District of Vermont

The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Francisco Robles-Guerra, 41, a citizen of Mexico, was convicted and sentenced today in United States District Court in Rutland for reentering the United States after having previously been removed from the country subsequent to a felony conviction. Chief United States District Judge Geoffrey W. Crawford sentenced Robles-Guerra to time served. Robles-Guerra has been held without bail since his arrest last November. Custody of Robles-Guerra will be transferred from the United States Marshal’s Service to the Department of Homeland Security for removal proceedings.

According to court records, Robles-Guerra is a citizen of Mexico who first moved to the United States in 1994. In 1996, he was convicted of conspiracy to defraud the United States by possessing counterfeit resident alien cards and social security cards and was deported to Mexico. Robles-Guerra was then found in the United States and removed to Mexico two times in March 2004, and again in August 2017.

On November 26, 2017, Canadian authorities notified U.S. Border Patrol Agents that they had observed a man walking around the Canaan, Vermont Port of Entry in the woods toward the United States border. A Border Patrol Agent from the Beecher Falls Station found Robles-Guerra in a field on the United States side of the border. After a brief chase, Robles-Guerra was apprehended and arrested.

The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.

For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.

Robles-Guerra is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Nicole Cate.

The Office of the United States Attorney for the District of Vermont stated today that Alexis Vlachos, 40, of Montreal, Quebec, pled guilty to two counts relating to the smuggling of over 100 handguns from Vermont to Quebec. Specifically, Vlachos pled guilty before United States District Judge William K. Sessions III to conspiring to export, and actually exporting, firearms from the United States to Canada, without a license, in violation of the Arms Control Export Act.

As part of his guilty plea, Vlachos agreed to the following facts: From July 2010 to April 2011, Vlachos and other persons, including defendants Annette Wexler and Jaime Ruiz, executed a plan to smuggle over 100 handguns, purchased in Florida, to Quebec, Canada, by way of northern Vermont and northeast New York. As part of this conspiracy, Annette Wexler and another coconspirator purchased these handguns from multiple federally licensed firearms dealers in the Tampa, Florida area. At the time of purchasing these firearms at the gun stores, Wexler and a coconspirator made multiple misrepresentations about the nature of these purchases on forms required by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

After purchasing these firearms, Annette Wexler, Jaime Ruiz, and another coconspirator transported these firearms to Quebec through northeastern Vermont and northeastern New York. As part of the conspiracy, Vlachos would usually take custody of the firearms in Quebec, where he sold many of them.

Some of the firearms smuggled into Quebec were first brought to the Haskell Free Library in Derby Line, Vermont by Annette Wexler and Jaime Ruiz. The Haskell Free Library building straddles the international border of Derby Line, Vermont and Stanstead, Quebec.

On at least two occasions, in about March of 2011, Annette Wexler and Jaime Ruiz worked together to stash several firearms contained in small backpacks inside the trashcan of the library bathroom. Wexler then coordinated with Vlachos, who had entered the library from Quebec, to retrieve the firearms from the bathroom. Vlachos then transported the firearms to Quebec, where he sold many of them.

In April 2011, a coconspirator in Florida purchased thirty-four firearms from a federally licensed firearms dealer in the Tampa, Florida area. Vlachos and Wexler then drove these guns to a remote section of northeastern Vermont near Lake Wallace. Vlachos hiked these firearms across the international border into Quebec.

This conspiracy involved the smuggling of at least 104 handguns from the United States to Canada. Neither Vlachos, nor any of the others involved in these offenses, obtained a license from the United States Department of State prior to exporting these handguns to Canada.

Annette Wexler previously pled guilty to conspiring to make false statements to licensed gun dealers and unlawful exportation. On July 25, 2017, United States District Judge J. Garvan Murtha sentenced Wexler to time-served and two years of supervised release. Ruiz also pled guilty to two offenses relating to this smuggling conspiracy but, due to his death by illness, the charges against him were dismissed.

Vlachos was originally charged with these offenses in January 2015 but the process of extraditing him to the United States took over two years to complete. Vlachos now faces a maximum possible term of imprisonment of twenty years. However, Judge Sessions will determine the actual sentence pursuant to the advisory federal sentencing guidelines and the federal statutory sentencing factors. The sentencing is scheduled for May 7, 2018.

This case is being prosecuted by Assistant U.S. Attorney Joseph Perella. Vlachos is represented by Paul Volk, Esq. of Burlington. This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Border Patrol, and Homeland Security Investigations of the Department of Homeland Security. In addition, the Royal Canadian Mounted Police and the Surete du Quebec provided assistance in this investigation.

The Office of the United States Attorney for the District of Vermont stated that, on January 29, 2018, Norman Hardy, 40, of Brattleboro, appeared before Judge Christina Reiss to plead guilty to distribution of crack cocaine.

According to Court records, Hardy sold crack cocaine to an informant working with the Vermont State Police Drug Task Force on two separate occasions in May 2017. When he was arrested on June 20, 2017, he had an additional quantity of crack cocaine on his person. In January 2016, Hardy was federally convicted in Vermont of distribution of heroin, and subsequently sentenced to 15 months of imprisonment. Hardy told investigators at the time of his arrest that he had been selling drugs since the time of his release from that sentence.

Under the terms of the plea agreement filed with the Court – acceptance of which was deferred until the sentencing hearing – the parties have agreed that Hardy should be sentenced to 30 months in prison.

The United States is represented in this case by Assistant United States Attorney Nate Burris. Hardy is represented by attorney Ernest “Bud” Allen of Burlington.

The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned an Indictment yesterday charging Esperanza Delarosa, 50, and her daughter Susan Mateo, 25, with conspiracy to distribute heroin, fentanyl, and oxycodone. The indictment also alleges numerous counts of distribution of those substances, and contains a forfeiture allegation seeking the criminal forfeiture of a property owned by Mateo in Morrisville, Vermont.

According to Court documents, in September of 2017, special agents with the Drug Enforcement Administration joined an ongoing and long-term investigation of the Morristown Police Department concerning the trafficking and distribution of oxycodone and heroin in the Morrisville area. DEA agents, assisted by the Morristown Police Department, Stowe Police Department, and Lamoille County Sherriff’s Department, then conducted numerous controlled purchases of fentanyl-laced heroin and oxycodone pills from both Delarosa and Mateo. Delarosa and Mateo, initially traveled to Lamoille County from the Bronx, New York, where they reside. During the course of the investigation, they purchased a home in Morrisville. Multiple drug transactions occurred at Mateo’s property in Morrisville, while others occurred in the parking lots of various Lamoille County businesses. Mateo primarily sold the confidential informant oxycodone, while Delarosa primarily sold the confidential informant fentanyl-laced heroin. The sales by Delarosa to the confidential informant included multiple sales of 10-gram quantities of fentanyl-laced heroin.

On the evening of January 23, 2018, both Delarosa and Mateo were arrested by agents of the Drug Enforcement Administration. On the same evening, agents executed search warrants at Delarosa and Mateo’s residences in Morrisville, Vermont, and the Bronx, New York. On January 24, 2018, Delarosa and Mateo appeared before the Honorable John M. Conroy, United States Magistrate Judge for the District of Vermont, and were temporarily detained pending a detention hearing scheduled for this afternoon.

The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that Delarosa and Mateo are presumed innocent unless and until they are proven guilty. If either defendant is convicted, she will face a maximum possible sentence of twenty years on each count of conviction.

United States Attorney Christina E. Nolan commended the efforts of the Drug Enforcement Administration, the Morristown Police Department, the Stowe Police Department, and the Lamoille County Sherriff’s Department in the investigation of Delarosa and Mateo. Nolan added: “This case is a shining example of what we can accomplish when federal, state, and local law enforcement collaborate and pool resources to combat those who profit from the sale of deadly drugs. We will continue to partner closely to bring these high-impact cases across the state, including in small communities that are ravaged by opiate traffickers.”

“The DEA is committed to investigating and bringing to justice those who illicitly distribute oxycodone,” said DEA Special Agent in Charge of the New England Field Division Michael J. Ferguson. “Opiate abuse is a major problem in Vermont and throughout New England. The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is the gateway to heroin and fentanyl addiction, and is devastating our communities. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Vermont and our strong partnership with the U.S. Attorney’s Office to aggressively pursue any group or individual that traffics these drugs.”

“This arrest reflects Morristown Police Department’s strong commitment to bring to justice those that decide to distribute heroin and oxycodone in our community.” said Morristown Police Chief Richard Keith. “Morristown PD and its local, state, and federal law enforcement partners will continue to do everything in our power to keep these highly addictive drugs off the streets of Morristown and surrounding towns. This investigation demonstrates the strengths of collaborative law enforcement between Morristown PD, Stowe PD, Lamoille CSD, and the DEA as well as the strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone who traffics this poison.”

“I have had a positive working relationship with the DEA and the U.S. Attorney’s office for the District of Vermont for over 30 years,” said Lamoille County Sheriff Roger Marcoux. “Even though Lamoille County is very rural, these two Department of Justice agencies assisted our small communities to investigate and prosecute an entire drug trafficking organization with out-of-state infrastructure. We continue to do our part and they have stepped up and are doing their part to ensure people understand there is a consequence for trafficking opiates in our community.”

“This has been a lengthy investigation that started at the local level and as it developed, we partnered with the DEA, due to the potential size and logistics of this investigation,” said Stowe Police Chief Donald B. Hull. “This investigation has been a partnering of local and federal investigators, who worked many hours to bring this investigation to an end. These types of arrests will have a positive impact on our local communities.”

The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Delarosa is represented by Assistant Federal Public Defender David McColgin. Mateo is represented by Maryanne Kampmann, Esq. The investigation was conducted by the Drug Enforcement Administration, the Morristown Police Department, the Stowe Police Department, and the Lamoille County Sheriff’s Department. Assistance was also provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as DEA’s New York Field Division.

U.S. Attorney Christina E. Nolan announced today that the District of Vermont collaborated with other U.S. Attorneys’ Offices and components of the Department of Justice to collect $156,032,317.29 during Fiscal Year 2017. Of this amount, $22,154.00 was collected in criminal actions and $156,010,163.29 was collected in civil actions.

In addition, the District of Vermont, on its own, collected $4,646,932.14 in criminal and civil actions in Fiscal Year 2017. Of this amount, $1,159,881.99 was collected in criminal actions and $3,487,050.15 was collected in civil actions.

The more than $160 million in collections in FY 2017 represents approximately 25 times the appropriated $6 million budget for the U.S. Attorney’s Office for the District of Vermont in that same period. The bulk of the District of Vermont’s collections in Fiscal Year 2017 were from affirmative civil enforcement cases, in particular the Delaney qui tam in which the United States recovered $155,000,000.

“The District of Vermont’s federal prosecutors and Civil Division attorneys work tirelessly to protect our citizens and to safeguard precious taxpayer resources,” said United States Attorney Christina E. Nolan. “Their efforts enabled us to achieve justice and recoup a significant amount of taxpayer dollars in Fiscal Year 2017.”

The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to victims, criminal fines and felony assessments are paid to the Department of Justice’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

Additionally, the U.S. Attorney’s office in the District of Vermont, working with partner agencies and divisions, collected $212,691.00 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

The Office of the United States Attorney for the District of Vermont stated that Eric Goldstein-Purdue, 26, of Barre, VT made his initial appearance on January 8, 2018 in the United States District Court in Burlington, following an arrest for possessing a firearm in furtherance of a drug trafficking crime. At the time of his arrest, Goldstein-Purdue was awaiting sentencing in U.S. District Court on charges that he possessed a firearm as a convicted felon. U.S. Magistrate Judge John M. Conroy detained Goldstein-Purdue pending trial.

According to court documents, in November 2017, Goldstein-Purdue pleaded guilty to being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). Goldstein-Purdue was released pending sentencing which was scheduled for March 2018. In January 2018, while on conditions of release, Goldstein-Purdue began communicating with someone who was working as an undercover law enforcement agent with ATF. Goldstein-Purdue and the undercover agent discussed Goldstein-Purdue’s desire to obtain a firearm and Goldstein-Purdue said he could provide the agent heroin in exchange for the firearm. On January 5, 2018, Goldstein-Purdue met with the undercover agent, gave the agent approximately 40 bags of heroin and the officer gave Goldstein-Purdue a firearm. Immediately after the exchange, ATF agents arrested Goldstein-Purdue and recovered the firearm.

The United States Attorney, Christina E. Nolan, emphasized that the charge against Goldstein-Purdue is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.

If convicted, the defendant faces a sentence of not less than five years of imprisonment and up to life imprisonment, and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

U.S. Attorney Nolan commended the joint effort of state and federal law enforcement, adding “we will continue to make it a top priority to prosecute violent offenders and those who use guns in connection with drug trafficking, especially, as in this case, when such conduct is combined with troubling recidivism.”

Special Agent in Charge of the ATF Boston Field Division Mickey Leadingham stated: “This arrest demonstrates the outstanding partnership between ATF, Vermont State Police, Vermont State Drug Task Force and the United States Marshals Service, as well as the commitment we share to work together to interdict illegal firearms & narcotics and the violent criminals that compromise the safety of our communities.”

Goldstein-Purdue is represented by the Elizabeth Quinn of the Federal Public Defender’s office. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.

The Office of the United States Attorney for the District of Vermont stated that four Quebec men have recently been sentenced in United States District Court in Rutland following their guilty pleas to charges stemming from their involvement in a cross-border conspiracy to commit access device fraud. U.S. District Judge Geoffrey W. Crawford sentenced Mathieu Baaklini, 22, a leader of the conspiracy who lives in Laval, to 24 months of imprisonment. He also sentenced three lesser-involved participants, Safwan Bensalma, 22, of Laval, Brandon Lo, 25, of Laval, and Nicolau Manfredi, 22, of Montreal, to time served. Baaklini has been held in custody since his arrest on October 24, 2016. Bensalma, Lo and Manfredi all spent about two weeks in jail following their October 2016 arrests before they were released after posting cash bail. The court also ordered that Baaklini serve three years of supervised release following completion of his prison term and pay restitution of more than $68,000, while Bensalma, Lo and Manfredi were each ordered to pay $10,000 in restitution.

According to court records, at various times between March and October 2016, the four men traveled from Quebec to Burlington, Vermont, where they used ATM machines in Burlington and Essex to obtain cash advances on counterfeit debit cards made with account information from mostly European and Canadian accountholders. Authorities believe the card numbers were skimmed from taxi patrons in the Montreal area. ATM transaction records and bank surveillance video shows that on May 24, 2016, approximately $8,800 in cash advances were withdrawn using suspected fraudulent credit cards. Records further show that on May 25, 2016, one of the charged conspirators made $11,000 in wire transfers from Chittenden and Franklin Counties, Vermont to locations in Quebec. ATM transaction records and bank surveillance video further shows that between August 22-25, 2016, NBT Bank incurred approximately $54,000 in suspected fraud activity in the form of 500 suspected cash advances on Canadian and European credit and debit cards. All told, banks suffered losses of more than $98,000.

On October 21, 2016, federal agents executed a search warrant on a storage unit in Chittenden County, Vermont, where they recovered approximately $33,000 in cash, a laptop computer, a card-reading device, and approximately 378 gift cards with markings indicating that they contained bank account information on them.

All four men were arrested on October 24, 2016 by Department of Homeland Security Agents at the Highgate Springs, Vermont Port of Entry as they attempted to enter the United States.

Homeland Security Investigations, with the assistance of U.S. Customs and Border Protection and the Burlington Police Department conducted the investigation into this matter. Assistant U.S. Attorney Gregory Waples is handling the prosecution. Baaklini is represented by Mark Kaplan. Bensalma is represented by Craig Nolan. Lo is represented by Chandler Matson and Manfredi by Douglas Kallen.

The Office of the United States Attorney for the District of Vermont stated that Michael Bickford, age 38, formerly of Perkinsville, Vermont, pled guilty on December 18, 2017 in the United States District Court in Burlington to charges stemming from the December 5, 2016 armed robbery of the River Street Pharmacy in Springfield, Vermont.  Bickford also admitted to the armed robberies of the Windsor County South Credit Union in Springfield, Vermont on October 18, 2016 and the Mascoma Savings Bank in Springfield, Vermont on November 10, 2016.  Bickford, who has been detained since his federal arrest in May 2017, appeared before District Judge William K. Sessions III and pled guilty to robbery and carrying and using a firearm.

As described during the change of plea proceedings, at about 8:30 a.m. on December 5, 2016, Bickford entered the River Street Pharmacy located at 100 River Street in Springfield, Vermont armed with a pistol and wearing a dark-colored mask.  Bickford approached the counter, pointed the pistol at a pharmacy employee’s midsection, and demanded prescription medications.  

While the employee went to get prescription medications, Bickford pointed the pistol at a second employee.  After the first employee gave Bickford the prescription medications, Bickford exited.  Later that day, law enforcement arrested Bickford and found the loaded pistol in his vehicle, along with the prescription medications and pill bottles stolen from the River Street Pharmacy.

During the change of plea proceedings, Bickford also admitted that on October 18, 2016, he robbed the Windsor County South Credit Union located at 383 River Street in Springfield, Vermont.  During this robbery, Bickford was armed with a handgun and unlawfully took and obtained about $3,324.  Bickford further admitted that on November 10, 2016, he robbed the Mascoma Savings Bank located at 270 River Street in Springfield, Vermont.  During this robbery, Bickford was armed with a handgun and unlawfully took and obtained about $12,000.

Under federal law, the robbery charge carries a maximum sentence of twenty years, and the charge of using and carrying a firearm carries a maximum sentence of life imprisonment, but the plea agreement caps Bickford’s sentence at eight years.  The sentence will be advised by the Federal Sentencing Guidelines. 

The case was investigated by the Springfield, Vermont Police Department, the Weathersfield, Vermont Police Department, the Windsor County Sheriff’s Department, the Vermont State Police, and the Federal Bureau of Investigation.  The Windsor County State’s Attorney’s Office also assisted in the investigation.  “This is an excellent example of local, state, and federal law enforcement working together to keep our communities safe and bring violent criminals to justice. During this holiday season, we are thankful for our partnership with the F.B.I. and U.S. Attorney's Office,” said David J. Cahill, Windsor County State's Attorney.

Bickford is represented by Jordana Levine of Marsicovetere & Levine Law Group, P.C.  The United States is represented by Assistant United States Attorney John J. Boscia.

The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned an Indictment today charging Timothy Durkin, 42, with maliciously destroying by means of fire real property used in interstate commerce.  Specifically, Durkin is accused of maliciously setting fire to a commercial building located at 3579 Waterbury-Stowe Road in Waterbury, Vermont on October 27, 2017.  Durkin is currently detained in state custody pending unrelated charges in Washington County Superior Court.

The United States Attorney emphasizes that the charge contained in the Indictment is merely an accusation, and that Durkin is presumed innocent unless and until he is proven guilty. If Durkin is convicted, he faces a mandatory minimum sentence of five years, and a maximum possible sentence of twenty years. 

United States Attorney Christina E. Nolan praised the collaborative efforts of state and federal law enforcement leading up to the charge.  Nolan stated, “Combatting violent crime will continue be a top priority of the U.S. Attorney’s Office.  We will work with our federal, state, and local partners to identify the most dangerous offenders and bring them to justice.  We will never stop fighting for the right of every Vermonter to live in safety and security.” 

The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Durkin has not yet appeared in federal court.  The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Vermont State Police.

The United States Attorney’s Office for the District of Vermont announced today that Dominion Diagnostics, Inc. has paid $815,000 in total to the United States and the State of Vermont to resolve civil claims that Dominion Diagnostics violated the federal False Claims Act, 31 U.S.C. § 3729, and the Vermont False Claims Act, 32 V.S.A. § 630, by knowingly presenting, or causing to be presented, false claims for payment to Medicare and Medicaid. The money will be divided between the federal Medicare, federal Medicaid, and Vermont Medicaid programs to which Dominion Diagnostics submitted the alleged false claims.

Dominion Diagnostics provides clinical drug monitoring solutions, clinical information, and support services to a variety of medical specialties. This includes urine drug testing and routine clinical blood testing to support screening, diagnosis and monitoring. Dominion Diagnostics is based in North Kingston, Rhode Island and has an office and does business in Vermont.

The United States and the State of Vermont contend that from January 1, 2010 through December 23, 2015, Dominion Diagnostics knowingly presented or caused to be presented claims for payment from Medicare and the Vermont Medicaid program for urine specimen validity testing when referring physicians did not specifically order specimen validity testing. The United States and the State of Vermont contend Dominion Diagnostics’ standing orders automatically included these validity tests without consideration as to whether the referring physicians had actually ordered the validity tests. In addition, the State of Vermont contends Dominion Diagnostics adopted and put into effect a new Usual & Customary Rate for certain claims and impermissibly gave that rate retroactive application on claims submitted to the Vermont Medicaid program.

“As exemplified by this settlement, health care companies doing business in Vermont who take shortcuts or ignore programmatic requirements, such as individualized medical necessity determinations, will face serious consequences,” said United States Attorney Christina E. Nolan. “We will pursue and hold accountable those who knowingly or recklessly bill the government for health care services without proper authorization and justification.”

The settlement announced today resolves the foregoing allegations without the need for litigation.  Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Dominion Diagnostics, nor a concession by the United States or State of Vermont that their claims are not well founded.

This matter was investigated by the United States Attorney’s Office for the District of Vermont, with assistance from the Office of the Inspector General of the Department of Health and Human Services, and by the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office. Assistant United States Attorney Nikolas P. Kerest handled the matter on behalf of the United States. Vermont Assistant Attorney General Steven J. Monde of the Medicaid Fraud and Residential Abuse Unit represented the State of Vermont. R. Jeffrey Behm of the law firm Sheehey, Furlong & Behm, P.C., represented Dominion Diagnostics.

The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned a Superseding Indictment today charging Alexis Ocegueda, 23, with conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine, distribution of 50 grams or more of a mixture and substance containing methamphetamine, and attempted distribution of 50 grams or more of a mixture and substance containing methamphetamine.

According to Court documents, the United States alleges that during the conspiracy, Ocegueda shipped packages containing methamphetamine from San Diego, California to Vermont using the United States Postal Service.  As part of the investigation, law enforcement seized over 250 grams of methamphetamine shipped by Ocegueda to addresses in Vermont.

On December 13, 2017, Ocegueda was arrested by United States Postal Inspectors and agents of the Drug Enforcement Administration at his residence in San Diego, California pursuant to a Criminal Complaint and Arrest Warrant issued by the Honorable John M. Conroy, United States Magistrate Judge for the District of Vermont.  On December 19, 2017, Ocegueda appeared before the Honorable William V. Gallo, United States Magistrate Judge for the Southern District of California.  Ocegueda stipulated to his pretrial detention, and was ordered removed to the District of Vermont.  Ocegueda’s initial appearance in the District of Vermont has not yet been scheduled

The United States Attorney emphasizes that the charges contained in the Superseding Indictment are merely accusations and that Ocegueda is presumed innocent unless and until he is proven guilty. If Ocegueda is convicted, he faces a mandatory minimum sentence of five years, and a maximum possible sentence of forty years on each alleged count. 

United States Attorney Christina E. Nolan commended the efforts of the Drug Enforcement Administration and the United States Postal Inspection Service in the investigation of Ocegueda.  Nolan added, “it is through such collaborative efforts across agencies and jurisdictions that we bring large-scale traffickers of dangerous drugs to justice.  This case exemplifies how our dedicated public servants in law enforcement join forces for the health and safety of the citizens they are sworn to protect.  We thank DEA, USPIS, and their local partners for closing off this methamphetamine pipeline that ran from the west coast to Vermont.” 

“This arrest reflects DEA’s strong commitment to bring to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Michael J. Ferguson.  “DEA and its local, state, and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of Vermont.  This investigation demonstrates the strength of collaborative law enforcement efforts in Vermont and across the country, as well as our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone who traffics this poison.”

“It is our duty as Postal Inspectors to go after those individuals who attempt to ship illicit drugs through the US Mail.  The war on drugs has been an on-going and hard fought battle for law enforcement.  Postal Inspectors will aggressively pursue anyone who attempts to use the Postal Service to facilitate drug trafficking,” said Nichole Cooper, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service.

The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. An attorney has not yet appeared in Vermont on behalf of Ocegueda.  The investigation was conducted by the Drug Enforcement Administration, the United States Postal Inspection Service – Los Angeles Division, and the United States Postal Inspection Service – Boston Division.

The Office of the United States Attorney for the District of Vermont stated today that Javon Wright (a.k.a. “Ace”), 32, previously of Rutland, Vermont, was sentenced by U.S. District Court Judge Geoffrey W. Crawford to 21 months imprisonment for the crime of conspiracy to distribute crack cocaine in the Rutland area. Wright had previously pled guilty to this offense. Judge Crawford also sentenced Wright to three years of supervised release by the United States Probation Office, which begins after Wright serves his term of imprisonment.

As part of the plea agreement, the parties agreed to the 21-month sentence and the forfeiture of the $8,294 in drug proceeds, which the Bennington Police Department seized from Wright after a traffic stop in Bennington on March 15, 2016. According to the Government’s allegations, in and around March 2016, Wright paid persons in the Rutland area crack cocaine to allow him to stay at their residence and also to help him transport and sell his drugs. Judge Crawford accepted the parties’ recommendation of a 21-month sentence, in part, because of Wright’s drug addiction issues.

This case was investigated by the Vermont State Police Drug Task Force, the Rutland City Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Perella prosecuted this case on behalf of the United States. Wright is represented by Robert Sussman, Esq., of Burlington, Vermont.

The Office of the United States Attorney for the District of Vermont stated that James Campbell, 57, of Swanton, Vermont, was sentenced on December 14, 2017, in United States District Court in Rutland, Vermont, to serve 135 months in prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Geoffrey W. Crawford also ordered Campbell to serve a ten (10) year term of supervised release and to pay a $100 special assessment.

According to court records and proceedings, in 2007, Campbell was convicted in Vermont Superior Court, Franklin County, of sexual assault of a child less than 16 years old. For that offense, Campbell received a sentence of 10 years imprisonment, all suspended except for 14 months. He was placed on probation upon his release.

In March 2016, law enforcement agents operating in an undercover capacity on a peer-to-peer network downloaded child pornography from another user, whom investigation determined was accessing the Internet from Campbell’s residence in Swanton, Vermont. Agents with Homeland Security Investigations executed a warrant at Campbell’s residence and seized approximately a dozen computers and hard drives. When questioned, Campbell admitted that he knowingly downloaded and possessed images of child pornography and would masturbate to those images.

Law enforcement examined Campbell’s devices. Images and videos depicting child pornography were found on 12 of the seized items. In total, approximately 1.348 million images (including some duplicates) and approximately 18,700 videos depicting child pornography, including sadistic and masochistic images and images of prepubescent children were found, with the majority being found on one of Campbell’s external hard drives. On that external hard drive, investigators discovered that the contents of the hard drive were meticulously organized into folders divided according to the month of download, victim, and the like.

United States Attorney Christina E. Nolan commended the efforts of Homeland Security Investigations and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Campbell. The prosecution of Campbell was handled by Assistant U.S. Attorney Barbara A. Masterson. Campbell was represented by Federal Public Defender Michael L. Desautels.

In studying safe injection facilities (SIFs), the Chittenden County State’s Attorney (CCSA) and the Commission members were motivated by their desire to save lives and combat the scourge of opiate addiction in Vermont. Everyone in the law enforcement community shares these goals. The U.S. Attorney’s Office, however, disagrees with the recommendation of the Commission that SIFs be established in Vermont. SIFs are counterproductive and dangerous as a matter of policy, and they would violate federal law.

As to policy, the proposed government-sanctioned sites would encourage and normalize heroin use, thereby increasing demand for opiates and, by extension, risk of overdose and overdose deaths. Opiate users, moreover, all-to-often believe they are purchasing heroin when, in fact, they are purchasing its common substitute, fentanyl, ingestion of which gives rise to greatly enhanced dangers of overdose and fatality. Introduction of fentanyl to SIFs would create additional public health risks, not only for the users, but for SIF staff members who might come in contact with that highly potent substance. Further, heroin and other opiates are not Vermont products, but rather, introduced to Vermont from out-of-state. End users – no matter the location they use – fuel the national and international market. When users purchase heroin (or fentanyl) for injection at an SIF, those transactions will stimulate the heroin market and put money into the hands of out-of-state profit-driven dealers and drug trafficking organizations, while doing nothing to ensure that consumers stop purchasing and injecting heroin. SIFs would, thus, frustrate and undermine years of hard work by those in Vermont law enforcement and the treatment community to decrease opiate use and trafficking. Such facilities would also threaten to undercut existing and future prevention initiatives by sending exactly the wrong message to children in Vermont: the government will help you use heroin. Indeed, by encouraging and normalizing heroin injection, SIFs may even encourage individuals to use opiates for the first time, or to switch their method of ingestion from snorting to injection, the latter carrying greatly increased risk of fatality and overdose. In short, opiate addicts need treatment, not a place to continue using. Rather than encourage and normalize heroin injection, by affording a purportedly legal setting for use, the government must help addicts stop using. We can achieve that goal. Time and again in federal court, we have seen defendants recover from heroin addiction with the help of law enforcement intervention, Judges (including those who oversee our drug courts), the United States Probation Office, and our partners in the drug treatment community. We continue to believe in statewide collaborative approaches to the addiction crisis that involve enforcement, treatment, and prevention.

Of equal importance, the proposed SIFs would violate several federal criminal laws, including those prohibiting use of narcotics and maintaining a premises for the purpose of narcotics use. It is a crime, not only to use illicit narcotics, but to manage and maintain sites on which such drugs are used and distributed. Thus, exposure to criminal charges would arise for users and SIF workers and overseers. The properties that host SIFs would also be subject to federal forfeiture.

The United States Attorney emphasizes that this statement is not intended to cast aspersions on the motives of anyone involved in the Commission recommendation, but rather, to express the perspective of the U.S. Attorney’s Office, and outline the ramifications under federal law. The U.S. Attorney’s Office appreciates the work of the CCSA and the members of her office. They are public servants dedicated to helping Vermonters. We have a strong relationship with the CCSA, and we look forward to working closely with all of Vermont’s State’s Attorneys to combat threats to the safety and security of Vermonters.

The United States Attorney for the District of Vermont announced that Diego Walther Anibal Mejia Paredes, 35, of Guatemala, was sentenced December 10, 2017, in United States District Court in Burlington to 180 months of imprisonment following his guilty plea to conspiracy to distribute more than a kilogram of heroin. United States District Judge William K. Sessions III also ordered that Mejia Paredes serve five years of supervised release following the completion of his prison sentence. Mejia Paredes has been in the custody of the United States Marshals Service since his October 2015 arrest.

Court records indicate that during the summer and fall of 2015 Mejia Paredes conspired with Marco Antonio Lam Peralta, of South Londonderry, Vermont, and others, to ship large quantities of heroin from Guatemala, hidden in Guatemalan food supplement packaging, to various addresses in Southeastern, Vermont. In early October 2015 customs officials discovered more than 41 kilograms of heroin in one such shipment, addressed to a restaurant in Manchester Center, Vermont. Agents from the Department of Homeland Security, working with the Drug Enforcement Administration and the Vermont State Police, conducted a controlled delivery of that shipment. Shortly before arresting him, agents observed Mejia Paredes wait for the shipment to arrive, take delivery of the shipment, and drive off with the contraband. Additional investigation led agents to conclude that this was the conspiracy's eighth shipment into Vermont in 2015.

Mejia Paredes' co-defendant, Lam Peralta, pleaded guilty in August 2017, but has since filed a motion seeking to withdraw from his plea. That motion is pending.

This case was investigated by the Department of Homeland Security, the Drug Enforcement Administration, the Vermont State Police, and the Bureau of Alcohol, Tobacco and Firearms, with assistance from the Manchester, Vermont, Police Department.

Mejia Paredes is represented by Steven Barth. The prosecutor is Assistant U.S. Attorney Michael Drescher.

The United States Attorney for the District of Vermont announced that Kwasi Asante, 59, of Rutland, was sentenced December 6, 2017, in United States District Court in Burlington to 60 months of imprisonment following his guilty plea to charges of Conspiracy to Distribute Heroin and Bulk Cash Smuggling. Chief United States District Judge Christina Reiss also ordered that Asante pay a $40,000 fine. As part of his plea, Asante also agreed to the forfeiture of more than $27,000. Asante will serve three years of supervised release following the completion of his prison sentence. Asante had been in the custody of the United States Marshals Service since January 2017.

Court records indicate that Asante was not a heroin addict, and that he possessed a graduate degree in engineering. According to Court filings, since 2014 Asante conspired with Jaiden Paige and others to distribute heroin in the Rutland area. Court documents indicate that when Asante was arrested on February 1, 2016, at Newark Airport in New Jersey, he was in the process of boarding a flight to Jamaica, flying on a one-way ticket. He possessed approximately $23,000 in cash, more than $10,000 of which was hiding in his luggage next to lunchmeat.

In January 2017, Asante pleaded guilty to a Superseding Information charging him with conspiring to distribute heroin from 2014 to February 2016, as well as failing to report that he was leaving the United States with more than $10,000 in United States currency.

Asante was originally released after posting $150,000 bail (which was later reduced to $140,000), but was taken into custody after his guilty plea in January 2017.

This was Asante's first felony conviction. Court papers described his criminal history as negligible.

This case was investigated by the Vermont State Police Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation.

Asante is represented by Paul Volk. The prosecutor is Assistant U.S. Attorney Michael Drescher.

The Office of the United States Attorney for the District of Vermont announces that Christina E. Nolan will be formally sworn in as United States Attorney on Friday, December 15, 2017, at 10:30 a.m. in the Fifth Floor Courtroom of the United States Courthouse, 11 Elmwood Avenue, Burlington, Vermont. Members of the press are invited. Cameras will be allowed in the courtroom, but due to space limitations, we ask that you please use a single video feed. Chief United States District Court Judge Christina Reiss will preside.

The United States Attorney’s Office (USAO) and the Federal Bureau of Investigation (FBI) stated: 

On November 30, 2017, the FBI arrested Betty Miller, age 70, on a federal criminal complaint charging her with unregistered possession of a select agent, ricin, on or about November 27, 2017.  On December 1, Miller had her initial appearance in federal court in Burlington before The Honorable John M. Conroy, United States Magistrate Judge.  At the hearing, Judge Conroy advised Miller of the charge against her and continued the matter until a probable cause and detention hearing scheduled for Wednesday, December 6, 2017, at 11:00 a.m. Ms. Miller will remain in custody until that time.
 
The case arises from an incident that occurred at the Wake Robin life care community in Shelburne, Vermont.  On November 28, 2017, Vermont law enforcement, the FBI, and first responders reported to Wake Robin after learning of a potentially hazardous substance on the premises.  Subsequent searches that day revealed a bottle labeled “ricin” in Miller’s residence.  The Vermont Forensic Lab confirmed that the bottle contained ricin, a toxin regulated by the federal government due to the severe threat to public health it poses. 

Later in the evening of November 28, members of the FBI and the Vermont Department of Health (VDH) interviewed Miller at the UVM Medical Center. During the interview, Miller stated that she had an interest in plant-based poisons and had conducted internet research on how to make them.  She stated that she manufactured ricin in the kitchen of her Wake Robin residence and, to test its potency, placed the ricin in the food or beverages of other residents.
 
On November 30, 2017, a team of FBI agents from across the Northeast completed searches of Wake Robin and Miller’s vehicle.  The FBI personnel involved had specialized knowledge and training relating to hazardous material and weapons of mass destruction. The FBI has a Weapons of Mass Destruction Directorate (WMDD) that is focused on preventing WMDD incidents. The searches turned up no ricin or other hazardous material outside the confines of Miller’s residence.  Inside Miller’s residence, the FBI located ricin, along with components from a number of plants, including apple, yew, cherry, castor and foxglove, which all can be used to produce toxins.

The charge against Miller is an accusation only.  She is presumed innocent unless and until proven guilty.  If convicted, Miller could face up to five years in prison. 

The USAO and FBI stressed that any threat posed by the substances in Miller’s apartment has been neutralized. There have been no fatalities. The Wake Robin community has cooperated with the FBI and state health officials to ensure all of its residents are safe.

United States Attorney Christina Nolan praised federal, state, and local law enforcement and first responders for their efficient, collaborative response to neutralize the threat and ensure the safety of the community.  She specifically commended the FBI and its Joint Terrorism Task Force including representatives from U.S. Border Patrol and U.S. Customs and Border Protection. She further commended the Vermont State Police, the Shelburne Police Department, the Shelburne Fire Department, the Vermont National Guard 15th Civil Support Team, Vermont Hazardous Materials Response Team, the Vermont Department of Health, the University of Vermont Medical Center, the Center for Disease Control and Chittenden County State’s Attorney Sarah George, for coming together so swiftly and effectively to protect Vermonters.  Ms. Nolan also thanked the FBI for its immediate deployment of substantial resources to Vermont. 

First Assistant U.S. Attorney Eugenia A. P. Cowles is handling the prosecution of Miller on behalf of the USAO.  Miller was represented for purpose of the initial appearance by David McColgin, Esq., of the Office of the Federal Public Defender. 

The Office of the United States Attorney for the District of Vermont announced that it has resolved its investigation into complaints that UVMMC personnel failed to effectively communicate with two individuals who are deaf during medical visits. This agreement resolves the allegations that UVMMC violated the Americans with Disabilities Act (ADA) and Section 1557 of the Patient Protection and Affordable Care Act (ACA) during these encounters. The matter was jointly handled by United States Attorney’s Office and the Department of Health and Human Services (HHS).

The complaints were brought to the attention of the United States by Vermont Legal Aid. These complaints are being resolved contemporaneously with similar complaints made to the Vermont Human Rights Commission (VHRC). UVMMC, VHRC, and Vermont Legal Aid have worked collaboratively with the U.S. Attorney’s Office and HHS to resolve the issues raised by the complaints.

“Being able to communicate effectively with medical providers is fundamental to meaningfully accessing health care,” said U.S. Attorney Christina E. Nolan. “This resolution agreement demonstrates our office’s commitment to protecting the civil rights of all Vermonters and visitors to our state, including those who are deaf or hard of hearing.”

“We strive to provide all of our patients with the highest quality of care, but unfortunately we did not meet that goal in these cases,” said Eileen Whalen, RN, MHA, president and chief operating officer of the University of Vermont Medical Center. “We have taken many steps to strengthen our interpreter services including hiring an Interpreter Services Coordinator, educating staff on the resources we have and how to use them, and upgrading our remote interpretation technology. We’ll continue to seek out opportunities to strengthen our services and policies regarding the treatment of Deaf patients, and maintain the involvement of our patient and family advisors who have provided valuable guidance in this area.”

Pursuant to the resolution agreement, UVMMC will timely provide qualified interpreters when necessary to ensure effective communication with patients and companions; institute a grievance procedure; provide comprehensive training to its personnel on effective communication; and designate a program administrator to coordinate access to auxiliary aids and services 24/7. For approximately two years, UVMMC will provide the United States with reports documenting its compliance with the agreement.

Assistant United States Attorneys Nikolas P. Kerest and Jules Torti jointly handled this matter for the United States Attorney’s Office for the District of Vermont. Erika Smart, Assistant General Counsel for UVMMC, handled this matter on behalf of UVMMC.

For more information on the ADA, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at contact the ADA Information Line at 800-514-0301 (voice) 800-514-0383 (TTY).

Burlington, VT. – Christina E. Nolan has taken the oath of office to become the United States Attorney for the District of Vermont. Ms. Nolan was nominated by President Donald Trump on September 28, 2017, and confirmed by the United States Senate on November 9, 2017. She took the oath of office in the chambers of Christina C. Reiss, Chief United States District Judge for the District of Vermont.

Ms. Nolan stated: “It is an honor to serve Vermont and the people of the United States in this new capacity. The United States Attorney’s Office in Vermont is comprised of good and extraordinarily talented people. It is a privilege to be appointed as their United States Attorney and I will strive every day to be worthy of the honor. The USAO looks forward to strengthening our ties with our partners in the community and in federal, state, and local law enforcement. We must collaborate with them closely to tackle the various threats to the health and safety of Vermonters, from the opiate epidemic and violent crime, to crippling financial frauds, to child exploitation.”

As U.S. Attorney, Ms. Nolan is the top-ranking federal law enforcement official in the District of Vermont. She oversees a staff of 48 employees, including 20 attorneys and 28 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases, brings affirmative civil challenges on behalf of the United States, and collects debts owed to the United States.

Ms. Nolan, a Vermont native, has served as an Assistant United States Attorney in the District of Vermont since 2010. She has prosecuted a variety of criminal cases, including complex drug trafficking offenses, money laundering, firearms offenses, violent crime, and crimes against children. As a federal prosecutor, she twice received the New England Narcotic Enforcement Officer’s Association Award for Outstanding Contribution.

Ms. Nolan previously served as an Assistant District Attorney in Middlesex County, Massachusetts. From 2005 to 2009, Ms. Nolan worked as a litigation associate at Goodwin Procter LLP, in Boston, where she concentrated her practice in white collar criminal defense. Ms. Nolan clerked for The Honorable F. Dennis Saylor IV, of the United States District Court for the District of Massachusetts. She graduated with departmental honors from the University of Vermont, summa cum laude, with degrees in political science and history. She received a law degree, magna cum laude, from Boston College Law School.

Ms. Nolan is a member of the Vermont and Massachusetts Bar Associations. She is a graduate of Rice Memorial High School in South Burlington, Vermont, and was inaugurated into the school’s Athletic Hall of Fame in 2007.

Ms. Nolan is the first female United States Attorney for the District of Vermont. A public ceremony marking Ms. Nolan’s swearing is expected to be scheduled in the near future.

The United States Attorney for the District of Vermont announced that Connie Forrest, 57, of Pittsford, was sentenced today in United States District Court in Burlington to three months of imprisonment following her guilty plea to a charge of Social Security fraud. Chief U.S. District Judge Christina Reiss also ordered that Forrest serve a one-year period of supervised release following her prison term. As a condition of supervised release, Forrest must serve an additional three months of home confinement. Judge Reiss directed Forrest to surrender to the Bureau of Prisons on January 9 to begin serving her sentence.

Last June, Forrest pleaded guilty to a single-count information charging her with Social Security fraud. According to the information and court records, beginning in about 1995, Forrest became disabled and began receiving monthly Supplemental Security Income benefits from the Social Security Administration. The SSI program provides stipends to low-income individuals who are 65-years-old or older; are blind; or are disabled. Applicants for SSI have to certify that their income and assets are below threshold levels, and are under a duty to inform the Social Security Administration about changes in their financial circumstances that could affect their continuing eligibility for SSI benefits.

In her guilty plea, Forrest admitted that, between about 2009 and early 2016, she concealed from SSA the fact that she maintained employment as a nurse aide, and earned substantial income (more than $470,000) from that employment. As a result of Forrest’s deception, SSA paid her more than $79,000 in SSI benefits that she was not entitled to receive. Forrest did not report any of this income to the Internal Revenue Service, and did not pay any income taxes.

Last month, Forrest repaid the Social Security Administration in full for the benefits she unlawfully received.

This case was investigated by the Office of Inspector General of the SSA.

Forrest is represented by Peter Langrock. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that Nicholas Rodimon, 31, of Colchester, Vermont, was sentenced on November 20, 2017, in United States District Court in Burlington, Vermont, to serve 114 months in prison after his guilty plea to one count of receipt of child pornography.  Chief U.S. District Judge Christina Reiss also ordered Rodimon to serve an eight (8) year term of supervised release and to pay a $100 special assessment. 

According to court records and proceedings, in approximately 2014, Rodimon met a woman named Natalia on a website using the Internet.  Natalia told Rodimon that she was from the country of Romania.  They started communicating away from the website using Skype.  Natalia began performing sex shows for Rodimon, which he viewed at his residence in Colchester, Vermont.  Rodimon sent approximately $5,400 to Natalia during the time period of May 2014 to February 2016.  During this period, Natalia engaged in sexual activity with her daughter for Rodimon to view over Skype.  At all relevant times, the daughter was under the age of 12 years old.  Rodimon viewed the sexual activity and, without telling Natalia, recorded some of the activity.  On or about November 11, 2015, Rodimon saved a sexually explicit image of the daughter being transmitted to him from Natalia using the Skype over the Internet to the hard drive of his computer.

The Romanian woman, Natalia, was prosecuted in Romania.  She received a sentence of 114 months imprisonment. 

Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the Federal Bureau of Investigation in the investigation and prosecution of Rodimon.  The prosecution of Rodimon was handled by Assistant U.S. Attorney Barbara A. Masterson.  Rodimon was represented by Mark Kaplan.

The United States Attorney for the District of Vermont announced that Matthew Senator Melvin, 36, of Shelburne, was sentenced Thursday in United States District Court in Rutland to 18 months of imprisonment following his guilty pleas to charges of Mail Fraud, Money Laundering, and Making a False Statement. United States District Judge Geoffrey Crawford also ordered that Melvin pay more than $11,000 in restitution, as well as a $5,500 fine. The government is seeking an additional money forfeiture. Melvin will serve three years of supervised release following the completion of his prison sentence. Melvin has been in the custody of the United States Marshals Service since his March 2017 arrest.

Melvin pleaded guilty to an Indictment charging him with Mail Fraud and Money Laundering, among other crimes. Melvin was originally released on conditions in connection with this prosecution. However, court records indicate that in February 2017 he made a series of false statements to the United States Probation office, resulting in an additional Indictment, to which Melvin also pleaded guilty, charging him with making a false statement. Court records indicate that Melvin engaged in a scheme to defraud employers by seeking and obtaining employment by the use of false or stolen identities, and that he laundered part of the proceeds of this crime by withdrawing them from one bank and depositing them into an account at another financial institution.

This was Melvin's first federal felony conviction. He had previously been convicted of various offenses by the State of Vermont.

This case was investigated by the Internal Revenue Service - Criminal Investigation Division, as well as the United States Secret Service.

Melvin is represented by Paul Volk. The prosecutor is Assistant U.S. Attorney Michael Drescher.

The Office of the United States Attorney for the District of Vermont stated that, on November 16, 2017, John Williams, 33, of Queens, New York was sentenced to ten months in federal prison after his guilty plea to a charge that he conspired to distribute heroin and cocaine base in the Burlington area. Chief U.S. District Court Judge Christina Reiss also ordered that Williams serve three years of supervised release after his prison term.

Judge Reiss previously sentenced Williams’ codefendant in the conspiracy, Laura Berard, to eight months imprisonment. According to court records, from late 2015 to mid-2016, codefendant Laura Berard periodically permitted Williams to use her North Champlain Street apartment in Burlington as a base from which to deal drugs, which Williams brought up from New York City.

In determining that a ten-month sentence was appropriate, Judge Reiss considered, among other factors, the relatively low drug quantity involved in this case as well as Williams’ efforts to turn his life around by attending college and being a more responsible parent. Judge Reiss also granted the defendant’s request for a variance from the crack cocaine Sentencing Guidelines table and to use the powder cocaine table instead as the basis for calculating the advisory term of imprisonment. According to court records, the total drug quantity involved was approximately twenty grams of crack cocaine and just over two grams of heroin. Williams faced a maximum sentence of twenty years.

Acting United States Attorney Cowles commended the Burlington Police Department, HSI, and DEA for their work in this investigation. She noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.

Assistant U.S. Attorney Joseph Perella and former Assistant U.S. Attorney Timothy C. Doherty, Jr handled this prosecution. Jean-Claude Charbonneau, Esq., of Rutland, represents John Williams. Assistant Federal Public Defender Steven Barth represented Berard.

The Office of the United States Attorney for the District of Vermont stated that Jeremy A. Churchill, age 37, from Cabot, Vermont, made an initial appearance on November 15, 2017 before United States Magistrate Judge John M. Conroy in Burlington on firearms charges.

An Indictment charges Churchill with two gun violations: possession of stolen firearms, and possession of firearms after being convicted of a felony. Both charges carry 10-year maximum terms of imprisonment. The Indictment alleges that the offenses took place on May 16, 2017, and that Churchill has a 2007 conviction for felony sale of narcotics in Washington County, Vermont. Magistrate Judge Conroy ordered Churchill detained pending a November 16, 2017 bail hearing.

Agents with the Bureau of Alcohol, Tobacco and Firearms arrested Churchill Tuesday as he left a State of Vermont court hearing in Barre, Vermont. Pending State charges against Churchill relate to his alleged May 16, 2017 burglary of a home in East Montpelier and possession of stolen property from that home, including handguns.

The Indictment is an accusation only and the defendant is presumed innocent until and unless proven guilty. Any sentence will be imposed after consideration of the Federal Sentencing Guidelines. In addition to the Bureau of Alcohol, Tobacco and Firearms, the U.S. Attorney’s Office lauded the work of the Vermont State Police, Middlesex Barracks, in investigating and developing the case. Churchill is represented in the federal prosecution by the Federal Public Defender’s Office. The United States is represented by Assistant U.S. Attorney Bill Darrow.

The Office of the United States Attorney for the District of Vermont stated that on November 7, 2017, a Burlington jury convicted Alison Yi Gu of Cheshire, Connecticut of three charges relating to her use of false identities. Specifically, the jury convicted Gu, who also went by the names Alison Ling, Yijing Gu, Ally Koo, Ai J. Chen, Ai Jen Chen, and Jing Shao, of (1) bank fraud, (2) making a false statement in an application for a U.S. Passport, and (3) aggravated identity theft involving the use of the Social Security Number and date of birth of another person. The verdict was returned following a one-week trial. Chief United States District Judge Christina Reiss presided over the trial.

According to the Superseding Indictment, between 2013 and September 2015, Gu devised and executed a scheme to defraud Bank of Bennington, First National Bank of America, Prime Lending, Discover Home Loans, and Emigrant Mortgage Company to obtain funds by submitting mortgage loan applications containing false information. The Indictment specified that the false information included misrepresenting Gu's identity, and altering bank statements. The Indictment further charged Gu with making a false statement in a passport application at the United States Passport Office in St. Albans, Vermont in March 2015, as well as using the identity of another person in the commission of that crime. The jury returned guilty verdicts on all three counts.

Following the jury's verdict, Chief Judge Reiss ordered Gu remanded to the custody of the United States Marshals Service.

Gu's sentencing is expected to occur in approximately four months, but is not yet scheduled. She faces a minimum sentence of two years, and a maximum term of thirty years' incarceration.

The conviction of Gu was the culmination of an investigation by the United States State Department, Diplomatic Security Service, working with the assistance of the Danbury, Connecticut Police Department.

Gu is represented by Lisa Shelkrot and Manisha Munshi of Burlington. The case was prosecuted by Assistant United States Attorneys Kevin J. Doyle and Michael P. Drescher.

The United States Attorney for the District of Vermont announced that Katie Stygles, 29, of Piermont, New Hampshire, pleaded not guilty today in United States District Court in Burlington to federal fraud charges. U.S. Magistrate Judge John M. Conroy released Stygles on conditions pending trial, which has not been scheduled.

On September 28, 2017, a federal grand jury in Burlington returned a two-count indictment charging Stygles with wire fraud and access device fraud. According to the indictment, Stygles began working for ARC Mechanical Contractors in Bradford, Vermont in 2010. In February 2016, she was promoted to the position of office manager. In that job, Stygles had access to the company credit card number, which she used to order supplies.

According to the indictment, beginning in August 2016 and continuing through early May 2017 when she was fired, Stygles used the ARC Mechanical credit card about 130 times to purchase tack, barn supplies and equine, canine and livestock products for KMS Stables, a business that Stygles owned. She ordered the products from a vendor in Ohio using ARC Mechanical’s telephones and computers. During this time period, Stygles also diverted customer payments that were intended for ARC Mechanical into a Pay-Pal account for KMS Stables, and used ARC Mechanical’s United Parcel Service account to pay for goods she was shipping to customers of KMS Stables.

The indictment charges that the total fraud amounted to more than $73,000.

The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty.

If convicted, Stygles faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

This case was investigated by the Bradford Police Department and the United States Secret Service.

Stygles is represented by Assistant Federal Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont announced that Josiah Leach, 19, of South Burlington, Vermont, appeared today before the Honorable Geoffrey W. Crawford and entered a plea of guilty to a one-count indictment charging him with transmitting threats in interstate commerce.

Leach was arrested after law enforcement identified him as the source of multiple threats against students and faculty at South Burlington High School between April 18, 2017 and April 21, 2017, which resulted in repeated lockdowns at South Burlington school facilities and the closure of all South Burlington schools one day before the students’ spring break. He was released on pretrial conditions on April 27, 2017.

On May 26, 2017, Leach was arrested for violating his release conditions, including by using social media to create a fake confession implicating another student in the crime with which he was charged. Leach remained detained until May 30, 2017. He was released with new conditions prohibiting him from using any device with internet access. In total, Leach served ten days in prison.

Leach’s felony guilty plea came pursuant to a previously filed agreement with the government. In the agreement, Leach acknowledged his responsibility for all of the April 2017 threats to South Burlington High School, and agreed with the government to recommend a five-year probationary sentence at the time of sentencing. Under the terms of the deal, however, the Court retains discretion over the ultimate sentence in the case. Sentencing is scheduled for Tuesday, February 20, 2018, in Rutland, Vermont.

Leach was released on continuing pre-trial supervision following the change of plea hearing. His release conditions include obtaining treatment for mental health and substance abuse issues as directed by the U.S. Probation Office, avoiding contact with members of the South Burlington High School community, and not trespassing within 500 feet of the South Burlington Middle and High School complex on Dorset Street.

Acting U.S. Attorney Eugenia A. P. Cowles commended the Federal Bureau of Investigation, the South Burlington Police, and the Vermont State Police for their rapid response to, and thorough investigation of, this matter. Ms. Cowles noted that the proposed five-year term of probation recognized both Leach’s relative youth and the callous, repeated nature of his threats to his fellow students. “While we hope the case marks a turning point for Mr. Leach, his behavior deserves the serious sanctions of a federal felony conviction and an extended period of rigorous supervision. No student, no school, and no community should have to face the fear Mr. Leach inflicted on South Burlington.”

“Making anonymous threats online is not a harmless prank,” said FBI Special Agent in Charge Vadim D. Thomas. “Mr. Leach’s conduct violated the community’s sense of safety and diverted valuable law enforcement resources. The FBI and our law enforcement partners hope that today’s plea will serve as a warning to others who contemplate similar criminal conduct.”

The U.S. Attorney’s Office encourages members of the South Burlington High School community who were impacted by Leach’s conduct to contact the U.S. Attorney’s Office’s Victim Specialist Aimee Stearns (aimee.stearns@usdoj.gov) regarding available victim support services and opportunities to submit impact statements before the February 20, 2018 sentencing.

Leach is represented by Assistant Federal Public Defender Elizabeth Quinn. AUSA Michael Drescher represents the United States.

The Office of the United States Attorney for the District of Vermont stated that Robert Mackenzie, 62, of Fletcher, Vermont, was sentenced on October 18, 2017, in United States District Court in Burlington, Vermont, to serve a one (1) year term of probation after his guilty plea to one count of possession of Oxycodone. Chief U.S. District Judge Christina Reiss also ordered Mackenzie to perform 40 hours of community service during his term of probation, and to pay a $25 special assessment.

According to court records and proceedings, while employed by the U.S. Postal Service as a Rural Carrier Associate, Mackenzie stole Oxycodone for his personal use from parcels sent through the U.S. mail that he was supposed to deliver. Mackenzie stole parcels containing controlled substances on at least six separate occasions. Mackenzie lost his job upon discovery of the thefts.

Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the U.S. Postal Service, Office of Inspector General, the Department of Veterans Affairs, Office of Inspector General, and the Drug Enforcement Administration, in the investigation and prosecution of Mackenzie. The prosecution of Mackenzie was handled by Assistant U.S. Attorney Barbara A. Masterson. Mackenzie was represented by Assistant Federal Public Defender Steven L. Barth.

The United States Attorney’s Office and the United States Border Patrol Swanton Sector announce that Jose Moreira De Sousa, 51, a naturalized U.S. citizen who lives in Newark, N.J., appeared yesterday in United States District Court in Burlington on a charge that he transported two illegal aliens within the United States. U.S. Magistrate Judge John M. Conroy released the defendant on conditions pending his next court hearing in early November.

According to the criminal complaint that was filed yesterday, on the morning of October 17, a concerned citizen notified agents at the Beecher Falls Border Patrol station that a suspicious person driving an Audi with New Jersey license plates was stopped at a cabin on the U.S. –Canadian border. Agents identified the driver as Moreira De Sousa and determined that he had legally entered the United States from Canada earlier that day.

Agents surveilled Moreira De Sousa, who appeared to be alone, in the vicinity of the cabin and followed him to a local restaurant, where he bought coffee and muffins for three persons. He then returned to the cabin. Shortly thereafter, Moreira De Sousa and two other men emerged from the cabin and got into the defendant’s Audi. Agents followed the car as it drove away. When the vehicle pulled to the side of the road, agents approached and determined that Moreira De Sousa was a U.S. citizen and that the two occupants were Portuguese nationals who admitted to illegally walking across the border into the United States, with Moreira De Sousa’s assistance, a few hours before.

“This case highlights our ongoing partnership with the local community,” said U.S. Border Patrol Swanton Sector Chief Patrol Agent John Pfeifer. “Public safety is everyone’s responsibility, and in this case a concerned citizen observed suspicious activity and took the time to report it.”

The Office of the United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty. If convicted, Moreira De Sousa faces up to five years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.

For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Moreira De Sousa was represented at the hearing by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that Robert Eldred, 57, of Barre, Vermont, was sentenced on October 16, 2017, in United States District Court in Rutland, Vermont, to serve six (6) months in federal prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Geoffrey W. Crawford also ordered Eldred to serve a five (5) year period of supervised release and to pay a $100 special assessment.

According to court records and proceedings, in February 2015, the Federal Bureau of Investigation seized the computer server that hosted a website dedicated to the sharing and trading of, and communication among offenders about, child pornography (the Website). The FBI did not shut down the Website for approximately 13 days. During that time, when an individual accessed the Website, a Network Investigative Technique (NIT) was deployed to allow law enforcement to identify the Internet Protocol address of the user of the computer that accessed the Website. Through further investigation, the FBI determined that a computer used by Eldred accessed the Website for approximately two hours on March 4, 2015. The FBI executed a warrant to search Eldred’s residence for evidence of child pornography. During the search, Eldred’s computer was seized. During a forensic examination of the computer, the FBI found approximately 22 images of child pornography.

Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the FBI in the investigation and prosecution of Eldred. The prosecution of Eldred was handled by Assistant U.S. Attorney Barbara A. Masterson. Eldred was represented by Assistant Federal Public Defender David L. McColgin.

Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

In a joint press release issued with the U.S. Border Patrol, the United States Attorney Office for the District of Vermont stated that it has charged three persons in connection with a fifteen-person human smuggling attempt in Derby, Vermont. Hector Ramon Perez-Alvarado, 25, a Honduras citizen, has been charged with transporting illegal aliens inside the United States. As part of the investigation, the U.S. Border Patrol took into custody a total of sixteen illegal aliens, including Hector Ramon Perez-Alvarado, the alleged driver, who is Honduran. Eleven of the other illegal aliens are Guatemalan citizens and four are Mexican citizens.

According to Court records, in addition to the smuggling charge against Hector Ramon Perez-Alvarado, two persons were charged with re-entering the United States after previously being removed. Specifically, the United States alleges that Noe Perez-Ramirez, 33, of Mexico, and Alberto Alvarado-Castro, 29, of Mexico both were removed from the United States on multiple prior occasions. In support of its motion for detention, the Government further alleged that Alvarado-Castro has multiple prior felony burglary convictions in the United States.

According to the Border Patrol Agent’s affidavit accompanying the Criminal Complaints, on the evening of October 7, 2017, the U.S. Border Patrol identified a Nissan van, with a license plate not affiliated with any state, making multiple trips from Beebe Road near the Canadian Border to the Four Seasons Motel in Derby, Vermont. Additional Border Patrol agents stationed in the vicinity spotted several male subjects on foot heading south from the border in the same area indicating a possible smuggling attempt.

Just after midnight on October 8, 2017, the Border Patrol pulled the van over in the motel parking lot and questioned the driver. According to the Border Patrol agent’s affidavit, the van was driven by defendant Hector Ramon Perez-Alvarado, who had no legal status in the United States. The van also contained six passengers, none of whom had legal status in the United States.

According to the Border Patrol agent’s affidavit, the van’s driver, defendant Hector Ramon Perez-Alvarado, gave the Border Patrol agents the key to his motel room at the Four Seasons and requested that the agents recover his personal items. When Border Patrol agents entered the motel room, they found nine additional persons, none of whom had legal status in the United States.

The complaints filed in this case are accusations only and the defendants are presumed innocent until and unless proven guilty. If Hector Ramon Perez-Alvarado is convicted of transporting illegal aliens, he faces a maximum sentence of five years, potentially for each alien transported, and a $250,000 fine, potentially for each person smuggled. If Noe Perez-Ramirez and Alberto Alvarado-Castro are convicted of re-entry after removal from the United States, they each face a maximum sentence of two years and a $250,000 fine. If convicted the actual sentences of the defendants will be advised by the Federal Sentencing Guidelines.

Hector Ramon Perez-Alvarado, Noe Perez-Ramirez and Alberto Alvarado-Castro all appeared in United States District Court in Burlington, Vermont on October 10, 2017, for an initial appearance. On the Government’s motion for pre-trial detention, Magistrate-Judge John M. Conroy ordered that all three be detained pending trial and remanded them into the custody of the U.S. Marshals Service.

This matter is being investigated by the United States Border Patrol and Homeland Security Investigations. “This case is an excellent example of the dedication and hard work put forth by Border Patrol agents to keep our country and communities safe,” said U.S. Border Patrol Swanton Sector Chief Patrol Agent John Pfeifer. “Our agents did an outstanding job thwarting this smuggling attempt.”

The Assistant U.S. Attorney prosecuting this matter is Joe Perella. Elizabeth Quinn, Esq., of the Federal Public Defender’s Office represents Perez-Alvarado. David Watts, Esq., of Burlington represents Alvarado-Castro. Robert Sussman, Esq., of Burlington represents Perez-Ramirez.

The United States Attorney for the District of Vermont announced today that Mickayla Peters, 19, of Newport, VT and Kenneth Seales, 40, of New York, were charged yesterday in United States District Court in Burlington with possession with intent to distribute heroin and cocaine. Peters is awaiting sentencing on a July 2017 federal conviction for conspiracy to distribute heroin, fentanyl, cocaine and cocaine base. Peters and Seales appeared before U.S. Magistrate Judge John Conroy and were ordered detained pending hearings next week.

On October 3, 2017, the Northeast Vermont Drug Task Force and Homeland Security Investigations arrested Peters, Seales and Tyler Before, 31, of Vermont, after Peters’s vehicle was stopped by Vermont State Police in Barnet, VT. A search of the vehicle resulted in the seizure of over 100 grams of heroin, 300 grams of cocaine and 2 grams of suspected fentanyl. Before faces state charges for heroin trafficking, transportation into the state, and cocaine possession. He was released on citation and is scheduled to appear in Caledonia County Court in December.

The United States Attorney emphasizes that the charge in the complaint against Peters and Seales is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.

If convicted, Peters and Seales face up to 20 years of imprisonment on the drug charge and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.

Peters is represented by Michael Straub. Jean-Claude Charbonneau represents Seales. The prosecutor on the case is Assistant U.S. Attorney Wendy Fuller.

The Office of the United States Attorney for the District of Vermont announced that John R. Canney III, an attorney in Rutland, Vermont, was sentenced today in United States District Court in Burlington after convictions for filing false tax returns. Chief U.S. District Judge Christina Reiss sentenced Canney to seven months in prison, a $15,000 fine, and one year of supervised release. As part of his plea agreement with the government, Canney has agreed to cooperate with the Internal Revenue Service in the assessment of taxes due to the government.

On May 15, 2017, the United States filed a criminal information charging Canney with one count of filing a false individual income tax return for tax year 2011, and one count of filing a false corporate tax return for tax year 2011. Canney pled guilty to those charges on June 1, 2017.

Mr. Canney was the sole owner of John R. Canney III, P.C., a Rutland law firm. The firm had two principal bank accounts: an operating account and a client trust account, also known as an IOLTA account. Mr. Canney used the trust account to maintain client retainer fees and funds held in trust. Upon earning fees through legal services, rather than transferring his professional remuneration from the IOLTA account to the operating account where it would be subject to accounting oversight for tax purposes, Mr. Canney instead transferred this earned income from the client trust account to his personal bank account.

In preparation for filing both the corporation income tax return and his personal income tax return for tax year 2011, Mr. Canney provided his return preparer with documentation of transactions from the firm’s operating account, but not transactions from the client trust account. Because the return preparer used only operating account financial records to determine the firm’s net income, and because those records excluded the IOLTA diversions, the corporate tax return did not include the diverted funds as corporate gross receipts. Therefore, the gross receipts of the corporation for tax year 2011 were substantially higher than the gross receipts listed on the filed corporation income tax return. Likewise, the operating account financial records did not reflect the deposits from the IOLTA account into Mr. Canney’s personal bank account. Therefore, the personal tax returns that the preparer completed for Mr. Canney omitted the income derived from the IOLTA account. Consequently, the adjusted gross income for tax year 2011 was substantially higher than the adjusted gross income listed on the filed individual income tax return.

In addition to the above conduct related to his 2011 filings, Canney also failed to file accurate returns in 2010, 2012, and 2013 as a result of the diversion of income described above.

This case was investigated by the Internal Revenue Service. Canney is represented by Tristram J. Coffin of Downs Rachlin Martin PLLC in Burlington. The prosecutor is Assistant U.S. Attorney Kevin J. Doyle.

The Office of the United States Attorney for the District of Vermont stated that it has filed a Complaint seeking civil forfeiture of a residence in St. Albans related to drug trafficking activity that occurred in the house from 2004 through 2006. The underlying drug trafficking case involved the 2006-07 prosecution of Robin Keller, formerly of 25 Lower Gilman Street in St. Albans, Vermont. Keller was arrested in March 2006 and eventually pled guilty to conspiracy to distribute crack cocaine. As part of the plea agreement, reached in March 2007, Keller agreed to forfeiture of the 25 Lower Gilman Street property. The government agreed to postpone the forfeiture until Keller’s two minor children who resided in the home became adults. Both children have now reached the age of majority.

According to court records, Keller used a network of couriers to distribute over ten kilograms of crack cocaine in the St. Albans area from 2004 until March 2006, when she was arrested at the Back Street Bar in St. Albans. Keller purchased cocaine powder largely from a Holyoke, Massachusetts source and then cooked the powder into crack cocaine at the home on Lower Gilman Street in St. Albans, where she lived with her two young children. A March 2006 search of Keller’s home by the Vermont Drug Task Force resulted in the seizure and eventual forfeiture of over $170,000 in cash, much of it hidden in the floor joists of the house.

In July 2007, Judge William K. Sessions III sentenced Keller to 168 months in prison (later reduced to 140 months). Judge Sessions stated at the time that "countless people suffered as a result of the drugs" that Keller distributed and that Keller used "intimidation," including tire slashing to ensure payment for her drug sales. Judge Session also stated it was the "largest crack cocaine case" he had seen in federal court at that time.

This matter was investigated by the Vermont Drug Task Force of the Vermont State Police. The case is being prosecuted by Assistant U.S. Attorney Joseph Perella.

The United States Attorney’s Office for the District of Vermont announced today that general contractor J.A. McDonald, Inc. (“JAM”), headquartered in Lyndon Center, Vermont, and JAM owner and president, Eric Boyden, have paid $270,000 to the United States to resolve allegations that JAM violated the federal False Claims Act, 31 U.S.C. § 3729, and the Vermont False Claims Act, 32 V.S.A. 631, by knowingly causing the State of Vermont to present false claims for payment to the United States in connection with the federally-funded construction of a two-span bridge on Vermont Route 116 in Bristol, Vermont.

More specifically, the settlement resolves allegations that JAM employees intentionally altered critical bridge components such that the bridge no longer conformed to specified safety standards, and that JAM employees took affirmative steps to conceal such alterations from the Vermont Agency of Transportation (“VTrans”). As a result of the alleged cover-up, VTrans unwittingly paid JAM for deficient bridge work and in turn presented a number of false claims to the Federal Highway Administration (“FHWA”) for the reimbursement of the federal share of amounts paid to JAM.

In cooperation with federal and state authorities, JAM has since replaced the allegedly-deficient bridge components at its own cost and under the supervision of VTrans inspectors. JAM has also terminated its employment of two employees who allegedly directed the foregoing scheme.

“As exemplified by this settlement, contractors who cut corners on taxpayer-funded projects will face serious consequences,” said Acting United States Attorney Eugenia A.P. Cowles. “We will not hesitate to aggressively pursue and hold accountable those who knowingly or recklessly bill the government for faulty goods or services, particularly where public safety is a concern.”

“This investigation demonstrates how to not conduct business on public infrastructure projects in the United States. The Office of Inspector General is committed to investigating fraudulent acts and the individuals who commit them,” said Todd Damiani, regional Special Agent-in-Charge of the United States Department of Transportation Office of Inspector General (“OIG”). “We encourage anyone who may have information about fraud affecting taxpayer dollars on public transportation projects to come forward and report it. The OIG is committed to working with our Federal, State and local law enforcement and prosecutorial partners to hold accountable those who engage in fraudulent activities.”

“The message is that we will work with our federal partners to uphold the integrity of the federal-aid highway construction program,” said Vermont Secretary of Transportation Joe Flynn. “Those who attempt to hide defective work will be held accountable. I am pleased that McDonald’s senior management cooperated with the investigation.”

Pursuant to the terms of the settlement agreement entered into by the United States, the State of Vermont, JAM, and Boyden, the settlement constitutes neither an admission of liability by JAM or Boyden nor a concession by the United States or the State of Vermont that the claims asserted are not well founded. The claims settled in this matter are allegations only; there has been no judicial determination of liability.

This matter was investigated by the United States Attorney’s Office for the District of Vermont and the OIG, with assistance from the FHWA, VTrans, and the Vermont Attorney General’s Office.

Assistant United States Attorney Ben Weathers-Lowin handled the matter on behalf of the United States. VTrans was represented by Vermont Assistant Attorney Generals John K. Dunleavy and Toni Hamburg Clithero, and JAM and Boyden were represented by John T. Sartore of the firm Paul Frank + Collins P.C.

The Office of the United States Attorney for the District of Vermont stated that John Breault, age 31, made an initial appearance in federal court in Burlington today on a heroin distribution charge. United States Magistrate Judge John M. Conroy released Mr. Breault on conditions.

According to a federal Criminal Complaint filed yesterday, Mr. Breault, while a police officer with the Royalton, Vermont, Police Department, last summer provided drugs to a woman with whom he was having an intimate relationship. An affidavit filed with the Criminal Complaint, by Special Agent Colin Simons with the Federal Bureau of Investigation, alleges that the woman was an opiate addict who pleaded for drugs and obtained them from Breault. The FBI filing indicates that Breault took drugs from the Royalton Police Department evidence vault, which drugs had been seized in a June 2017 raid, and provided them to the woman in July, 2017.

Breault recently resigned from the Police Department. He is represented by attorney Robert W. Katims of Burlington. The investigation was conducted by the FBI and the United States Drug Enforcement Administration. The maximum statutory penalty for the drug distribution charge is 20 years in prison. The U.S. Attorney’s Office stated that the Criminal Complaint is only a charge, and that Breault is presumed innocent. The United States is represented by Assistant U.S. Attorney William Darrow.

The Office of the United States Attorney for the District of Vermont announced that Gary Delima, 28, of Copiague, New York, and Sharif Cargo, 28, of Brooklyn, New York, were sentenced today for conspiring to distribute more than 100 grams of heroin, and 28 grams of cocaine base, and for conspiring to commit access device fraud. Chief District Judge Christina Reiss sentenced Delima to a 156-month term of incarceration for the drug trafficking offense, and a concurrent 63-month term of incarceration for the fraud offense. Chief Judge Reiss sentenced Cargo to a 132-month term of incarceration for the drug trafficking offense, and a concurrent 57-month term of incarceration for the fraud offense.

According to Court records, Delima and Cargo were the leaders and organizers of a large drug trafficking organization that imported heroin and cocaine base to multiple cities in Vermont and Maine for distribution from approximately the fall of 2012 until March of 2015. Utilizing the alias “Jeff,” both Delima and Cargo communicated by telephone with the customers in Vermont, and directed them to meet with their coconspirators at various locations in Burlington. Delima and Cargo utilized local addicts to function as hosts for their out-of-state coconspirators, providing safe-harbor for their drugs. Law enforcement linked Delima and Cargo’s drug distribution activities to at least one overdose death.

In addition to drug trafficking, Delima and Cargo engaged in sex trafficking, acting as the pimps for various women engaged in prostitution in Vermont, New York, and Pennsylvania. Delima and Cargo used the physical and emotional pain of heroin withdrawal as a coercive tool to force women to engage in additional acts of prostitution.

After a coordinated law enforcement operation that involved numerous law enforcement agencies in the states of Vermont, Maine, New Hampshire, and New York, Delima and Cargo were arrested at a residence in Lewiston, Maine. A search of the residence revealed approximately 300 counterfeit credit cards, and various equipment used to manufacture counterfeit credit cards. Law enforcement also obtained a search warrant for Delima’s residence in Copiague, where agents discovered numerous emaciated dogs and apparatus used to train dogs for the purpose of dog fighting.

Acting United States Attorney Eugenia A. P. Cowles commended the investigative efforts of the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Burlington, Vermont Police Department; the Winooski, Vermont Police Department; the South Burlington, Vermont Police Department; the St. Albans, Vermont Police Department; the Federal Bureau of Investigation; the Rutland, Vermont Police Department; the Vermont State Police; the Lewiston, Maine Police Department; the United States Secret Service; and the New York City Police Department, in the successful arrests and prosecutions of Delima, Cargo, and twenty-one other related defendants.

Delima was represented by Brooks McArthur, Esq. and David Williams, Esq. Cargo was represented by Thomas Sherrer, Esq. The United States was represented in the District of Vermont by Assistant U.S. Attorney Jonathan A. Ophardt, and in the District of Maine by Assistant U.S. Attorney Daniel J. Perry.

The Office of the United States Attorney for the District of Vermont stated today that Mark Kriskov (a.k.a. “Johnny Est”), 55, of Rutland, Vermont, was sentenced by U.S. District Court Judge William K. Sessions, III, to a total of 51 months of imprisonment for distribution of heroin in the Rutland area. Judge Sessions gave Kriskov 13-months’ credit for time already spent in state custody on related state charges, thus Judge Sessions sentenced Kriskov to an additional 38-months of imprisonment to begin on September 19, 2017. Kriskov previously pled guilty to distribution of heroin. Judge Sessions also sentenced Kriskov to three years of supervised release by the United States Probation Office, which begins after Kriskov serves his term of imprisonment.

According to Court records, from late 2015 through July 2016, Kriskov sold over 50 grams of heroin, primarily out of his Maple Street, Rutland apartment, to Rutland area heroin addicts. In addition, according to the government’s allegations, Kriskov sold a stolen handgun to one of his drug customers. Kriskov is still facing multiple charges brought by the Rutland County State’s Attorney’s Office, including identity theft, possession of stolen property, unlawful possession of a firearm after a violent crime conviction, and DUI #4. Judge Sessions ordered that his federal sentence be concurrent to whatever sentence he receives, if convicted of any of these state charges.

While the government acknowledged that the defendant’s drug dealing was driven by his addiction, the government argued that the sentence imposed by Judge Sessions was warranted, given Kriskov’s egregious criminal history, which included a burglary conviction and multiple aggravated assault and DUI convictions. The government also argued that the defendant’s heroin dealing had a significant impact on the community and the defendant was likely to recidivate unless he was given a lengthy jail sentence.

This case was investigated by the Vermont State Police Drug Task Force, the Rutland City Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Perella is prosecuting this case on behalf of the United States. Kriskov is represented by Devin McLaughlin, Esq., of Middlebury, Vermont and Stephanie Greenlees, Esq., of Burlington, Vermont.

The United States Attorney for the District of Vermont announced that Terrance Tinsley, 40, of Queens, New York, appeared today in United States District Court in Burlington on a charge that he possessed heroin and cocaine base with intent to distribute. U.S. District Judge William K. Sessions III ordered that Tinsley be detained pending a further hearing on September 19.

Burlington Police officers arrested Tinsley on the morning of September 14 after they executed a search warrant at an upper-floor apartment at 416 Pearl Street in Burlington. According to the criminal complaint, a confidential source working with BPD made a controlled purchase of heroin for $200 from within that apartment on the evening of September 13. When officers entered the apartment to search the next day, they found Tinsley in a bedroom. In that bedroom, searchers recovered about 50 grams of cocaine base, about five grams of heroin, a loaded pistol and about $5000. The cash included the $200 in pre-recorded buy money the confidential source had used to buy heroin the previous day.

The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.

If convicted, Tinsley faces up to 20 years of imprisonment on the drug charge and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.

Tinsley is represented by Assistant Federal Public Defender Steve Barth. The prosecutor at today’s hearing was Assistant U.S. Attorney Gregory Waples.

The Office of the United States Attorney for the District of Vermont stated that on September 7, 2017, a Federal grand jury in Burlington returned a single-count indictment, which charged Cody Clark, 26, of Bristol, Vermont, with production of child pornography. If convicted, Clark faces a mandatory minimum sentence of 15 years and up to 30 years in prison, a mandatory minimum term of five (5) years and up to life on supervised release, and fines of up to $250,000.

According to court records, the investigation into Clark began when Google sent a “Cybertip” to the National Center for Missing and Exploited Children (NCMEC) that the user of one of its platforms had uploaded images of child pornography. NCMEC forwarded the Cybertip to the Vermont Internet Crimes Against Children Task Force (ICAC), which conducted further investigation into Clark, the suspected user of the Google account. The ICAC obtained a warrant to search what it believed to be Clark’s residence. During execution of the search warrant, images of child pornography were found on Clark’s computer. The images identified in the Cybertip were among the images found on Clark’s computer. Clark told law enforcement that he produced these images of child pornography and he used them for sexual gratification.

Acting U.S. Attorney Eugenia A.P. Cowles emphasized that the indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. If convicted, Clark’s sentence will be determined by the advisory United States Sentencing Guidelines.

Acting U.S. Attorney Cowles commended the efforts of the Vermont Internet Crimes Against Children Task Force, University of Vermont Police Services, Homeland Security Investigations, and the Vermont Attorney General’s Office. Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Clark. Assistant Federal Public Defender Elizabeth K. Quinn represents Clark.

Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The United States Attorney for the District of Vermont announced that Corey Carter, 32, of Brooklyn, was sentenced Tuesday in United States District Court in Rutland to 132 months of imprisonment following his guilty plea to conspiracy to distribute heroin. United States District Judge Geoffrey Crawford also ordered that Carter serve three years of supervised release following completion of his prison term. Carter had been in the custody of the United States Marshals Service since his June 2016 arrest.

Carter pleaded to a Superseding Indictment charging him with conspiring with brothers Sebastian and Yorgan Benjamin, and others, to distribute heroin in May 2016. Court records indicate that Carter and the Benjamin brothers tried to distribute heroin out of an apartment in Rutland, with Carter leaving town after setting up the Benjamins in the apartment to sell Carter’s heroin. Unbeknownst to Carter and the Benjamins, however, the apartment was part of a law enforcement operation orchestrated by the Federal Bureau of Investigation and the Vermont State Police Drug Task Force, and the Benjamins distributed Carter’s heroin to persons working with law enforcement. Court records also indicate Carter had conspired to distribute heroin in Vermont since at least 2014 until his arrest.

Both Benjamin brothers have pleaded guilty. Last month Sebastian Benjamin was sentenced to a time-served sentence of approximately four months. Yorgan Benjamin, who has not yet been sentenced, has failed to appear in court and a warrant has issued for his arrest.

This was Carter’s fourth felony conviction. He had also been convicted of felonies in New York state courts.

This case was investigated by the Vermont State Police and the FBI.

Carter is represented by Ernest Allen, III, Esq. The prosecutor is Assistant U.S. Attorney Michael Drescher.

The Office of the United States Attorney for the District of Vermont announced that Sanjay Gupta, 51, of Fords, New Jersey, was sentenced yesterday for illegally hiring twelve unauthorized aliens to work at his company, Doon Technologies located in Iselin, New Jersey. U.S. District Judge J. Garvan Murtha sentenced Gupta to a six-month term of incarceration and a $10,000 fine. Judge Murtha also ordered that Gupta pay restitution totaling $14,200 to foreign workers from whom Gupta obtained illegal fees and payments.

According to Court documents, Gupta admitted to recruiting 12 foreign workers with information technology expertise to work in the United States at his company Doon Technologies. Gupta then submitted forms and documentation to United States Citizenship and Immigration Services (USCIS) to obtain H1-B visas for the foreign workers with the stated purpose of working for Doon Technologies. USCIS has a visa processing center in St. Albans, Vermont which processed some of the applications submitted by Gupta. The applications Gupta submitted claimed that Doon Technologies would employ the foreign workers in the State of New Jersey, and that the foreign workers would be paid within 30 days of admission to the United States, as required. However, Gupta had no intent to follow these assurances, and instead placed the foreign workers at worksites outside the State of New Jersey, and paid the foreign workers only when work was available. Gupta’s misrepresentations to USCIS were material, in that H1-B visa allocations are designed to allow the employment of foreign workers in specialty occupations only when there are insufficient U.S. Citizens and Lawful Permanent Residents to work in those positions.

In addition, Court documents reflect that Gupta submitted fraudulent documentation to USCIS to obtain H1-B visas, specifically by forging fictitious contracts with purported customers in an effort to demonstrate that work would be available for foreign workers when they began work for Doon Technologies. Further, court documents reflect that Gupta demanded prospective H1-B visa beneficiaries pay Gupta an illegal fee for submitting the H1-B visa applications to USCIS. Gupta also demanded that H1-B visa beneficiaries pay him hundreds of dollars to retain their visas, or risk deportation.

Acting United States Attorney Eugenia A. P. Cowles commended the investigative efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Department of Labor Office of Inspector General’s Office of Investigations – Labor Racketeering and Fraud.

The United States was represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Gupta was represented by David J. Williams, Esq. and Brooks G. McArthur, Esq.

The Office of the United States Attorney for the District of Vermont stated that Howard Hoisington, age 34, formerly of Berlin, pleaded guilty today in the United States District Court in Burlington to arson and robbery charges stemming from the fatal arson that occurred in Northfield in December 2015. Hoisington, who has been detained since his arrest in December 2015, appeared before Chief Judge Christina Reiss and pled guilty to arson with death resulting and conspiracy to commit robbery.

As described during the change of plea proceedings, in the fall of 2015, Jonathan Zampieri, Howard Hoisington, Tammy Wilder, Kevin Atwood and Kim Hoisington committed a series of robberies of drug dealers in the Washington County area of Vermont. Three of these robberies involved dousing a person selling drugs with gasoline and threatening them with a lighter to rob them of their drugs and cash. The last of these robberies resulted in a fire that destroyed a building in Northfield and killed innocent bystander Brittany Burt.

Also according to court records, on December 14, 2015, Zampieri, Howard, Tammy Wilder, Kim Hoisington and Amanda Wilder drove in Zampieri’s vehicle to pick up Atwood in Montpelier. They all drove to the Cumberland Farms in Northfield where Zampieri filled two mason jars with gasoline. Zampieri, Howard and Atwood then drove to the apartment of Efren Serrano on Union Street in Northfield, Vermont, from whom they had arranged to purchase crack cocaine. Zampieri, Howard and Atwood went to Serrano’s apartment and kicked in the front door. They found Serrano and Serrano’s girlfriend, Brittany Burt, in the bedroom. Serrano and Burt were doused with gasoline and the men demanded Serrano’s drugs. When Serrano did not respond, the men pulled out a lighter. The lighter went off, igniting the gasoline vapors and causing the room to burst into flames. Zampieri, Howard and Atwood fled the building. At some point, Serrano was able to run from the building on fire. Serrano sustained life threatening injuries, but he survived. Brittany Burt could not escape the building. She died on the bedroom floor.

This case was part of the United States Attorney’s Office Violent Crime Initiative, aimed at pursuing federal prosecutions involving the intersection of drug trafficking and violence. Acting United States Attorney Eugenia A. P. Cowles condemned the use of violence to further the illicit drug trade and noted that the United States Attorney’s Office will continue to prosecute those who, like the defendants in this case, disregard human life.

Under federal law, the arson charge carries a potential life sentence, but the plea agreement caps Hoisington’s sentence at twenty-five years in jail. Hoisington’s co-defendants, Jonathan Zampieri, Tammy Wilder, and Richard Hoisington, have all pleaded guilty to various charges. Kimberly Hoisington’s change of plea hearing is scheduled for next week.

The case was investigated by the Vermont State Police, Vermont Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The United States Attorney’s Office worked in partnership with the Washington County State’s Attorney Scott William to investigate and resolve this important matter. Howard Hoisington is represented by Steven Barth and Elizabeth Quinn of the Federal Public Defender’s Office. The United States is represented by Criminal Chief Paul Van de Graaf and AUSA John Boscia.

The Office of the United States Attorney for the District of Vermont announced today that it has resolved its review of the Hinesburg Police Department’s compliance with the Americans with Disabilities Act (ADA). The compliance review focused on interactions with individuals with mental health disabilities and was initiated in January 2017, following a May 2016 incident between a Hinesburg police officer and a resident.

Throughout the compliance review, Chief Frank Koss made clear that the Hinesburg Police Department is committed to serving every member of the Hinesburg community equally and effectively. As part of the resolution of the review, the Hinesburg Police Department will revise its policies to ensure compliance with the ADA, receive additional training on interacting with individuals with mental health disabilities, and consider whether additional changes to its practices are appropriate. Chief Koss and the Hinesburg Police Department are to be commended for their collaborative approach to the compliance review.

This year marks the 27th anniversary of the passage of the ADA, which provides in part that no qualified individual with a disability shall, because of that disability, be excluded from participation in, denied the benefits of, or subjected to discrimination in the services, programs, and activities of all state or local government entities, including law enforcement.

Assistant United States Attorney Julia Torti handled this matter for the United States Attorney’s Office for the District of Vermont. The Hinesburg Police Department was represented by William Ellis of McNeil, Leddy & Sheahan PC.

For more information on the ADA, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at contact the ADA Information Line at
800-514-0301 (voice) 800-514-0383 (TTY).

To file a civil rights complaint with the U.S. Attorney’s Office for the District of Vermont, visit https://www.justice.gov/usao-vt and click on “File a Civil Rights Complaint.”

The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned a Superseding Indictment yesterday charging six defendants with conspiracy to distribute controlled substances, including Michael Leslie, aka “Bear,” age 40, of Philadelphia, PA; Marvin Tyrone Crawford, aka “Ty,” age 40, of Philadelphia, PA; Pamela Yandow, aka “Pam,” age 45 of St. Albans, VT; Tannar Yandow, age 20, of St. Albans, VT; Donna Larose, age 56, of St. Albans, VT; and Larnell Cunningham, age 39, of New York, NY.

According to Court documents, the United States alleges that during the conspiracy, Leslie, Crawford, Pamela Yandow, Tannar Yandow, and Larose distributed controlled substances in Franklin County, Vermont. Leslie and Crawford would obtain cocaine and heroin from outside Vermont, and transport the drugs into Vermont by automobile with the assistance of coconspirators. The group used Facebook’s Messenger application to communicate with customers to arrange transactions, and communicate with each other about their drug activities.

Court documents outline the history of the case. On February 9, 2017, Larose was arrested by New York State Police in Fort Ann, NY for criminal possession of a controlled substance. New York State Police encountered Larose during a traffic stop. A search of her vehicle after impoundment resulted in the seizure of approximately 250 grams of suspected powder cocaine, and miscellaneous paperwork bearing the name of Leslie.

On May 23, 2017, a St. Albans Police Department officer conducted a traffic stop of a Chevrolet Impala operated by Cunningham. After obtaining a warrant, the officer searched the vehicle and discovered approximately 130 grams of suspected cocaine base in a Tang drink mix container that had a hidden compartment. Officers also seized a small digital scale, numerous small clear plastic baggies, four cellular telephones, and documents bearing Leslie’s name. Prior to and after May 23, 2017, law enforcement observed Leslie operating the Impala. On May 23, 2017, Cunningham was charged by Criminal Complaint. Cunningham appeared before United States Magistrate Judge John M. Conroy on May 25, 2017, and was subsequently detained pending trial.

On May 24, 2017, an individual assisting law enforcement conducted a purchase of suspected cocaine base from Crawford. During this encounter, Crawford discussed the seizure of cocaine base from Cunningham, and stated “he was supposed to be coming to see me.”

On July 17, 2017, agents with the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives obtained a search warrant for 49 Troy Street, Apartment #1, in Richford, VT. While executing the search warrant, agents encountered Leslie and Crawford at the residence, and both were placed under arrest. Leslie was found in possession of $8,378 of U.S. currency. Agents also seized drug paraphernalia from the residence, including a small digital scale, small empty wax bags, and kitchen utensils believed to contain trace amounts of controlled substances. Agents also located Yandow on July 18, 2017, and placed her under arrest.

On July 18, 2017, Leslie, Crawford, and Pamela Yandow appeared before United States District Court Judge William K. Sessions, and were ordered detained pending detention hearings. Tannar Yandow was also arrested on July 18, 2017, and charged by Criminal Complaint on July 19, 2017. Tannar Yandow appeared before United States District Judge Christina Reiss, and was ordered detained pending a detention hearing.

The United States Attorney emphasizes that the charges contained in the Superseding Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Leslie, Crawford, or Pamela Yandow are convicted, they face a mandatory minimum sentence of ten years, and a maximum possible term of imprisonment of life. If Tannar Yandow, Larose, or Cunningham are convicted, they face a mandatory minimum sentence of five years, and a maximum possible term of imprisonment of forty years.

The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Leslie is represented by Robert Behrens, Esq. Crawford is represented by Marianne Kampmann, Esq. Pamela Yandow is represented by Michael Straub, Esq. Tannar Yandow is represented by Brooks McArthur, Esq. Cunningham is represented by Assistant Federal Public Defender David McColgin, Esq. Larose has not yet appeared in court. The investigation was conducted by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the St. Albans Police Department.

The United States Attorney for the District of Vermont announced that Jaiden Paige, 37, of Rutland, was sentenced Tuesday in United States District Court in Burlington to 139 months of imprisonment following his guilty pleas to charges of conspiracy to distribute heroin, possession with intent to distribute heroin, and distribution of heroin. Chief U.S. District Judge Christina Reiss also ordered that Paige forfeit more than $8,000, and serve five years of supervised release following completion of his prison term. Paige had been in the custody of the United States Marshals Service since his February 2016 arrest.

Paige, whose previous name was Danny Coombs, pleaded to an Information charging him with conspiring with Kwasi Asante (also of Rutland) and others, to distribute heroin from 2014 to February 2016. Court records indicate that Paige and Asante operated a construction company and paid at least one of their employees in heroin. Court records also indicate Paige and Asante utilized others to test the heroin the defendants would consider acquiring for re-distribution in Vermont.

Asante has pleaded guilty and is awaiting sentencing.

This was Paige’s second federal felony conviction. He had also been convicted of felonies in New York and Vermont state courts.

This case was investigated by the Vermont State Police, the FBI, and the Drug Enforcement Administration.

Paige is represented by Lamar Enzor. The prosecutor is Assistant U.S. Attorney Michael Drescher.

The Office of the United States Attorney for the District of Vermont announced that Nezar Q. Al-Bataineh, age 40, a Jordanian National, has been indicted on wire fraud and tax evasion charges related to his sale of used automobiles. It is believed that Al-Bataineh is currently residing in Jordan. A warrant has been issued for his arrest.

As charged in the indictment, from approximately May 17, 2015 through May 21, 2015, Al-Bataineh devised a scheme to defraud and obtain money by means of false pretenses to a possible vehicle purchaser. It is alleged that Al-Bataineh misrepresented the length of his ownership and service history of a vehicle which he had offered for sale on Craigslist.

The indictment further alleges that Nezar Al-Bataineh willfully evaded income taxes due and owing by him to the Internal Revenue Service, by filing false and fraudulent individual income tax returns, Forms 1040NR-EZ. Counts 2 through 5 of the superseding indictment allege that Nezar Al-Bataineh failed to reported significant net income for the calendar years 2011 through 2014, which he earned as an unlicensed automobile dealer.

The charges against Al-Bataineh are merely accusations and Al-Bataineh is presumed innocent until proven guilty. If convicted, Al-Bataineh’s sentence will be advised by the federal sentencing guidelines.

The case against Al-Bataineh is being investigated by the Internal Revenue Service, Criminal Investigation Division.

The United States is represented in this case by Acting United States Attorney Eugenia A.P. Cowles. Al-Bataineh is represented by Attorney Richard R. Goldsborough.

The United States Attorney for the District of Vermont announced that William O’Brien, 60, a former attorney who lives in Winooski, was sentenced today in United States District Court in Brattleboro to 14 months of imprisonment following his guilty plea to a charge of mail fraud. U.S. District Judge J. Garvan Murtha also ordered that O’Brien serve a one-year term of supervised release following completion of his prison term and pay restitution totaling $19,699. The court ordered that O’Brien surrender to the Bureau of Prisons on September 5 to begin serving his sentence.

On October 13, 2016, the United States filed a criminal information charging O’Brien with one count of mail fraud, the charge to which O’Brien pled guilty. The information charged O’Brien with defrauding two former law clients. In one case, O’Brien became the trustee of a trust established by the clients. As trustee, O’Brien was to use trust funds to make charitable contributions in the memory of the clients. Between 2008 and 2013, O’Brien did make a number of contributions of trust funds in the total amount of $97,500, but also improperly diverted about $139,000 in trust funds to his law firm account. In another case, O’Brien received in his capacity as attorney more than $247,000 in client funds, which were also meant to be used for charitable purposes. Although O’Brien did make one contribution of $15,000, he again used the remaining funds for his own benefit.

In early 2016, O’Brien did repay about $472,000 to these two clients, but those payments were made only after O’Brien became aware he was under investigation by counsel for the Vermont bar. The Vermont Supreme Court suspended O’Brien’s law license in January 2016 and disbarred him last December.

In addition to defrauding the two clients referred to in the charging information, O’Brien also misappropriated smaller amounts of money from five other clients. The court’s restitution order requires O’Brien to repay those clients in full.

This case was investigated by the Burlington Police Department, the U.S. Postal Inspection Service and the Vermont Judiciary’s Office of Disciplinary Counsel.

O’Brien is represented by Scott McGee of Norwich. The prosecutor is Assistant U.S. Attorney Gregory Waples.

An indictment was unsealed today charging Mohammed Reza Rezakhah, 39 and Mohammed Saeed Ajily, 35, both Iranian nationals, with a criminal conspiracy relating to computer fraud and abuse, unauthorized access to, and theft of information from, computers, wire fraud, exporting a defense article without a license, and violating sanctions against Iran. The court issued arrest warrants for both defendants.

Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Eugenia A.P. Cowles of the District of Vermont, Assistant Director Scott Smith of the FBI’s Cyber Division, and Special Agent in Charge Vadim Thomas of the FBI’s Albany, New York Field Office made the announcement.

According to the allegations in the indictment filed in Rutland, Vermont, beginning in or around 2007, Rezakhah, Ajily, and a third actor who has already pleaded guilty in the District of Vermont for related conduct, conspired together to access computers without authorization in order to obtain software which they would then sell and redistribute in Iran and elsewhere outside the U.S. Ajily, a businessman, would task Rezakhah and others with stealing or unlawfully cracking particular pieces of valuable software. Rezakhah would then conduct unauthorized intrusions into victim networks to steal the desired software. Once the software was obtained, Ajily marketed and sold the software through various companies and associates to Iranian entities, including universities and military and government entities, specifically noting that such sales were in contravention of U.S. export controls and sanctions.

As part of this conspiracy, in October 2012, Rezakhah hacked a Vermont-based engineering consulting and software design company best known for its software that supports aerodynamics analysis and design for projectiles. This software is designated as a “defense article” on the U.S. Munitions List of the International Traffic in Arms Regulations (ITAR), meaning it cannot be exported from the U.S. without a license from the U.S. Department of State. Ajily thereafter promoted the same software as one of the products he could offer to his Iranian clients.

The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The FBI’s Albany Cyber Squad investigated the case. The case is being prosecuted by Acting U.S. Attorney Eugenia A.P. Cowles of the District of Vermont and Deputy Chief Sean Newell of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance in this matter.