by the United States’ Marshal Service. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 17-CR-56.

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Source: United States Attorneys General

Headline: Milwaukee Man Pleads Guilty to Falsely Labeling Illegal Wildlife Parts

United States Attorney Gregory J. Haanstad announced that on January 29, 2018, Chao Thao (age 37) of Milwaukee pleaded guilty to falsely labeling illegal wildlife parts that he imported from the United Kingdom in violation of the Lacey Act, Title 16, United States Code, Sections 3372(d)(1) and 3373(d)(3)(A)(i). Under the terms of the plea agreement, Thao acknowledged that he sought out and imported into the United States three taxidermized feet of black rhinoceros. Thao arranged with the shipper to falsely label the package containing the rhinoceros feet as “antique ornaments” in an effort to avoid detection by U.S. authorities.

Black rhinoceros is one of the most endangered species in the world. They are protected under United States and international law. Trade in rhinoceros parts is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.

Thao’s offense carries a maximum penalty of up to 5 years imprisonment and a $250,000 fine. The sentencing hearing is set for April 26, 2018 before United States District Judge Lynn Adelman. This case was investigated by the United States Fish & Wildlife Service. The case is being prosecuted by Assistant United States Attorney Benjamin W. Proctor.

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Source: United States Attorneys General

Headline: Five Defendants Plead Guilty to Methamphetamine Trafficking Charges

Five defendants pled guilty in unrelated cases to methamphetamine trafficking charges in the Southern District of Florida.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.

On January 18, 2018 and January 30, 2018, respectively, Saul Bustos Bustos, 38, and Irepan Juanchi Salgado, 24, each of Mexico, pled guilty to conspiring to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. § 846.  According to court records, the defendants met on November 28, 2017, with a DEA undercover officer in Miami to sell him five kilograms of crystal methamphetamine, at $14,500 per kilo.  During the transaction, the defendants, who possessed a total of 3,717 grams of 98% pure crystal methamphetamine, worked together to transfer the drugs from their vehicle to the undercover officer.  Bustos Bustos also pled guilty to illegal reentry after removal, after reentering the United States subsequent to removal on April 13, 2017, July 6, 2017, and July 19, 2017.

On January 31, 2018, Reitilly Fuentes Ramos, 32, of Miami-Dade County, pled guilty to possession with intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. § 841(a)(1).  According to court records, on October 25, Fuentes Ramos distributed 56.2 grams of 100% pure methamphetamine to a DEA confidential source.  Following that transaction, the confidential source purchased an additional four ounces of crystal methamphetamine from Fuentes Ramos.  During execution of a search warrant at the residence of Fuentes Ramos, agents seized four more ounces of crystal methamphetamine as well as distribution quantities of cocaine.

On January 30, 2018 and February 9, 2018, respectively, Jeremy Robert Macroy, 30, and Andrew Ronald Lord, 38, each of Broward County, pled guilty to conspiring to possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. § 846.  According to court records, Macroy and Lord facilitated the mailing of a UPS parcel from California to Hollywood, Florida, containing crystal methamphetamine.  On November 15, 2017, Lord picked up the package, a portion of which he intended to distribute to Macroy.  A search of the parcel revealed that it contained 430.3 grams of 98% pure methamphetamine.

At sentencing, Bustos Bustos and Juanchi Salgado face potential prison sentences of up to life imprisonment, to be followed by supervised release terms of at least five years on their respective narcotics convictions.  Bustos Bustos also faces a maximum term of three years imprisonment, to be followed by up to three years supervised release, for his immigration violation.   Bustos Bustos is scheduled to be sentenced before United States District Judge K. Michael Moore on March 29, 2018, at 2:00 p.m.  A sentencing date for Juanchi Salgado has not been scheduled.

Fuentes Ramos faces a potential prison sentence of up to life imprisonment, to be followed by supervised release of at least five years.  Fuentes Ramos is scheduled to be sentenced before United States District Judge K. Michael Moore on April 11, 2018, at 2:00 p.m.

Macroy and Lord face potential prison sentences of up to 40 years, to be followed by supervised release terms of at least four years.  Macroy and Lord are scheduled to be sentenced before United States District Judge Beth Bloom on April 30, 2018, at 10:30 a.m., and April 24, 2018, at 2:30 p.m., respectively.

Mr. Greenberg commends the investigative efforts of DEA and ICE-HSI.  These cases are being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.

This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force.  The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies that, cooperatively, target the region’s drug-trafficking and money laundering organizations.  The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused the nation’s illicit drug trafficking threats. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.