District of Delaware

WILMINGTON, Del. – United States Attorney Davis C. Weiss announced that Carl D. Roy, 34, of Wilmington, Delaware pled guilty today to gun and drug offenses before the Honorable Maryellen Noreika, U.S. District Judge for the District of Delaware. Judge Noreika immediately sentenced Roy to 9.5 years in federal prison. Over the course of one month, in the summer of 2018, Roy sold crack cocaine, heroin and four firearms to confidential informants as a part of a sting operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). 

Roy’s arrest and conviction was part Operation Blue Hen—a prolonged campaign between March and September, 2018 by the ATF to remove illegal drugs and guns from the City of Wilmington.

In total, Operation Blue Hen resulted in:

•            15 arrests;

•            The seizure of 9 firearms;

•            The seizure of 768 grams of crack cocaine;

•            The seizure of 864 grams of methamphetamine; and

•            The seizure of 37 grams of heroin.

U.S. Attorney Weiss stated, “The Defendant’s conduct in this case—trafficking in drugs and guns —put our community at risk.   We will work tirelessly with our state and federal law enforcement partners to prosecute felons who illegally sell guns on the street—particularly when those firearms are used by dealers to further their illegal drug trade. I want to thank ATF for their continued commitment to rid our city of guns and drugs.”

Rob Cekada, ATF Special Agent in Charge, stated, “This defendant routinely, illegally sold drugs and firearms thereby posing a threat to the safety of Wilmington’s citizens. ATF is determined to identify, investigate, and incarcerate anyone using firearms to commit violent crime.  Our strong partnerships with local and state law enforcement, as well as the U.S. Attorney’s Office, ensures that targeted operations like Blue Hen are successful and result in federal time for these offenders.”

Wilmington Police Chief Robert J. Tracy said, “The results of this operation illustrate the importance of the close working relationships we have with our local, state and federal law enforcement partners, and how critical these collaborations are as we work collectively to make our communities safer.”

The investigation was led by the ATF Baltimore Field Division’s Wilmington Field Office, with assistance from the Wilmington Police Department and Delaware State Police.  The case was prosecuted by Assistant U.S. Attorneys Adrienne Dedjinou and Christopher de Barrena-Sarobe.  A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.

WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that Carl Chen, owner of Chenmax Properties, Inc., a Delaware Real Estate Investment Trust, and part-owner of Re/Max Sunvest Realty Co., was sentenced today in federal court in Delaware to 51 months in prison.  Chen pled guilty in March 2019 to wire fraud emanating out of a multi-year Ponzi scheme he orchestrated.

According to court documents and statements made at the hearing, Chen operated Chenmax Properties since 1997, soliciting large real estate investments from his real-estate clients and others. Chen promised his investors guaranteed interest and a full return of their principal payments.  However, by 2013, Chen’s business was losing money, and Chen began diverting newly invested funds to pay prior investors. 

The government calculated that Chen fraudulently collected at least $3.32 million in investments from twenty different victims between 2013 and 2017.  In October 2017, Chen declared bankruptcy in the United States Bankruptcy Court for the District of Delaware, seeking to discharge $6.738 million of debt he owed to investors, including the victims of his fraud.

United States District Judge Richard G. Andrews, who sentenced Chen, noted that the case was “One of the most horrendous white collar offenses that I remember seeing.”

Victims at the sentencing hearing described how Chen solicited hundreds of thousands of dollars in investments from them on multiple occasions, claiming that the investments were for real estate ventures.  In actuality, the money investors paid Chen was immediately used to pay off other investors or for Chen’s personal expenses.

U.S. Attorney Weiss commented that “Chen brazenly defrauded innocent Delaware residents, and others, who believed his promises and trusted him to handle their financial security.  While this sentence cannot repair the breach of trust, it sends a strong message that my office will prosecute these fraud crimes and seek substantial prison terms for anyone who, like Chen, carries out a large-scale fraud against unsuspecting victims.” 

"The effects of this type of fraud can be devastating to the victims. As a result of this scheme, several hardworking people were victimized and lost significant amounts of their life savings," said Jennifer Boone, Special Agent in Charge of the FBI Baltimore Office. "The FBI in Delaware and our partners will continue to vigorously investigate these crimes and hold accountable anyone who takes advantage of unsuspecting victims in order to enrich themselves."

This case was investigated by the FBI Baltimore Division’s Wilmington Office and the Office of the U.S. Trustee and was prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim and Special Assistant U.S. Attorney Hannah McCollum.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-cr-00015.

WILMINGTON, Del. – A federal grand jury returned an indictment on August 15, 2019, charging a resident of Port Deposit, Maryland with one count of wire fraud.

According to the indictment, Kimberly Sponaugle, 41, engaged in a scheme to defraud her former employer, a Newark, Delaware business referenced as Company A in the indictment.  Sponaugle, who was the business’s office manager from 2005 – 2010 and the business’s director from 2010 through her termination in 2018, used a corporate credit card to make approximately $322,652.00 in unauthorized, personal purchases from January of 2012, through March of 2018.  Sponaugle used funds from the business’s bank account to pay corporate credit card bills associated with those personal purchases and hid her fraud by making false entries in the business’s financial accounting system.  Through this scheme, Sponaugle used the business’s funds without authorization to purchase, among other items, vacations, jewelry, and limousine services, as well as to make personal charitable contributions using the corporate credit card. 

If convicted of wire fraud, Sponaugle faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement and gave the following comment: “The defendant abused her employers’ trust and repeatedly diverted corporate funds for her own personal use through a years-long scheme.  My office is committed to investigating and prosecuting fraudulent conduct, like the defendant’s, that hurts Delaware businesses.” 

The case was investigated by the FBI Baltimore Division’s Wilmington Office and the Delaware State Police and is being prosecuted by Assistant U.S. Attorney Carly A. Hudson.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.

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

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Stephen S. Landes, 29, of Roswell, New Mexico, pled guilty today to making interstate bomb threats, before the Honorable Richard G. Andrews, United States District Judge for the District of Delaware.  In May 2018, Landes made bomb threats to the Walmart and the Georgetown Elementary School, both in Georgetown, Delaware for the purpose of “swatting” a Delaware resident. “Swatting” involves making hoax emergency calls in order to elicit an armed police response (e.g., from a SWAT team) to harass someone believed to be at the location of the purported emergency. Landes’ sentencing is scheduled for November 27, 2019.   Landes faces a maximum penalty of 10 years imprisonment.

According to court documents and statements made in open court, on May 9, 2018, at approximately 1:43 p.m., Landes called the Walmart in Georgetown, Delaware from Roswell, New Mexico. Landes asked to speak with a manager. Landes impersonated a certain resident of Georgetown, Delaware and then stated that he had a bomb and a child hostage in the bathroom. Landes demanded twenty thousand ($20,000) dollars and threatened to blow-up the Walmart if he did not receive the money. Law enforcement from Georgetown Police, Delaware State Police and Delaware Natural Resources Police responded to the Walmart and evacuated the store. K9 units searched the Walmart but did not find any bomb.

A few minutes later, at approximately 1:56 p.m., Landes called Georgetown Elementary School. Landes again claimed to be a certain resident of Georgetown, Delaware and told the person who answered the phone that he had two children buried in his basement and that there was a bomb in the school. School administrators locked down the school and called 911.  Law enforcement units from the Delaware State Police and the Georgetown Police Department responded to the elementary school immediately.  K9 units searched the school but found no bomb or other threats.  

U.S. Attorney Weiss stated, “Bomb threats and swatting calls, especially to schools and highly trafficked retail stores, are designed to cause intense fear. They also necessitate an immediate response from law enforcement, diverting the limited resources of local law enforcement and emergency service agencies away from true emergencies where these agencies are critical to the health and safety of our communities. When these violent threats are directed towards an elementary school, they have a particularly lasting psychological impact on members of our community. My office will vigorously prosecute those who engage in bomb threats, swatting calls and other similar terroristic activity.” 

Georgetown Police Chief R.L. Hughes stated, “Stephen Landes’ actions exposed our children and community to fear and a real potential for injury.  I am proud of the professional response of our police officers and the exceptional investigation and prosecution by our state and federal partners.”

This case was investigated by the FBI-Baltimore Division’s Wilmington Office with assistance from the Georgetown Police Department and the Delaware State Police and is being prosecuted by Assistant U.S. Attorney Adrienne Dedjinou.

WILMINGTON, Del.  David C. Weiss, United States Attorney for the District of Delaware, announced today that William A. Brown (“Brown”) pled guilty in federal court today to a charge of wire fraud.  Brown’s sentencing is scheduled for December 4, 2019 at 9:00 a.m. before the Honorable Leonard P. Stark, United States District Judge for the District of Delaware.  Brown faces a maximum penalty of 20 years of imprisonment. 

According to court documents and statements made in court, Brown, age 51, of Felton, Delaware, was previously a job placement counselor at Connections Community Support Programs, Inc. (“Connections”).  During 2015 and 2016, Connections contracted with the Delaware Division of Vocational Rehabilitation (“DVR”) to help that organization provide employment counseling and job placement services to individuals recovering from drug and alcohol addiction.  The federal Workforce Innovation and Opportunity Act provides funding for DVR and sets programmatic goals; DVR receives 80% of its funding through federal government programs. 

As part of a multi-year fraud on DVR, Brown submitted falsified client paperwork and created bogus client paystubs so that DVR would pay Connections for completed client services.  By submitting over thirty false documents over a two-year period, Brown not only caused the payment of excess funds to Connections, he made Connections’ services appear more successful than they actually were and so improved his own job security.

U.S. Attorney Weiss stated, “The U.S. Attorney’s Office is committed to helping our investigative partners target fraud like that committed by the defendant.  The mission of Delaware’s DVR is to enhance employment opportunities for individuals recovering from addiction.  By falsifying client paperwork, the defendant improved his own employment position at Connections at the expense of recovering individuals in need of legitimate employment assistance.”   

“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously," said Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Division. "We will continue working with our Delaware law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”

Today’s guilty plea shows that Mr. Brown knowingly and willfully abused his position of trust at the expense of America’s taxpayers and the clients he promised to serve – those individuals recovering from addiction” said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office.  “I’m proud of the work of OIG Special Agents our law enforcement colleagues for their work in this matter and for holding Mr. Brown accountable for his criminal actions.”

“The U.S. Department of Labor Office of Inspector General is committed to investigating allegations of fraud related to the Workforce Innovation and Opportunity Act.  We will continue to work with our law enforcement partners to protect the integrity of services designed to strengthen and improve America’s workforce,” said Marc Walker, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

This case is the result of an investigation conducted by the FBI-Baltimore Division’s Wilmington Office, U.S. Department of Education Office of the Inspector General, and the U.S. Department of Labor Office of the Inspector General.  The prosecution was handled by Assistant U.S. Attorney Whitney Cloud.

WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that today United States District Judge Colm F. Connolly sentenced Tyree Miller, 20, of Wilmington, to 18 years in federal prison for his role in a series of violent robberies and a demand note bank robbery.

Between August 2, 2018 and August 16, 2018, Miller, along with two separately charged co-conspirators, Fabian Rampersant Evans and D’Andre Dereck Whittle, both of Wilmington,  committed six armed commercial robberies and one demand note bank robbery in Wilmington, Newport, and Hockessin, Delaware.  In each of the commercial robberies, Miller entered the store armed with a firearm and demanded money. In one of the robberies, Miller struck a customer in the head with the firearm before pulling the trigger of the firearm while it was pointed at the face of the clerk.  In three of the robberies he “racked” the gun as he was approaching the store clerks. In the bank robbery, Miller handed a note to the teller which instructed that, if Miller got what he wanted, nobody would die.

In sentencing the defendant, Judge Connolly spoke about the level of violence involved in the offenses and pointed out the degree of recklessness displayed by the defendant.  Judge Connolly also discussed at length how the defendant’s years of marijuana use impaired his judgment and contributed to his behavior.

U.S. Attorney Weiss commented, “The investigation, arrest, and successful prosecution of Miller and his two co-conspirators demonstrates effective inter-agency collaboration.  Thanks to the extraordinary efforts of the Delaware State Police and the FBI a repeat, violent offender has been removed from the Delaware communities in which he committed his crimes.  The U.S. Attorney’s Office truly appreciates the federal, state and local partnerships which made this case possible and continue to make our communities safer.”

"When anyone enters a business or a bank with the intention on robbing it, especially while armed with a firearm, there is always a chance someone could get injured or worse," said Jennifer C. Boone, Special Agent in Charge of the Baltimore FBI. "The FBI in Delaware is committed to working closely with all of our law enforcement partners to remove violent criminals from their neighborhoods.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

This case was investigated by the FBI-Baltimore Division’s Wilmington Office in collaboration with the Delaware State Police.  It is being prosecuted by Assistant U.S. Attorney Maureen McCartney. 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No.18-89.

WILMINGTON, Del. – Eric Lloyd was captured just before midnight on July 3, 2019 by the United States Marshals Service (“USMS”) Fugitive Taskforce and the Federal Bureau of Investigation (“FBI”), in Philadelphia, Pennsylvania.  Lloyd was convicted of racketeering, money laundering, and related charges after a trial in New Castle County Superior Court in June of 2019.  Lloyd was released on bail during the trial.  He became a fugitive after he fled while the jury was deliberating and a warrant was issued for his arrest after the jury found him guilty.

Lloyd’s apprehension was the result of a collaborative effort between the USMS and FBI.  The USMS was also assisted by the United States Attorney’s Office and the Delaware Department of Justice.  The USMS Fugitive Taskforce is staffed by a number of local agencies, including the Wilmington Police Department.  Lloyd is expected to appear in Federal Court on Friday, July 5, 2019, for an initial appearance related to a violation of his federal supervised release.  Afterwards, he will likely be turned over to state custody to be sentenced for his latest convictions.

Michael McGowan, U.S. Marshal for the District of Delaware, stated, “This arrest is another great example of the collaborative efforts of our federal, state and local law enforcement partners. Investigators worked tirelessly to ensure jurisdictional lines did not impede the capture of this dangerous fugitive.”

U.S. Attorney Weiss stated, “The USMS and the FBI should be commended for the capture of Mr. Lloyd.  The Marshals work relentlessly to apprehend priority fugitives for every law enforcement agency in Delaware, and this is the latest example of their dedication to bringing brazen criminals like Mr. Lloyd to justice.”

WILMINGTON, Del. – A Philadelphia drug trafficker with ties to Wilmington was sentenced by Chief U.S. District Judge Leonard P. Stark on Wednesday, June 26, 2019, to 13 years in prison for conspiring to distribute cocaine.  According to court documents and statements made in open court, defendant Robert Shepherd, III, 43, originally from Wilmington, lived an extravagant lifestyle in Philadelphia funded by trafficking cocaine.  Shepherd sent kilogram quantities of that cocaine to co-defendant Brian Wilson in Wilmington, Delaware.

Shepherd’s conviction is the result of a long-term New Castle County High Intensity Drug Trafficking Area (“HIDTA”) investigation spearheaded by the FBI Delaware Violent Crime Safe Streets Taskforce.  Investigators seized four firearms, over five kilograms of cocaine, and roughly 150 grams of heroin as part of the case.  This was Shepherd’s second federal drug conviction.  The defendant was sentenced in 2010 for his leading role in distributing over 100 kilograms of cocaine in Philadelphia and Wilmington.  Shepherd was under supervision by the federal court at the time that he committed this second drug trafficking offense. 

U.S. Attorney Weiss stated, “Robert Shepherd has made a career off the suffering of Delawareans addicted to illegal drugs.  The Court’s sentence demonstrates that large scale traffickers will be punished significantly for their crimes.  My office will continue to work with our law enforcement partners to ensure that career drug traffickers like Mr. Shepherd are brought to justice.”

Assistant U.S. Attorney Christopher L. de Barrena-Sarobe prosecuted the case.  The FBI was assisted in this case by Wilmington Police Department and the Delaware Attorney General’s Office. 

The FBI Delaware Violent Crime Safe Streets Taskforce is a part of the New Castle County HIDTA, comprised of the Delaware State Police, Delaware Department of Probation and Parole, New Castle County Police Department, University of Delaware Police Department, and Wilmington Police Department.    

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District of Delaware for the District of Delaware or on PACER by searching for Case No. 1:16-cr-00093.

 

 

WILMINGTON, Del. – United States Attorney David C. Weiss announced that the U.S. Department of Justice honored the trial team which prosecuted the country’s first cyberstalking resulting in death case by awarding them the prestigious Director’s Award for Superior Performance by a Litigative Team on June 20, 2019.  Five employees of the U.S. Attorney’s Office (USAO) for the District of Delaware, together with their investigative counterparts from the Federal Bureau of Investigation and Delaware State Police were among ten trial teams nationwide so recognized at the 35th Executive Office for U.S. Attorneys (EOUSA) Director’s Awards Ceremony in Washington, D.C.

The award was the result of the team’s work in United States v. Matusiewicz, et al. tried in U.S. District Court for the District of Delaware. The prosecution team honorees, from top to bottom in the photo, are: 

• Shawn A. Weede, Criminal Chief, USAO
• Millard Greer, Lieutenant, Delaware State Police
• Joseph P. Gordon, Supervisory Senior Resident Agent, FBI
• Edward J. McAndrew, former Assistant U.S. Attorney, USAO
• Jamie M. McCall, Assistant U.S. Attorney, USAO
• Christine C. Oliver, Special Agent, FBI
• Susan P. Alfree, Victim/Witness Coordinator, USAO
• Sherry Kaminski, Legal Assistant, USAO
• Barbara Lotharp, Litigation Support Specialist, USAO

On the morning of February 11, 2013, the lobby of the New Castle County Courthouse in Wilmington, Delaware became a shooting gallery as Thomas Matusiewicz – the husband of Defendant Lenore and the father of Defendants David and Amy – shot and killed his former daughter-in-law, Christine Belford, and her friend, Laura “Beth” Mulford.  Thomas also shot two Capitol Police officers, who were providing security at the courthouse, before taking his own life.  This brutal criminal act touched off a lengthy investigation, which uncovered evidence of Defendants’ three-year stalking campaign designed to psychologically torture and intimidate Ms. Belford – the mother of David Matusiewicz’s three biological children.   Among other things, Defendants publicly and falsely accused Ms. Belford of sexually molesting her own children and utilized third parties to keep her under constant surveillance. These actions led Ms. Belford and her family to live in a constant state of fear, and ultimately resulted in Ms. Belford’s death. 

Following a five-week trial in the summer of 2015, where the government called approximately 70 witnesses and admitted over 700 trial exhibits, Defendants were convicted on all charges, including cyberstalking resulting in death.  Each Defendant was sentenced to life imprisonment, and on appeal the Court of Appeals for the Third Circuit upheld their convictions in a sweeping precedential opinion. 

U.S. Attorney David C. Weiss commented, “Cyberstalking is a form of psychological terror that deeply impacts its victims, and the Matusiewicz cyberstalking prosecution was a watershed case of national importance.  I am proud to offer congratulations to the entire trial team for winning the Director’s Award for Superior Performance by a Litigative Team.  This award is among the most prestigious and competitive awards given by the U.S. Department of Justice, and is the only award that includes those who have left federal government service.  The long-term commitment and personal partnerships required to successfully prosecute the Matusiewicz family represent the best of Delaware law enforcement.  We truly value these relationships.

While the Matusiewicz case was the first of its kind, our commitment to the victims of online terror campaigns continues. Individuals who engage in cyberstalking are on notice that the U.S. Department of Justice will continue such prosecutions to the fullest extent of the law.”

WILMINGTON, Del. – United States Attorney David C. Weiss announced today that U.S. District Court Judge Maryellen Noreika sentenced a Wilmington drug trafficker to 130 months in federal prison for gun and drug offenses committed in Delaware. 

According to court documents, Hakim Mowbray, 38, of Wilmington, was arrested in April of 2018 while in possession of a handgun and 60 grams of crack cocaine.  This was Mowbray’s third conviction for illegal firearm possession; he was previously convicted of state gun charges in Delaware and federal gun charges in Virginia.  After Mowbray’s arrest, law enforcement officials searched his Wilmington home, finding additional powder and crack cocaine, cutting agents, and a press used to repackage kilograms of cocaine. 

Commenting on today’s proceedings, U.S. Attorney Weiss noted, “Today’s sentence appropriately reflects the danger that those who use firearms to further their drug sales present to our community.  This office will continue to work with the DEA and DSP to investigate and prosecute repeat offenders like Mr. Mowbray.”

Mowbray’s conviction is the result of an investigation spearheaded by the Drug Enforcement Administration (“DEA”) Wilmington Group 41 and members of the Delaware State Police (“DSP”) Governor’s Task Force.  DEA Group 41 is a part of the New Castle County HIDTA, and comprised of the officers from Delaware State Police, Delaware Department of Probation and Parole, New Castle County Police Department, Newark Police Department, Wilmington Police Department and the Department of Homeland Security.    

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:18-cr-00069.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that a federal grand jury charged Rodney Phipps, 29, of Georgetown, with harassing individuals across the country by telephone, through a process known as “swatting.”  “Swatting” involves making hoax emergency calls in order to elicit an armed police response (e.g., from a SWAT team) for the purpose of harassing someone believed to be at the location of the purported emergency.

According to allegations in the Indictment, from in or around August 2015 through August 2017, Phipps placed swatting calls from Delaware to police departments and emergency dispatch centers across the country, including calls to Harrison, New Jersey; Opelousas, Louisiana; Russel County, Kentucky; Pasco County, Florida; and Forsyth County, Georgia.  Those swatting calls included false reports that murder, shooting incidents, arson, and a hostage situation had taken place or would take place.

Many of the calls also contained explicit threats that the caller would shoot with a firearm any law enforcement personnel who responded to the emergency call.  In several instances, those hoax calls provoked significant law enforcement responses to the purported victim’s residences. 

The Indictment charges Phipps with five counts of making interstate threats and one count of making a false threat involving explosives.  The interstate threat charges carry a five-year maximum term of imprisonment.  The false threat involving explosives charge carries a ten-year maximum term of imprisonment.

U.S. Attorney Weiss stated, “Swatting phone calls have the potential to put the lives of law enforcement officers, the intended victim, and innocent bystanders at risk.  Responding to such calls also misdirects resources from local law enforcement and emergency service agencies that could have been used for legitimate emergencies.  My office will prosecute those who engage in swatting activity to the fullest extent allowed by law.”

"As alleged, Mr. Phipps orchestrated an extensive, multi-faceted swatting campaign that caused a significant amount of angst, alarm, and unnecessary expenditure of limited law enforcement resources," said Special Agent in Charge Jennifer C. Boone, FBI Baltimore Field Office. "The FBI Baltimore Cyber Task Force, working jointly with the Delaware State Police - Troop 4, the Georgetown Delaware Police Department, and the Delaware United States Attorney's Office hope this arrest will deter others from engaging in similar criminal conduct."

This case is being investigated by FBI-Baltimore Division’s Wilmington Office and is being prosecuted by Assistant U.S. Attorney Jesse S. Wenger.

An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.

WILMINGTON, Del.  – David C. Weiss, United States Attorney for the District of Delaware, announced today that on Friday, May 31, 2019, District Judge Richard G. Andrews sentenced Zahid Aslam, age 46, of Newark, Delaware, to a 30-month prison sentence for making a false statement to a financial institution.  The Court also ordered Aslam to serve three years of supervised release following his sentence. 

Aslam, a former physician with practices in Delaware, Maryland, and Pennsylvania, previously pleaded guilty in November 2018 to using third-party nominee borrowers to obtain loans on his behalf at two different financial institutions.  These loans, which Aslam could not have otherwise qualified for on his own, fueled the growth of his medical practices.   At the time of his guilty plea, Aslam and two of his health care entities entered into a separate $3,070,000 civil settlement to resolve health care fraud allegations.  One of those entities also pleaded guilty to criminal health care fraud and paid a $100,000 fine. 

As a result of his criminal conviction and the civil settlement, Aslam surrendered his medical licenses and has been barred from billing federal healthcare programs.  As a non-citizen, Aslam is also subject to removal by immigration authorities.     

U.S. Attorney Weiss stated the following, “The Court’s sentence is the culmination of the multi-year investigation and prosecution of former physician Zahid Aslam and his health care entities relating to bank fraud and health care fraud.  My Office and our law enforcement partners previously announced a $3,070,000 settlement, as well as a separate corporate guilty plea, to resolve the health care fraud portion of the investigation in November 2018.  Today’s sentencing concludes the bank fraud aspect of the investigation.  Lying to banks regarding the actual person who is receiving loan proceeds is a serious offense.  Here, Aslam acknowledged that he caused over $1,000,000 in losses relating to his fraudulent conduct. The 30-month sentence appropriately punishes Aslam for his offense and sends a strong message that committing bank fraud will result in a lengthy term of imprisonment.  My Office remains steadfast in prosecuting criminal conduct that impacts the integrity of our financial system.”

"The FBI in Wilmington will vigorously investigate all forms of financial crimes and this sentence indicates those intent on corrupting our economy will be identified and brought to justice," said Jennifer L. Moore, Acting Special Agent in Charge of the FBI Baltimore Office. "Our job is to protect victims who don't see these crimes occurring, but who always end up paying the price."

“We are diligent in unraveling the fraudulent actions of those, such as Zahid Aslam, who scheme to defraud financial institutions,” said IRS-Criminal Investigation Special Agent in Charge Guy Ficco.  “This sentence is a reminder that we will vigorously investigate and bring to justice those who engage in these illegal activities.”

“The exclusion of Dr. Aslam from all Federal healthcare programs demonstrates our commitment to hold bad actors accountable," said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health & Human Services Office of Inspector General. "We will continue to investigate and disrupt attempts to undermine healthcare programs.”

This case was prosecuted by Assistant U.S. Attorney Robert F. Kravetz and was investigated by FBI Baltimore Division’s Wilmington Office, the Department of Health and Human Services Office of Inspector General, and the Internal Revenue Service –Criminal Investigations Division.  Those agencies also received investigative assistance from the State of Delaware Medicaid Fraud Control Unit, the State of Maryland Medicaid Fraud Control Unit, Federal Housing Finance Agency – Office of Inspector General, and the Special Inspector General of the Troubled Asset Relief Program. 

 

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that William Cook, age 63, of Berlin, Maryland was sentenced today by U.S. District Court Judge Colm F. Connolly to five years of imprisonment on federal bank fraud, false statement, and money laundering charges.

After a five-day trial in January, 2019, a federal jury found Cook guilty of bank fraud, four counts of false statements to Artisans’ Bank, and money laundering.  According to evidence introduced and arguments presented during trial and at sentencing, Cook opened a business line of credit with Delaware-based Artisans’ Bank beginning in 2008.  As part of his loan agreement, Cook submitted weekly certificates to Artisans’ Bank certifying open customer debts; Artisans’ Bank used these certificates to determine how much money it was willing to lend Cook’s business.  Cook began falsifying these certificates in or around January 2009, which allowed him to access more money from Artisans’ Bank.  His weekly fraud continued through May 2013.  During this time, Cook used the money lent to his business by Artisans’ Bank for purposes not permitted under his loan agreement.  When Artisans’ Bank learned of the fraud in July 2013, Cook had no money left to pay the $4.2 million that was still outstanding on his business loans.  As part of its sentence, the Court ordered Cook to pay Artisans’ Bank the full $4.2 million in restitution, because Artisans’ Bank’s loss was caused by Cook’s fraud.

U.S. Attorney Weiss said, “The defendant lied to a local Delaware bank on a weekly basis so that he could use its money as he saw fit, and in a manner contrary to the terms of the loan agreement.  As a result of his four-year fraud, Artisans’ Bank lost $4.2 million.  Cook violated the trust required for lending arrangements to succeed - both for banks and the small businesses they support. My office remains committed to investigating and prosecuting fraudulent conduct, like defendant’s, that damages the integrity of our financial system.  Because the money a bank lends belongs to its depositors, we cannot ignore conduct that places those funds at risk and the people who think the rules simply do not apply to them.  The Court’s five-year sentence today rightly punishes the defendant for his long-term fraud.”

Acting U.S. Postal Inspector-in-Charge of the Philadelphia Division, John Walker said, “We will continue to work with our partners at the IRS, and the U.S. Attorney's Office to combat this type of financial fraud. Postal Inspectors work diligently to protect financial institutions from falling victim to these types of schemes. In the end, these schemes negatively impact all of us.”

“IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex fraud and money laundering schemes,” said IRS-CI Special Agent in Charge Guy Ficco.  “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and to help put a stop to this and other types of white collar crime."

This case was investigated by the U.S. Postal Inspection Service and the IRS-Criminal Investigation.  It was prosecuted by Assistant U.S. Attorneys Whitney Cloud and Lesley F. Wolf.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Stephen Williams, of Neptune, New Jersey, pled guilty in federal court today to bribery in connection with programs receiving federal funds.  Williams is the co-defendant of Crystal Martin, the Delaware State University (“DSU”) administrator who pled guilty to the same bribery scheme in April 2019.  Williams’ sentencing is scheduled for September 6, 2019 before the Honorable Richard G. Andrews, United States District Judge for the District of Delaware. Williams faces a maximum penalty of 10 years of imprisonment. 

According to court documents and statements made in open court, between 2013 and 2017, Williams was the mastermind of a bribery scheme at DSU.  Williams recruited students to pay him a fee to change their student registration status from out-of-state residency to in-state residency.  After students paid him their fee, Williams helped create forged residency documents, such as leases, and then delivered the forged documents to his co-defendant Martin to place in the students’ files, justifying the residency changes that Martin recorded in the university’s computer system.  Williams paid Martin a percentage of the fee he collected from each student whose residency was changed, amounting to approximately $70,000 over the course of four years. Williams also paid DSU students to recruit others interested in having their registration status changed.  While the total amount that Williams profited from his scheme remains unknown, the estimated cost of reduced tuition payments to DSU during this four-year-period exceeded $3 million. 

U.S. Attorney Weiss stated, “The defendant created and ran a four-year scheme that defrauded Delaware State University.  In so doing, he encouraged hundreds of people, and most importantly his co-defendant Martin, to break the law.  Further, he deprived his own alma mater and Delaware taxpayers of the rightful tuition proceeds for Delaware State University so that he could personally profit.  Defendants who repeatedly break the law for their own personal gain at the expense of Delaware citizens must be held accountable.”

"The FBI is committed to protecting the public trust.  When individuals conspire to defraud public institutions, the FBI will aggressively pursue those who seek to financially gain from their illegal schemes," said Jennifer L. Moore, Acting Special Agent in Charge of the Baltimore Division. "The investigation and subsequent prosecution of the defendants revealed they had engaged in a pervasive pattern of fraud and corruption, betraying the university, its students and our community.  The cooperation among law enforcement agencies in Delaware led to the dismantlement of the defendants’ enterprise and I applaud the efforts of the investigators and prosecutors."

“Tracking down those who cheat the Federal student aid program will always be a priority of our office,” said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Region. “That’s why I’m proud of the work of OIG special agents and our law enforcement partners in holding Mr. Williams accountable for his criminal actions and we’ll continue to work together to protect Federal education funds from this type of fraud.”

This case was investigated by FBI Baltimore Division's Wilmington Office, the U.S. Department of Education Office of Inspector General, and Delaware State Police, with assistance from the Delaware Department of Justice’s Office of Civil Rights and Public Trust.  The case is being prosecuted by Assistant U.S. Attorneys Laura D. Hatcher and Whitney Cloud.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, will be presenting awards today to 34 officials from federal, state and local law enforcement agencies in Delaware to honor their outstanding investigative work in cases prosecuted by the U.S. Attorney’s Office.   

U.S. Attorney Weiss stated, “The honorees worked on a broad range of cases, from complex bank fraud, cyberstalking and theft of trade secret cases to child exploitation, firearms, and illegal drug distribution.  Each of the officers demonstrated the hard work and investigative creativity required for a successful federal prosecution.  As important, federal, state and local law enforcement worked together to accomplish a common objective. I thank those honored for their talent and dedication and their respective police departments and agencies with whom we partner to keep Delaware’s communities safe. 

Among the honorees, Christopher J. Bumgarner, a Task Force Officer with the Dover Police Department, received the Stephen Misetic Memorial Award, which recognizes the law enforcement officer whose work best exemplifies the spirit of cooperation and collaboration necessary to make significant federal cases. 

The honorees at today’s ceremony are members of the following law enforcement agencies:

• Delaware State Police
• Dover Police Department
• Elsmere Police Department
• Delaware State Fire Marshal
• Federal Bureau of Investigation
• Wilmington Department of Police
• Drug Enforcement Administration
• New Castle County Police Department
• Internal Revenue Service-Criminal Investigation
• Department of Correction, Probation and Parole
• Bureau of Alcohol, Tobacco, Firearms and Explosives
• Special Inspector General for the Troubled Asset Relief Program
• U.S. Immigration and Customs Enforcement, Homeland Security Investigations
• Board of the Governors of the Federal Reserve System, Office of Inspector General

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Michael Boyce, age 57, formerly of Middletown, was sentenced yesterday by U. S. District Court Judge Richard G. Andrews to 60 months of imprisonment on federal wire fraud and tax evasion charges. 

According to documents and arguments discussed in open court, beginning in or around 2004, Mr. Boyce began defrauding his employer by submitting fake invoices for computer equipment and supplies that were never provided to the company.  Mr. Boyce was able to submit these invoices because he worked in his employer’s Information Technology Department.  After submitting the invoices through third party vendors, Mr. Boyce completed the fraudulent transactions by falsely logging the equipment as received by the company and forwarding the paperwork to the Accounts Payable Department. Upon receiving payment from the company, the third party vendors would transfer 90% of that payment to Mr. Boyce. Over the course of the twelve years that Mr. Boyce’s scheme went undetected, he stole more than $3.2 million from his employer, all the while rising through the ranks of the IT Department, eventually becoming its director. Though he declared much of his illegal income, Mr. Boyce evaded the payment of income taxes on more than $1 million between 2012 and 2015. Mr. Boyce pled guilty to this scheme on November 27, 2018.

U.S. Attorney Weiss stated, “Today was a day of reckoning for a defendant who, over the course of a dozen years, stole millions of dollars from his employer to line his own pockets.  His calculated and callous conduct not only hurt the company’s bottom line, but abused the trust of his co-workers and the supervisors who promoted him, all the time unaware of the theft.  While Defendant successfully concealed his crimes for years, today they caught up with him.  The five year sentence handed down by the Court should send a message to others contemplating similar crimes that in the end, crime does not pay. ”

“Michael Boyce omitted a significant portion of his income; and in doing so, evaded over half a million dollars in taxes,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. "The overarching principle of IRS' enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays the right amount of tax."

The case was investigated by the FBI and the IRS-Criminal Investigation.  It was prosecuted by Assistant U.S. Attorney Lesley Wolf.  U.S. Attorney Weiss thanked the investigators for their diligence and dedication in pursuing this investigation.

A federal grand jury in Wilmington, Delaware, returned a six-count indictment today charging Chartworld Shipping Corporation, Nederland Shipping Corporation, and Chief Engineer Vasileios Mazarakis with failing to keep accurate pollution control records, falsifying records, obstruction of justice, and witness tampering, the Justice Department announced.

The charges stem from the falsification of records and other acts designed to cover up from the Coast Guard the overboard discharges of oily mixtures and machinery space bilge water from the Bahamian-flagged cargo vessel, M/V Nederland Reefer. 

According to the indictment, on Feb. 21, 2019, the M/V Nederland Reefer entered the Port of Delaware Bay with a false and misleading Oil Record Book available for inspection by the U.S. Coast Guard. The Oil Record Book failed to accurately record transfers and discharges of oily wastewater on the vessel.

The vessel’s management company, Chartworld Shipping Corporation, the vessel’s owner, Nederland Shipping Corporation, and the Chief Engineer of the vessel, Greek national Vasileios Mazarakis, are all charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships, a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as MARPOL.  The defendants were also charged with falsification of records, obstruction of justice, and witness tampering for destroying evidence of the illegal discharges and directing lower level crew members to withhold evidence from the Coast Guard. 

Finally, the corporate defendants are charged with the failure to report a hazardous condition to the Coast Guard, namely a breach in the hull of the vessel and resulting incursion of seawater into tanks on board the vessel that occurred before the vessel came to port in Delaware.

An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.

The case was investigated by the Coast Guard Investigative Service.  The case is being prosecuted by Senior Trial Attorney David P. Kehoe of the Justice Department’s Environmental Crimes Section and Assistant United States Attorney Edmund Falgowski of the United States Attorney’s Office for the District of Delaware.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Crystal Martin, former Associate Registrar at a Delaware public university, pled guilty in federal court today to a charge of bribery concerning programs receiving federal funds.  Martin’s sentencing is scheduled for July 1, 2019 before the Honorable Richard G. Andrews, United States District Judge for the District of Delaware. Martin faces a maximum penalty of 10 years of imprisonment. 

According to court documents and statements made in open court, between 2013 and 2017, Martin accepted bribes from a co-conspirator in exchange for her agreement to change the registration status of hundreds of out-of-state students, thereby allowing students from outside of Delaware to qualify for in-state tuition.   In furtherance of this scheme, Martin used forged residency documents prepared by her co-conspirator to enable these students to pay reduced tuition, when in fact, she knew they should be paying the higher tuition rate for out-of-state residents.  Tuition for out-of-state students is over two times the rate for in-state students.  The out-of-state students paid either Martin or her co-conspirator, for this fraudulent service, and Martin personally collected over $70,000 in bribe payments during the course of the scheme.  The estimated cost to the university of reduced tuition payments during this four-year-period exceeded $3 million. 

U.S. Attorney Weiss stated, “The defendant abused her position at a public university to personally profit and to defraud her employer.  Individuals who accept bribes while serving in a public capacity risk undermining trust in those institutions.  State universities have the right to offer benefits to in-state students in the form of reduced tuition; they also have the right to expect their employees to uphold and support their mission.  And Delaware taxpayers have the right to expect honest services from our public employees – when those employees fall short of these expectations my office will hold them accountable.”  

"Public corruption is a top criminal investigative priority for the FBI," said FBI Baltimore Acting Special Agent in Charge Jennifer L. Moore. "In public service, you have to uphold public trust. The FBI in Delaware will vigorously investigate any public servant who attempts to use their position to enrich themselves."

“I am proud of the work of the Office of Inspector General and our law enforcement partners in holding Ms. Martin accountable for her criminal actions,” said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office.  “The OIG will continue to aggressively pursue those who misappropriate education funds for their own selfish purposes.  America’s students and taxpayers deserve nothing less.”

This case was investigated by the FBI, the U.S. Department of Education, and Delaware State Police, with assistance from the Delaware Department of Justice’s Office of Civil Rights and Public Trust.  The case is being prosecuted by Assistant U.S. Attorneys Laura D. Hatcher and Whitney Cloud.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Breyon Richardson, age 28, of Newark, Delaware, was sentenced today to 42 months in federal prison for illegally aiding and abetting attempted illegal purchases of an AR-15 rifle. 

According to documents and arguments discussed in open court, less than a year after completing a prison sentence for unlawful firearm possession and while on supervised release, Richardson convinced another individual, his co-defendant, to purchase an AR-15 rifle on his behalf.   When they were unsuccessful in purchasing that firearm at the first firearms dealer, they drove to another location and attempted to purchase the same model AR-15 rifle from the second firearms dealer. Both federally licensed firearms dealers rightfully recognized an attempted firearms purchase on behalf of another (commonly referred to as a “straw purchase”) and denied the sales.  

Today’s sentence marks Richardson’s second federal gun-related offense within a three-year time period.  As a result, the Court sentenced Richardson to 42 months of total incarceration: 21 months for the new violation, and 21 months for violating his supervised release, to be served consecutively.  This was a marked increase from Richardson’s prior sentence of approximately 8 months. 

U.S. Attorney Weiss said, “The defendant demonstrated his disrespect for the law and for the safety of the community by twice attempting to straw purchase an AR-15 rifle as a federally convicted felon.  My office will aggressively pursue such defendants to send a clear message that felons who attempt illegally to possess firearms pose a true risk to the safety of the community and that such behavior will not be tolerated.”

“Our mission is to protect communities from anyone using firearms to commit illegal and violent acts,” said ATF Baltimore Special Agent in Charge Cekada. “Those who aid felons by attempting to supply them with guns and who criminally abuse the process of purchasing firearms must be held accountable for their role in threatening the safety of our communities.”

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Graham L. Robinson and Whitney C. Cloud. 

WILMINGTON, Del. – United States Attorney David C. Weiss announced that Kristian James O’Hara entered a guilty plea today to one count of conspiracy to commit cyberstalking.   The guilty plea was entered this morning before the Honorable Colm F. Connolly, United States District Judge for the District of Delaware.  Sentencing has been scheduled for July 23, 2019.   The defendant faces a maximum five years’ imprisonment for his crime.

According to court documents and statements made in open court, O’Hara engaged in an eighteen-month course of conduct, which occurred in Delaware, New Jersey, and New York, and which involved the harassment and intimidation of a former classmate of O’Hara’s, as well as the classmate’s parents and classmate’s romantic partner.  O’Hara further admitted that he also engaged in cyberstalking conduct against other victims throughout this period, including former high school classmates, office co-workers, and others who rejected his advances.

Regarding his primary victim, O’Hara’s harassment took multiple forms, including late-night food orders, spoofed phone calls, and disturbing voicemails left at the victim’s childhood home in Delaware, where O’Hara and his co-conspirator falsely claimed the victim gave O’Hara a sexually transmitted disease.  Often these cyberstalking acts drew from the victim’s posted messages or information shared with the victim’s social network, of which O’Hara was a part.  O’Hara escalated the conduct when, after the victim rejected romantic advances once again, he engaged in further aggressions.  These last acts included signing the victim’s professional work email address up for membership at such websites as Pornhub.com, barraging the victim’s new cell phone number with spoofed calls, and posting the victim’s name, likeness, and cell phone number on a sex-chat website.  Each time his victim took steps to deter him, O’Hara found new means to inject himself into the victim’s life.   The persistent nature of O’Hara’s conduct caused his victim to fear leaving the victim’s home alone.  

U.S. Attorney Weiss said the following, “Cyberstalking conduct like this is designed to inflict psychological damage on another person.  The defendant used the Internet to exact revenge on an innocent victim by using the information posted to the victim’s social network to harass.  And while the victim and victim’s family adapted their lives to evade further harassment, the defendant delighted in the harm he caused and sought to inflict maximal damage.  It was only when apprehended by law enforcement that the defendant stopped the cyberstalking acts he had perpetrated for years.  The defendant must be held accountable for the damage he caused to these eight victims and others.”

"Mr. O'Hara scared innocent people and disrupted their daily lives because he was blinded by his obsession. No one should feel unsafe in their own home, school, or workplace, and the FBI and our law enforcement partners hope today's guilty plea will deter others from engaging in similar criminal conduct," said acting FBI Baltimore Special Agent in Charge Jennifer L. Moore.

This case is the result of an investigation conducted by FBI Baltimore - Wilmington Cyber Task Force, which was supported by the FBI New York Cyber Task Force, Newark Cyber Task Force, and the New York City Police Department.   The case is being prosecuted by Assistant U.S. Attorney Whitney Cloud. 

WILMINGTON, Del. – Paul Barrett, age 41, of New Castle, Delaware, pled guilty on March 15, 2019 to possessing with intent to distribute methamphetamine, David C. Weiss, United States Attorney for the District of Delaware, announced. 

According to court documents and statements made in open court, federal law enforcement began surveilling Defendant after receiving a tip that he was engaged in narcotics trafficking.  Surveillance of the defendant led law enforcement to a storage unit in New Castle, Delaware.  A drug sniffing dog confirmed the presence of narcotics. 

Law enforcement followed Barrett as he picked up a drug package in a shopping center parking lot and returned to the storage unit.  A subsequent search of Defendant’s car and storage unit yielded over two kilograms of methamphetamine. 

U.S. Attorney Weiss stated, “The resurgence of methamphetamine across the country has now reached Delaware, resulting in one of our largest seizures to date. Thanks to the cooperative investigation between the FBI, DEA and HSI, these drugs were seized before reaching our streets. Federal authorities remain vigilant and will do whatever is necessary to protect our community.”

"The FBI in Wilmington worked side-by-side with the DEA, the Delaware State Police and other federal, state and local partners to ensure we stopped Mr. Barrett from further distributing methamphetamine in the region," said FBI Baltimore Acting Special Agent in Charge Jennifer L. Moore. "These dangerous drugs have a devastating effect on our communities and we will continue to work with our law enforcement partners to make New Castle County and Delaware a safer place."

This case was investigated by the FBI, DEA, and the Department of Homeland Security.  U.S. Attorney Weiss also wishes to thank the Pennsylvania State Police.  The case is being prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Mark Consiglio, 49, of Elsmere, Delaware pled guilty today in the United States District Court for the District of Delaware to possessing a destructive device, commonly known as a pipe bomb.  Consiglio is scheduled to be sentenced before the Honorable Richard G. Andrews, United States District Judge for the District of Delaware on July 2, 2019.  He faces a maximum penalty of 10 years of imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment. 

According to court documents and statements made in open court, Consiglio detonated a pipe bomb at his estranged wife’s home in Elsmere in the early morning hours of March 12, 2018 before fleeing the scene.  Two 911 callers described the explosion to police.   

Two occupants were home at the time of the pipe bomb explosion.  The pipe bomb shattered the front living room window of the house where one of the occupants was sleeping at the time.  Shrapnel from the explosion was found inside the living room. 

Consiglio was detained by police nearby.   Subsequent searches of his home yielded: three more pipe bombs; a .38 caliber revolver; materials used to make a pipe bomb, including PVC, fuse wire, ball bearings, and gunpowder; a World War II-era flare launcher that had been modified to accept 9mm ammunition; and a book titled “CIA improvised sabotage devices” that was dog-eared to the page on “incendiary devices.”  At the time he set off the pipe bomb, Consiglio was already facing state charges for threatening to kill his wife.  

U.S. Attorney Weiss offered the following statement, “The defendant’s brazen violence endangered not only his family members but our community.    My Office will prosecute any such actions to the full extent of the law.” 

“Our mission is to ensure that anyone who commits violent acts like this is identified, investigated, and brought to justice,” said ATF Baltimore Special Agent in Charge Rob Cekada. “ATF will continue to work hand in hand with our partners in protecting the safety of Delaware communities.”

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives in coordination with the Office of the State Fire Marshal and the Elsmere Police Department.  U.S. Attorney Weiss also wishes to thank the New Castle County Police Department for its assistance.  The case is being prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Carl Chen, owner of Chenmax Properties, Inc., a Delaware Real Estate Investment Trust, and part-owner of Re/Max Sunvest Realty Co., pled guilty in federal court yesterday to wire-fraud charges for defrauding investors.  Chen’s sentencing is scheduled June 21, 2019 before the Honorable Richard G. Andrews, United States District Judge for the District of Delaware. Chen faces a maximum penalty of 20 years of imprisonment. 

According to court documents and statements made in open court, between 2013 and 2017, Chen a solicited Re/Max Sunvest Realty clients and others to invest $3.32 million,.  Chen fraudulently represented the funds would be used to purchase real estate which would provide annual interest returns of 10% to 15% for the investors.  Instead, Chen diverted the money from later investors to pay off interest obligations to prior investors.

In October 2017, Chen declared bankruptcy in the United States Bankruptcy Court for the District of Delaware, seeking to discharge millions in debts he owed to investors.

U.S. Attorney Weiss stated, “The defendant callously targeted vulnerable individuals and then defrauded them out of their hard-earned savings.  My office will continue to prosecute those who seek to profit by criminally exploiting others.”  

“The FBI in Delaware will continue to aggressively pursue those who defraud unknowing or unsuspecting victims who place their trust in individuals who misrepresent themselves as professionals," said FBI Baltimore Acting Special Agent in Charge Jennifer Moore.  "These individuals, who prey on investors, enrich themselves and cause financial damage which may take years, if ever, for the victims to recover.” 

This case was investigated by the FBI and the Office of the United States Trustee and is being prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim and Special Assistant U.S. Attorney Hannah McCollum.

WILMINGTON, Del. – A Wilmington woman was sentenced today to one year and a day in prison followed by one year of supervised release for preparing false tax returns.

According to court documents, Rose M. Lyons, age 53, prepared at least 95 false tax returns for herself and 41 clients.  For some 32 of those clients, Lyons diverted a portion of their tax refund into her own private bank account.  When her clients asked for copies of their tax documents, Lyons doctored those documents in order to conceal the fact that she diverted funds.

U.S. Attorney Weiss stated, “Criminal conduct that deceives the Internal Revenue Service is conduct that also deceives all American taxpayers.  Today’s sentence should serve as a deterrent to would-be tax cheats that defrauding the public will not be tolerated.”

Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are accurate,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Rose Lyons ignored this duty, and instead chose to defraud the government, the tax-paying public, and her own clients. It is our hope that this sentence sends a strong message that tampering with the integrity of our nation's tax system will result in jail time."

David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after sentencing by U.S. District Judge Richard G. Andrews. Assistant U.S. Attorney Graham L. Robinson prosecuted the case.

WILMINGTON, Del. – A Wilmington drug trafficker was sentenced on Tuesday, February 26, 2019, to 21 years in prison for conspiring to distribute cocaine and heroin in Delaware.  According to court documents, Brian Wilson, 39, was the leader of an extensive network of illegal drug dealers operating in and around the City of Wilmington. 

Wilson’s conviction is the result of a long-term New Castle County High Intensity Drug Trafficking Area (“HIDTA”) investigation spearheaded by the FBI Delaware Violent Crime Safe Streets Taskforce.  Investigators seized four firearms, over five kilograms of cocaine, and roughly 150 grams of heroin as part of the case.  At sentencing, United States District Court Chief Judge Leonard P. Stark recognized that Wilson’s criminal conspiracy included acts of violence and witness intimidation.  Wilson’s sentence was enhanced because he intimidated witnesses through third parties. 

Evidence presented at Wilson’s trial and at sentencing showed that Wilson directed co-defendant Thomas Brooks and others to sell heroin and cocaine on a daily basis.  Evidence also demonstrated that Wilson conspired with others, such as Kenneth Flowers, to stash his drugs at secret locations.  As a result, at sentencing the Court found that Wilson shared responsibility for a drug stash house robbery on November 3, 2016, during which three people broke into Thomas Brooks’ residence, gunfire was exchanged, and one person was shot.  Wilmington Police Department responded and located a handgun, approximately 123 grams of cocaine and approximately 14 grams of heroin in the home. 

Flowers was sentenced last month to 32 months in prison for storing 4.6 kilograms of cocaine in his home for Wilson.  Brooks was sentenced to 15 years imprisonment last year.

U.S. Attorney Weiss stated, “This sentence demonstrates that leaders of drug trafficking organizations will be held accountable for the damage they do to our community.  We will continue to work with our federal partners and the Wilmington Police Department to identify, investigate, arrest, and convict criminals like Brian Wilson.

“I applaud the efforts of the Wilmington Police Department’s Drug, Organized Crime and Vice Division and the Criminal Investigations Division in working with our local law enforcement partners as well as with the FBI, ATF and US Marshals Service,” said Wilmington Police Chief Robert J. Tracy. “The result of this investigation is a prime example of how our collaborations bring criminals to justice and address issues that can impact the quality of life of our residents.”

David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after sentencing by Chief U.S. District Court Judge Leonard P. Stark.  Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe and Assistant United States Attorney Alexander S. Mackler prosecuted the case.  The FBI Delaware Violent Crime Safe Streets Taskforce is a part of the New Castle County HIDTA, comprised of the Delaware State Police, Delaware Department of Probation and Parole, New Castle County Police Department, University of Delaware Police Department, and Wilmington Police Department.    The FBI was assisted in this case by Wilmington Police Department and the Delaware Attorney General’s Office. 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District of Delaware for the District of Delaware or on PACER by searching for Case No. 1:16-cr-00093.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that on February 27, 2019, Elias K. Davie, age 37, was sentenced by U.S. District Court Judge Richard G. Andrews to 24 months incarceration.  Davie pled guilty to making false statements to a licensed firearms dealer in the acquisition of firearms. 

According to court filings, over a two-month period, Davie straw purchased three handguns for drug dealers, falsely representing that he was the actual purchaser when, in fact, he intended to transfer the firearms to drug dealers.  Thereafter, Davie attempted to straw purchase two additional guns for individuals that were prohibited from owning them. 

Following the sentencing, U.S. Attorney Weiss stated, “It is a violation of law to straw purchase firearms.  It is even more egregious to supply those firearms to drug dealers. This is a lethal combination and we will do our best to ensure that such defendants are held fully accountable for their conduct.”   

“Our mission is to protect communities from anyone using firearms to commit illegal and violent acts,” said ATF Baltimore Special Agent in Charge Cekada. “Those who aid felons by supplying them with guns and who criminally abuse the process of purchasing firearms must be held accountable for their role in threatening the safety of our communities.”

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Whitney Cloud and Laura D. Hatcher.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District of Delaware for the District of Delaware or on PACER by searching for Case No. 18-CR-4-RGA.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that E.M. Photonics, Inc. (“EMP”) and its Chief Executive Officer, Eric Kelmelis, have agreed to pay $2.75 million to resolve allegations that they violated the False Claims Act by seeking disbursements from federal agencies for falsified labor costs and duplicative work in order to maximize charges to contracts awarded by federal agencies.

As alleged in the settlement agreement, from January 2009 to April 2014, EMP received funds under seven different contracts and grants awarded through the federal Small Business Innovation (“SBIR”) and Small Business Technology Transfer (“STTR”) programs.  These two federal initiatives are the nation’s largest source of early stage/high risk funding for start-ups and small businesses.  To be eligible, the small business must be American-owned, organized as a for-profit entity, and have less than 500 employees.  There are eleven federal agencies that participate annually in the SBIR program and five that participate in the STTR program.  Here, the contracts and grants at issue were awarded by a variety of federal agencies, including the Department of the Navy; Defense Advanced Research Projects Agency; Department of the Air Force; Department of Energy; and the National Aeronautics and Space Administration.

The government alleged that Kelmelis and EMP engaged in two principle schemes to defraud the SBIR/STTR programs.  First, EMP and Kelmelis directed EMP employees, or caused others to direct EMP employees, to falsely complete timesheets for direct labor that the employees did not perform and submit false invoices and public vouchers to the funding agencies for direct labor that was not performed on these contracts and grants.  Second, EMP and Kelmelis sought and received SBIR/STTR funding for essentially equivalent work already performed and funded by another government agency and falsely certified that such work was, in fact, non-duplicative.  The government alleged that both of these schemes were designed to maximize charges to each contract or grant.

U.S. Attorney David C. Weiss said, “The SBIR and STTR programs are critical components to our government’s economic strategy to fuel innovative small businesses across the United States.  Any small business who seeks to participate in these programs must do so with integrity.  In this era of limited government resources, our Office is committed to ensuring that every dollar spent on these critical economic programs is properly used – the public demands nothing less.”

"One of the top investigative priorities of the Defense Criminal Investigative Service (DCIS) is to ensure the integrity of the U.S. Department of Defense's (DoD) procurement system, to include the DoD's research and development programs," stated Leigh-Alistair Barzey, Special Agent-in-Charge of the DCIS Northeast Field Office.  "The settlement agreement announced today is the result of a joint investigative effort and is demonstrative of the DCIS' ongoing commitment to work with its law enforcement agency partners and the U.S. Attorney's Office, District of Delaware, to identify those who submit false claims to the federal government in order to fraudulently receive SBIR and STTR funding."

"I applaud the outstanding efforts of our agents and law enforcement partners, who successfully investigated this matter and with this agreement highlight the importance of protecting federal research funds," said NASA OIG Special Agent in Charge, Curtis Vaughn.

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

This case was investigated by Assistant U.S. Attorneys Jamie M. McCall and Jennifer Hall.  This matter was investigated by multiple agencies, including the Defense Criminal Investigative Service, National Aeronautics and Space Administration's Office of Inspector General, Naval Criminal Investigative Service Northeast Field Office, U.S. Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, and U.S. Department of Energy's Office of Inspector General. 

WILMINGTON, Del.  – David C. Weiss, United States Attorney for the District of Delaware, announced today that the Honorable Richard G. Andrews sentenced former Wilmington Trust Chief Credit Officer William North, age 59, to 54 months’ imprisonment and a $100,000.00 fine.  Judge Andrews also sentenced former Wilmington Trust Controller Kevyn Rakowski, age 65, to 36 months’ imprisonment.

The sentencing hearings of North and Rakowski followed those of Robert Harra, age 69, the Bank’s former President; and David Gibson, the Bank’s former Chief Financial Officer, age 61.  On Monday, December 17, 2018, Judge Andrews sentenced both Harra and Gibson to 72 months imprisonment and a fine of $300,000.00.  The Court also ordered all four Defendants to agree to a ban from the banking industry and to surrender to the custody of the Bureau of Prisons by February 19, 2019.

A federal jury convicted each of the Defendants in May 2018, following a two-month trial.  The jury returned guilty verdicts on sixteen counts of the Third Superseding Indictment, including conspiracy, as well as fifteen fraud, false statements, and false entries offenses.  The jury also convicted Gibson on three additional counts of making false certifications in financial reports. 

At trial, the government proved that the defendants conspired to falsely report the Bank’s amount of past due loans to regulators, investors, and the public.  The government presented evidence that the Defendants caused the Bank to underreport approximately $300 million in past due loans in the Third and Fourth Quarters of 2009 in Call Reports and Monthly Regulatory Reports filed with the Federal Reserve and in Securities Filings with the Securities Exchange Commission.  The Bank used the false Securities Filings to raise $287 million in a February 2010 stock sale. 

When the Bank finally began reporting its past due loan information correctly in the Third Quarter of 2010, it recognized losses of over $370 million and its share price plummeted.  On November 1, 2010, M&T Bank announced that it had acquired Wilmington Trust at a sharply-discounted price.  The Wall Street Journal referred to the acquisition as “one of the biggest banking firesales in history.”  Over 700 Wilmington Trust employees lost their jobs as a result of the merger.

U.S. Attorney David C. Weiss stated, “Today’s sentencing hearings are the culmination of the multi-year investigation and trial of four of the top officers of the Wilmington Trust Corporation.  This landmark prosecution of the Bank’s President, Chief Financial Officer, Chief Credit Officer, and Controller sends a clear message that top corporate bankers cannot lie to their regulators and the public about important disclosures that affect the safety and soundness of banks and impact the decision of investors to buy or sell stock.  The Defendants’ actions contributed to the downfall of an important Delaware institution, causing hundreds of employees to lose their jobs and investors to lose hundreds of millions of dollars when the Bank’s stock price collapsed.  The sentences imposed by the Court appropriately punish the Defendants for their serious criminal conduct and strongly encourage other corporate executives to follow the law.  I am grateful to the prosecution team and our investigative partners for their steadfast commitment to this case and their unyielding efforts in bringing the Defendants to justice.” 

"The FBI applauds the sentencings as an affirmation of holding corporate executives to the same standard of accountability under the law as other criminals," said FBI Baltimore Special Agent in Charge Gordon Johnson.  "The FBI and its law enforcement partners here in Delaware will aggressively investigate crimes which take place in the corporate suites of banks and companies and hold those executives responsible for their actions when they betray their fiduciary responsibilities to their clients and investors." 

"TARP was created to stabilize banks, not to fund banks to engage in risky lending and then commit fraud to cover up bad loans,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Once again, SIGTARP’s investigation has revealed bank executives—like Wilmington Trust’s former President, former chief financial officer, former chief credit officer, and former controller sentenced to prison—who criminally concealed hundreds of millions in past due loans resulting from risky aggressive growth in the years leading up to the financial crisis.  Once again, courts are bringing justice through prison sentences for these crimes.  I want to express my appreciation to U.S. Attorney David Weiss, his dedicated team of prosecutors, and our other law enforcement partners that stood fast with SIGTARP to uncover the evidence and take this case to trial.”

“The sentences handed down in this case are direct results of the excellent partnership IRS-CI, our law enforcement partners, and the U.S. Attorney’s Office has in combating violations of federal law and ensuring public trust,” said Guy Ficco, Special Agent in Charge IRS Criminal Investigation (IRS-CI), Philadelphia Field Office.

“These sentencings send a clear warning that bank executives who deliberately deceive regulators by submitting false and misleading information will be held accountable and brought to justice for their actions. I am proud of our agents and their federal law enforcement partners, whose hard work and persistence ultimately led to these outcomes,” stated Mark Bialek, Inspector General, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-CFPB OIG).

This case was prosecuted by Assistant U.S. Attorneys Robert F. Kravetz, Lesley F. Wolf, and Jamie M. McCall, and investigated by the FBI, SIGTARP, IRS-CI, and FRB-CFPB OIG.

U.S. Attorney Weiss Statement regarding Robert Harra and David Gibson sentencings: https://go.usa.gov/xExMs.

WILMINGTON, Del. – The downfall of Wilmington Trust is a tragedy.  It’s a tragedy to the over 700 employees who lost their jobs as a result of the Bank’s fire-sale acquisition by M&T.  It’s a tragedy to those former employees who built the Bank into something to be proud of over the last century.  It’s a tragedy to this Community, which lost what was thought to be a stable employer and a gold-standard financial institution.  And it didn’t have to be.

Banks are entrusted with a fiduciary responsibility to safeguard their depositors’ funds. That is one of the primary reasons they are required to regularly file financial disclosures with the regulators responsible for ensuring the safety and soundness of those banks.  Similarly, a publicly traded company is required to make certain disclosures to the investing public. Regulators and the public look to these filings to make informed decisions. In so doing, they have an absolute right to expect that the financial information disclosed is accurate. To function effectively, both our regulatory system and our free market system demand it.  And the law requires it.

WTC’s 2009 filings with the SEC and the Federal Reserve were false. The Bank’s certified submissions grossly understated the quantity of past due loans on WTC’s books, and thereby misled regulators and the public about the financial health of WTC’s portfolio.  In particular, the 2009 year-end filings failed to disclose that the Bank had waived 300M in loans more than 90 days past due, and had mass extended another 800M in commercial loans without the proper due diligence. At the same time, the Bank went to the market and asked investors for $287MM in additional capital.

Robert Harra, as WTC’s President and Chief Operations Officer, established an aggressive sales culture that ignored sound risk assessment in commercial real estate lending.  As the economy turned, these practices came home to roost.  But rather than acknowledge the inability of these borrowers to repay their loans, Harra embraced the waiver practice as a means of concealing the trouble faced by the Bank.

David Gibson, as the Bank’s Chief Financial Officer, was the ultimate decision maker on financial reporting. He knew about the true condition of the commercial loan portfolio--- the hundreds of millions of dollars in past due loans that were not included in the 2009 filings with the SEC and Federal Reserve.  Nonetheless he certified the Bank’s financials as accurate and overstated the health of the loan portfolio, while marketing the stock offering to the investing public. 

These actions do not define defendants’ lives. As you’ve heard, they were successful and productive both professionally and personally.  They are supported by their family, friends and members of our community whose lives they impacted in positive ways.  But, they did violate the law. They committed serious federal crimes and failed in their responsibilities to the Bank, its employees and shareholders. Justice demands accountability. 

Ultimately, this case, like many other prosecutions is about the human cost of defendants’ actions—the 700 WTC employees who lost their jobs, the shareholders who lost their investments, and in some instances their life savings, the defendants’ families, and a community that lost a bank that had been a proud and successful institution for decades. 

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that on December 11, 2018, Wali Bey, a/k/a James Goodwyn,[1] age 58, of the Wilmington, Delaware, was sentenced to 90 months in prison after pleading guilty to conspiracy to distribute heroin.  At sentencing, U.S. District Judge Richard G. Andrews found that Bey knew that the heroin he was selling created an “extra risk” that someone might overdose and that the heroin Bey sold, in fact, contributed to a woman’s death. 

According to public court filings and the government’s arguments in open court, on November 25, 2016, Bey and another individual agreed to sell a small amount of heroin to a young woman.  After using the heroin, the woman overdosed and died. Her body was transported by wheelbarrow and car to the Edgemoor neighborhood in New Castle County where it was ultimately dumped.  Investigators worked quickly upon finding the body, ultimately tracking the source of the heroin back to Bey.  Bey told at least one customer that anyone using his batch of heroin needed to “ease into it.”  Moreover, after learning that someone died after using heroin sourced by him, Bey intended to continue to sell the deadly drug to others. 

U.S. Attorney Weiss said, “Now more than ever, our law enforcement partners on the First State Opioid Taskforce are working together to hold accountable those who profit from the death of others.”

This case was investigated by the Drug Enforcement Administration and the New Castle County Police Department, and was prosecuted by Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe. 

 

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[1] Mr. Bey was charged in this case under his previous name, James Goodwyn.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that on December 4, 2018, Quaheem Hall of Dover, Delaware, was charged by superseding indictment with distributing fentanyl that resulted in the deaths of two people within a span of five days in January 2017.  Hall was also charged with distributing heroin five times between August and September 2017, and possessing heroin in October 2017.  The distribution charges that led to the deaths of two individuals carry a mandatory minimum penalty of twenty years each, with a maximum of life imprisonment.  The remainder of the drug charges carry a penalty of up to twenty years of imprisonment. 

This case exemplifies the dangers presented by fentanyl, which is substantially stronger than heroin and is often mixed with heroin or substituted for heroin.  In 2017, more than 72,000 people nationwide died as a result of the opioid epidemic.  The victims in this case were two of 345 people to die of overdoses in the State of Delaware in 2017. 

U.S. Attorney Weiss said, “Knowingly distributing fentanyl is akin to committing a crime of violence.  This office will continue to work with our federal, state, and local law enforcement partners to disrupt the flow of heroin and illegal opioid drugs into our communities.”

This case was investigated by the Drug Enforcement Administration with assistance from the Dover Police Department and the Delaware State Police.  Assistant U.S. Attorneys Jennifer K. Welsh and Laura D. Hatcher are prosecuting this case.

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

 

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Navimax Corporation (“Navimax”), incorporated in the Marshall Islands with its main offices in Greece, was sentenced today to a $2,000,000 fine by United States District Court Judge Maryellen Noreika for a violation of the Act To Prevent Pollution From Ships (“APPS”), and obstruction of a Coast Guard investigation.  

The Act to Prevent Pollution from Ships is a codification of international treaties known as the “MARPOL Protocol.”  APPS applies to the handling and disposal of oily waste generated by ship machinery as well as oil cargo residue that results from cleaning oil cargo tanks.  To insure that oily waste is properly stored and processed at sea, all ocean-going ships entering U.S. ports must maintain an Oil Record Book in which all transfers and discharges of oily waste, regardless of the ship’s location in international waters, are fully recorded.

According to court documents and statements made in court, Navimax operated the Nave Cielo, a 750-foot long oil tanker.  In early December 2017, the U.S. Coast Guard boarded the vessel near Delaware City and was conducting a routine inspection when a crewmember gave the officers a thumb drive containing two videos, depicting a high-volume discharge of dark brown and black oil waste from a five-inch pipe, located 15-feet above water level.  Subsequent investigation disclosed that the approximate 10-minute discharge occurred on November 2, 2017, in international waters, after the ship left New Orleans en route to Belgium.  The day after the discharge, crewmembers cleaned oil from the decks and a crewman was lowered over the side of the vessel to clean oil from the hull.  During the Coast Guard inspection on December 7, 2017, the ship’s crew presented the ship’s Oil Record Book, which did not record this discharge.

“The Act to Prevent Pollution from Ships helps protect the precious ocean and marine resources of the United States from harmful pollution, and those who knowingly violate this law will be held accountable,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with the Coast Guard and our other law enforcement partners to ensure that individuals and corporations alike comply with the nation’s environmental laws.”

“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney for the District of Delaware David C. Weiss.  “The conviction and criminal fine, reinforced by a four-year term of probation, during which the defendant’s fleet of ships will be monitored, ensures that defendant is held accountable.  The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”  

“I am exceptionally pleased with the outcome of this case,” said Captain Scott Anderson, Commanding Officer of Coast Guard Sector Delaware Bay.  “Personnel at Sector Delaware Bay, Marine Safety Detachment Lewes, DE, the Coast Guard Investigative Service Philadelphia Office, and legal staffs dedicated countless hours conducting an extensive and detailed investigation and processing the case.  Outcomes like this help protect the environment by holding operators accountable for their actions.”

Navimax was ordered to pay the $2,000,000 fine immediately, and placed the company on probation for four years.  Also sentenced today for a violation of APPS was Roman Maksymov, the vessel’s former Chief Officer.  Maksymov was responsible for the proper handling of oily waste from the ship’s cargo holds and for recording any discharge of oil in the Oil Record Book.

This case was investigated by the U.S. Coast Guard Sector Delaware Bay and the Coast Guard Investigative Service.  The case was prosecuted by Assistant U.S. Attorney Edmond Falgowski and Trial Attorney John Cashman in the Environmental Crimes Section of the Department of Justice.

NOTE: Court-filed video footage of Navimax’s illegal discharging of oily waste can be found here and here.

The U.S. Department of Justice today announced that Navimax Corporation, incorporated in the Marshall Islands with its main offices in Greece, was sentenced to a $2,000,000 fine by a federal district court for violating the Act to Prevent Pollution from Ships and obstructing a Coast Guard investigation.  

The Act to Prevent Pollution from Ships is a codification of international treaties known as the “MARPOL Protocol.”  To ensure that oily waste is properly stored and processed at sea, all ocean-going ships entering U.S. ports must maintain an Oil Record Book in which all transfers and discharges of oily waste, regardless of the ship’s location in international waters, are fully recorded.

According to court documents and statements made in court, Navimax operated the Nave Cielo, a 750-foot long oil tanker.  Prior to a formal inspection on December 7, 2017, the U.S. Coast Guard boarded the vessel near Delaware City when a crewmember gave the officers a thumb drive containing two videos, depicting a high-volume discharge of dark brown and black oil waste from a five-inch pipe, located 15-feet above water level.  Subsequent investigation during a more comprehensive inspection on December 7, 2017, disclosed that the approximately 10-minute discharge occurred on November 2, 2017, in international waters, after the ship left New Orleans en route to Belgium.  During the Coast Guard boarding on December 7, 2017, crewmembers presented the ship’s Oil Record Book, which did not record this discharge.

“The Act to Prevent Pollution from Ships helps protect the precious ocean and marine resources of the United States from harmful pollution, and those who knowingly violate this law will be held accountable,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with the Coast Guard and our other law enforcement partners to ensure that individuals and corporations alike comply with the nation’s environmental laws.”

“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney for the District of Delaware David C. Weiss.  “The conviction and criminal fine, reinforced by a four-year term of probation, during which the defendant’s fleet of ships will be monitored, ensures that defendant is held accountable.  The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”  

“I am exceptionally pleased with the outcome of this case,” said Captain Scott Anderson, Commanding Officer of Coast Guard Sector Delaware Bay.  “Personnel at Sector Delaware Bay, Marine Safety Detachment Lewes, DE, the Coast Guard Investigative Service Philadelphia Office, and legal staffs dedicated countless hours conducting an extensive and detailed investigation and processing the case.  Outcomes like this help protect the environment by holding operators accountable for their actions.”

The district court ordered Navimax to pay the $2,000,000 fine immediately and placed the company on probation for four years.  

This case was investigated by the U.S. Coast Guard Sector Delaware Bay and the Coast Guard Investigative Service.  The case was prosecuted by Trial Attorney John Cashman in the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resources Division and by Assistant U.S. Attorney Edmond Falgowski.

WILMINGTON, Del. – On November 30, 2018, Dr. Zahid Aslam and Fast Care Medical Aid Unit, LLC (dba Got-A-Doc Walk-In Medical Centers) pleaded guilty to Making a False Statement to a Financial Institution and Health Care Fraud, respectively.  The plea agreements are part of a global settlement with the government in which Dr. Aslam has also agreed to pay $3.07 million to resolve his civil liability resulting from the operation of two of his medical practices, Fast Care and Amna Medical Center, LLC (dba Alpha Medical Center).  The announcement was made today by United States Attorney David C. Weiss of the District of Delaware.

Dr. Aslam pleaded guilty to Making a False Statement to a Financial Institution for making a materially false statement in a loan application.  The government alleged that Dr. Aslam recruited a nominee borrower to sign a loan application to WSFS Bank because Aslam knew that he would not qualify for a loan given his credit score. The government further charged that the loan application falsely stated that the nominee borrower was the owner of Tri-State MRI & Imaging, LLC, which was in fact controlled by Dr. Aslam, and also falsely stated that the nominee had funded construction costs for the business.  Dr. Aslam is scheduled to be sentenced ‪May 22, 2019.

On the same day, Fast Care, another medical business controlled by Dr. Aslam, pleaded guilty to one count of Health Care Fraud.  Fast Care owns and operates multiple walk-in medical centers in Delaware and Maryland doing business as "Got-A-Doc Walk-In Medical Centers."  The government alleged that Fast Care submitted claims to Medicare for services that falsely stated the services were rendered by a physician, when in many cases the services were performed by a physician assistant, which is reimbursed by Medicare at a lower rate.  In accordance with Fast Care’s plea agreement with the government, the U.S. District Court for the District of Delaware imposed a fine of $100,000.

As part of the global resolution with the government, Dr. Aslam also entered into a civil settlement agreement under which he agreed to pay $3.07 million to the federal government, the State of Delaware, and the State of Maryland to resolve claims that he caused Fast Care and Amna Medical Center to submit false claims to government health care programs.  Amna Medical Center is also controlled by Dr. Aslam and does business under the name "Alpha Medical Center."  The civil settlement resolved allegations that Fast Care and Amna Medical Center submitted claims for services to government health care programs for laboratory services that were not medically necessary, did not qualify for payment, and/or were not provided; medical and/or counseling services that listed the wrong rendering provider and/or did not qualify for payment because they were not rendered by an eligible provider; and medical services that listed the wrong service performed and/or lacked documentation to support the claimed service.  The federal share of the civil settlement is $1.72 million, and the state Medicaid share of the civil settlement is $1.37 million.

Additionally, Dr. Aslam has agreed to be excluded from Medicare, Medicaid, and all other Federal health care programs.  He has also agreed to surrender his medical licenses.

"My office is committed to combatting financial fraud, whether it affects our nation’s financial institutions or our government healthcare programs," said United States Attorney David Weiss.  "We will continue to hold both companies and individuals accountable, using all of the criminal and civil remedies available to us."

"Patients should receive medical services that are necessary, and provided according to Medicare rules," said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  "Dr. Aslam has been brought to justice and my agency has barred him from billing Medicare, Medicaid, and all other federal healthcare programs."

Except for the conduct admitted in connection with the criminal pleas, the claims resolved by the civil agreement are allegations only, and there has been no determination of civil liability.

The global resolution was handled by the U.S. Attorney’s Office for the District of Delaware, the State of Delaware Medicaid Fraud Control Unit, the State of Maryland Medicaid Fraud Control Unit, and the HHS Office of the Inspector General.  This matter was investigated by the FBI, the IRS – Criminal Investigation Division, the HHS Office of the Inspector General, and the Delaware Medicaid Fraud Control Unit.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that on November 29, 2018, Roger Mercedes, age 30, of the Bronx, New York, was sentenced to 24 months in prison after pleading guilty to conspiracy to commit fraud stemming from a plan to sell seven (7) kilograms of fake cocaine in Delaware.

According to public documents and arguments in open court, Mercedes met someone he believed was a cocaine trafficker and hatched a plan to sell that cocaine trafficker fake cocaine for $137,500.  The cocaine trafficker turned out to be an informant working for the Drug Enforcement Administration (“DEA”).  Mercedes met the informant in Florida and, over the course of the next several months, sold the informant a “sample” of cocaine in New Jersey.  As part of the negotiations surrounding a large cocaine transaction to take place in Delaware, Mercedes sent the informant a homemade video of what appeared to be twenty (20) kilogram bricks of cocaine in an apartment. 

Mercedes organized the entire transaction and conspired with three other men to drive down to Delaware and sell the fake cocaine.  On November 9, 2017, Mercedes and the three other men were arrested in Newark, Delaware.  A suitcase containing seven (7) fake kilogram bricks of cocaine was seized. 

U.S. Attorney Weiss said, “Drug transactions, real or fake, threaten the safety and security of our community.  Transactions designed to rip off would-be illegal drug purchasers are particularly dangerous.  These perpetrators must be held accountable.”

This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim and Special Assistant U.S. Attorney Christopher de Barrena-Sarobe.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that on October 23, 2018, Robin Cintron-Pratts a/k/a Emanuel Jimenez was charged by Second Superseding Indictment with participating in a conspiracy to distribute drugs that resulted in the death of Joel Davis.  The conspiracy is alleged to have lasted from at least January 2017 through March 2017, and to involve 100 grams or more of heroin and an amount of fentanyl. 

The Second Superseding Indictment alleges that Cintron-Pratts was a drug supplier who, through a chain of sub-distributors, provided Joel Davis, a 28 year old Newark man, with baggies of fentanyl that caused his death.  He is further alleged to have provided large quantities of heroin to at least one customer over the course of several months.  More details regarding the allegations are included in the attached Second Superseding Indictment.  The mandatory minimum penalty for conspiracy to possess with intent to distribute heroin/fentanyl that results in the death of another person is twenty years with a maximum penalty of life.

This case illustrates the dangers presented by fentanyl, a synthetic opioid, that is often mixed with heroin without the knowledge of the drug user.  Joel Davis was one of 72,000 overdose deaths nationwide in 2017 and one of 345 people to die of a drug overdose in the State of Delaware that year. 

Fentanyl-laced heroin overdoses have created a public health emergency in Delaware, and that emergency demands a multi-faceted response. Law enforcement needs to be a critical part of this response.  Working with its law enforcement partners statewide, the United States Attorney’s Office has established the First State Overdose Task Force to address this crisis.  The Task Force Officers (TFOs) will consist of state and local law enforcement representatives across Delaware who will be federally deputized and supervised by the Drug Enforcement Administration.  These TFOs will interface with patrol officers working in their home agencies to ensure that overdose deaths are investigated thoroughly, starting with the crime scene.   A goal of the Task Force is to work “up the chain” to identify major drug suppliers like Cintron-Pratts, whose distribution of drugs cause deaths.

The charges in the Cintron-Pratts Second Superseding Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.  The Cintron-Pratts case was investigated by the Drug Enforcement Administration with assistance from the Newark Police Department and the New Castle County Police Department.  This case is being prosecuted by Assistant U.S. Attorney Jennifer K. Welsh.

WILMINGTON, Del. – Ho Ka Terence Yung – a former student at the University of Texas Law School – entered a guilty plea yesterday to one count of cyber stalking, announced U.S. Attorney David C. Weiss.  Sentencing has been scheduled for February 27, 2019 before Chief Judge Leonard P. Stark of the District of Delaware.  

Yung’s plea stems from conduct that one federal judge referred to as a “protracted, elaborate, and brutal effort to engage in the online destruction of an innocent victim and his family.”   And it all started with a law school interview.  

In 2014, Yung applied for admission to a top national law school.  As part of the law school’s admission process, he interviewed with an alumnus in Delaware – a person referred to in the Indictment as “Victim 1.”  Yung performed poorly in this interview and the law school denied his application a week later.

Despite gaining acceptance to the University of Texas Law School, Yung embarked on a cyber stalking campaign to harass and intimidate Victim 1 and his family.  Yung repeatedly published violent and sadistic statements about Victim 1 on the Internet – including descriptions of rape, lynching, sexual molestation, and graphic violence.  As just one example, the defendant posted a false story about Victim 1 on a public website, which involved the abduction of an eight-year old girl from an elementary school.   In this story, the defendant described kidnapping the little girl at gunpoint, cutting off her clothes with a knife, and raping her.

Yung also repeatedly posted personal ads on Craigslist and other websites with the intent that individuals interested in violent and sadistic sexual activity would go to Victim 1’s residence in the middle of the night.  For example, on October 29, 2015, the defendant posed as a “cute blonde hottie” and posted an ad on Craigslist stating, among other things:  

i need a big strong man to dominate me tonight . . . i like it when a man puts his hand around my throat and threatens me with a knife . . . then you pull my hair and take out your gun and threaten me . . . i’m a bad girl, and I need to be punished by a big strong man.  send me a picture with you holding your gun. all others will be ignored.

Notably, the above ad was published a day after local police stopped a man outside of Victim 1’s residence in the middle of the night, who was looking for Victim 1’s wife.   He was responding to a similar Craigslist ad and the defendant directed him to Victim 1’s residence.

Following a months-long investigation by the FBI - Wilmington Resident Office, and the U.S. Attorney’s Office, Yung was arrested in Austin, Texas in February 2017.   He has been detained since and remains so pending sentencing.

U.S. Attorney Weiss stated the following, “Cyberstalking is a form of stalking that involves the use of technology as the means to instigate psychological violence against another person.   The defendant’s conduct offers a disturbing example of the destructive potential of the Internet and social media.  For 18 months the defendant pursued a sustained, sadistic course of conduct designed to terrorize his victim and the victim’s family—all because the defendant was denied admission to the law school of his choice.  Our office continues to fight for victims who are tormented by those who seek to use the Internet and social media for such destructive purposes.  The defendant must be held accountable for the damage he inflicted.”

The case is being prosecuted by Assistant U.S. Attorney Shawn A. Weede.   In addition, Assistant U.S. Attorney Matthew B. Devlin, from the Western District of Texas, provided significant assistance in the matter.

WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Robert Shepherd III, 42, of Philadelphia, PA, pled guilty to conspiracy to distribute cocaine.  Shepherd was the final defendant to be convicted in “Operation French Connection,” an FBI investigation that led to the prosecution of seven defendants in federal court.  Just four weeks ago, Defendants Brian Wilson, a/k/a “Fudayl Wakim” and Mark Bower, a/k/a Kenneth Flowers, were convicted of similar charges after a week-long jury trial.  Shepherd, Wilson, and Flowers are expected to be sentenced in early 2019.

The convictions are the result of a long-term New Castle County High Intensity Drug Trafficking Area (“HIDTA”) investigation spearheaded by the FBI Delaware Violent Crime Safe Streets Taskforce.  Investigators seized four firearms, over five kilograms of cocaine, and roughly 150 grams of heroin as part of the case. 

U.S. Attorney Weiss stated, “A significant drug distribution network has been removed from the streets of Wilmington.  The conviction of these three defendants is a result of the tremendous cooperation between the FBI, the Wilmington Police Department, and our HIDTA partners. 

The FBI Delaware Violent Crime Safe Streets Taskforce is a part of the New Castle County HIDTA, comprised of the Delaware State Police, Delaware Department of Probation and Parole, New Castle County Police Department, University of Delaware Police Department, and Wilmington Police Department.    The Delaware Department of Justice also assisted in this case.  The case is being prosecuted by Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe and Assistant U.S. Attorney Alexander S. Mackler.

WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that on October 4, 2018, Tromar Mapp, age 30, of Seaford, Delaware, was sentenced to 80 months in prison for dealing heroin and possessing a handgun in furtherance of drug trafficking. 

According to documents and arguments discussed in open court, Mapp sold heroin out of the Seaford home he shared with his fiancée and four-year-old son.  The evidence further demonstrated that Mapp was willing to use guns to further his drug trade. He kept a handgun with an extended magazine in his home and he sent text messages to a drug customer threatening to shoot that customer for failure to pay a drug debt.

U.S. Attorney Weiss said, “The defendant presented a danger to his community, both by selling potentially deadly heroin and by possessing a gun in furtherance of his drug dealing.  We will aggressively pursue such defendants and do our best to insure that they are held accountable for their conduct.” 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Delaware State Police and the Seaford Police Department.  This case was prosecuted by Assistant U.S. Attorneys Jennifer K. Welsh and Alexander Mackler.

WILMINGTON, Del.  – David C. Weiss, United States Attorney for the District of Delaware, announced that a federal grand jury returned a four-count indictment charging six Delaware men with violent acts that led to the death of an individual identified in the Indictment as “Victim 1,” and grave injury to a Wilmington six-year-old last June.

According to the Indictment, the defendants— Ryan Bacon, Dontae Sykes, Dion Oliver, Maurice Cooper, Michael Pritchett, and Teres Tinnin—stalked an enemy of theirs from May 6 onward.  On June 6, several members of the group waited outside their target’s apartment.  They ultimately followed and kidnapped Victim 1, the target’s partner, and used her phone to lure the target out of the apartment.  They shot at the target, missing him, with Victim 1 in the trunk of one of their cars.  The group then transferred Victim 1 from the trunk of one car to another, and two defendants—Bacon and Sykes—drove Victim 1 to Elkton, Maryland, where Victim 1 was shot five times and killed.

The Indictment describes that the group subsequently realized their target was still alive and proceeded to Wilmington.  Three of the defendants—Pritchett, Oliver, and Cooper—followed their target into Wilmington, located him near the corner of 6th and Spruce Streets, and shot at him multiple times, again missing him.  One shot hit a six-year-old, who was in a nearby car, in the head.  The child remains permanently and seriously injured.

If convicted of kidnapping as charged in the Indictment, the defendants face a mandatory term of life imprisonment.  If convicted of stalking, the defendants face a maximum of 10 years in prison.

U.S. Attorney Weiss said, “This case is the product of an unprecedented degree of cooperation between the USAO, the Delaware Attorney General’s Office, and federal, state, and local law enforcement.  The teamwork exhibited by the prosecutors and law enforcement agencies that led to this Indictment is emblematic of the U.S. Department of Justice’s PSN Initiative.

One year ago, Attorney General Sessions recommitted the Department of Justice to Project Safe Neighborhoods, PSN, and directed United States Attorneys to work with federal, state and local law enforcement and community partners to reduce violent crime and to make our communities safer. These partnerships lie at the heart of PSN. When effective, they allow law enforcement to formulate a comprehensive, coordinated approach to violent crime, targeting the most violent offenders and the most dangerous communities. 

In 2018, our PSN efforts in Delaware have focused in Wilmington, in particular West Center City. Crime throughout the city of Wilmington is down in virtually each key violent crime metric.

Shootings are down by 60%. Shooting homicides are down by 44%. Rape is down 75%, Robbery is down 11%, and the homicide-clearance rate is about 62%, up from a clearance rate of 11% several years ago. In West Center City, we have achieved similar results.  For example, last year at this time there were 20 shooting victims in West Center City.  This year, there have been four.”

Criminal indictments are only allegations and are not evidence of guilt.  Defendants are presumed to be innocent unless and until proven guilty.

The case is being prosecuted by First Assistant United States Attorney Shannon Hanson, Assistant United States Attorneys Alexander Mackler, Adrienne Dedjinou, and Maureen McCartney, and Special Assistant United States Attorney Mark Denney.

WILMINGTON, Del.  – David C. Weiss, United States Attorney for the District of Delaware, announced today that the United States Court of Appeals for the Third Circuit affirmed the criminal convictions and life sentences of David T. Matusiewicz and Amy Gonzalez for their roles in stalking and killing Christine Belford in the New Castle County Courthouse in February 2013.  After killing Ms. Belford and her friend, Laura “Beth” Mulford in the Courthouse, the Defendants’ father, Thomas Matusiewicz, took his own life following a gun battle with Delaware Capitol Police Officers. Defendants’ mother, Lenore Matusiewicz, was also convicted and sentenced to life in prison for her role in this crime, but died while her appeal was pending.

Following a five week jury trial in the summer of 2015, Defendants were convicted of all charges, including cyberstalking resulting in death.   This was the first such case in the history of the nation.

In a seventy-seven page precedential opinion, a unanimous panel of the Court of Appeals affirmed these convictions and sentences “in all respects” and specifically recognized the trial judge for handling this  “complicated case” – involving “numerous issues of first impression” – with “exceptional precision and care.”  Regarding the landmark charge of “cyberstalking resulting in death,” the Third Circuit concluded that the Government sufficiently proved its case, stating that the defendants stalking conduct was the “actual” and proximate” cause of Ms. Belford’s death. 

The Court specifically found David’s conduct included, among other things:

directing his family to send letters to Belford’s acquaintances accusing Belford of sexual abuse; setting up the in-person court hearing that brought Belford to the courthouse where Thomas shot her; lying to probation officers about the need to attend the hearing in person; and traveling from Texas to Delaware in two vehicles that were filled with numerous weapons.

The Court specifically found Amy’s conduct included, among other things:

spreading false accusations of child abuse by creating online postings and YouTube videos, and sending defamatory emails and letters to Belford’s acquaintances; preparing false polygraph reports about these accusations; recruiting third parties to surveil and report on Belford and the children; providing Thomas with temporary cell phone number and cleaning his safe when he traveled to Delaware in 2011 and showed up at Belford’s house; and filing numerous petitions for custody of the children beginning two days after Belford was killed.

Ultimately, the Court found that there was “overwhelming, uncontradicted evidence” that the accusations against Ms. Belford were false and that “both David and Gonzalez were intimately involved in this stalking campaign and conspiracy.” 

United States Attorney Weiss stated the following: “As the Court of Appeals observed, this is a watershed case of national importance.  Cyberstalking is a form of psychological terror that deeply impacts its victims.  Individuals who engage in such conduct are on notice that the Department of Justice will prosecute them to the fullest extent of the law.  This outcome can never bring back Christine Belford and her courageous friend, Laura ‘Beth’ Mulford, or compensate their families for their loss – but it does rightly hold those responsible for these heinous acts.  I want to thank once again the Federal Bureau of Investigation and Delaware State Police for their superb investigative work in this matter.”

This case was prosecuted by Assistant United States Attorneys Jamie M. McCall and Shawn A. Weede, former Assistant U.S. Attorney Edward J. McAndrew, and investigated by the Federal Bureau of Investigation and the Delaware State Police. 

WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Malik Nasir, age 37, of Dover, Delaware, was sentenced on August 24, 2018 to 17 ½ years in federal prison for illegally possessing five (5) firearms after a prior federal and state drug and gun felony convictions.  Nasir was also found guilty of possession with intent to deliver $12,000 worth of marijuana seized from his storage unit in Dover and a related charge for maintaining that storage unit for the purpose of illegal drug distribution.  

Nasir was convicted following a two day federal jury trial in June 2017.  According to court documents and proof offered at trial, the Delaware State Police (“DSP”) obtained a search warrant for Nasir’s storage unit in Dover in December 2015, after DSP receiving numerous complaints regarding suspicious activity in and around the unit.  While officers were preparing to search, Nasir drove to the storage unit and was arrested there.

Arresting troopers located a duffel bag in Nasir’s car containing marijuana residue and a key to the storage unit.  Using the key, the troopers opened the storage unit and seized $12,000 worth of marijuana found inside.

When subsequently searching Nasir’s second car (a 2009 Dodge Charger), the troopers found and seized five handguns—four of which were loaded and one of which had been reported as stolen—and 223 rounds of ammunition.  Nasir was prohibited from possessing any firearms due to his prior state and federal felony convictions.

U.S. Attorney Weiss said, “The defendant’s decision to illegally possess multiple guns while engaging in the illicit drug trade represents a significant safety concern to the citizens of Delaware.  This prosecution serves notice of the effectiveness of federal and state law enforcement working together to protect this community and hold gun offenders accountable.”

Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division said, “Mr. Nasir was previously convicted for drug and gun crimes, and shows his continued disregard for both the law and the well-being of others by choosing to distribute drugs into Delaware communities, along with his illegal possession of firearms.  The investigative work done on this case by ATF Special Agents and our Delaware State Police partners, as well as prosecution by the U.S. Attorney’s Office, has undoubtedly made the citizens of Delaware safer.”

This case was investigated by the Delaware State Police and the ATF Baltimore Field Division, Wilmington Field Office and was prosecuted by Assistant U.S. Attorney Daniel Logan. 

WILMINGTON, Del. – Two men who robbed twenty stores in Delaware, Pennsylvania, and Maryland were sentenced today.  Chief U.S. District Court Judge Leonard P. Stark sentenced Michael Kolmonen to 15 years in prison and Brian Branch to 16½ years in prison.

In the summer and fall of 2016, Branch and Kolmonen combined to rob twenty (20) stores, almost all of them together.  In almost every robbery, Branch entered the store, brandished a gun, and demanded money from the register.  The two men victimized thirty (30) people, most of whom were teenagers or the elderly.  The victims were as young as 17 and as old as 76 years old.  They robbed:

1.         BP, 2360 Pulaski Highway, New Castle, DE

2.         Walgreens 4114 Ogletown-Stanton Rd, Newark, DE

3.         Walgreens 1500 Beaverbrook Plaza, New Castle, DE

4.         Walgreens 2608 Naamans Creek Road, Boothwyn, PA

5.         Walgreens 19 Marrows Road, Newark, DE

6.         Rite Aid 738 Pulaski Highway, Elkton, MD

7.         Walgreens 2719 Pulaski Highway, Newark, DE

8.         Walgreens 372 Possum Park Road, Newark, DE

9.         CVS 366 East Chestnut Hill Road, Newark, DE

10.       CVS 1545 Pulaski Highway, Bear, Newark, DE

11.       Dunkirk Liquors 2 Dunlinden Drive, Wilmington, DE

12.       Walgreens 1508 Philadelphia Pike, Wilmington, DE

13.       Walgreens 1120 Pulaski Highway, Bear, Newark, DE

14.       Walgreens 2608 Naamans Creek Road, Boothwyn, PA

15.       Walgreens 301 East Pulaski Highway, Elkton, MD

16.       Rite Aid 501 East Basin Road, New Castle, DE

17.       Papa John’s 529 East Basin Road, New Castle, DE

18.       Rite Aid 4607 Stanton-Ogletown Road, Newark, DE

19.       CVS 366 East Chestnut Hill Road, Newark, DE 

20.       Valero Shore Stop, 796 N. Old Baltimore Pike, New Castle, DE

In sentencing the defendants, Chief Judge Stark stated that the defendants engaged in a “reign of terror for several months and both defendants had equal roles in it.” 

“These robberies were particularly brazen; the defendants robbed stores in broad daylight and their victims were often the most vulnerable among us—employees whose only crime was trying to make a living,” U.S. Attorney Weiss said. “This case was cracked because of the outstanding work of the Delaware State Police and the FBI Baltimore, Wilmington Office.  They, like our office, are dedicated to rooting out violent crime and catching anyone who threatens our communities.”   

Colonel Nathaniel McQueen Jr., Superintendent of the Delaware State Police shared, “The sentencing hearings were centered around the victims, and the lasting effect that these violent crimes had and will continue to have on their lives going forward.  The investigation, arrest and successful prosecution of these individuals was a direct result of our continued partnerships with federal, state, and local jurisdictions in Delaware, Maryland, and Pennsylvania.  There is no doubt that the open communication and coordination of resources throughout these agencies prevented others from being victimized.”

"Serial armed robbers like Mr. Kolmonen and Branch require more than ever close collaboration between the FBI and our local and state law enforcement partners to bring them to justice," said Gordon B. Johnson, Special Agent in Charge of the Baltimore FBI. “I am extremely proud of the collaborative effort put forth in order to ensure these defendant were brought to justice and will no longer be able to terrorize or threaten the hardworking citizens and businesses in both Delaware and Pennsylvania. The citizens of Delaware have the FBI’s commitment that we will work with our local, state and federal partners to remove violent criminals from their neighborhoods.”

This case was investigated by the FBI Baltimore, Wilmington Office, the Delaware State Police, Upper Darby (PA) Police Department, and Elkton (MD) Police Department.  Assistant U.S. Attorney Alexander S. Mackler prosecuted the case.

WILMINGTON, Del. – A Wilmington, Delaware man was sentenced to 210 months in prison on Wednesday, July 25, 2018, for possessing child pornography he produced himself, announced U.S. Attorney David C. Weiss of the District of Delaware.

Miguel Pagan, 37, pleaded guilty to one count of possessing child pornography on April 25, 2018.  U.S. District Judge Gregory M. Sleet of the District of Delaware sentenced Pagan to serve 210 months in prison followed by 10 years of supervised release.  According to admissions made as part of his guilty plea, law enforcement found Pagan in possession of child pornography that he produced in his own bedroom using two prepubescent children.

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware State Police investigated this case. Assistant U.S. Attorney Graham L. Robinson 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 Dover, Delaware man was sentenced to 25 years in prison today for production of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney David C. Weiss of the District of Delaware.

Daniel Arthur Hill, 30, pleaded guilty to two counts of production of child pornography on Nov. 9, 2017.  U.S. District Judge Gregory M. Sleet of the District of Delaware sentenced Hill to serve 300 months in prison followed by 15 years of supervised release.

According to admissions made as part of his guilty plea, Hill was arrested by the Delaware State Police Department for solicitation of a minor on Dec. 16, 2015.  Hill had met a person online who he believed was a 14-year-old girl and with whom he had arranged to engage in sexual intercourse.  Following his arrest, a court-authorized search of Hill’s electronic devices revealed evidence that Hill had produced images of child pornography depicting two minors under the age of 12.  Hill had also distributed child pornography to others via online chat groups. On Aug. 11, 2016, Hill was indicted in the U.S. District Court for the District of Delaware for enticement of a minor and for possession, production, and distribution of child pornography. 

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware State Police investigated this case. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Graham L. Robinson of the District of Delaware prosecuted the case.  CEOS Trial Attorney Kathryn Furtado also served as a vital member of the prosecution team at earlier stages of the litigation.

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 Dover, Delaware man was sentenced to 25 years in prison today for production of child pornography, announced U.S. Attorney David C. Weiss of the District of Delaware.

Daniel Arthur Hill, 30, pleaded guilty to two counts of production of child pornography on Nov. 9, 2017.  U.S. District Judge Gregory M. Sleet of the District of Delaware sentenced Hill to serve 300 months in prison followed by 15 years of supervised release.

According to admissions made as part of his guilty plea, Hill was arrested by the Delaware State Police Department for solicitation of a minor on Dec. 16, 2015.  Hill had met a person online who he believed was a 14-year-old girl and with whom he had arranged to engage in sexual intercourse.  Following his arrest, a court-authorized search of Hill’s electronic devices revealed evidence that Hill had produced images of child pornography depicting two minors under the age of 12.  Hill had also distributed child pornography to others via online chat groups. On Aug. 11, 2016, Hill was indicted in the U.S. District Court for the District of Delaware for enticement of a minor and for possession, production, and distribution of child pornography. 

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware State Police investigated this case. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Graham L. Robinson of the District of Delaware prosecuted the case.  CEOS Trial Attorney Kathryn Furtado also served as a vital member of the prosecution team at earlier stages of the litigation.

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, United States Attorney for the District of Delaware, announced that Candy Miller, age 40, of Wilmington, Delaware, was sentenced yesterday by U.S. District Court Chief Judge Leonard P. Stark for filing a false tax return to one year and one day of incarceration. 

According to statements made at sentencing and documents filed in court, Miller, who operated a Psychic Readings business in Wilmington, filed false tax returns for the years 2010, 2011, and 2012, underreporting her total income by $1,074,000.   This unreported income was received from clients of Miller’s business who were told by Miller that she was removing the negativity from their lives by anonymously donating their money to charities, selected by Miller.  In fact, Miller made no donations and spent all the money on personal expenses.  The offense resulted in a total tax loss of $337,430.

Following the sentencing, U.S. Attorney Weiss stated, “Criminal tax laws are designed to protect the public interest in preserving the integrity of the nation’s tax system.  Here, the source of the unreported income came from unwitting customers whom Miller duped.  My office will continue to fight against abuse of our tax system and to seek sentences that serve to act as deterrents to would-be tax cheats and those who defraud the public.” 

“We should not forget that the ultimate victims in tax fraud cases are the people of the United States; those honest taxpayers who diligently file and pay their taxes each year,” said IRS Criminal Investigation Special Agent-in-Charge Guy Ficco.  Miller’s sentence is a reminder that IRS-CI is working to make sure that all taxpayers file and pay their fair share of taxes.”

This matter was investigated by the Internal Revenue Service - Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Edmond Falgowski.

WILMINGTON, Del. — Today, and for the third time in two years, U.S. Attorney David C. Weiss for the District of Delaware and U.S. Immigration and Customs Enforcement (ICE) returned a more than 500-year-old copy of a Christopher Columbus’ letter describing his discoveries in the Americas to the Vatican during a morning repatriation ceremony at the Biblioteca Apostolica Vaticana (the “Vatican Library”) in Vatican City.  The letter, originally written in 1493, was stolen from the Vatican Library and later sold in 2004 for approximately $875,000.

In or around December 1921, the Superior General of the Society of Jesus donated a copy of the Columbus Letter (along with thousands of other rare books and manuscripts) to Pope Benedict XV.  The Columbus Letter was preserved in the Vatican Library.  After receiving a copy of the Columbus Letter, at no time did the Vatican City State or the Vatican Library relinquish title to this document.  In or around 1934, a detailed description of the Vatican Library’s copy of the Columbus Letter was catalogued in the census copies of the standard bibliography of 15th century printing, otherwise known as the Gesamtkatalog der Wiegendrucke (volume VI, Leipzig, 1934, no. 7177).  At an unknown time and date, the Columbus Letter was stolen from the Vatican Library and replaced with a forgery, which was designed to appear like the original letter.

Like the prior recovered letters, the return of the Vatican’s Columbus Letter followed a multi-year joint investigation conducted by ICE’s Homeland Security Investigations (HSI) and the U.S. Attorney’s Office in Delaware.   After receiving a tip that the Vatican Library’s letter was stolen and replaced with a forgery, law enforcement determined that the original letter was located in a private art collector’s personal collection in Atlanta, Georgia.  The investigation determined that this individual purchased the stolen Columbus Letter in good faith during a February 2004 transaction worth $875,000. 

In April 2017, following negotiations between the U.S. Attorney’s Office and representatives for the individual in possession of the letter, the parties agreed to permit a subject matter expert to inspect and compare both the Columbus Letter in Atlanta against a copy of the Columbus Letter  in the Vatican Library’s possession.  The expert determined that the Columbus Letter located in Atlanta was, in fact, the original Columbus Letter that belonged to the Vatican Library, and that the copy in the Vatican Library’s possession was a forgery. Following this analysis, the person in possession of the Columbus Letter in Atlanta voluntarily agreed to relinquish title and interest in the Columbus Letter.

“This marks the third time in two years that agents from HSI, along with prosecutors from the U.S. Attorney’s Office for the District of Delaware, have partnered to return these precious letters documenting Columbus’ journey back to their rightful home,” said U.S. Attorney Weiss.  “It is only through our strong federal law enforcement partnerships that we are able to combat these cross-border crimes that rob every one of these world treasures.  I truly commend the efforts of everyone involved in this case.”

Ambassador Callista L. Gingrich of U.S. Embassy to the Holy See said, “The Columbus Letter, written in 1493, is a priceless piece of cultural history.  I am honored to return this remarkable letter to the Vatican Library – its rightful owner.”

Vatican Librarian Archbishop Jean-Louis Bruguès said, “We are extremely grateful to be able to reinsert this volume in its rightful place in De Rossi’s collection, where it will remain at the disposal of the researchers who come from around the world to study the collections of the Vatican Library.”

“Homeland Security Investigations is dedicated to investigating those who pilfer history's most important records and chronicles and retuning those antiquities, like this Columbus Letter, back to their rightful owner nations,” said Special Agent in Charge Marlon V. Miller of HSI Philadelphia.  “This effort is of utmost importance, not only to the special agents who investigate these crimes, but to the global community at large.  “Let this repatriation signal our continued commitment to these investigations, and serve as a testament to our partnerships, both here and abroad.”

The case is being investigated by HSI and is being prosecuted by Assistant U.S. Attorney Jamie M. McCall of the District of Delaware.

Link to Ambassador Gingrich's Remarks

 

WILMINGTON, Del. – United States Attorney David C. Weiss announced today that Jerry Jindong Xu, a citizen of Canada, pled guilty on June 8 to one count of conspiracy to steal trade secrets before the Honorable Leonard P. Stark of the U.S. District Court of Delaware. 

According to court documents, the conspiracy involved the theft of trade secrets related to sodium cyanide, a chemical most often used to mine gold, silver, and other precious metals.  The Chemours Company (Chemours) is the world’s largest producer of sodium cyanide.  Chemours, formed in July of 2015 after the DuPont Corporation separated its performance chemicals business, is based in Wilmington and performs the research and development for sodium cyanide products at its nearby Experimental Station. 

From 2011 to June 2016, the defendant was employed in Chemours’ Ontario, Canada office, where he marketed various sodium cyanide-based products developed in the United States to the Canadian mining market.  The defendant previously worked for seven years in China for the DuPont Corporation, where he cultivated extensive ties to the Chinese cyanide and mining industry. The defendant was arrested in New York in August 2017 and arraigned in Wilmington on September 28, 2017.  At the time of his arrest, the Royal Canadian Mounted Police executed a search warrant on behalf of the United States pursuant to our government’s Mutual Legal Assistance Treaty with Canada.

The defendant admitted that during his final year of employment with Chemours, he systematically acquired – through surreptitious action, false statements to colleagues, and sometimes through his legitimate employment duties – dozens of confidential files, many of which included trade secret information about Chemours’ sodium cyanide business.  During this same time, the defendant secretly established a side company, called Xtrachemical, whose purpose was to solicit Chinese-based investors to build a sodium cyanide plant in Canada – in direct competition with Chemours. 

To accomplish this illicit goal,  the defendant (1) misled his colleagues and fabricated assignments in order to accumulate vast amounts of pricing and other information, including obtaining passwords for spreadsheets; (2) used various personal email accounts to transfer confidential and trade secret information to himself and others; (3) used an encrypted Chinese-based messaging service to communicate with his co-conspirators; (4) asked for and received a tour of Chemours’ primary sodium cyanide manufacturing plant, during which he secretly took pictures of plant system diagrams and sent them to himself; (5) explained to one Chinese investor that he wanted to do this illicit project “for himself and not to slave away at this only to benefit someone else”; (6) accessed Chemours documents during a 2016 trip to China, and asked his co-conspirator how much their plant project would be worth, “Would you say in the millions?”; and (7) received a communication from a Chinese investor who indicated that it is common practice in China to steal the technology from others, design the layout, and get the plan stamped by a design institute.

The defendant is currently being detained until sentencing.  The maximum punishment for conspiracy to commit theft of trade secrets, is ten years imprisonment and up to three years of supervised release.  No date for the sentencing hearing has been scheduled.

“U.S. companies, like Chemours, invest millions of dollars to develop proprietary products and technologies. The theft of these trade secrets so that investors from other countries, like China, can gain an unfair advantage is unacceptable. We will use every tool at our disposal to identify and prosecute those responsible for these crimes.  I want to thank the FBI and the Royal Canadian Mounted Police for their extraordinary work in this investigation,” said U.S. Attorney Weiss.

FBI Special Agent-in-Charge Johnson said, "The theft of trade secrets negatively impacts individual companies and our economy and for this reason, the FBI will continue to aggressively investigate these activities."

The case is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Alexander Mackler. Trial Attorney Alex Kalim, from the Criminal Division’s Office of International Affairs, provided significant support in this matter.

Wilmington, Del. – David C. Weiss, United States Attorney for the District of Delaware announced today that Jeffrey Minner, age 55, was sentenced to 18 months in prison by U.S. District Court Judge Gregory Sleet. In addition, Minner was ordered to pay $1,223,660 in restitution to the IRS.

According to statements made at the sentencing hearing and documents filed in court, Minner owned and operated Advanced Enterprises Incorporated, a commercial cleaning company that employed between 140 and 185 employees at any given time.  Minner pled guilty to withholding taxes from his employees but failing to pay those monies over to the Internal Revenue Service (“IRS”). 

Over the course of five years between 2011 and 2016, Minner collected in excess of $1.2 million in employee Medicare, Social Security, and income taxes that he did not pay over to the IRS.  Instead, Minner used a portion of those monies to fund his lifestyle and pay off other debts.       

In sentencing Minner to prison, U.S. District Court Judge Gregory Sleet said, “I hope this sentence will promote a greater respect for the law.” 

U.S. Attorney Weiss added, “The U.S. Tax Code operates on a system of voluntary compliance. Not only will this sentence deter others who might consider diverting employee tax obligations to line their own pockets, but it represents justice for every tax-paying citizen.”

The case was prosecuted by Assistant U.S. Attorneys Whitney C. Cloud and Alexander P. Ibrahim and investigated by special agents from IRS Criminal Investigation.