District of Delaware

WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that two active duty service members of the United States Air Force have been charged with sex offenses alleged to have occurred on the Dover Air Force Base in Dover, Delaware. Airman First Class Dalian Washington, 25, has been arrested and charged by criminal complaint with Sex Trafficking of a Child and Sexual Abuse of a Minor. Airman First Class Akeem Beazer, 21, has been arrested and charged by criminal complaint with Sexual Abuse of a Minor.

According to the criminal complaints, in approximately August of 2016, Washington obtained a 15-year-old female child for the purpose of having sex with her. Washington picked the child up at the Dover Division of Motor Vehicles (“DMV”) from a man he believed to be her “pimp” in exchange for $20. Washington then took her to his dorm room on base, where she stayed, off and on, for several months. Washington enlisted Beazer to help him look after the child, and Beazer began having sex with her, too.

Washington and Beazer were arrested on March 31, 2017, and they made their initial appearances in United States District Court that afternoon. Washington and Beazer waived their rights to preliminary and detention hearings. They will remain in custody pending further proceedings.

If convicted, Washington faces a mandatory minimum sentence of at least ten years, and up to twenty years, in prison. Beazer faces a maximum sentence of fifteen years in prison.

Any person possessing information about this matter is encouraged to contact the Federal Bureau of Investigation at (410) 265-8080.

The case is being investigated by the United States Air Force Office of Special Investigations, the Delaware State Police, the Delaware Department of Justice, and the Federal Bureau of Investigation. Assistant United States Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.

The charges in the criminal complaints are only allegations, and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Matthew Czap, age 68, formerly of Newark, Delaware, entered a plea of guilty to a one-count Felony Information charging him with structuring financial transactions to avoid currency reporting requirements. The defendant faces up to 10 years in prison and a $500,000 fine.

The Information alleges that between November 2, 2015 and March 30, 2016, defendant made eighteen separate cash deposits, totaling $163,460, each in an amount of less than $10,000. Defendant made many of the deposits on successive days, in amounts approaching, but under, $10,000. At the time he made these deposits, defendant was aware of the currency transaction reporting regulations that required the financial institution where he made these deposits to file a report with the government, documenting any cash transactions over $10,000. Defendant structured these cash deposits in order to avoid triggering the reporting requirement. In his guilty plea, defendant further admitted to structuring, in total, approximately $1.2 million dollars between 2013 and 2016.

Defendant’s wife was charged in December 2016 with wire fraud, identity theft, money laundering, and tax offenses. That case, United States v. Roberta Czap, 16-cr-96-LPS remains pending.

Acting U.S. Attorney Weiss gave the following comment, “The currency transaction reporting requirements serve to protect the U.S. banking system from those who attempt to launder cash. We are committed to prosecuting those who evade these safeguards in such a deliberate and egregious way.”

"Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act,” said IRS Criminal Investigation Acting Special Agent in Charge Gregory Floyd. “Deliberately avoiding BSA requirements is a form of money laundering that will be vigorously investigated by IRS Criminal Investigation."

“Today’s guilty plea announcement is significant and highlights the FBI’s collaboration with our partner agencies as we hold this defendant accountable for structuring financial transactions to avoid currency reporting requirements,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “The FBI and the IRS will continue to use all available tools to detect illegal money laundering and structuring activity.”

This case is the result of an investigation conducted by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Lesley Wolf.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Theophil Hollis, age 27, of Newark, Delaware, was indicted today for distribution of fentanyl that resulted in the death of another person.

Hollis faces a minimum mandatory sentence of 20 years in prison, a maximum sentence of a lifetime in prison, a fine of $1,000,000, and a minimum of three years of supervised release following a prison sentence. Hollis was also indicted for two additional counts of possession with intent to deliver fentanyl and heroin respectively, for which he faces additional maximum penalties of twenty years in prison, a fine of $1,000,000, and three years of supervised release on each.

According to the Indictment, Hollis distributed a mixture and substance containing a detectable amount of Fentanyl that resulted in the fentanyl-related death of another person on September 7, 2016.

U.S. Attorney Oberly stated, “The U.S. Attorney’s Office in Delaware remains committed to prosecuting drug dealers responsible for overdose deaths. The number of deaths related to fentanyl overdose has reached epidemic-like numbers, accounting for more than one-third of all Delaware’s overdoses in 2016. Those responsible for providing this poison to those addicted to controlled substances, where the evidence exists, should expect to face serious punishment.”

This indictment is the result of an investigation by the DEA Wilmington Resident Office – HIDTA Group 41, the New Castle County Police Department, the Delaware Department of Justice, and the Delaware State Police. Assistant United States Attorney Daniel Logan is prosecuting the case on behalf of the United States.

The charges in the indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

WILMINGTON, Del. – A former U.S. Navy Lt. Commander and ordained Catholic priest was sentenced to 30 years in prison today for charges involving the sexual exploitation of children, announced U.S. Attorney Charles M. Oberly III of the District of Delaware.

John Thomas Matthew Lee, 51, of Millsboro, Delaware, was sentenced by U.S. District Court Judge Leonard P. Stark of the District of Delaware, who also ordered Lee to serve a lifetime term of supervised release. On Nov. 16, 2015, Lee pleaded guilty to one count of production of child pornography and one count of distribution of child pornography. He became a registered sex offender following his 2007 conviction in a general court martial of sexually assaulting another Naval officer while serving as a Chaplain at the U.S. Naval Academy. Lee has been in custody since his arrest on Nov. 3, 2014.

According to admissions made in connection with the plea agreement, following a series of CyberTipline reports from the National Center for Missing and Exploited Children, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) special agents connected Lee with accounts that were being used to upload images of child pornography to several social networking sites. In executing a search warrant at Lee’s Millsboro residence, agents found tens of thousands of child-pornography images on several of Lee’s electronic devices, including his phone. Using online messenger applications and text messages from his cellular phone, Lee also induced several juveniles to send him pornographic images of themselves. Lee uploaded at least one of these images to a publicly-accessible social media site. He also traded other images of child pornography online with other adults.

HSI Resident in Charge Wilmington, Delaware investigated the case with assistance from several other HSI regional offices in locating and interviewing the juvenile victims. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.

A former U.S. Navy Lt. Commander and ordained Catholic priest was sentenced to 30 years in prison today for charges involving the sexual exploitation of children, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware. 

John Thomas Matthew Lee, 51, of Millsboro, Delaware, was sentenced by U.S. District Court Judge Leonard P. Stark of the District of Delaware, who also ordered Lee to serve a lifetime term of supervised release.  On Nov. 16, 2015, Lee pleaded guilty to one count of production of child pornography and one count of distribution of child pornography.  He became a registered sex offender following his 2007 conviction in a general court martial of sexually assaulting another Naval officer while serving as a Chaplain at the U.S. Naval Academy.  Lee has been in custody since his arrest on Nov. 3, 2014.

According to admissions made in connection with the plea agreement, following a series of CyberTipline reports from the National Center for Missing and Exploited Children, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) special agents connected Lee with accounts that were being used to upload images of child pornography to several social networking sites.  In executing a search warrant at Lee’s Millsboro residence, agents found tens of thousands of child-pornography images on several of Lee’s electronic devices, including his phone.  Using online messenger applications and text messages from his cellular phone, Lee also induced several juveniles to send him pornographic images of themselves.  Lee uploaded at least one of these images to a publicly-accessible social media site.  He also traded other images of child pornography online with other adults.   

HSI Resident in Charge Wilmington, Delaware investigated the case with assistance from several other HSI regional offices in locating and interviewing the juvenile victims.  The Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.

Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that International Petroleum Corporation of Delaware (“IPC’) was sentenced today by United States District Court Judge Gregory M. Sleet to a $1,300,000 fine and $2,200,000 restitution to the City of Wilmington for environmental crimes, including a conspiracy to violate the Clean Water Act.

According to court documents and statements made in court, from 1992 through 2012 IPC operated a facility, located at 505 South Market Street in Wilmington, Delaware, which processed used oil and hydrocarbon-containing waste water and then sold the reprocessed petroleum to various companies for reuse. The facility had two components: oil recovery and waste water treatment. The facility’s petroleum processing activities generated waste water, which the company treated at its waste water portion of the facility prior to discharge into a sewer along Market Street owned by the City. It issued IPC a federally-enforceable Clean Water Act pretreatment permit which governed the types and concentrations of pollutants which IPC could discharge into the City’s sewer system. The pretreatment permit required IPC to take “representative” samples of its waste water on a monthly basis, to determine if it was complying with its permit limitations, and report its sampling results the City every six months.

IPC admitted that its monthly samples were not representative, as it tampered with, and rendered inaccurate, monitoring methods and a monitoring device required by the Clean Water Act and IPC’s federally-enforceable pretreatment permit.

IPC further admitted to violating the Resource Recovery and Conservation Act (“RCRA”) by transporting hazardous waste without a hazardous waste manifest. In June and July 2012, IPC trucked to South Carolina for disposal sludge (“tank bottoms”) which IPC had removed from its storage tanks. The tank bottoms contained concentrations of benzene, barium, chromium, cadmium, lead, tetrachloroethene (also known as “PCE”), and trichloroethene (also known as (“TCE”), which each served to classify the material as RCRA regulated hazardous waste.

"Industrial wastewater can pose serious threats to public health and the environment, so it’s imperative that companies honestly treat and dispose of it properly and sample and report pollutant concentrations honestly,” said U.S. Attorney for the District of Delaware Charles M. Oberly III. “Likewise, companies must handle hazardous waste properly to ensure its proper treatment and disposal. The Department of Justice and EPA are committed to protecting human health and the environment for all Americans through strong enforcement of environmental laws, especially in environmental justice areas. This conviction and sentence ensures that the defendant is held accountable with a criminal fine, and pays substantial restitution to the City of Wilmington.”

This case was investigated by EPA’s Criminal Investigation Division. The City of Wilmington Department of Public Works and the DNREC Solid & Hazardous Waste Management Section assisted in the investigation. IPC, through its parent company which purchased the Wilmington plant after the crimes to which IPC pled guilty occurred, cooperated with the investigation.

The case was prosecuted by Special Assistant U.S. Attorney Martin Harrell, EPA Region 3, and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.

WILMINGTON, Del. – Charles M. Oberly III, United States Attorney for the District of Delaware, announced that Darius Jamal Shields-Dryden (“Shields-Dryden”) pled guilty yesterday to a five-count Information charging him with making material false statements to federally licensed firearms dealers in connection with the acquisition of guns. Shields-Dryden, age 26, from Wilmington, Delaware, is accused of purchasing multiple guns for juveniles. Each time Dryden bought a gun, he falsely claimed to be purchasing the weapon for himself. Shields-Dryden faces a maximum of 10 years in prison and a $250,000 fine on each count.

According to publicly filed documents and statements made in open court, Shields-Dryden purchased five guns between April 30, 2016 and May 16, 2016. Surveillance footage from the gun stores shows Shields-Dryden accompanied by several juveniles alleged to be members of the violent Wilmington street gang Only My Brothers (“OMB”). A number of those same juveniles are charged with gang participation and other offenses in the Superior Court of the State of Delaware. Two of the alleged OMB members who were with Shields-Dryden in the gun stores were later arrested in possession of guns Dryden bought, as laid out below.

Shields-Dryden purchased a firearm on May 16, 2016, which was later discovered in the possession of an alleged OMB member charged with using shooting a man with that gun during a May 17, 2016 robbery attempt. Another of the guns Shields-Dryden purchased was recovered in the possession of a different juvenile; photographs and videos on that juvenile’s phone show the juvenile and his brother holding three additional firearms purchased by Shields-Dryden.

United States Attorney Oberly stated, “The individuals who knowingly purchase firearms that are turned over to juveniles or others who are prohibited from possessing firearms are as morally guilty of the crimes committed by those who are provided firearms, which are then used in murders, assaults, robberies, and other crimes. In these situations, these so-called straw purchasers should expect to be prosecuted and sentenced to prison. If fewer juveniles or felons are able to obtain firearms in this manner, the streets of Wilmington will be safer and lives will be saved.”

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wilmington Police Department. The prosecution is being handled by Assistant United States Attorney Jennifer K. Welsh, District of Delaware.

WASHINGTON -- The Justice Department announced today that there is insufficient evidence to pursue federal criminal civil rights charges against the Wilmington Police Department (WPD) Corporals involved in the fatal shooting of 28-year-old paraplegic Jeremy McDole on Sept. 23, 2015.

Officials from the U.S. Attorney’s Office of the District of Delaware, the Justice Department’s Civil Rights Division and the FBI met today with representatives of the McDole family to inform them of this determination. The department makes this decision based on the determination that the evidence does not indicate that the corporals willfully used excessive force in shooting McDole.

Federal authorities devoted significant time and resources to reviewing the events surrounding McDole’s death. This involved reviewing detailed and lengthy analysis of voluminous materials, including police reports, law enforcement accounts, witness statements, dispatch logs, physical evidence reports, the autopsy report and an enhanced cell phone video of the incident.

The team of experienced federal prosecutors from the Civil Rights Division Criminal Section and the U.S. Attorney’s Office reviewed thousands of pages of documents and other evidence to determine whether the subject corporals violated federal law. Under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a Constitutional right. To establish willfulness, federal authorities must show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by law. Mistake, misperception, negligence or poor judgment are not sufficient to establish a federal criminal civil rights violation.

The evidence developed during the investigation revealed that corporals Thomas Silva, James MacColl, Thomas Lynch and Joseph Dellose were dispatched pursuant to a 911 call reporting that a male suspect in a wheelchair, later identified as McDole, was armed with a handgun and may have sustained self-inflicted gunshot wounds. Silva arrived first at the scene, and the 911-caller pointed out McDole and said McDole was still in possession of a gun. Silva commanded McDole to show his hands and drop the gun, but McDole instead rolled his wheelchair into the street and reached into his waistband. MacColl arrived next and saw that McDole was not responding to Silva’s commands. Dellose arrived and immediately approached McDole from the opposite direction of Silva and MacColl. Dellose also ordered McDole to show his hands; however, McDole continued to reach into his waistband. Dellose stated that he observed the handle of a gun, so he fired a round at McDole from his shotgun. Lynch arrived immediately after Dellose fired.

After the shotgun blast, McDole continued moving his hands around his lap and waistband. McDole then reached into the right side of his waistband as if to grab something and began withdrawing his right hand, in which he held what the corporals believed to be a handgun. Silva, MacColl and Lynch each fired four shots at McDole from their service pistols. McDole fell to the ground and a responding officer approached him and removed from his waistband a handgun.

The incident was recorded in a cell phone video, which was enhanced at the FBI Laboratory. The video shows McDole continuously moving his hands around his waistband as WPD officers yell for him to show his hands and drop the gun. The camera pans away from McDole the instant before the shotgun blast. Toward the end of the video, McDole reaches into his waistband with his right hand, then begins pulling his right hand upward. A volley of shots is heard, but the camera pans away from McDole for a moment while the shots are being fired. Several law enforcement officers and civilians witnessed the shooting and the events leading up to it. These witnesses corroborated the claim of the corporals who fired at McDole that McDole failed to respond to law enforcement commands and continued moving his hands around his waistband when the shots were fired. The investigation also revealed that McDole’s DNA was located on the grip of the handgun recovered from his waistband and that there was gunshot residue was on McDole’s right palm and shirt sleeve.

There is insufficient evidence to disprove the corporals’ claims that they shot McDole in self-defense and in defense of nearby civilians and fellow officers. Other witnesses also corroborate Dellose’s claim that McDole was reaching into his side immediately before Dellose fired his shotgun, even though the video does not capture that precise moment. Accordingly, the government cannot disprove that Dellose saw a handgun or believed he saw a handgun. When Silva, MacColl and Lynch fired their weapons a few moments later, they had reason to believe that McDole had a gun that he had recently fired. They also knew that McDole had not responded to repeated commands to show his hands and drop the gun, was reaching into his waistband and was at that moment pulling his hand upward. The testimonial, video and physical evidence corroborates the corporals’ version of the events.

Accordingly, after extensive investigation into this incident, the federal review of this incident has been closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of the incident that led to McDole’s death.

The U.S. Attorney’s Office of the District of Delaware and the Civil Rights Division are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by the Grand Jury, charging Noel Rodriguez, 55, formerly of Dover, Del., with four counts of federal program theft. On each count, Rodriguez faces up to ten years in prison and three years of supervised release, in addition to possible fines and restitution.

According to the Indictment, during each of the years 2011 to 2014, while employed as the Principal of the Academy of Dover Charter School in Dover, Del., Rodriguez embezzled at least $5,000 of money or property belonging to the school. During that time period, the Indictment alleges, the charter school received yearly federal funding in excess of $10,000 from the United States Department of Education. This funding provides the basis for the federal program theft charges.

The case is being investigated by the Federal Bureau of Investigation, the United States Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Officer of Auditor of Accounts. Assistant United States Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.

Indictments are only charges and are not evidence of guilt. The defendant is presumed innocent until and unless proven guilty.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by a federal grand jury charging Roberta Czap, 66, of Newark, Delaware, with wire fraud, identity theft, money laundering and tax offenses.  The defendant faces up to 20 years in prison on the wire fraud and money laundering charges, up to 10 years for engaging in a separate money laundering transaction, and up to three years on the tax offenses.  In addition to incarceration on the other charges, Czap faces an extra mandatory two years term of imprisonment if convicted of the identity theft charge.

The Indictment alleges that between 2011 and 2016, the defendant, who was employed in the accounting department of a financial services company in Newark, directed more than $6.1 million dollars in electronic funds transfers from the company’s operating account to her personal bank accounts.  Using the personal identification information of another employee, Czap created false payment requests, designed to appear legitimate, to the company’s vendors.  Czap then authorized nearly five hundred payments with company funds, using her own credentials.  While Czap filed federal tax returns for 2013, 2014, and 2015, those returns did not, as was required by law, include her illegal income from the company’s funds, and materially understated her income.

The Indictment further alleges that, between January 2013 and July 2016, once the company’s funds were fraudulently deposited into defendant’s bank accounts, defendant and her husband withdrew approximately $2.7 million in cash at various casinos in Delaware and elsewhere.  Czap gambled regularly and consistently, but would at times cash out her casino play and receive United States Currency.  Currency totaling approximately $1.2 million was subsequently deposited into two different bank accounts held in the name of Czap’s husband. 

U.S. Attorney Oberly gave the following comment, “I want to thank both the IRS and the Federal Bureau of Investigation.  Defendant’s attempts to conceal the source of her illegal income made detection of the fraud more challenging, but the diligent and thorough investigative work of law enforcement uncovered the significant fraud perpetrated not only against the victim company, but the American people.”

This case is the result of an investigation conducted by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation.  The prosecution is being handled by Assistant United States Attorney Lesley Wolf. 

The charges in the Indictment are only allegations.  The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Lawrence Brinkley, age 51, of Wilmington, was sentenced on December 2, 2016, by U. S. District Court Judge Richard G. Andrews to 48 months of imprisonment and three years of supervised release. 

The sentencing came after Mr. Brinkley pled guilty on August 2, 2016 to conspiracy to distribute and possess with intent to distribute oxycodone. 

 Between July 2014 and January 2016, Mr. Brinkley was the ringleader of a group of individuals that obtained prescriptions for oxycodone pills and filled those prescriptions in Delaware pharmacies.  Brinkley and his co-conspirators then illegally sold those pills on the street.

 After the sentencing, U.S. Attorney Oberly stated, “We are satisfied with this substantial sentence.  The abuse of prescription drugs is an epidemic in Delaware.  Anyone tempted to make money by selling oxycodone illegally should know that the punishment will be severe.”

 “The illegal diversion and sale of prescription opioids is a violation of federal law and of great concern to the DEA,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “All too often the abuse of prescription opioids leads to heroin use, overdoses, and even death.  The DEA will remain vigilant in pursuing criminal groups that seek to distribute prescription drugs such as these.” 

The case was investigated by the Drug Enforcement Administration and Task Force Officers from the Newark Police Department, the New Castle County Police Department, the Delaware State Police, and the Maryland State Police.  It was prosecuted by Assistant United States Attorney Jennifer Hall.  U.S. Attorney Oberly thanked the investigators for their hard work in pursuing this investigation.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Akeem Harris, age 26, of Newark, was sentenced on November 30, 2016, by U. S. District Court Judge Sue L. Robinson to 24 months of imprisonment and three years of supervised release.  Mr. Harris was also ordered to pay restitution in the amount of $422,946.04. 

The sentencing came after Mr. Harris pleaded guilty on June 2, 2016 to one count of bank fraud, in violation of 18 U.S.C. §1344 and one count of money laundering, in violation of 18 U.S.C. §1957. 

Between January and June 2016, Mr. Harris engaged in multiple fraud schemes in and around the Wilmington, Delaware area.  Defendant opened multiple bank accounts in the name of fictitious businesses, and received or deposited stolen funds into those accounts.  Mr. Harris then liquidated the proceeds of those schemes in a series of transactions including large cash withdrawals before the fraud was detected.

U.S. Attorney Oberly stated, “I am pleased with Mr. Harris’s sentence.  Though not at the helm of the schemes, Mr. Harris played a vital role and made the schemes profitable for himself and others involved.  I hope that others, when approached about playing a similar role, will understand that they will be held accountable for such conduct.”

"IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals use deceit and fraud to line their pockets," stated Akeia Conner, Special Agent in Charge, Philadelphia Field Office, IRS Criminal Investigation.  "This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions."

The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.  It was prosecuted by Assistant United States Attorney Lesley Wolf.  U.S. Attorney Oberly thanked the investigators for their hard work in pursuing this investigation.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Rachel Woodall, age 40, of Wilmington, Delaware, was sentenced today by the Honorable Richard G. Andrews, United States District Judge for the District of Delaware, to twelve months and one day in prison, and full restitution.  The defendant pleaded guilty to conversion of Social Security benefits in January.

According to court filings and statements made at the sentencing hearing, the defendant was the representative payee—responsible for caring for finances—for her intellectually disabled sister. In November, 2014, when her sister received large sums in back Social Security benefits, the defendant began embezzling from her sister.  The defendant abused her position of trust to spend money on herself: she bought two Mercedes vehicles, wrote a $25,000 check to her own business, and made a number of withdrawals that she ultimately deposited in her own bank account—one as large as $51,000.  In one 48-hour span in 2014, the defendant managed to spend or transfer almost $100,000 of her sister’s benefits.  The defendant continued to make withdrawals on her sister’s bank account after pleading guilty in January.

U.S. Attorney Oberly stated, “This was an ongoing abuse of trust, in which Ms. Woodall took advantage of her position of power over her disabled sister. We take crimes victimizing the disabled very seriously, and they should be punished accordingly.”

“The Social Security Administration Office of the Inspector General (SSA OIG) is committed to investigating and pursuing individuals suspected of representative payee fraud,” said Michael McGill, Special Agent-in-Charge of the SSA OIG, Office of Investigations, Philadelphia Field Division. “Representative payee fraud is an egregious offense, not only because it involves the misuse of government benefits and other funds, but because it can cause severe harm and distress to some of the most vulnerable members of society, including the disabled and the elderly.”

This case was investigated by the Social Security Administration Office of the Inspector General, and was prosecuted by Assistant United States Attorneys Alexander Mackler and Jennifer Hall.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Sean Moore, age 43, of New Castle, Del., pleaded guilty to three counts of federal program theft before U.S. District Judge Richard G. Andrews.  Moore is scheduled to be sentenced on March 2, 2017.

According to court records and statements made in open court, between July 1, 2011 and January 31, 2015, while serving as the Director of Finance and Operations for the Family Foundations Academy, a charter school in New Castle, Del., Moore embezzled $161,871 from the school. 

Moore accomplished this embezzlement in a number of ways.  First, Moore charged personal expenses to an unauthorized credit card he opened in the name of the school.  Moore also abused the State of Delaware’s voucher program, by which charter schools are permitted to submit qualified expenses for reimbursement, and the State of Delaware’s procurement card system, by which the State of Delaware issues credit cards to charter school administrators to purchase necessary school supplies.  In addition, Moore stole money from the school’s fundraising account, which consisted of money collected from parents of school students, local sponsors, and an after-school program.  Moore also took money from the school’s construction loan account.

Moore used the embezzled money for personal expenses such as retail purchases, home improvement purchases, electronics, auto loan payments, auto services and accessories, federal tax payments, groceries, entertainment, food, gas, travel, gifts and collectibles, shoes, hotels, jewelry, train tickets, and video games. 

During this time, the Family Foundations Academy received significant federal funding, which provides the basis for the federal program theft charges.  The maximum penalty for each count is ten years in prison followed by a three years of supervised release and a fine of $250,000.

This case is the result of an investigation conducted by the Federal Bureau of Investigation, the U.S. Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Office of Auditor of Accounts.  Assistant U.S. Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.

WILMINGTON, Del. – United States Attorney Charles M. Oberly, III announced today that Assistant United States Attorney (AUSA) Patricia C. Hannigan will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016 general elections.  AUSA Hannigan has been appointed to serve as the District Election Officer for the District of Delaware, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

U.S. Attorney Oberly said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Oberly stated that AUSA Hannigan will be on duty in this District while the polls are open.  She can be reached by the public at the following telephone numbers: (O) 302-573-6117 or (C) 302-507-1607.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached at 302-658-4391.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

U.S. Attorney Oberly said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Donte Jacobs, age 28, of New Castle, Delaware, was indicted on October 13, 2016, for conspiracy to distribute heroin and fentanyl that resulted in the death of another person.

Jacobs faces a minimum mandatory sentence of 20 years in prison, a maximum sentence of a lifetime in prison, a fine of $5,000,000, and a minimum of 3 years of supervised release following a prison sentence.  Jacobs was also indicted for the illegal possession of a handgun, for which he faces an additional maximum penalty of ten years in prison, a fine of $250,000, and 3 years of supervised release.

According to the indictment, Jacobs conspired to distribute a controlled substance that resulted in the fentanyl-related death of T.A. on June 29, 2016.  Jacobs was arraigned on the charges in U.S. District Court today.

U.S. Attorney Oberly stated, “This is the first such indictment filed by the U.S. Attorney’s Office in Delaware.  The number of deaths related to the distribution of heroin laced with fentanyl has reached epidemic-like numbers.  Those responsible for providing this poison to those addicted to heroin can, where the evidence exists, expect to face indictment like this.

This indictment is the result of an investigation by the DEA Wilmington Resident Office – HIDTA Group 41, the New Garden Police Department, and the New Castle County Police Department.  Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe is prosecuting the case on behalf of the United States.

The charges in the indictment are only allegations.  The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

A Wilmington, Delaware, man pleaded guilty today to one count of distribution of child pornography for his membership in a website dedicated to the sexual exploitation of children, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.

Roy Harvender Jr., 59, pleaded guilty before U.S. District Court Judge Leonard P. Stark of the District of Delaware.  Sentencing has been scheduled for Feb. 1, 2017.

According to admissions made in connection with the plea agreement, the FBI identified Harvender during the investigation of an online bulletin board whose primary purpose was the advertisement and distribution of child pornography.  This website had a total of over 105,000 users and required its members to continually share child pornography in order to gain and keep membership. 

Harvender admitted that he was an active member of this website for a period of several months in 2014 and made approximately 190 postings to the board, including images and videos of child pornography and links to images and videos of child pornography.  After identifying Harvender, agents executed a search warrant at his residence and found images of child pornography on electronic devices they seized.  Harvender was interviewed by FBI agents and admitted that he uploaded child pornography images to other users of the website and that he owned the devices that contained child pornography.    

The FBI’s Baltimore Division investigated the case.  Trial Attorney Herbrina D. Sanders of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.

WILMINGTON, Del. - David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Joseph L. Capano, age 75, of Middletown, Delaware, was sentenced today to 21 months of incarceration followed by 12 months of home confinement, after pleading guilty in March 2016 to one count of bank fraud and one count of knowingly violating the Clean Water Act. Capano was also ordered to pay restitution of $685,419.32 to Cecil Bank, and to pay a fine of $50,000.00 for the environmental violation.

According to the charging document and statements during the sentencing hearing, both charges relate to Capano’s conduct during construction of the Riverbend at Old New Castle development located off of State Route 9 in New Castle, Delaware (“Riverbend Development”). The Riverbend Development was funded in part by a $1.5 million commercial line of credit from Cecil Bank, headquartered in Elkton, Maryland. Capano submitted fraudulent draw requests in which he sought the release of loan funds from Cecil Bank, claiming that the money would be spent on the Riverbend Development. After Cecil Bank loaned the money to Capano, he then spent the proceeds on personal expenses or his other businesses rather than using the funds for the requested purposes. On one occasion, Capano used Cecil Bank’s money to pay for a $63,000 jewelry purchase.  In total, Capano misused approximately $420,000 in loan proceeds.

Capano also sent a letter to Cecil Bank falsely claiming that nine homeowners were under contract for homes at the Riverbend Development, when in reality no such contracts existed. Cecil Bank continued to lend Capano money under the line of credit based on those false representations. Capano defaulted on the line of credit, leaving the bank with significant losses and forcing the bank to foreclose on the Riverbend Development.

In addition to his misrepresentations regarding bank loan funds, the Information states that Capano knowingly filled wetlands at the Riverbend Development without a permit. Capano directed employees and contractors of his company to expand the entrance road to the development, even though the entrance road contained wetlands. Capano also directed contractors and employees to place a water main pipe through the entrance road wetlands, even after the Army Corps of Engineers instructed Capano to stop performing construction in the wetlands and issued Capano a Cease and Desist letter to that effect.  Capano then lied to the Army Corps of Engineers, verbally and in a sworn affidavit, about the timing of that illegal work in the wetlands.

“During his work on the Riverbend Development project Joseph Capano lied to the Army Corps of Engineers, Cecil Bank and the few individuals who bought homes at Riverbend. After state and federal authorities began investigating, Capano continued to mislead state environmental officials, the bankruptcy court and the United States Probation Office. This was the defendant’s modus operandi. He came to court today with the understanding that the rules don't apply to him—that his actions have no consequences.  After receiving a 21-month prison sentence, he left with a different understanding.” said Acting U.S. Attorney Weiss.

“Wetlands are essential for fish and wildlife habitat, mitigating the impacts of floods and maintaining water quality, so it’s imperative they are protected,” said Ted Stanich, Acting Director of the United States Environmental Protection Agency’s Criminal Investigation Division. “EPA and its law enforcement partners are committed to protecting these invaluable natural assets as well as the communities around them, and to do so, we will continue holding violators fully accountable.”

This case is the result of a joint investigation conducted by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the United States Environmental Protection Agency, Criminal Investigation Division Philadelphia Area Office. The prosecution was handled by Assistant United States Attorney Jennifer K. Welsh, District of Delaware.

A Delaware man was indicted today on charges related to his plan to meet a 14-year-old girl for sex and additional charges related to the production and distribution of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.

Daniel Arthur Hill, 28, of Dover, Delaware, was indicted in U.S. District Court for the District of Delaware on three counts of production of child pornography, one count of attempted coercion and enticement of a minor, three counts of distribution of child pornography and one count of possession of child pornography.

On Dec. 16, 2015, Hill was arrested on Delaware state charges for solicitation of a minor and other related offenses.  Hill allegedly engaged online with an individual that he believed to be a 14-year-old girl, then planned to meet this minor to engage in sexual activity.   

According to the allegations contained in the indictment, Hill possessed multiple child pornography images, including images that Hill had distributed within an online chat group.  Additionally, the indictment alleges that Hill had produced images of child pornography and distributed these images over the internet to other individuals. 

An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

The Delaware State Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case in cooperation with the Delaware Attorney General’s Office.  This case is being prosecuted by Trial Attorney Herbrina D. Sanders of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Graham L. Robinson of the District of Delaware.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by the Grand Jury, charging Tanisha Gregory, age 34, and Nduka White, age 32, formerly of Newark, Delaware, with False Claims Conspiracy, Mail Fraud, and Social Security Fraud.  Both defendants face up to 20 years in prison, 3 years of supervised release, in addition to possible fines and restitution. 

The Indictment alleges that, from February 2012 through June 2015, Gregory and White conspired with one another to defraud the United States by filing false tax returns using other people’s identities.  It is alleged that the defendants obtained unauthorized access to the names and social security numbers of at least 50  people, in Delaware and elsewhere. The defendants used this identification information to file false tax returns with the Internal Revenue Service (IRS), claiming more than $270,000 in refunds for the 2011 through 2014 tax years.  According to the Indictment, the defendants attempted to conceal their receipt of the refunds, by transferring the proceeds through bank accounts and prepaid debit card accounts in other people’s names.  The defendants are alleged to have received more than $130,000 from the IRS on account of the false returns.

This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration Office of the Inspector General.  This case is being prosecuted by Assistant U.S. Attorney Lauren Paxton.  The charges in the Indictment are only allegations.  The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Kan Chen, 26, of Ningbo, China, in Zhejiang Province, was sentenced to 30 months in prison and three years of supervised release for conspiring to violate the Arms Export Control Act and International Traffic in Arms Regulations; attempting to violate the Arms Export Control Act and International Traffic in Arms Regulations; and violating the International Emergency Economic Powers Act.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Charles M. Oberly III of the District of Delaware, Acting Special Agent in Charge Gregory C. Nevano of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) Philadelphia and Special Agent in Charge Nasir Khan of the U.S. Department of Commerce-Bureau of Industry and Security’s Office of Export Enforcement Washington Field Office made the announcement.

On June 16, 2015, Chen was arrested by HSI agents on the Northern Mariana Island of Saipan following an eight-month long investigation into his illegal conduct and has remained in custody.  He pleaded guilty to the offenses listed above on March 2, 2016.

“The United States will simply never know the true harm of Chen’s conduct because the end users of the rifle scopes and other technology are unknown,” said U.S. Attorney Oberly.  “No matter their nationality, those individuals who seek to profit by illegally exporting sensitive U.S. military technology will be prosecuted.  It is important that we take all necessary steps to prevent our military technology and equipment from being exported and possibly used against our service members and our allies overseas.”

“These sophisticated technologies are highly sought after by our adversaries,” said Acting Special Agent in Charge Nevano.  “They were developed to give the United States and its allies a distinct military advantage, which is why HSI will continue to aggressively target the individuals who might illegally procure and sell these items.”

“Today's sentencing is the result of exceptional investigative work by the Office of Export Enforcement and our law enforcement partners to disrupt an illicit network and prevent sensitive technology from falling into the wrong hands,” said Special Agent in Charge Khan. 

According to court documents, from July 2013 through his arrest in June 2015, Chen caused or attempted to cause the illegal export of over 180 export-controlled items, valued at over $275,000, from the United States to China.  Over 40 of those items – purchased for more than $190,000 – were sophisticated night vision and thermal imaging scopes, which are designated by the International Traffic in Arms Regulations as U.S. Munitions List defense articles and can be mounted on automatic and semi-automatic rifles and used for military purposes at night. 

Given the sensitivity surrounding these military-grade items, Chen devised a scheme to smuggle these items through Delaware and outside the United States.  He purchased the devices via the internet and telephone and had them mailed to several reshipping services in New Castle, Delaware, which provide an American shipping address for customers located in China, accept packages for their customers and then re-ship them to China.  In order to further conceal his illegal activity, Chen arranged for the re-shippers to send the devices to several intermediary individuals, who in turn forwarded the devices to Chen in China.  Chen then sent the devices to his customers.  During the course of this conduct, Chen made numerous false statements in order to knowingly and willfully evade the export control laws of the United States, including by undervaluing the shipments, unlawfully avoiding the filing of export information with the U.S. government, indicating that he was a natural-born U.S. citizen and providing the address of the reshipping service as his own.

During the sentencing hearing, the government noted the lethality of these items when combined with weapons designed for use on a battlefield.  For example, the ATN ThOR 640-5x, 640x480-Inch Thermal Weapon Scope, 100 mm, which Chen purchased for $8,428.39, is described by the manufacturer as “an ideal product for force protection, border patrol officers, police SWAT and special operations forces providing them the tools they need to be successful in all field operations both day and night.  Uncooled thermal imaging cuts through dust, smoke, fog, haze, and other battlefield obscurants.”  These rifle scopes, therefore, are weapons of war, and Chen’s smuggling and subsequent sale of these military-grade items outside of the United States directly undermines our nation’s national security interests. 

As the government further noted, Chen’s conduct was particularly harmful because he sold this military technology indiscriminately.  Thus, it could have ended up in any number of nefarious hands – including agents of foreign governments, bad actors and brokers.  Once these rifle scopes were exported to China and distributed by Chen to his customers, the military technology contained inside these items could have been reversed engineered or used anywhere in the world for a variety of purposes by oppressive regimes, terrorists, or others to threaten the United States or its allies’ military advantage or to commit human rights abuses. 

This case was investigated by HSI and U.S. Department of Commerce-Bureau of Industry and Security’s Office of Export Enforcement.  It is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Elizabeth L. Van Pelt of the District of Delaware and the National Security Division’s Counterintelligence and Export Control Section. 

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Kan Chen, of Ningbo, China, in Zhejiang Province, age 26, was sentenced in U.S. District Court to 30 months in prison and three years’ supervised release, after pleading guilty to a three-count Felony Information that charged him with conspiring to violate the Arms Export Control Act and International Traffic in Arms Regulations; attempting to violate the Arms Export Control Act and International Traffic in Arms Regulations and violating the International Emergency Economic Powers Act.

Chen has been incarcerated since June 16, 2015, when he was arrested by Homeland Security Investigation agents on the Northern Mariana Island of Saipan following an eight-month long investigation into his illegal conduct.  On March 2, 2016, Chen pled guilty to the offenses listed above.

According to court documents, from July 2013 through his arrest in June 2015, Chen caused or attempted to cause the illegal export of over 180 export-controlled items, valued at over $275,000, from the United States to China.  Over 40 of those items – purchased at a cost of over $190,000 – were sophisticated night vision and thermal imaging scopes, designated by the International Traffic in Arms Regulations as United States Munitions List defense articles, which can be mounted on automatic and semi-automatic rifles and used for military purposes at night. 

Given the sensitivity surrounding these military-grade items, Chen devised a scheme to smuggle these items through Delaware and outside the United States.  He purchased the devices via the internet and telephone and had them mailed to several reshipping services in New Castle, Delaware.  These Delaware-based service companies provide an American shipping address for customers located in China, accept packages for their customers, and then re-ship them to China.  In order to further conceal his illegal activity, Chen arranged for the re-shippers to send the devices to several intermediary individuals, who in turn forwarded the devices to Chen in China.  Chen then sent the devices to his customers.  During the course of this conduct, Chen made numerous false statements in order to knowingly and willfully evade the export control laws of the United States.  These false statements included undervaluing the shipments, unlawfully avoiding the filing of export information with the U.S. government, indicating that he was a natural-born U.S. citizen, and providing the address of the reshipping service as his own.

During the sentencing hearing, the Government noted the lethality of these items when combined with weapons designed for use on a battlefield.  For example, the ATN ThOR 640-5x, 640x480-Inch Thermal Weapon Scope, 100 mm, which Chen purchased for $8,428.39, is described by the manufacturer as “an ideal product for force protection, border patrol officers, police SWAT and special operations forces providing them the tools they need to be successful in all field operations both day and night.  Uncooled thermal imaging cuts through dust, smoke, fog, haze, and other battlefield obscurants.”  These rifle scopes, therefore, are weapons of war, and Chen’s smuggling – and subsequent sale – of these military-grade items outside the United States directly undermines our nation’s national security interests. 

As the Government further noted, Chen’s conduct was particularly harmful, because he sold this military technology indiscriminately.  Thus, it could have ended up in any number of nefarious hands – including agents of foreign governments, bad actors, and brokers.  Once these rifle scopes were exported to China and distributed by Chen to his customers, the military technology contained inside these items could have been reversed engineered or used anywhere in the world for a variety of purposes by oppressive regimes, terrorists, or others to threaten the United States or its allies’ military advantage or to commit human rights abuses. 

Prior to issuing her sentence, U.S. District Court Judge Sue L. Robinson remarked that Chen’s case “was a sobering reflection of the world we live in” and that “the consequences [of Chan’s actions] were truly perilous.” 

U.S. Attorney Oberly thanked special agents from both the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Department of Commerce’s Office of Export Enforcement divisions for their hard work, and stated, “The United States will simply never know the true harm of Chen’s conduct because the end users of the rifle scopes and other technology are unknown.  No matter their nationality, those individuals who seek to profit by illegally exporting sensitive U.S. military technology will be prosecuted.  It is important that we take all necessary steps to prevent our military technology and equipment from being exported and possibly used against our service members and our allies overseas.”

Gregory C. Nevano, Acting Special Agent in Charge of HSI Philadelphia, stated, “These sophisticated technologies are highly sought after by our adversaries.  They were developed to give the United States and its allies a distinct military advantage, which is why HSI will continue to aggressively target the individuals who might illegally procure and sell these items.”

“Today's sentencing is the result of exceptional investigative work by the Office of Export Enforcement and our law enforcement partners to disrupt an illicit network and prevent sensitive technology from falling into the wrong hands,” said Nasir Khan, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement’s, Washington Field Office.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement.  It is being prosecuted by Assistant United States Attorneys Jamie M. McCall and Elizabeth L. Van Pelt, and the Counterintelligence and the National Security Division’s Counterintelligence and Export Control Section. 

WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Miguel Angel Diaz, age 40, was sentenced in U.S. District Court to 121 months in prison and 5 years of supervised release, for conspiracy to distribute heroin.  Diaz, of the Bronx, New York, served as the source of supply for a Wilmington-based drug organization, known as the “30th Street Crew,”

Diaz has been incarcerated since March 25, 2014, when he was arrested by the FBI at JFK International Airport returning from a trip to the Dominican Republic.  Since his arrest, he has been held without bail on federal drug trafficking charges.  With Diaz’s conviction and sentence, a total of fifteen individuals associated with the 30th Street Crew have been indicted and found guilty on federal drug trafficking charges.  Other co-defendants are now serving jail terms of between two and six and a half years. 

This is Diaz’s second federal drug trafficking conviction.  In 2007, he was convicted in the Southern District of New York for distributing five or more kilograms of cocaine, and served a 62 month sentence. 

According to court documents, following a nearly five month wire-tap investigation, law enforcement identified and dismantled the 30th Street Crew, which was a dominant drug trafficking organization throughout the north side of Wilmington.  In so doing, law enforcement determined that Diaz – despite being on federal supervised release for his earlier drug conviction – was the principal supplier of heroin for the 30th Street Crew.  The investigation determined that between June 2012 and June 2013, Diaz shipped up to 200 logs of heroin twice-a-month to members of the 30th Street Crew in Wilmington.  These heroin shipments were estimated to have a street value of between $40,000-$70,000 per shipment.  To conceal these heroin shipments from law enforcement, Diaz organized a sophisticated drug operation, including using multiple cell phones to speak with other members of the organization, talking in code, using covert money pickups, and employing a drug courier. 

To distribute the heroin supplied by Diaz, the 30th Street Crew used a residence at 3000 N. Madison Street, Wilmington – situated just blocks away from P.S. DuPont Middle School – as its headquarters.  That house served as a retail center for drug distribution, with a regular influx of customers and sub-distributors arriving to make drug purchases from conspiracy members.  The house was also a center for violence, including at least two shootings which occurred outside the residence in November and December 2011. 

Diaz’s conviction and sentencing brings to a close the long-term investigation into the 30th Street Crew, which was led by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department, and the State of Delaware Department of Corrections Division of Probation and Parole.  Critical support for the investigation and arrests was provided by Delaware State Police, Delaware Division of Gaming Enforcement, New Castle County Police Department, United States Marshals Service, and the United States Department of Agriculture.

Acting United States Attorney David C. Weiss thanked the federal, state, and local law enforcement agencies for their participation in this investigation, and stated, “This investigation not only dismantled a large-scale drug trafficking organization that had heretofore operated with near-impunity on the streets of Wilmington, but brought to justice the person responsible for supplying the heroin.” 

The case was being prosecuted by Assistant United States Attorneys Jamie M. McCall and Elizabeth Van Pelt. 

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Keith D. Clarke, age 53, of Delmar, Maryland, was sentenced yesterday by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, to a prison term of two months and full restitution.  The defendant pleaded guilty to failure to account for and pay over employment taxes, in December 2015. 

According to Court filings and statements during the plea hearing, the defendant operated a plumbing and air conditioning business in Laurel, Delaware, named Clark Service Group, LLC, from at least 2000 through early 2012.  From the Fourth Quarter of 2009, through the Fourth Quarter of 2011, the defendant withheld at least $131,424.09 in payroll taxes from his employees’ paychecks, but he did not pay those funds over to the Internal Revenue Service.  Also, the defendant failed to pay to the IRS the company own portion of the Payroll Taxes, in the amount of at least $81,192.44, from the Fourth Quarter of 2009, through the Fourth Quarter of 2011. 

At the same time, the defendant withheld retirement plan contributions from his employee’s paychecks, and he failed to remit at least $23,670.00 of these contributions to the retirement plan provider.  Moreover, the defendant failed to remit the Company’s agreed portion of the contributions to the provider, in the amount of $926.70.

Meanwhile, the defendant used company funds to support his personal lifestyle.  For example, the defendant spent nearly $160,000 in company funds to pay for golf excursions, vacations, retail purchases, groceries, dining, and other expenditures of a personal nature.  The defendant failed to file his own personal federal income tax returns for the years 2009, 2010, and 2011. 

U.S. Attorney Oberly stated, “Although the Government sought a sentence of 16 months incarceration, the imposition of a prison term of two months, coupled with restitution and the impact of a felony conviction, will hopefully serve as a deterrent to others who ignore their obligations to properly account for payroll taxes and retirement plan contributions, so as to support a more lavish lifestyle.  My office is committed to prosecuting those who want to cheat the IRS and those who fail to fulfil their tax obligations.”

“Business owners looking to enrich themselves at the expense of their employees by not remitting payroll taxes will be held accountable.  The programs funded by employment taxes are essential to the American workforce and the Internal Revenue Service, Criminal Investigation has placed a high priority on employment tax compliance.” said Special Agent in Charge, Akeia Conner.

This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and the U.S. Department of Labor, Office of Inspector General.  This case was prosecuted by Assistant United States Attorney Lauren Paxton.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment was been handed down by a federal grand jury yesterday charging William Cook, age 60, of Ocean City, Maryland, with bank fraud and money laundering.  The defendant faces up to 30 years in prison on the bank fraud charge, and up to 10 years on the money laundering charge, in addition to possible fines and restitution. 

The Indictment alleges that the defendant operated a business in Sussex County, Delaware, called AJJ Distributing LLC (“AJJ”).  AJJ obtained a loan from a bank in Delaware, in March 2008.  According to the terms of the loan, AJJ was permitted to borrow funds from the bank, through periodic requests for disbursements, in an amount not to exceed 75% of the value of AJJ’s accounts receivables.  The defendant verified the amount of AJJ’s accounts receivable through weekly Borrowing Base Certificates (“BBCs”), which he signed and faxed to the Delaware bank.

According to the Indictment, from on or around January 16, 2009 through April 16, 2010, the defendant falsified AJJ’s accounts receivables on BBCs submitted to the bank, by failing to properly account for amounts owed to AJJ from third parties.  Over time, the defendant requested and obtained at least $2.2 million from the bank in loan proceeds after AJJ’s loan was already overdrawn according to its terms.  The Indictment alleges that, in April, 2010, the defendant falsely over-represented AJJ’s outstanding accounts receivable by approximately $3 million.

U.S. Attorney Oberly gave the following comment, “I want to thank both the IRS and the Postal Service Investigators, who diligently pursue such frauds as alleged in this Indictment, and who pursue cases like this despite a shortage of personnel.”

This case is the result of an investigation conducted by the Internal Revenue Service, Criminal Investigation and the United States Postal Inspection Service.  The prosecution is being handled by Assistant United States Attorney Lauren Paxton. 

The charges in the Indictment are only allegations.  The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Akeem Harris, age 26, of Newark, Delaware pleaded guilty to one count of bank fraud and one count of money laundering before U.S. District Judge Sue L. Robinson  in connection with the theft of more than $450,000.  Harris is scheduled to be sentenced on September 13, 2016.

According to court records and statements made in open court, in or around May 2015, using the business name of Wolf Distribution, Harris opened a bank account and subsequently deposited an altered check in the amount of approximately $439,000.00, written from the account of a New York-based health services provider.  In the two weeks following the deposit of that altered check, Harris conducted a series of cash withdrawals and obtained bank checks, made payable to himself as well as other individuals and entities associated with him.  In January 2015, Harris also received a fraudulent wire transfer in the amount of $40,000 from the account of a community development investment foundation based in Maryland.  Using the proceeds of that fraudulent wire transfer, Harris then purchased an official bank check and otherwise depleted those funds through a series of cash withdrawals.  Harris also agreed to the forfeiture of approximately $33,000.00, which the government anticipates will be returned to the victims of his crimes.

The maximum sentence for bank fraud is up to 30 years in prison followed by five years of supervised release and a fine of $1,000,000.  The maximum sentence for money laundering is up to 10 years in prison followed by three years of supervised release and a fine of $250,000.

U.S. Attorney Oberly stated, “Mr. Harris’s actions compromise both the integrity of financial institutions and the soundness of the organizations that rely upon them.  His willingness to participate in a variety of schemes shows a callous disregard for the law.”

“Money laundering is tax evasion in progress. It is fuel for criminals to conduct their criminal affairs and is used to manipulate and erode our financial systems," said Akeia Conner, Special Agent in Charge IRS Criminal Investigation.

This case is the result of an investigation conducted by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Lesley Wolf.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, today announced that two State correctional officers, Thomas Nadill Boyce, Jr., age 46, and Paul Hursey, age 46, each of Dover, Delaware, have been arrested on separate federal criminal complaints, each charging the smuggling of drugs and cell phones to inmates, in return for bribes, at the J.T. Vaughn Correctional Center in Smyrna, Delaware.

The two defendants made initial appearances today before Chief United States Magistrate Judge Mary Pat Thynge and were released on bail.  Each criminal complaint charges a violation of extortion under color of official right, which carries a maximum penalty of 20 years imprisonment and a $250,000 fine.

This joint investigation also resulted the filing of a criminal complaint, on December 3, 2015, against Correction Officer Lorraine Y.  Mosley, who was charged with smuggling a cell phone into the Delores Baylor Women’s Correctional Institution, in New Castle, to an inmate in return for a bribe.

Commissioner Robert M. Coupe stated, “Unfortunately, contraband, to include drugs and cell phones, is successfully smuggled into DOC facilities and such criminal behavior puts the safety of our staff, inmates, and visitors to our facilities at risk.  Such actions violate the public’s trust, undermine the credibility of our department, and damage the integrity of our profession.  We are grateful to the U.S. Attorney’s Office, the FBI, and the DOC for leading the investigation which resulted in the arrest of these employees.”

This matter resulted from a joint investigation conducted by the Federal Bureau of Investigation and investigators from the Delaware Department of Correction.  The prosecution is being handled by Assistant United States Attorney Edmond Falgowski, District of Delaware.

The charges in the criminal complaints are only allegations.  The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

WILMINGTON, Del. – A Delaware man was sentenced yesterday to 180 months in prison for receipt of child pornography, announced U.S. Attorney Charles M. Oberly III of the District of Delaware.

Eric Aldrich, 25, of Milford, Delaware, previously pleaded guilty to one count of receipt of child pornography.  U.S. District Judge Leonard P. Stark of the District of Delaware presided over today’s sentencing.

At sentencing, the court found that Aldrich has a prior conviction in Delaware for dealing in child pornography and as part of his federal offense, he possessed over 600 images of child pornography, including material involving prepubescent minors and sadistic or masochistic conduct.

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Internet Crimes Against Children Task Force investigated this case.  Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted this case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that a historic letter dating from 1493 and detailing Christopher Columbus’ voyage to the Americas was repatriated back to Italy at a repatriation ceremony held at 11:00 a.m. CET at the Bibliotecha Angelica, in Rome, Italy.  Known as a “Plannck II” edition, this Columbus Letter had been stolen on an unknown date from a library in Florence, Italy, and subsequently donated to the U.S. Library of Congress in 2004.  This theft and forgery was discovered in 2012, and today’s repatriation culminates joint Italian/U.S. efforts to return the original letter.[1]

“This repatriation is the result of the joint efforts of this office, HSI special agents assigned who are assigned to investigate cultural property theft, the Department of Justice Office of International Affairs, the Library of Congress, and the Carabinieri Tutela Patrimonio Culturale in Rome,” said U.S. Attorney Charles M. Oberly, III.  “I commend all parties for their efforts in producing this positive outcome – particularly given the historical significance of this document.  Documents such as the ‘Plannck II’ Columbus Letter are of significant cultural value as they provide historical facts about critical events in world history, and we are humbled to return this historic document back to its home country.”

“Preserving records and chronicles of our past, like this letter, is of utmost importance not only to the special agents who investigate these crimes, but to the global community at large,” said ICE Deputy Director Dan Ragsdale. “Today’s repatriation ceremony signals our continued commitment to these investigations and is a testament to our partnerships, both here and abroad.”

BACKGROUND

Christopher Columbus’s first transatlantic expedition left the harbor of Palos in Spain in three ships in August of 1492.  Columbus returned to Spain in March 1493, concluding his memorable voyage of discovery to the Americas.  Columbus’s report, in the form of a letter to his royal patrons Ferdinand and Isabella of Spain, was written while still on the high seas in February 1493, and was reportedly dated when he arrived in Lisbon on March 4, 1493, where he stayed for approximately ten days before sailing home to Spain.  The letter was instrumental in spreading the news throughout Europe about Columbus’s voyage.[2]

Soon after Columbus’s arrival in Spain, printed versions of the letter began to appear and were issued across Western Europe, in Spain, Italy, France, Switzerland, and the Netherlands.  Eleven editions were published in 1493 and six more editions were published between 1494 and 1497.  They are, however, all quite rare today.  Indeed, several of these editions survive in only a single copy, and there are believed to be no more than 80 surviving copies of all the various editions.  Two of the aforementioned editions of the Columbus Letter were published by Rome printer Stephan Plannck in 1493.  The editions are referred to as the Plannck I and Plannck II editions.

INVESTIGATION

In 2012, special agents with the Department of Homeland Security Investigations (“HSI”) received information that a “Plannck II” edition Christopher Columbus Letter had been stolen from the Riccardiana Library, located in Florence, Italy, and replaced with a forgery. The original “Plannck II” Columbus Letter, according to the source information, was believed to be located in the Library of Congress in Washington, D.C.

After receiving this information, HSI notified Italian law enforcement about this development, and a joint American-Italian investigation commenced.  HSI agents, specializing in cultural property theft and based in Wilmington, Delaware, traveled to Florence, Italy to examine the suspected forgery. This inspection concluded that the Ricardiana Library’s “Plannck II” Columbus letter was a forgery.  The inspection determined, among other things, that the text of the forged letter was a high-quality photocopy, that there was no original library stamp from the Ricardiana Library, and that the stitching patterns did not match original stitching patterns for known “Plannck II” Columbus Letters.

The investigation next focused on the “Plannck II” Columbus Letter which was located at the Library of Congress.  This letter had previously been donated to the Library in 2004. Working closely with the Library’s staff, the letter was inspected by subject matter experts who concluded that this “Plannck II” Columbus Letter originally came from the Riccardiana Library.  The experts found, among other things, evidence that chemical bleach had been used to remove the Ricardiana Library’s stamp, and that printed characters had been retouched to further disguise the letter’s provenance, or place of origin. 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Assistant United States Attorney Jamie M. McCall of the U.S. Attorney’s Office for the District of Delaware. 

[1] The official title of the letter is Columbus, Christopher, Epistolae… De Insulis Indie supra Gangem nuper inventis (also listed as: Epistola de insulis nuper inventis), Rome, Stephan Plannck, 1493.

[2] B.W. Ife, Introduction to the Letters from America, (1992, 2002), Research at King’s College London, Online at http://www.ems.kcl.ac.uk/content/pub/b002.html, last accessed May 9, 2016.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Ariel Vergara, age 49, of Bear, Delaware, pled guilty yesterday in federal court to conspiracy to distribute methamphetamine and heroin.  Vergara faces a mandatory minimum sentence of five years and a maximum sentence of forty years, a fine of $5 million, and four years of supervised release following his prison sentence.  He is currently scheduled to be sentenced on August 17, 2016, by the Honorable Sue L. Robinson of the United States District Court for the District of Delaware.

Vergara’s plea is the first conviction resulting from a long-term Drug Enforcement Administration (“DEA”) Group 41 High Intensity Drug Trafficking Area (“HIDTA”) investigation known as “Operation Bear Trap.” The investigation involved the wiretap of five phones, seizures including more than $1,000,000, approximately 2.5 kilograms of cocaine, approximately one kilogram of crystal methamphetamine, and nine firearms.   At his change of plea hearing, Vergara admitting to obtaining drugs from Mexico so that he and his associates could sell the drugs in the City of Wilmington, the greater New Castle County area, and southern Chester County, Pennsylvania.  The investigation also revealed that Vergara sought to obtain drugs from other out of state sources in California.

According to charging documents, the investigation led to the Indictment of eight people in addition to Vergara: 

•           Leticia Beltran, age 32, of Wilmington, DE;

•           Luis Bustos, age 35, of Wilmington, DE;

•           Richard Cephas, age 51 of Wilmington, DE;

•           Sergio Flores-Lopez, age 41, of Wilmington, DE; 

•           Jamal Maddox, age 31, of Wilmington, DE;

•           Miguel Martinez, age 64 of Wilmington, DE;

•           Juan Rosas-Guadarrama, age 24, of New Castle, DE; and

•           Juan Carlos Segura-Lorzo, age 25, of Wilmington, DE;

U.S. Attorney Oberly stated, “This plea represents a significant achievement for law enforcement in Delaware. With the help of the DEA, HSI, and our HIDTA partners across the entire Delaware Valley, we were able to dismantle a significant group of drug traffickers with ties back to Mexico.”

“Today’s conviction sends a clear message that narcotics trafficking in Delaware will not be tolerated and the repercussions will be severe,” stated Special Agent in Charge Gary Tuggle. “As a result of this investigation, and efforts by both federal and local law enforcement the final chapter of this Narcotic Trafficking Organization is being written.”

“This guilty plea marks a great victory in our multi-agency effort against illegal narcotics trafficking in Delaware,” said Gregory C. Nevano, acting special agent in charge of HSI Philadelphia. “When we dismantle and cripple the organizations behind those drugs, we make an indelible impact on public safety in our communities.”

Chester County District Attorney Hogan stated, “Operation Bear Trap was a model of inter-agency cooperation to take on a large-scale drug dealing operation.  Working separately, these law enforcement agencies are very good.  But working as a team, we are unstoppable.”

DEA Group 41 is part of the New Castle County HIDTA, a collaborative effort established in January 2015 among federal, state, and local law enforcement agencies.  This case would not have been possible without the substantial coordination and cooperation between DEA Group 41 and two other HIDTA agencies, the Chester County (Pennsylvania) District Attorney’s Office Drug Unit, and HSI Wilmington.  Other agencies that provided assistance included: Newark Police Department, Kennett Square Police Department, Pennsylvania State Police, Delaware State Police, New Castle County Police Department, Wilmington Police Department, Delaware Probation and Parole, Wilmington SWAT, and Delaware State Police SORT.

The charges in the Indictment are only allegations.  The defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is being prosecuted by Assistant United States Attorney Jennifer K. Welsh and Special Assistant United States Attorney Christopher L. de Barrena-Sarobe.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Lisa Mose, age 43, of Bear, Delaware, was sentenced last week by the Honorable Leonard P. Stark, Chief Judge of the United States District Judge for the District of Delaware, to 12 months and one day in prison, and full restitution.  The defendant pleaded guilty to a wire fraud violation in January 2016.

According to statements on the record and documents filed in court, Mose was employed by a credit card transaction processor, in New Castle, Delaware.  Mose was a supervisor within the reconciliation and settlements department.  She had access to initiate manual wire transfers from her employer’s operating accounts.  From January 2009 through June 2014, Mose made false entries into the company’s computerized system and initiated at least 325 wire transfers, totaling at least $618,075, to her personal bank accounts and bank accounts of known associates.  Mose used a significant portion of the proceeds to purchase vacations and high-end consumer goods.

U.S. Attorney Oberly commented, “Ms. Mose was a trusted supervisor at her place of employment and she systematically, over a period of years, proceeded to steal over $600,000 from her employer.  Such a breach of trust cannot go unpunished and a sentence of incarceration is necessary to deter others who might consider stealing from their employers.”

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Lauren Paxton.

WILMINGTON, Del. - David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Joseph L. Capano, age 73, of Middletown, Delaware, pled guilty today to one count of bank fraud and one count of knowingly violating the Clean Water Act.  Capano faces up to 30 years of imprisonment and a $1,000,000 fine for the bank fraud charge, and 3 years of imprisonment and a $250,000 fine for the Clean Water Act charge.

According to the charging document and information provided in open Court, both charges relate to Capano’s conduct during construction of the Riverbend at Old New Castle development off of State Route 9 in New Castle, Delaware (“Riverbend Development”).  The Riverbend Development was funded in part by a $1.5 million commercial line of credit from Cecil Bank, headquartered in Elkton Maryland.  In October 2007, Capano signed an agreement for a line of credit on behalf of his company Riverbend Community, LLC, wherein and he represented that the purpose of the line of credit was to fund construction and other costs associated with the Riverbend Development.  From October 2007 until August 2008, Capano signed and submitted funding requests, referred to as draw requests, to Cecil Bank which contained false representations and statements concerning the reasons for the requests.  In reliance on those false representations, Cecil Bank continued to lend Capano money.  Capano used some of the funds released by Cecil Bank for his personal use and not for construction of the Riverbend Development.  For example, on December 21, 2007, Capano submitted a draw request seeking $300,000 for various Riverbend Development expenses.  Instead of using those funds for Riverbend Development expenses, Capano used some of the funds for personal expenses, including approximately $63,000 to pay for a jewelry purchase.  As part of his guilty plea, Capano has admitted that he converted at least $146,909.96 in loan proceeds to his personal use.

In addition to his misrepresentations regarding bank loan funds, the information states that Capano knowingly discharged pollutants into wetlands without a permit during the Riverbend Development.  Capano directed employees and contractors of his company to perform earthmoving, construction and excavation activities in wetlands areas.  Specifically, Capano directed contractors and employees to expand the entrance road to the development, referred to as the causeway, into wetlands subject to federal jurisdiction.  Capano also directed contractors and employees to place a water main pipe through the causeway wetlands area, even after the Army Corps of Engineers instructed Capano to stop performing construction in wetland areas and issued Capano a Cease and Desist letter to that effect.

“It is important to the integrity of the land use and development process that all developers operate under the same set of rules.  Mr. Capano was determined to make his own rules, and to use whatever means necessary to get the Riverbend Development completed.  In so doing, he lied to the bank about the use of project funds and he ignored federal wetland regulations and the directives of the Army Corps of Engineers. Now he stands as a convicted felon.” said Acting U.S. Attorney Weiss.

“Capano committed fraud by using commercial loans from Cecil as a personal piggy bank,” said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP).  “As managing member of Riverbend Community LLC, he obtained commercial loans from Cecil and then illegally transferred the money to bank accounts of other affiliated companies so he could take the money for his personal use.  Cecil received more than $11 million from the taxpayers during the financial crisis, and we will continue to aggressively investigate fraud committed at the expense of taxpayers’ TARP investments. SIGTARP commends Acting U.S. Attorney Weiss and our law enforcement partners for their work.” 

This case is the result of a joint investigation conducted by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the United States Environmental Protection Agency, Criminal Investigation Division Philadelphia Area Office.  The prosecution is being handled by Assistant U.S. Attorney Jennifer K. Welsh.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment was handed down this week by a federal grand jury charging Frank D. Dolce, age 50, of Wilmington, Delaware with eight counts of tax fraud, one count of structuring to avoid reporting requirements, one count of conspiracy to commit theft from the National School Breakfast and Lunch Programs, and 22 counts of theft from the National School Breakfast and Lunch Programs.  Dolce faces up to 10 years of imprisonment for the structuring charge, 3 years of imprisonment on the tax fraud charges, and five years of imprisonment on the conspiracy and each theft offense, and a maximum of a $500,000 fine for structuring, a $100,000 fine for tax fraud, and a $250,000 fine for each remaining offense. 

According to the Indictment, Dolce was the owner of Primos Food Service (“Primos”), a food service management company located in Wilmington, Delaware.  Primos provided cafeteria services to charter schools in Philadelphia and to the Delaware County Courthouse and Government Center in Media, Pennsylvania.  The Indictment alleges that Dolce filed false tax returns both personally and on behalf of Primos, because he failed to report certain cash collected from the schools and the Courthouse Café.  

The Indictment further alleges that in January and February 2013, Dolce made or directed one of his employees to make twenty-seven cash deposits, each slightly below $10,000, into different accounts at two branches of TD Bank, N.A.   The total cash deposited was over $250,000.  The Indictment alleges that Dolce structured the cash transactions in this manner with the intention of avoiding the bank’s requirements to report cash transactions greater than $10,000 to the Department of the Treasury.  After the above cash deposits were made, Dolce then used that cash in part to purchase a boat for approximately $355,500.

Finally, the Indictment charges that Dolce conspired with others to steal money directly or indirectly from the U.S. Department of Agriculture (“USDA”), because he falsely inflated claims for reimbursement for meals served to qualifying students at charter schools between April 2011 and January 2014.  Specifically, by claiming more meals served under the National School Breakfast and Lunch Programs than were actually served, the Indictment alleges that Dolce stole USDA funds on a number of dates relating to claims for student meals served at Imhotep Institute Charter High School, Community Academy of Philadelphia Charter School, and Mariana Bracetti Academy Charter School, all in Philadelphia.

“This Indictment serves notice to individuals who knowingly defraud federal programs designed to benefit our children.  These programs are funded with the tax dollars of the American public.  It is the responsibility of all federal contractors to provide all services that have been promised and to accurately report all income earned from those contracts.   The Internal Revenue Service, Criminal Investigation Division will gladly provide their financial expertise to pursue those who attempt to enrich themselves by defrauding the federal government.”  said Akeia Conner, Internal Revenue Service, Special Agent in Charge. 

This case is the result of a joint investigation conducted by the Internal Revenue Service - Criminal Investigation Division, and the United States Department of Agriculture Office of Inspector General - Investigations.  The prosecution is being handled by Assistant United States Attorney Jennifer K. Welsh, District of Delaware.

The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Willie Brothers Jr., and Raheem Ridley, both of Wilmington, were indicted on March 11, 2016, for conspiracy to distribute over 100 grams of heroin.  Brothers faces a maximum sentence of 40 years in prison, a fine of $5,000,000, and 4 years of supervised release following a prison sentence.  Ridley’s charges expose him to a maximum sentence of life in prison, a fine of $8,000,000, and 8 years of supervised release for heroin trafficking.  Ridley was also indicted for the illegal possession of a handgun, for which he faces an additional maximum penalty of ten years in prison, a fine of $250,000, and 3 years of supervised release.

According to statements made at Brothers’ initial appearance earlier today, Brothers and Ridley conspired to package together heroin that they purchased in bulk.  Before placing the heroin in bags, they would add Fentanyl to the heroin.  Fentanyl is an opioid that been linked to the sharp increase in heroin-related overdose deaths in the region, and across the country.

 U.S. Attorney Oberly commented, “I am pleased to see the successful cooperation and effort between member agencies of our local HIDTA.  The joint efforts of law enforcement agencies are making and will continue to make a difference in the City of Wilmington and its surrounding area.”

“The cooperation among law enforcement won’t stop with these indictments,” said FBI Special Agent in Charge Kevin Perkins. “If you want to traffic heroin, do so at your own risk; we will be coming after you next. I want this indictment to send a clear message to drug traffickers that we are united in this fight and our resolve is unwavering.”

Cecil County Maryland Sheriff Scott Adams commented, "I second the sentiments of U.S. Attorney Oberly.  The partnerships we have formed with HIDTA have stopped large quantities of heroin from reaching the streets of Cecil County. I applaud the work of all my law enforcement partners."

This indictment is the result of significant cooperation between High Intensity Drug Trafficking Area (“HIDTA”) program law enforcement agencies.  The investigation is led by the Federal Bureau of Investigation’s Delaware Safe Streets Task Force and the Cecil County Drug Taskforce, with significant assistance from the Wilmington Police Department, Delaware State Attorney General’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).  The FBI Safe Streets Task Force is a coalition of federal, state, and local law enforcement agencies. This case continues to be investigated and is being prosecuted by Special Assistant United States Attorney Christopher L. de Barrena-Sarobe.

The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Penni Enama, age 50, of Lewes, Delaware, was sentenced yesterday by the Honorable Gregory M. Sleet, United States District Judge for the District of Delaware, to 24 months in prison, and full restitution.  The defendant pleaded guilty to violations of wire fraud and tax evasion, in December 2015.

According to court filings and statements made at the sentencing hearing, the defendant was employed by a law firm in Delaware. In May 2007, she began embezzling funds from the firm’s escrow account.  The defendant was a real estate paralegal, and she used her access to a closing escrow account to divert at least $439,824.40 to her personal use.  The defendant fabricated additional real estate closing parties in the firm’s records, and she used the additional funds to pay her personal credit cards and/or deposit the funds into her personal bank accounts.  The defendant did not declare the embezzled funds on her federal income tax returns for the 2011-2013 tax years. 

Judge Sleet commented that the defendant’s conduct was “quite involved, quite calculated, and disturbingly so.”

U.S. Attorney Oberly stated, “In yet another case involving a major breach of trust, Ms. Enama stole substantial funds from her employer, causing injury to both the law firm and its attorneys. While Ms. Enama was, until caught, living a dream life with stolen funds, she will now dream for the next two years that crime does not pay.”

 “Today’s sentence shows the strong impact of when the bond of trust between an employer and employee is violated by greed. The Internal Revenue Service, Criminal Investigation Division will work diligently so that the American public can trust that those who commit such crimes will be held accountable.” said Akeia Conner, Internal Revenue Service, Special Agent in Charge.

This case was investigated by the Internal Revenue Service - Criminal Investigation, and it is being prosecuted by Assistant United States Attorney Lauren Paxton.

WILMINGTON, Del. – Paul Adams, age 38, of Wilmington, Del., pleaded guilty today to conspiring to distribute cocaine out of his home in North Wilmington, announced Charles M. Oberly, III, United States Attorney for the District of Delaware.  Adam’s co-conspirator Kevin Carter, age 31, of Claymont, Del., pleaded guilty to the same charge on January 14, 2016.

According to the indictment and other court records filed in support of the guilty pleas, between September 2014 and September 2015, Adams and Carter worked together to distribute large amounts of cocaine out of Adams’ home in North Wilmington.  During that time, Adams traveled to Philadelphia to obtain cocaine, some of which Adams stored at Carter’s home in Claymont.  Adams also sold a variety of controlled substances out of his home, to include cocaine, MDMA (a synthetic psychoactive drug commonly known as “ecstasy”), heroin, and marijuana.

Both Adams and Carter were arrested on September 1, 2015, at which time search warrants were executed on their homes.  Agents seized three loaded semi-automatic handguns, one semi-automatic rifle, over one kilogram of cocaine, nearly 150 grams of MDMA, 7.3 grams of heroin, marijuana, a hydraulic cocaine press, and $13,571 in cash.

Both men remain in custody pending their sentencing hearings.  Carter’s sentencing hearing is scheduled for April 14, 2016, and Adams’ sentencing hearing is scheduled for June 28, 2016.  They each face a maximum penalty of 40 years imprisonment, with a mandatory minimum of five years.

This case is the product of an investigation conducted by the DEA HIDTA Group 41, which is part of the New Castle County HIDTA, a collaborative effort established in January 2015 among federal, state, and local law enforcement agencies.  The DEA HIDTA Group 41 includes members from the following agencies: DEA, Delaware State Police, New Castle County Police Department, Newark Police Department, Department of Homeland Security – Homeland Security Investigations, Delaware Department of Corrections – Probation and Parole, and the Delaware Attorney General’s Office.  Assistant United States Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.

WILMINGTON, Del. – Robert Smulski, age 58, of Wilmington, Delaware, was sentenced to twelve months and one day of imprisonment and two years of supervised release, and was ordered to pay $484,339.28 in restitution to the Internal Revenue Service for the willful failure to pay over employment taxes.  Smulski previously pled guilty to the charges on September 30, 2015.  Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the sentence handed down today by the Honorable Gregory M. Sleet, Judge of the United States District Court for the District of Delaware. 

Smulski was the owner and President of Smulski Enterprises, Ltd., a roofing company in Wilmington, Delaware.  As the owner and President, Smulski was responsible for ensuring that the employees' payroll tax withholdings were paid over to the government.  Between 2006 and 2012, Smulski Enterprises withheld payroll taxes from its employees' paychecks.  But instead of paying that money over to the IRS, Smulski instead used it to pay himself and his personal creditors. 

The unpaid employment taxes from 2006 through 2012 totaled $484,339.28.

This case was investigated by Special Agents of IRS-Criminal Investigation, and was prosecuted by Assistant United States Attorney Jennifer Hall.

A federal grand jury in Wilmington, Delaware, indicted a New York man today on charges related to the production and distribution of child pornography and the use of threatening communications, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.

Justin R. Gulisano, 24, of Sodus, New York, was initially arrested on June 30, 2015, in Newark, New Jersey, on a Delaware state arrest warrant for charges related to his sexual exploitation of a child and sexual solicitation of a minor. 

According to the indictment, from September 2012 through June 2015, Gulisano attempted to use, persuade, coerce and entice a minor to engage in sexually explicit conduct so that he could produce images of the conduct.  In October 2013, Gulisano distributed sexual exploitation images of the minor victim on the Internet.  Additionally, the indictment alleges that between April and June 2015, Gulisano threatened to injure the victim’s reputation.

An indictment is merely an allegation.  A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case.  Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware are prosecuting the case. 

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.

WILMINGTON, Del. – A federal grand jury in Wilmington, Delaware, indicted a New York man today on charges related to the production and distribution of child pornography and the use of threatening communications, announced U.S. Attorney Charles M. Oberly III of the District of Delaware.

Justin R. Gulisano, 24, of Sodus, New York, was initially arrested on June 30, 2015, in Newark, New Jersey, on a Delaware state arrest warrant for charges related to his sexual exploitation of a child and sexual solicitation of a minor. 

According to the indictment, from September 2012 through June 2015, Gulisano attempted to use, persuade, coerce and entice a minor to engage in sexually explicit conduct so that he could produce images of the conduct.  In October 2013, Gulisano distributed sexual exploitation images of the minor victim on the Internet.  Additionally, the indictment alleges that between April and June 2015, Gulisano threatened to injure the victim’s reputation.

An indictment is merely an allegation.  A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case.  Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware are prosecuting the case. 

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Damien Piper, age 34, of Wilmington, Delaware, was sentenced today by the Honorable Gregory M. Sleet, United States District Judge for the District of Delaware, to 12 months and one day in prison, and full restitution.  The defendant pleaded guilty to Theft of Public Funds, in October 2015.

According to court filings and statements made in court, the defendant was an Assistant Site Manager for the Wilmington Housing Authority’s Crestview Apartments.  In February 2012, he began converting residents’ rental payments to his personal use.  Residents often paid their rent by money order.  Piper received and altered the money orders, making them payable to himself.  Piper deposited the money orders into bank accounts he owned and controlled, and he cashed some of the money orders at check cashing businesses.

From February 10, 2012, and continuing up to and including October 7, 2014, Piper took more than 700 money orders that were designated for the Housing Authority, and he obtained at least $179,000.  Piper altered the Housing Authority’s computerized records to conceal the converted payments as “adjustments.”  These altered Housing Authority records indicated that less rent was due from the residents.  In fact, Piper collected the full amount of rent from the residents and kept the “adjustment” amount for himself.

Judge Sleet stated, among other things, that “the impact on the Housing Authority was real and apparent, if not devastating,” and the defendant “damaged the reputation of the Agency for his own enrichment.”

U.S. Attorney Oberly commented, “The theft of money from those who pay rent to the Wilmington Housing Authority is particularly despicable, and the prosecution of Mr. Piper was warranted.  I thank all those involved that helped bring this matter to a successful conclusion.”

This case is the result of an investigation conducted by the U.S. Department of Housing & Urban Development, Office of Inspector General, and the United States Postal Inspection Service.  The case is being prosecuted by Assistant United States Attorney Lauren Paxton.

WILMINGTON, Del. - Roos Foods Inc., a Delaware company, pleaded guilty to a misdemeanor violation of the Federal Food, Drug and Cosmetic Act (FDCA), in the U.S. District Court for the District of Delaware, U.S. Attorney Charles M. Oberly, III announced today.  U.S. Magistrate Judge Sherry R. Fallon accepted the company's guilty plea and sentenced Roos Foods to pay a fine of $100,000.

In addition to the company's guilty plea, Roos, and its principals, Ana A. Roos and Virginia Mejia agreed to a consent decree of permanent injunction.  The consent decree of permanent injunction was entered by U.S. District Court Judge Richard G. Andrews on Jan. 26.

Roos Foods distributed several varieties of ready-to-eat cheese, including ricotta, queso fresco and fresh cheese curd and sold and distributed its products to wholesale customers in Maryland, New Jersey, Virginia and Washington D.C., according to the criminal information filed on Jan. 22.  A civil complaint along with the proposed consent decree was also filed on that same date.  The criminal charge and civil complaint allege that Roos distributed cheese connected to a 2014 outbreak of Listeria monocytogenes (L. mono).

"The Department of Justice will use all of the tools available to us - criminal and civil - to ensure that the food we buy is free from dangerous bacteria and is safe to eat," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's Civil Division.  "We will continue to work aggressively with the Food and Drug Administration (FDA) to combat and deter conduct leading to the distribution of adulterated food to consumers."

"The criminal and civil cases demonstrate the need for the government to protect consumers from adulterated food," said U.S. Attorney Charles M. Oberly III for the District of Delaware.  "Manufacturers of our nation's food supplies, such as Roos, must comply with the law and when violators are found they should expect to be prosecuted and, if necessary, put out of business."

The criminal information alleged that on Feb. 21, 2014, the Centers for Disease Control and Prevention (CDC) reported that a total of eight people (five adults and three newborns) in Maryland and California were infected with L. mono.  According to the CDC, several of the Maryland patients reported having eaten soft or semi-soft cheeses in the month before becoming ill.

L. mono is the bacterium that causes the disease listeriosis.  Listeriosis is most commonly contracted by eating food contaminated with L. mono.  Listeriosis can be serious, even fatal, for high-risk groups such as unborn babies, newborns and those with impaired immune systems.

Unlike many other foodborne microbes, L. mono bacteria are capable of adapting and growing even at refrigerator temperatures.  Thus, the presence of L. mono in ready-to-eat foods is a particularly significant public health risk.

As alleged in the information, following a report that L. mono had been isolated from cheese manufactured by Roos Foods, the FDA inspected the firm's Kenton, Delaware facility and established that ready-to-eat cheese products were adulterated in that they had been prepared, packed or held under insanitary conditions whereby they may have become contaminated with filth or rendered injurious to health.  As alleged, FDA found numerous failures to implement effective monitoring and sanitation controls in accordance with current Good Manufacturing Practices.

The information alleged that the FDA inspection revealed significant sanitation deficiencies, such as widespread roof leaks in the manufacturing area, including over open manufacturing equipment; rust flakes on the manufacturing equipment from corroded roof trusses and metal roofing; un-cleanable surfaces on walls, floors and ceilings and product residue on equipment that had purportedly been cleaned.  In addition, as alleged in the information, FDA collected environmental samples and found L. mono on 12 surfaces in the facility.

On March 11, 2014, the FDA >http://www.fda.gov/Food/RecallsOutbreaksEmergencies/Outbreaks/ucm386726.htm< suspended the food facility registration of Roos Foods after determining there was a reasonable probability that food manufactured, processed, packed, or held by Roos Foods would cause serious adverse health consequences or death to humans.  A company without a food facility registration cannot distribute any food products.  Roos Foods has not reopened.

"Consumers rely on the FDA to help ensure that their food is safe and wholesome," said Deputy Commissioner Howard Sklamberg, FDA's Global Regulatory Operations and Policy. "When companies put themselves above the law and produce food that puts the public's health at risk, we will see that they are brought to justice."

The civil complaint alleged that Roos Foods and the two individual defendants violated the FDCA by, among other things, introducing or delivering for introduction into interstate commerce articles of food that were adulterated in that the food was prepared, packed or held under insanitary conditions whereby it may have become contaminated with filth or rendered injurious to health.

As part of the consent decree, defendants represented to the court that, at the time of entry of the consent decree, they were not engaged in receiving, preparing, processing, packing,   holding, or distributing any type of food at or from any location.  The permanent injunction requires the defendants to notify the FDA if they intend to resume such operations.  In addition, the defendants must take a series of safety related steps under the permanent injunction before they can resume such operations.

Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Oberly commended the investigative efforts of the FDA's Office of Criminal Investigation.  The criminal case is being prosecuted by Trial Attorney Heide L. Herrmann of the Justice Department's Consumer Protection Branch and Assistant U.S. Attorneys Jennifer Welsh and Edmond Falgowski of the District of Delaware.  They were assisted by Associate Chief Counsel Laura Pawloski of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.

The government is represented in the civil case by Trial Attorney Megan Englehart of the Justice Department's Consumer Protection Branch and Assistant U.S. Attorney Patricia Hannigan of the District of Delaware, with the assistance of Associate Chief Counsel Shannon M. Singleton of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.

For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney's Office for the District of Delaware, visit its website at https://www.justice.gov/usao-de.

David T. Matusiewicz, Lenore Matusiewicz and Amy Gonzalez were sentenced yesterday in federal court in Delaware to life in prison for the February 2013 murder of David Matusiewicz’s ex-wife and a friend at the New Castle County Courthouse, announced Acting U.S. Attorney David C. Weiss for the District of Delaware, Special Agent in Charge Kevin L. Perkins for the Federal Bureau of Investigation’s (FBI) Baltimore Division and Colonel Nathaniel McQueen Jr. for the Delaware State Police.

Following a five week jury trial this past summer, the defendants were convicted of conspiracy, interstate stalking resulting in death and cyberstalking resulting in death.  This was the first case in the nation where defendants were convicted of cyberstalking resulting in death.

After a lengthy sentencing hearing in Delaware, Judge McHugh concluded that David Matusiewicz and his father, Thomas Matusiewicz, acted with premeditated intent in the Feb. 11, 2013, murder of his ex-wife, Christine Belford, at the New Castle County Courthouse.  Thomas Matusiewicz also shot and killed Laura “Beth” Mulford, who accompanied Belford to the courthouse that morning.  Judge McHugh determined that, based on defendant’s repeated criminal conduct and the serious nature of the offense, which included “contempt for the law,” only a life sentence would protect the community and Belford’s children.

Lenore Matusiewicz and Gonzalez likewise received life sentences from Judge McHugh.  Lenore Matusiewicz was sentenced at her bedside last week at Jefferson Medical Center in Philadelphia, Pennsylvania.   Gonzalez was sentenced after her brother’s sentence was imposed.   Judge McHugh concluded that Gonzalez’s overall stalking conduct was inextricably intertwined with the conduct of her family members and that it was reasonably foreseeable to Gonzalez that an act of violence would occur when her brother, mother and father left for Delaware in early February 2013.

“The life sentences imposed by Judge McHugh were necessary to punish the defendants and to protect Christine Belford’s children and our community,” said Acting U.S. Attorney Weiss.  “We hope that these sentences provide some comfort to the victims’ families and we thank the law enforcement and legal communities for their contributions to the successful prosecution of this case.”

“The Matusiewicz family caused a lot of unnecessary harm in this case, killing and injuring innocent people for no reason, said Special Agent in Charge Perkins.  “This ground-breaking prosecution and investigation shows people who actively take part in planning crimes, even though they don't pull the trigger, will be held accountable.”

“The Delaware State Police supports the decision of the jury and the judge for holding all defendants in this case fully accountable for their actions,” said Colonel McQueen Jr. “The successful prosecution and sentencing of the defendants responsible in the first federal conviction of cyber-stalking resulting in death is truly welcomed news for all federal, state and local law enforcement involved in the investigation.  This investigation is a landmark case that emphasizes the impact and benefit to the community when all agencies are working together.”

According to the evidence presented at trial and sentencing, David Matusiewicz and Belford were involved in divorce and child custody proceedings in the family court of Delaware in 2007.  In August 2007, David Matusiewicz and his mother, Lenore Matusiewicz, kidnapped the three young children born of his marriage to Belford and fled to South America.  In March 2009, David and Lenore Matusiewicz and the young children were found living in a motor home in Nicaragua.  David and Lenore Matusiewicz were arrested and prosecuted in Delaware and the children were returned to the care of their mother.  In September 2009, David and Lenore Matusiewicz each pleaded guilty to crimes relating to their kidnapping of the children. 

In December 2009, David Matusiewicz was sentenced in federal court to 48 months in prison, to be followed by five years of supervision by the U.S. Probation Office.  In the days following his December 2009 sentencing, David Matusiewicz began to orchestrate, from his prison cell, a course of conduct designed to stalk, harass and intimidate Belford and her children.  He enlisted his father, mother, sister and various other persons in this effort, which stretched from December 2009 to February 2013.  The Matusiewicz family’s stalking campaign included broad dissemination -- by mail, email, websites, Internet postings and other means – of false and defamatory allegations against Belford.    

After his release from federal custody, David Matusiewicz resided in southern Texas.  On Jan. 8, 2013, David Matusiewicz sought and received permission from the U.S. Probation Office in Texas to travel to Delaware to attend a child support arrearage hearing he had requested.  That hearing was scheduled for Feb. 11, 2013.  David Matusiewicz never informed the probation officer that he intended to travel to Delaware with Thomas and Lenore Matusiewicz. 

On the morning of Feb. 11, 2013, David and Thomas Matusiewicz drove to a hotel parking garage near the New Castle County Courthouse in a Honda CRV, which contained ammunition, a military style knife, three sets of restraints of progressively smaller sizes, a bullet proof vest, an electric shock device, binoculars and photographs of Belford’s children and residence.  After entering the courthouse lobby at approximately 7:30 a.m., David Matusiewicz entered and stayed in the security screening line, while Thomas Matusiewicz moved around the lobby, occasionally approaching and talking to David Matusiewicz. 

Shortly before 8:00 a.m., David Matusiewicz passed through courthouse security screening and walked to another floor of the building.  Thomas Matusiewicz remained in the lobby, where he shot Belford multiple times as she entered the courthouse lobby, killing her.  He then shot Mulford multiple times as she attempted to flee.  After a shootout during which he shot and injured two Capitol Police officers, Thomas Matusiewicz died on the sidewalk of the courthouse of a self-inflicted gunshot wound. 

This case was investigated by the FBI and the Delaware State Police and is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Shawn A. Weede. 

WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, Kevin L. Perkins, Special Agent in Charge, Federal Bureau of Investigation, Baltimore Division, and Nathaniel McQueen, Jr., Colonel, Delaware State Police, announced today that United States District Court Judge Gerald A. McHugh sentenced Defendants David T. Matusiewicz, Lenore Matusiewicz, and Amy Gonzalez to each serve a term of life imprisonment.

Following a five week jury trial this past summer, Defendants were convicted of conspiracy, interstate stalking resulting in death, and cyberstalking resulting in death.  This was the first case in the nation where defendants were convicted of cyberstalking resulting in death.

After a lengthy sentencing hearing today in Delaware, Judge McHugh concluded that David Matusiewicz and his father, Thomas Matusiewicz, acted with premeditated intent in the February 11, 2013, murder of his ex-wife, Christine Belford, at the New Castle County Courthouse.  Thomas Matusiewicz also shot and killed Laura “Beth” Mulford, who accompanied Belford to the courthouse that morning.  Judge McHugh determined that, based on defendant’s repeated criminal conduct and the serious nature of the offense, which included “contempt for the law,” only a life sentence would protect the community and Christine Belford’s children.

Defendants Lenore Matusiewicz and Amy Gonzalez likewise received life sentences from Judge McHugh.  Defendant Lenore Matusiewicz was sentenced at her bedside last week at Jefferson Medical Center in Philadelphia.  Defendant Amy Gonzalez was sentenced after her brother’s sentence was imposed.   Judge McHugh concluded that Defendant Gonzalez’s overall stalking conduct was inextricably intertwined with the conduct of her family members and that it was reasonably foreseeable to Defendant Gonzalez that an act of violence would occur when her brother, mother, and father left for Delaware in early February 2013.

“The life sentences imposed by Judge McHugh were necessary to punish the defendants and to protect Christine Belford’s children and our community," said Acting U.S. Attorney Weiss.  "We hope that these sentences provide some comfort to the victims’ families, and we thank the law enforcement and legal communities for their contributions to the successful prosecution of this case.”

"The Matusiewicz family caused a lot of unnecessary harm in this case, killing and injuring innocent people for no reason," said Special Agent in Charge Perkins.  "This ground-breaking prosecution and investigation shows people who actively take part in planning crimes, even though they don't pull the trigger, will be held accountable."

“The Delaware State Police supports the decision of the jury and the judge for holding all defendants in this case fully accountable for their actions," said Colonel McQueen Jr. "The successful prosecution and sentencing of the defendants responsible in the first federal conviction of cyber-stalking resulting in death is truly welcomed news for all federal, state and local law enforcement involved in the investigation.   This investigation is a landmark case that emphasizes the impact and benefit to the community when all agencies are working together.”

According to the evidence presented at trial and sentencing, David Matusiewicz and Christine Belford were involved in divorce and child custody proceedings in the Family Court of Delaware in 2007.  In August 2007, David Matusiewicz and his mother, Lenore Matusiewicz, kidnapped the three young children born of his marriage to Christine Belford and fled to South America.  In March 2009, David and Lenore Matusiewicz and the young children were found living in a motor home in Nicaragua.  David and Lenore Matusiewicz were arrested and prosecuted in Delaware, and the children were returned to the care of their mother, Christine Belford.  In September 2009, David and Lenore Matusiewicz each pleaded guilty to crimes relating to their kidnapping of the children. 

In December 2009, David Matusiewicz was sentenced in federal court to 48 months in prison, to be followed by five years of supervision by the U.S. Probation Office.  In the days following his December 2009 sentencing, David Matusiewicz began to orchestrate, from his prison cell, a course of conduct designed to stalk, harass, and intimidate Christine Belford and her children.  He enlisted his father, mother, sister and various other persons in this effort, which stretched from December 2009 to February 2013.  The Matusiewicz family’s stalking campaign included broad dissemination -- by mail, email, websites, Internet postings, and other means – of false and defamatory allegations against Christine Belford.    

After his release from federal custody, David Matusiewicz resided in southern Texas.  On January 8, 2013, David Matusiewicz sought and received permission from the United States Probation Office in Texas to travel to Delaware to attend a child support arrearage hearing he had requested.  That hearing was scheduled for February 11, 2013.  David Matusiewicz never informed the probation officer that he intended to travel to Delaware with Thomas and Lenore Matusiewicz. 

On the morning of February 11, 2013, David and Thomas Matusiewicz drove to a hotel parking garage near the New Castle County Courthouse in a Honda CRV, which contained ammunition, a military style knife, three sets of restraints of progressively smaller sizes, a bullet proof vest, an electric shock device, binoculars, and photographs of Christine Belford’s children and residence.  After entering the courthouse lobby at approximately 7:30 a.m., David Matusiewicz entered and stayed in the security screening line, while Thomas Matusiewicz moved around the lobby, occasionally approaching and talking to David Matusiewicz. 

Shortly before 8:00 a.m., David Matusiewicz passed through courthouse security screening and walked to another floor of the building.  Thomas Matusiewicz remained in the lobby, where he shot Christine Belford multiple times as she entered the courthouse lobby, killing her.  He then shot Laura Mulford multiple times as she attempted to flee.  After a shootout during which he shot and injured two Capitol Police officers, Thomas Matusiewicz died on the sidewalk of the courthouse of a self-inflicted gunshot wound. 

This case was investigated by the FBI and the Delaware State Police, and is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Shawn A. Weede. 

WILMINGTON, Del. – U.S. Attorney Charles M. Oberly, III announced yesterday that on Thursday, February 11, 2016, following a 2 ½ month investigation, the Wilmington Resident Office of the Drug Enforcement Administration (“DEA”) – with assistance from the Newark Police Department SWAT, the Wilmington Police Department SWAT, the Delaware State Police, and the FBI Safe Streets Task Force – executed search warrants at two addresses in an industrial park on Albe Drive in Newark, Delaware.  Between those two addresses – as well as a third address in Cecil County, Maryland – agents and officers found approximately 48,800 bags of heroin, along with two loaded 9mm handguns, and approximately $40,000 in cash.

As a result of the execution of these warrants, five men were arrested:

Abdul Haye, 28, of Newark, Del.

Amyra Haye, 29, of Bear, Del.

Daniel Haye, 36, of Bear, Del.

Julius Williams, 28, of Newark, Del.

Cezar Mills, 30, of Bear, Del.

Each of these defendants stands charged with conspiring together to possess with intent to distribute 100 grams or more of heroin, and each of these defendants are – at present – detained in federal custody pending trial.

A bag of heroin is sold on the street in Delaware for approximately $10, making the total retail value of this seizure approximately $488,800.  As such, this seizure represents the largest seizure of pre-packaged heroin in Delaware history.

In addition, some of the bags of heroin seized in this case tested positive for fentanyl, which is a potent synthetic opoid that can be mixed with heroin, to dangerous effect.  The particular stamp, or brand, of heroin that this group was selling has been linked to two overdoses in the area.

The case is the product of an investigation conducted as part of the larger New Castle County HIDTA, which is a collaborative effort established in January 2015 among federal, state, and local law enforcement agencies.  The New Castle County HIDTA includes members from the following agencies: DEA, Delaware State Police, New Castle County Police Department, Newark Police Department, Department of Homeland Security – Homeland Security Investigations, Delaware Department of Corrections – Probation and Parole, and the Delaware Attorney General’s Office.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that James E. Nordhausen, age 51, of Ellicott, Maryland,

According to statements made at the plea hearing today and documents filed in court, the defendant worked with others to alter the electric meters affixed to residential and commercial buildings in Delaware and elsewhere.  The defendant solicited residents and business owners, telling them that he would install an energy efficient “device” on their electric meters.  The defendant gave the victims a flier, stating that he worked for a company called “eShield Technologies”.  The flier stated that the installation fees were $500 for a residence, and one month’s average electricity bill for commercial locations.  After collecting a fee, the defendant and others altered the electric meters at the victims’ locations.  The alterations impacted the power companies’ ability to detect the power used by the victims.  As a result, the victims’ electricity bills decreased significantly.  Eventually, power company technicians noticed that the meters were the subject of tampering, and the victims became liable for the previously unbilled energy usage.  The defendant, together with others, tampered with at least 37 meters, in at least 24 different locations in Delaware and elsewhere, obtaining at least $12,000 in fees.

This case is being investigated by the Federal Bureau of Investigation, with the cooperation and assistance of Delmarva Power, a PHI company.

Under the terms of a consent decree filed by the Justice Department today, Greyhound Lines Inc., the nation’s largest provider of intercity bus transportation, will implement a series of systemic reforms to resolve allegations that it repeatedly violated the Americans with Disabilities Act (ADA).  Greyhound will pay $300,000 in compensation to certain passengers with disabilities identified by the department and will retain a claims administrator to compensate an uncapped number of additional passengers who have experienced disability discrimination.

The consent decree, pending approval by the U.S. District Court for the District of Delaware, resolves the department’s complaint that Greyhound engaged in a nationwide pattern or practice of violating the ADA by failing to provide full and equal transportation services to passengers with disabilities.  The alleged violations include failing to maintain accessibility features on its bus fleet such as lifts and securement devices, failing to provide passengers with disabilities assistance boarding and exiting buses at rest stops; and failing to allow customers traveling in wheelchairs to complete their reservations online. 

“The ADA guarantees people with disabilities equal access to transportation services so that they can travel freely and enjoy autonomy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Today’s agreement marks a major step toward fulfilling the promise of the ADA, and we applaud Greyhound for entering the consent decree.”

“We are fully committed to ensuring equal access to all opportunities society has to offer, including transportation services,” said U.S. Attorney Charles M. Oberly III of the District of Delaware. 

Under the terms of the agreement, Greyhound – which serves more than 3,800 destinations and more than 18 million passengers each year across North America – will compensate several classes of passengers who faced barriers because of their disabilities.  Through a claims administrator, Greyhound will compensate individuals who experienced barriers based on disability during the three years prior to today’s filing.  There is no cap on the number of individuals who may submit claims or on the total amount to be disbursed by Greyhound through this process.  In addition, Greyhound will be required to pay a total of $300,000 among specific individuals identified by the department who experienced ADA violations.  Greyhound will also pay a civil penalty to the United States in the amount of $75,000.

In addition, the agreement mandates that Greyhound implement a series of systemic reforms, including the following:

• hire an ADA Compliance Manager;
• require all employees and contractors who may interact with the public to attend annual in-person training on the ADA;
• provide technical training to all employees and contractors on the proper operation of accessibility features of Greyhound’s fleet;
• report every three months to the department on its compliance efforts; and
• ensure that persons with disabilities can make reservations for travel, and lodge disability-related requests, through its online booking system.

Individuals who experienced disability-related discrimination while traveling or attempting to travel on Greyhound buses during the previous three years may be eligible to receive a monetary award.  The claims administrator for the fund will be posted on Greyhound’s website, and on the department’s Disability Rights Section’s website at www.ada.gov following entry of the consent decree by the court.  Questions about making claims should be directed to the claims administrator. 

To read the consent decree and complaint, please visit www.ada.gov.  For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov. 

Greyhound Consent Decree

WILMINGTON, Del. – Under the terms of a consent decree filed by the Justice Department today, Greyhound Lines Inc., the nation’s largest provider of intercity bus transportation, will implement a series of systemic reforms to resolve allegations that it repeatedly violated the Americans with Disabilities Act (ADA).  Greyhound will pay $300,000 in compensation to certain passengers with disabilities identified by the department and will retain a claims administrator to compensate an uncapped number of additional passengers who have experienced disability discrimination.

The consent decree, pending approval by the U.S. District Court for the District of Delaware, resolves the department’s complaint that Greyhound engaged in a nationwide pattern or practice of violating the ADA by failing to provide full and equal transportation services to passengers with disabilities.  The alleged violations include failing to maintain accessibility features on its bus fleet such as lifts and securement devices, failing to provide passengers with disabilities assistance boarding and exiting buses at rest stops; and failing to allow customers traveling in wheelchairs to complete their reservations online. 

“The ADA guarantees people with disabilities equal access to transportation services so that they can travel freely and enjoy autonomy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Today’s agreement marks a major step toward fulfilling the promise of the ADA, and we applaud Greyhound for entering the consent decree.”

“We are fully committed to ensuring equal access to all opportunities society has to offer, including transportation services,” said U.S. Attorney Charles M. Oberly III of the District of Delaware. 

Under the terms of the agreement, Greyhound – which serves more than 3,800 destinations and more than 18 million passengers each year across North America – will compensate several classes of passengers who faced barriers because of their disabilities.  Through a claims administrator, Greyhound will compensate individuals who experienced barriers based on disability during the three years prior to today’s filing.  There is no cap on the number of individuals who may submit claims or on the total amount to be disbursed by Greyhound through this process.  In addition, Greyhound will be required to pay a total of $300,000 among specific individuals identified by the department who experienced ADA violations.  Greyhound will also pay a civil penalty to the United States in the amount of $75,000. 

In addition, the agreement mandates that Greyhound implement a series of systemic reforms, including the following:

• hire an ADA Compliance Manager;

• require all employees and contractors who may interact with the public to attend annual in-person training on the ADA;

• provide technical training to all employees and contractors on the proper operation of accessibility features of Greyhound’s fleet;

• report every three months to the department on its compliance efforts; and

• ensure that persons with disabilities can make reservations for travel, and lodge disability-related requests, through its online booking system.

Individuals who experienced disability-related discrimination while traveling or attempting to travel on Greyhound buses during the previous three years may be eligible to receive a monetary award.  The claims administrator for the fund will be posted on Greyhound’s website, and on the department’s Disability Rights Section’s website at www.ada.gov following entry of the consent decree by the court.  Questions about making claims should be directed to the claims administrator. 

To read the consent decree and complaint, please visit http://www.ada.gov/greyhound/greyhound_cd.html.  For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Amanda Carey, age 28, of New Castle, Delaware, was sentenced today by the Honorable Richard G. Andrews, United States District Judge for the District of Delaware, to 12 months and one day imprisonment and full restitution.  The defendant pleaded guilty to committing bank embezzlement, in violation of 18 U.S.C. § 656, in October 2015. 

According to statements made today and documents filed in court, the Judge found that Carey’s offense was a serious matter that warranted a term of imprisonment.  Carey had embezzled approximately $150,000 from PNC Bank over the course several months last year.  According to statements made at the plea hearing, Carey was employed as a teller supervisor at the bank, beginning in January 2015.  On June 19, 2015, Carey did not report to work as scheduled.  An audit of the bank’s vaults was conducted, and the bank learned that over $150,000 of cash was missing.  An arrest warrant was issued for Carey on July 10, 2015, and she was arrested in Emporia, Virginia on July 28, 2015.

U.S. Attorney Oberly gave the following comments: “At a time when some question the need to incarcerate non-violent offenders, cases like this require some actual punishment.  Ms. Carey breached her position of trust at the bank and stole nearly $150,000, none of which was recovered.  The public needs to be assured that such crimes cannot simply be resolved or deterred through probation, but require some period of incarceration.”

“Ms. Carey took a large amount of money that wasn’t hers, so she must now face the consequences of her actions.  There are laws that govern our society and our job as the FBI is to protect people from the criminals who chose to break those laws,” said Kevin Perkins, Special Agent in Charge of the FBI in Delaware. 

This case was investigated by the Federal Bureau of Investigation, with the cooperation and assistance of PNC Bank Investigative Services Group.

WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Lisa Mose, age 43, of Bear, Delaware, pleaded guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343.  Mose faces a maximum sentence of twenty years in prison, a fine of $250,000, and 3 years of supervised release following a prison sentence.  She will be sentenced on April 27, 2016, by the Honorable Leonard P. Stark, Chief Judge, United States District Court for the District of Delaware,

According to statements made at the plea hearing and documents filed in court, Mose was employed by a credit card transaction processor, in New Castle, Delaware.  Mose was a supervisor within the reconciliation and settlements department.  She had access to initiate manual wire transfers from her employer’s operating accounts. 

From January 2009 through June 2014, Mose made false entries into the company’s computerized system and initiated at least 325 wire transfers, totaling at least $618,075, to her personal bank accounts and bank accounts of known associates.  Mose used a significant portion of the proceeds to purchase vacations and high-end consumer goods.

U.S. Attorney Oberly commented, “Ms. Mose was a trusted supervisor at her place of employment and she systematically, over a period of years, proceeded to steal over $600,000 from her employer.  Such a breach of trust cannot go unpunished and a sentence of incarceration is necessary to deter others who might consider stealing from their employers.”

This case is being investigated by the Federal Bureau of Investigation.

WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Gerald Nocks, age 44, of Bridgeville, Delaware was sentenced yesterday by the Honorable Sue L. Robinson to 18 months incarceration and three years of supervised release.  Mr. Nocks was also ordered to pay restitution in the amount of $162,201 to the Internal Revenue Service (IRS). 

The sentence follows Nocks’ April 15, 2015 guilty plea to one count of conspiring to make false claims against the government and one count of money laundering. 

According to statements made in open court and documents filed in court, from March through April 2011, the defendant caused sixteen (16) false Forms 1120, U.S. Corporate Tax Returns to be mailed to the IRS, in the names of six non-existent corporations for the years 2008, 2009, and 2010.   The fictitious returns listed Delaware addresses associated with Nocks, and at which he had access to U.S. mail.  Each return claimed approximately $160,000 in gross income and a tax of $2,000.  However, each return also claimed an approximate $14,000 fuel tax credit, off-setting the tax due and resulting in a $12,000 refund.  The 16 false claims total $198,441. 

In April 2011, before the scheme was detected, Nocks received 13 refund checks totaling $162, 201.  He then laundered those proceeds through various bank accounts before wiring $150,000 to a settlement table in Georgia for the purchase of a home, where he was living at the time his fraudulent actions were detected.

“IRS Criminal Investigation is diligent when it comes to enforcing the laws directed at those who attempt to defraud our nation’s tax system," said Akeia Conner, Special Agent in Charge of Philadelphia Field Office. “Today’s sentencing shows how seriously the courts take federal tax crimes and it should serve as a deterrent to those who might contemplate similar fraudulent actions."

This case is the result of an investigation conducted by the Internal Revenue Service, Criminal Investigation.  The case was prosecuted by Assistant United States Attorney Edmond Falgowski.