District of New Hampshire
Press releases recorded for this federal judicial district.
Lawrence, Massachusetts Man Pleads Guilty to Possessing Crack Cocaine and Heroin with Intent to Sell in NashuaRead the Press Release
CONCORD – Acting United States Attorney Donald Feith announced today that Santiago Marino Reyes-Lara, a/k/a Jean Carlos Sotomayor-Venerio, 27, of Lawrence, Massachusetts pleaded guilty today to unlawful possession with the intent to distribute cocaine base (“crack”) and heroin. Reyes-Lara appeared before United States District Court Judge Paul J. Barbadoro to enter his guilty plea.
According to documents that were filed in United States District Court, Reyes-Lara was arrested in Nashua on April 22, 2014 after a vehicle he was operating was found to contain 22 grams of cocaine base (“crack”) and 6.5 grams of heroin. The drugs were hidden in a tire jack.
Reyes-Lara’s arrest was part of a long term investigation by the United States Drug Enforcement Administration’s High Intensity Drug Trafficking Area Task Force and the Nashua and Hudson, New Hampshire Police Departments into the trafficking of cocaine base (“crack”), cocaine and heroin in and around Nashua and Hudson, New Hampshire areas by Lawrence, Massachusetts-based narcotics traffickers. As a result of the four year investigation, sixteen individuals, including Reyes-Lara, were arrested, and approximately $60,000 and multiple vehicles were seized, many of which contained electronic hidden compartments to transport the narcotics into New Hampshire. Narcotics seizures included approximately 1,000 grams of cocaine, 300 grams of heroin, and 200 grams of cocaine base (“crack”).
"Our office will continue to work with local, state and federal law enforcement to identify, investigate and prosecute drug traffickers," stated Acting United States Attorney Donald Feith. "This case demonstrates the excellent results that can be achieved when we combine our resources to take those individuals who would profit from the sale of drugs off the streets."
A sentencing hearing has been scheduled for September 8, 2015. Reyes-Lara faces a maximum sentence of twenty years. He is subject to the advisory sentencing guidelines which will likely generate a sentencing range that is less than twenty years.
Dominican Man Guilty of Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –Ruberky Antonio Romero-Mejia, 37, of the Dominican Republic, pled guilty on May 29, 2015 to a one-count indictment charging him with illegally reentering the United States after having been previously deported, announced Acting United States Attorney Donald Feith. As part of the United States Attorney’s Office for the District of New Hampshire’s fast track program, Romero-Mejia was sentenced to time served and immediately turned over to immigration officials for deportation. Romero-Mejia had been incarcerated since his arrest by immigration officials.
On February 11, 2015, the New Hampshire State Police contacted agents of the Department of Homeland Security concerning an individual who was trying to obtain a New Hampshire identification card under the name Joel Salome-Ortiz. Salome-Ortiz presented altered and inconsistent documents at the Salem office of the Department of Motor Vehicles in support of his attempt to obtain the identification card. Salome-Ortiz was interviewed by immigration officials and agreed to provide a set of digital fingerprints. The digital fingerprints did not match any individual in the DHS’s database and DHS agents noticed that Salome-Ortiz’s fingers appeared to have been scarred and the skin re-sewn. Salome-Ortiz was arrested by state officials on unsworn falsification and tampering with public records charges. The following day, DHS agents obtained a set of inked fingerprints from Salome-Ortiz and they were matched to Ruberky Antonio Romero-Mejia after analysis by DHS lab personnel who specialize in analyzing altered fingertips. Romero-Mejia had been previously deported in March 2010.
The case was investigated by the New Hampshire State Police and agents of the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
New York State Residents Sentenced for Roles in Mail and Wire Fraud Conspiracy Relating to Life InsuranceRead the Press Release
CONCORD – Two New York City men, who previously pled guilty to conspiracy to commit mail and wire fraud in connection with a scheme to fraudulently obtain high value life insurance policies for the purpose of selling those policies to third party investors, have been sentenced to 18 months in federal prison. The scheme, which related to Stranger Originated Life Insurance (“STOLI”) policies, allowed the defendants to earn substantial commissions from the insurance companies issuing the policies based on the false information provided by the defendants.
According to documents filed in the United States District Court and other documents in the public record, Robert Wertheim and Abraham Kirschenbaum, both of New York, admitted that they conspired with others to identify elderly individuals interested in purchasing high value life insurance policies at no cost. Wertheim and Kirschenbaum conspired with others to provide false information on multi-million dollar life insurance policies to induce insurance companies to issue the policies, including but not limited to materially false information as to the assets held by and net worth of the insureds, whether or not the insureds intended to finance the cost of the substantial premiums associated with such policies, and whether the insureds intended to assign the beneficial interest in the policy to third parties. Some of the policies issued based upon the false representations were issued by a New Hampshire insurance company, Lincoln National Life Insurance Company.
Kirschenbaum and Wertheim, who faced a maximum prison sentence of 5 years in federal prison, were both sentenced to 18 months based on their substantial assistance to the government in its ongoing investigation of others. Additionally, Kirschenbaum was ordered to forfeit $1,000,000.
“Fraudulent life insurance procurement schemes pervert the market for life insurance policies,” said Acting United States Attorney Donald Feith. “By conspiring with others to infect the life insurance market with these fraudulently obtained policies, the defendant skewed the normal operation of life insurance and put insurers at substantial risk from the losses that could be incurred relating to such policies. Our office’s investigation of this practice is ongoing.”
The United States Secret Service, the United States Postal Inspection Service and the Federal Bureau of Investigation led the investigation of this case.
Mexican Man Guilty of Illegally Reentering the United States After Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Carlos Gomez-Lopez, of Mexico, pled guilty to a one-count indictment alleging that he illegally reentered the United States after having been previously deported, announced Acting United States Attorney Donald Feith. He was sentenced immediately and will be deported.
The Nashua Police Department arrested Gomez-Lopez in January 2015 for operating without a license. At the time of his arrest, Gomez-Lopez identified himself as Esau Gomez-Lopez. The Nashua Police submitted Gomez-Lopez’s fingerprints for analysis and the fingerprint matched Department of Homeland Security records for Carlos Gomez-Lopez. The records maintained by DHS established that Gomez-Lopez had been deported from the United States to Mexico on five previous occasions – June 2004, September 2004, November 2012, and twice in December 2012.
Gomez-Lopez was arrested in Nashua by DHS agents on March 11, 2015. He was indicted in by a grand jury for the District of New Hampshire on March 25, 2015. Gomez-Lopez pled guilty to knowingly reentering the United States after having previously having been deported to his native Mexico and was sentenced to time served since his arrest on March 30, 2015. He is in the custody of immigration officials and will be deported.
The case was investigated by the Nashua Police Department and agents from the Department of Homeland Security. The case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
Man Arrested After Traveling from Canada to New Hampshire to Purchase 100 FirearmsRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced today that Nana Baffoe, 62, was arrested on Tuesday for making false statements in an attempt to buy firearms.
According to an affidavit supporting a criminal complaint filed in federal court, Baffoe entered the United States from Canada at a border crossing on May 18, 2015. A few days later, he met with a firearms dealer in Nashua, New Hampshire and sought to purchase 100 handguns. Under federal law, a firearms dealer can only sell handguns to a resident of the state where the dealer is located. According to the affidavit, Baffoe filled out paperwork that falsely stated that he was a resident of Manchester, New Hampshire. Baffoe also provided the dealer with a cashier’s check in the amount of $30,500 to purchase the guns. Information obtained by investigators showed that Baffoe did not live at the Manchester address that he provided and that he had been residing in Canada.
Baffoe appeared before United States Magistrate Judge Andrea K. Johnstone on Wednesday and was ordered detained temporarily pending a hearing that has been scheduled for 2:30 p.m. on June 1, 2015.
The charges contained in the criminal complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty. The crime with which Baffoe is charged carries a sentence of up to ten years in prison, a fine of $250,000, three years of supervised release, and a $100 special assessment.
The investigation is continuing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Manchester Police Department, Nashua Police Department, and the New Hampshire State Police. It is being prosecuted by Assistant United States Attorney John J. Farley.
FCI Berlin Inmate Sentenced on Federal Weapon Possession ChargeRead the Press Release
CONCORD, N.H. – Joshua Starr, 29, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, was sentenced in United States District Court for the District of New Hampshire on federal weapon possession charges, announced Acting United States Attorney Donald Feith. The Court imposed a term of fifteen months’ imprisonment, to be served consecutive to Starr’s current prison sentence.
During a routine search in August 2014, correctional officers discovered on Starr’s person a six-inch piece of wood sharpened into a stabbing weapon. Acting United States Attorney Donald Feith stated, “The safety of federal correctional officers and inmates is threatened whenever an inmate possesses a weapon in the facility. Our office will continue to work with the Bureau of Prisons by prosecuting those inmates who fashion or possess a weapon within the prison walls. Prosecuting these cases helps make New Hampshire’s only federal correctional facility a safer place for both staff and inmates.”
This prosecution arose from an investigation by the Federal Correctional Institution in Berlin, New Hampshire, in collaboration with the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Store Owners Plead Guilty to Selling Synthetic CannabinoidsRead the Press Release
CONCORD, N.H. – Mohamed Alam, 62, of North Andover, Massachusetts, and Murshed Salam, 47, of Salem, New Hampshire, each plead guilty in United States District Court for the District of New Hampshire to selling synthetic cannabinoids announced Acting United States Attorney Donald Feith. Alam and Salam were selling synthetic cannabinoids under the brand names “Crazy Monkey,” “Sexy Monkey,” “Family Monkey” and “Mad Monkey.” Synthetic cannabinoids are a mixture of a leafy substance that has been sprayed with chemical compounds similar to THC, the psychoactive ingredient found in marijuana. Users smoke the product. The chemical compounds used in the manufacture of these products are ever changing and pose a significant threat to public health.
On June 26, 2013, a federal search warrant was executed at a convenience store located at 4 Main Street, North Andover, Massachusetts owned by Alam. The agents seized approximately 100 packages of “Monkey” products. Alam told law enforcement that he knew his customers were smoking the product even though the product packaging included a warning that the product was not for human consumption. Alam identified Murshed Salam of Salem, New Hampshire as his supplier. Agents then went to the Global Gas Station located at 52 Lowell Road, Salem, New Hampshire owned by Salam and seized several hundred more packages of the Monkey products. Salam was also selling the products as well as supplying Alam with the products.
The products Alam and Salam sold were misbranded because they were sold as potpourri when in fact the product was intended for use as a drug for human consumption and the product labeling, in package form, failed to include the name and address of the manufacturer, packer, or distributor, did not bear adequate directions for use, and did not bear such adequate warnings against use.
“Synthetic cannabinoids present a significant threat to public health,” Acting United States Attorney Donald Feith stated. “This office has notified merchants and businesses about the illegality of selling these products and the dangers they pose to the public. We will continue to work with our local, state and federal partners to investigate and prosecute those businesses who continue to introduce these dangerous products into the stream of commerce.”
“Our school resource officers are educating students of these illicit drugs and their unknown ingredients that can cause traumatic overdose and other medical issues. We will continue to work tirelessly with our law enforcement and community partners in combating substances that harm our citizens,” stated Paul J. Gallagher, Chief of North Andover Police.
Alam and Salam each face a maximum sentence of one year imprisonment. Alam agreed to a money forfeiture of $18,737.00 and Salam agreed to a money forfeiture of $18,245.00. Alam is scheduled to be sentenced on July 30, 2015. Salam’s sentencing hearing is scheduled for . Both were released pending sentencing.
The case was investigated by the North Andover Police Department and the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Honduran Man Guilty of Illegally Reentering the United StatesRead the Press Release
Concord, NH – Florentino Vasquez-Rodriguez of Honduras, pleaded guilty today in United States District Court for the District of New Hampshire to illegally reentering the United States after having been previously deported, announced Acting United States Attorney Donald Feith.
Vasquez-Rodriguez was arrested in Texas in 2004 by border patrol authorities and deported to Honduras. In March 2015, agents of the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement received information that Vasquez-Rodriguez was residing in Nashua, New Hampshire. After a brief investigation, Vasquez-Rodriguez was traced to a residence on Bridge Street in Nashua. When approached by immigration officials, Vasquez-Rodriguez initially claimed to be from Puerto Rico. Shortly thereafter he admitted he was from Honduras and did not possess documents that would have permitted him to legally reside in the United States. Fingerprint analysis confirmed that Vasquez-Rodriguez was the same individual who had been previously deported in 2004.
A sentencing hearing is scheduled on August 20, 2015. Vasquez-Rodriguez will be deported after serving his sentence.
The U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement investigated this case. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
Dominican Man Guilty of Illegally Reentering the United StatesRead the Press Release
Concord, NH – Jose Luis Diaz-Pena, 34, of the Dominican Republic, pleaded guilty in United States District Court for the District of New Hampshire to illegally reentering the United States after having been previously deported, announced Acting United States Attorney Donald Feith.
Diaz-Pena was arrested on January 13, 2015 by agents of the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. A New Hampshire State Trooper serving on the New Hampshire State Police’s Department of Motor Vehicles Task Force contacted federal authorities after Diaz-Pena appeared at a DMV office in Nashua and attempted to obtain a New Hampshire identification card. Fingerprints taken by federal authorities determined that Diaz-Pena had been deported from the United States on three prior occasions.
Diaz-Pena was indicted in U.S. District Court on March 11, 2015. His sentencing was scheduled for August 19, 2015, at 10:00. Diaz-Pena will again be deported after serving his sentence.
This case was investigated by the New Hampshire State Police and the Bureau of Immigration and Customs Enforcement. It is being prosecuted by Assistant U.S. Attorney Alfred Rubega.
Manchester Man Sentenced on Bank Robbery ChargeRead the Press Release
CONCORD, N.H. – Roger Hicks, 51, of Manchester, appeared in United States District Court for the District of New Hampshire and was sentenced to 37 months in prison for robbing the Members First Credit Union in Manchester on October 3, 2014, announced Acting United States Attorney Donald Feith.
The defendant, who was identified by bank personnel and through surveillance video, entered the Members First Credit Union on Bridge Street and made several attempts to withdraw funds using cash-advance debit/credit cards. After being informed there were insufficient funds to satisfy the withdrawal, Hicks passed a demand note to the teller which stated he had a gun. The defendant was subsequently arrested in Manchester and indicted by a Federal Grand in January of this year.
This case was investigated by the Manchester Police Department and was prosecuted by Assistant United States Attorney Helen White Fitzgibbon with the assistance of the Federal Bureau of Investigation.
New Hampshire Man Pleads Guilty to Felon in Possession of A FirearmRead the Press Release
CONCORD, N.H. –Richard Lariviere, 45, of Nashua, plead guilty today in United States District Court for the District of New Hampshire to a felon in possession of a firearm charge, announced Acting United States Attorney Donald Feith.
On May 20, 2014, members of the Nashua Police Department obtained a search warrant for a Mercedes operated by Lariviere. The officers stopped the Mercedes in the parking lot of the Country Barn Motel as Lariviere was driving out of the parking lot. The detectives executed the search warrant and located a loaded, 7.65mm Walther semiautomatic handgun with serial number 20384 within a black bag on the vehicle's front passenger seat. The police subsequently applied for and received permission to execute a search warrant for Lariviere’s hotel room where the police found one box of .22 caliber ammunition in addition to Lariviere's license and a check stub for Lariviere. Lariviere was arrested and agreed to waive his Miranda rights and speak with the detectives. Lariviere admitted that he knew that he could not possess a firearm because he was a convicted felon. On August 11, 2009, Lariviere was convicted of Felonious Assault on a Peace Officer in the State of Ohio, County of Belmont, Court of Common Pleas, Docket Number 09-CR-119, a crime punishable by more than one (1) year imprisonment.
“Enforcement of the federal firearms laws is a priority for this office,” Acting U.S. Attorney Feith stated. “This office will continue to work with our local, state, and federal partners to ensure that the possession of firearms is limited to those legally entitled to own and possess these weapons. Individuals who are legally prohibited from possessing or dealing in firearms, and those who aid or abet illegal possession by others, should expect that they will be prosecuted to the fullest extent of the law.”
Lariviere is facing a maximum of ten years in prison and is scheduled to be sentenced on August 17, 2015. He was detained pending sentencing.
The case was investigated by the Nashua Police Department and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Pakistan National Indicted in Multi-National Cybercrime InvestigationRead the Press Release
CONCORD, N.H. –Mustafa H. Arif, an individual with dual citizenship in Pakistan and the United Kingdom, has been indicted for his alleged role in a large-scale international scheme to defraud individuals of over $12 million. Arif is alleged to have operated a series of websites promoting a variety of drugs and claiming these products would cure many serious diseases. These websites targeted individuals from New Hampshire as well as throughout the world, announced Acting United States Attorney Donald Feith.
Arif has been charged in a three count indictment, including one count of wire fraud and two counts of shipping misbranded drugs in Interstate Commerce. The charges relate to hundreds of websites controlled by Arif while operating in Pakistan. The websites promoted the sale of drugs claiming to cure, mitigate, and treat numerous diseases and included materially false and misleading information about the efficacy of these drugs.
The websites, many of which included allegedly falsified clinical research, promoted drugs for a numbers of serious and sometimes incurable illnesses including anemia, mental retardation, ADHD, Bell’s palsy, and bulimia.
Arif, who appeared in United States District Court today for arraignment, was previously arrested in February 2014 in New York City pursuant to a criminal complaint. He was thereafter transported to New Hampshire to answer those charges and he has remained in custody since then.
This case is scheduled for trial on June 16, 2015. If convicted on the pending charges, Arif faces up to twenty (20) years in prison for the wire fraud count and up to three (3) years in prison for each count of introducing misbranded drugs into interstate commerce.
This investigation was led by the FDA/Office of Criminal Investigations, Cybercrime Investigations Unit along with Homeland Security Investigations. Assistance during the investigation was provided by the New Hampshire Attorney General’s Office, Portsmouth New Hampshire Police Department, the United States Consulate, Diplomatic Security Service Lagos, Nigeria office, New Zealand Ministry of Health, United Kingdom Medicines and Healthcare Products Regulatory Agency, and the Department of Justice, Office of International Affairs. The investigation is being prosecuted by Assistant United States Attorney Arnold Huftalen and SAUSA Sarah Hawkins of the FDA/Office of Chief Counsel.
An indictment is a method for alleging criminal charges against an individual. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
New Hampshire Man Pleads Guilty to Possession of an Unregistered FirearmRead the Press Release
CONCORD, N.H. –Ryan Howe, 52, of Hanover, plead guilty today in United States District Court for the District of New Hampshire to Possession of an Unregistered Firearm, announced Acting United States Attorney Donald Feith.
On September 15, 2011, members of ATF New Hampshire and Vermont field offices and the Hanover Police Department executed a search warrant at Howe’s residence. During the execution of the search warrant, law enforcement seized eight firearms and a quantity of ammunition from Howe’s bedroom, including a Winchester Model 120 20-gauge short-barreled shotgun. The shotgun had a barrel length of 16 inches, less than the required 18 inches. In order to legally possess such a short-barreled shotgun, Howe was required to register the firearm and his ownership with the National Firearms Registration and Transfer Record. Howe never registered the short-barreled shotgun.
Howe is scheduled to be sentenced on August 12, 2015. He is facing a maximum sentence of ten years in prison. He was released on conditions pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Debra M. Walsh.
Boston Woman Pleads Guilty for Role in Credit Card ScamRead the Press Release
CONCORD, N.H. – Laura A. Minot, 52, of Mattapan, Massachusetts pleaded guilty in United States District Court for the District of New Hampshire to aggravated identity theft and conspiracy to commit access device fraud in connection with her participation in a fraudulent credit card scheme, announced Acting United States Attorney Donald Feith.
Minot admitted that on April 16, 2014, she conspired with others to purchase gift cards and high value merchandise at retail box stores in New Hampshire and Massachusetts using retail credit card accounts and lines of credit that she and/or her co-conspirators opened in the names of other actual persons without their authorization or knowledge. Minot and her co-conspirators opened the credit card accounts and lines of credit using misappropriated personal identifying information and false identification cards. Minot is facing up to 25 months in prison and is scheduled to be sentenced on July 31, 2015.
This investigation was lead by the Boston office of the U.S. Secret Service and the Medway and Cambridge, Massachusetts Police Departments, the Massachusetts State Police and local police departments in Acton, Ayer, Bedford, Boston, Brookline, Cohasset, Dover, Groton, Lincoln, Littleton, Medfield, Medford, Norton, Plymouth, Reading, Sudbury, Sutton, Tewksbury, Tyngsboro, Watertown, Wayland, Wellesley, Weston and Westwood. The Hollis, New Hampshire police Department also assisted in the investigation. The case is being prosecuted by Assistant United States Attorney Bill Morse.
Distributors of Synthetic Cannabinoids Plead Guilty to Federal ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE – Two men who were responsible for distributing large quantities of unlawful synthetic cannabinoid products have entered guilty pleas in federal court, announced United States Attorney John P. Kacavas.
On March 31, 2015, Kyle Hurley (32) pleaded guilty to participation in a conspiracy to distribute, and possess with intent to distribute, controlled substances. He is scheduled to be sentenced on July 14, 2015. He faces a maximum of 20 years in prison.
On February 12, 2015, Robert Costello (71) pleaded guilty to conspiracy to travel in interstate commerce with the intent to commit a drug trafficking crime and to traveling in interstate commerce with the intent to commit a drug trafficking crime. He is scheduled to be sentenced on May 27, 2015. He faces up to five years in prison on each charge.
Hurley and Costello were arrested on March 28, 2014, after they arranged to deliver more than one ton of synthetic cannabinoid products to undercover law enforcement officers. The synthetic cannabinoid products contained AB-FUBINACA, an illegal controlled substance. Hurley and Costello manufactured and distributed synthetic cannabinoids that were sold in packages bearing a variety of brand names, including “Scooby Snax,” “Bizarro,” “Toxic Blue Magic,” and “Caution Platinum.” These products, which were then sold in convenience stores and at other locations, contained chemicals that are unlawful controlled substances.
Undercover law enforcement officers first began purchasing the unlawful products at convenience stores in Hooksett and Londonderry. Thereafter, they were introduced to Costello, who had been providing the products to the convenience stores. The undercover officers then arranged to acquire quantities of synthetic cannabinoids directly from Costello. When the undercover officers expressed an interest in purchasing larger quantities, Costello introduced them to his source of supply, Hurley, who agreed to supply the undercover officers with large quantities of synthetic cannabinoids. After arranging a purchase of approximately 15 kilograms of synthetic cannabinoids from Hurley and Costello on March 18, 2014, the undercover officers then arranged the one-ton transaction, which led to the arrest of Hurley and Costello on March 28, 2014.
Following the arrests, law enforcement officers executed a search warrant at Costello’s residence in Lawrence, Massachusetts. A shed at the residence was being used to package synthetic cannabinoids. Among the items seized were approximately 46 kilograms of packaged synthetic cannabinoids, as well as approximately 24 kilograms of bulk synthetic cannabinoids, empty packages, shipping documents, scales, heat sealers, and flavorings.
A search warrant was executed at a garage on a property in Seabrook, New Hampshire that belonged to a relative of Hurley. Among the items seized were 16 trash bags each containing 15-kilograms of synthetic cannabinoid products, two trash bags containing approximately 100 packages of synthetic cannabinoids, 28 boxes containing empty packages, scales, empty acetone containers, and shipping materials. In total approximately 225 kilograms of bulk synthetic cannabinoids were seized.
A search warrant was also executed at a location in Epping, New Hampshire, where the synthetic cannabinoids were being manufactured. Among the items located were a cement mixer that was used to manufacture the products, approximately 48 empty 5-gallon drums of acetone, empty chemical containers with AB-FUBINACA residue, three garbage bags containing approximately six kilograms of bulk synthetic cannabinoids, thousands of empty synthetic cannabinoid packages, and approximately 27 kilograms of packaged synthetic cannabinoids.
The investigation is ongoing.
The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation in collaboration with the U.S. Postal Inspection Service and Homeland Security Investigations. The investigators also received the invaluable assistance of DEA-NH/HIDTA and DEA’s Air Wing, the New Hampshire and Massachusetts State Police, the U.S. Marshal Service, Portsmouth Police Department, Somersworth Police Department, Kingston, Police Department, the Dover Police Department, and the York and Kittery, Maine Police Departments. It is being prosecuted by Assistant United States Attorney John J. Farley.
Seacoast Man Pleads Guilty to Serial Loan Fraud and Stolen Valor ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE – Christopher Jordan Bailey, 28, of Brentwood pled guilty in United States District Court for the District of New Hampshire to charges of bank fraud, false statements on a loan application and stolen valor, announced United States Attorney John P. Kacavas.
The bank fraud and false loan application charges arose from Bailey’s submissions of false information to a series of nine banks and government agencies to induce them to grant, extend or modify agricultural-related loans. The stolen valor charge arose from false claims Bailey made to the effect that he had served in the U.S. Marine Corps and been awarded a Purple Heart, Silver Star and combat action ribbon, for the purpose of inducing the financial institutions to approve his loan applications.
Bailey faces a maximum term 30 years in prison on each of the bank fraud and false statement charge and 1 year on the stolen valor charge. Sentencing is scheduled for July 28, 2015.
This case was investigated by the Manchester, N.H., Field Office of the U.S. Secret Service and the U.S. Department of Agriculture, Office of Inspector General, with the assistance of the Portsmouth (N.H.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
Former Waterville Valley Property Manager Pleads Guilty to Defrauding Condominium Associations, Interfering with the IRSRead the Press Release
CONCORD, NEW HAMPSHIRE – Courtney Stone, 38, of Newport, Rhode Island, pled guilty in United States District Court for the District of New Hampshire to five counts of wire fraud and one count of corruptly impeding the due administration of tax laws, announced United States Attorney John P. Kacavas.
The wire fraud counts arose from Stone’s scheme to defraud approximately twenty-seven largely vacation condominium associations in the Waterville Valley area to whom her employer provided property management services. The tax charge related to Stone’s counterfeiting Internal Revenue Service documents in an effort to convince third parties to release to her funds that the third parties were holding on behalf of Stone’s employer, which the IRS had levied to satisfy her employer’s tax debt.
Stone faces a maximum of 3 years on the tax related charge and 20 years on each of the five fraud counts. Each of the six total counts carries with it a maximum fine amount of $250,000. Sentencing is scheduled for July 28, 2015.
This case was investigated by the Bedford Field Office of the Federal Bureau of Investigation, the Treasury Inspector General for Tax Administration and the Waterville Valley (N.H.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
Members of Manchester-Based Oxycodone RingRead the Press Release
Plead Guilty To Federal Drug Trafficking Charges
CONCORD, NEW HAMPSHIRE – Five members of a Manchester-based oxycodone distribution ring plead guilty in United States District Court for the District of New Hampshire, announced United States Attorney John P. Kacavas.
Samuel Garcia (35), Jennifer Nunez (24), Johanna Nunez (28), Jose Nunez (59), and Raul Hernandez (27), each admitted to their participation in a conspiracy to distribute, and possess with intent to distribute, oxycodone, as well as other federal criminal charges.
The defendants were arrested after a law enforcement investigation that lasted from 2013 to August of 2014. The investigation included the use of cooperating individuals to purchase oxycodone pills, as well as the use of wiretaps and search warrants. Most of the defendants were arrested on August 27, 2014. Hernandez was arrested as he attempted to deliver over 600 oxycodone pills to the residence of Samuel Garcia and Jennifer Nunez on Eastern Avenue in Manchester, New Hampshire. A search warrant was executed at that residence and hundreds of additional pills, as well as over $30,000 in cash, and three firearms were recovered from that location. Garcia, Jennifer Nunez, and Johanna Nunez were arrested that day. Jose Nunez was arrested in October of 2014, after returning to the United States from the Dominican Republic.
Garcia pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime. He is scheduled to be sentenced on June 24, 2015.
Jennifer Nunez pleaded guilty on March 24, 2015, to:(1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Distribution of a Controlled Substance; and (4) Possession of a Firearm During a Drug Trafficking Crime. She is scheduled to be sentenced on June 23, 2015.
Johanna Nunez pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; and (2) four counts of Distribution of a Controlled Substance. She is scheduled to be sentenced on June 23, 2015.
Jose Nunez pleaded guilty on March 6, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) four counts of Distribution of a Controlled Substance; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). He is scheduled to be sentenced on June 19, 2015.Raul Hernandez pleaded guilty on March 17, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance and (2) Possession of a Controlled Substance with Intent to Distribute. He is scheduled to be sentenced on June 23, 2015.
An additional defendant, Edward Anthony Hiciano Beltre, is a fugitive.
The defendants each face a maximum sentence of twenty years on each of the drug and money laundering charges. The firearms charges carry a mandatory minimum term of five years in prison, which must be served consecutive to the sentences on the remaining charges.
In addition to these defendants, separate federal drug conspiracy charges remain pending against other Manchester residents who were arrested as part of this investigation, including Ryan Demers (31), William Alba (24), Bonnie Labrie (50), Krystal Mailhot (27), and Yonajaira Galarza Ramos (30).
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. This particular investigation involved cooperative efforts of federal and local law enforcement entities, including the Drug Enforcement Administration, the Manchester Police Department, the New Hampshire State Police, the Massachusetts State Police, and the Hillsborough County Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys John J. Farley and Debra M. Walsh.
Eight Taken into Custody for Drug ViolationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Eight individuals were arrested by federal, state and local authorities following a long-term investigation into the trafficking of heroin and cocaine in the Keene, New Hampshire area, announced United States Attorney John P. Kacavas. Those arrested include:
(1) Ross Gould, age 28, of 61 B Prospect Street, Richmond New Hampshire, was arrested for unlawful possession of heroin, in violation of Title 21, United States Code, 841(a)(1);
(2) Jamie Hilow, age 28, of 15 High Street, Winchester, New Hampshire, was arrested for unlawful distribution of heroin, in violation of Title 21, United States Code, 841(a)(1);
(3) Jaclyn Hilow, age 29, of 15 High Street, Winchester, New Hampshire, was arrested for unlawful distribution of heroin, in violation of Title 21, United States Code, 841(a)(1);
(4) Jason Daigle, age 38, 79 Prospect Hill Road, Richmond, New Hampshire, was arrested for engaging in a conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 846 and 841(a)(1);and
(5) Brandon Rivers, age 29, 49-51 Howard Street, Keene, New Hampshire, was arrested for engaging in a conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 846 and 841(a)(1)
(6) Jonathan Cruz-Marte, age 32, of 52 Howard Street, Lawrence, Massachusetts, was arrested for engaging in a conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 846 and 841(a)(1);
(7) Felix Portes, age 56, of 227 Bailey Street, Lawrence, Massachusetts, was arrested for engaging in a conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 846 and 841(a)(1);
(8) Pedro Pena, age 37, 125 Chestnut Street, Lawrence, Massachusetts, was arrested for distribution of heroin;
In addition to the arrest of these individuals, fourteen firearms and significant quantities of heroin and cocaine were seized during the execution of a search warrant at Gould’s residence.
The investigation was conducted by the (1) United States Attorney’s Office for the District of New Hampshire; (2) Immigration and Customs Enforcement/Homeland Security Investigations; (3) New Hampshire Attorney General’s Drug Task Force; (4) Bureau of Alcohol, Tobacco, Firearms and Explosives; (5) New Hampshire State Police; (6) Keene, New Hampshire Police Department; (7) Richmond, New Hampshire Police Department; and (8) Salem, New Hampshire Police Department. In addition, members of the Drug Enforcement Administration and the United States Marshals Service assisted the above-referenced agencies in making the arrests.
FCI Berlin Inmate Sentenced OnRead the Press Release
Federal Weapon Possession ChargeCONCORD, NEW HAMPSHIRE – Myron Armstrong, 38, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, was sentenced on Monday in United States District Court for the District of New Hampshire to two years in prison for federal weapon possession charges, announced United States Attorney John P. Kacavas.
In early 2014, Armstrong created a weapon from a sock and a combination lock, which he subsequently used to assault a fellow inmate. During the ensuing altercation, a federal correctional officer also sustained injuries when he attempted to intervene. United States Attorney John P. Kacavas stated, “The federal prosecution of this defendant demonstrates our resolve to bring violent offenders to justice and our intolerance of such conduct in a federal correctional institution.”
This prosecution arose from an investigation by the Federal Correctional Institution in Berlin, New Hampshire, in collaboration with the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Manchester Resident Sentenced for Wire Fraud OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE – Daniel Desrochers, 42, of Manchester, was sentenced in United States District Court for the District of New Hampshire to 72 months in prison for wire fraud and for violating the terms of his supervised release, announced United States Attorney John P. Kacavas.
From June 2013 to February 2014, Desrochers acquired 91 personal loans totaling more than $191,000 from four New Hampshire residents by falsely representing to those individuals that he had access to $494,000 in a fictitious bank account and by falsely claiming his newly formed marketing company was on the verge of entering into a $1 million contract with a major shoe company. The proceeds of some of these loans were electronically transferred from a location in Maine to a bank account in New Hampshire. For this wire fraud offense, Desrochers was sentenced to 61 months in prison.
Desrochers was also sentenced to two concurrent 11-month prison sentences, consecutive to the 61-month sentence, because he committed the wire fraud offense while he was on supervised release for a 2002 federal bank fraud conviction and 2009 federal forgery conviction.
The case was investigated by the Manchester Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Robert Kinsella.
New Jersey Resident/Nigerian National Sentenced to 37 Months for New Hampshire Bank Fraud and ConspiracyRead the Press Release
CONCORD, NEW HAMPSHIRE – Olowaseun Adekoya, 29, a Nigerian National living in Sewaren, NJ, was sentenced in United States District Court for the District of New Hampshire to 37 months in prison, after being convicted by a jury of bank fraud and conspiracy to commit bank fraud in New Hampshire, announced United States Attorney John P. Kacavas.
Between September 26, 2013 and October 2, 2013, Adekoya communicated on-line with an undercover agent who had taken over the identity of a criminal with whom Adekoya had previously done business. The undercover agent advised Adekoya that he could create counterfeit ATM cards which Adekoya could use to fraudulently obtain money from banks in New Hampshire. As a result of those discussions, on October 1, 2013 Adekoya sent four individuals from New Jersey to Manchester, New Hampshire to engage in what he thought would be a $960,000 ATM bank fraud. The undercover agent and Adekoya had agreed that Adekoya would come to Manchester, NH and bring four “soldiers” with him, and that all five of them would each take 40 counterfeit ATM cards and travel to ATMs in Manchester, under cover of darkness, and fraudulently withdraw almost a million dollars.
Late on the evening of October 1, 2013 Adekoya’s four co-conspirators flew to New Hampshire and went to an agreed upon location where they picked up what they thought were 200 counterfeit ATM cards. In the early morning hours of October 2, 2013, the four then proceeded to ATM machines, where they were arrested. Mr. Adekoya, having not flown to New Hampshire with his confederates, was arrested at his home in Sewaren, NJ. The four co-conspirators, Darrell Harris, Adebayo Adegbesan, Kamau Brown and Aubrie Banks, all pled guilty before trial and two of them testified against Adekoya.
The case was investigated by the U.S. Secret Service with assistance from the United States Postal Inspection Service and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Arnold H. Huftalen.
Concord Man Sentenced on Robbery and Gun ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE – Benjamin Hugron, 33, of Concord, was sentenced on Monday in United States District Court for the District of New Hampshire to 17 years in prison on robbery and firearms charges, announced United States Attorney John P. Kacavas.
On August 8, 2013, Hugron walked into a Penacook, New Hampshire restaurant, pointed a firearm at the cashier, and demanded money, ultimately walking away with more than $300 in cash. One week later, on August 15, 2013, Hugron entered a Penacook, New Hampshire convenience store and again demanded money at gunpoint, making off with approximately $400 in cash and merchandise. At the time of the robberies, Hugron was on supervised release for a 2007 federal conviction, also for two robberies that he had committed in the New Hampshire area.
This prosecution arose from an investigation by the Concord, New Hampshire Police Department. This case was prosecuted by Assistant United States Attorneys Nick Abramson and Seth Aframe.
Boston Woman Sentenced to Prison for Credit Card ScamRead the Press Release
CONCORD, NEW HAMPSHIRE – Lois Patricia Patton (a/k/a “Trida” and Lois Patton-Haynes), 45, of Boston was sentenced in United States District Court for the District of New Hampshire to 54 months in federal prison for conspiracy to commit wire fraud and aggravated identity theft in connection with her participation in a fraudulent credit card scheme, announced United States Attorney John P. Kacavas.
In April 2014, Patton conspired with others to purchase gift cards and high value merchandise at retail box stores in New Hampshire, Massachusetts and Georgia using retail credit card accounts and lines of credit that she and her co-conspirators opened in the names of others without their authorization or knowledge. Patton and others involved in the scheme opened the credit card accounts and lines of credit using misappropriated personal identifying information and false identification cards and used disguises to help facilitate some of the illegal transactions.
The investigation of Patton’s offenses was conducted and coordinated by the Boston office of the U.S. Secret Service and the Medway (Mass.) and Cambridge (Mass.) Police Departments. The Massachusetts State Police and local police departments in Acton, Ayer, Bedford, Boston, Brookline, Cohasset, Dover, Groton, Lincoln, Littleton, Medfield, Medford, Norton, Plymouth, Reading, Sudbury, Sutton, Tewksbury, Tyngsboro, Watertown, Wayland, Wellesley, Weston and Westwood, Massachusetts, and Hollis, New Hampshire, also assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Bill Morse.
Laconia Man Sentenced on Child Pornography OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE – Daniel Petrin, 51, of Laconia, was sentenced in United States District Court for the District of New Hampshire to 6 years in prison for possession of child pornography, announced United States Attorney John P. Kacavas.
The investigation began in July 2009, when the Federal Bureau of Investigation received information that Petrin was among many individuals who had purchased images of child pornography from an individual in Italy who was operating a website featuring sexually explicit images of female children. Undercover law enforcement in Vermont and Oklahoma traced images of child pornography detected in a file sharing network to Petrin.
United States Attorney Kacavas said, “Identifying, finding, and prosecuting predators like the defendant has been, and will continue to be, among the highest priorities of my office.”
The defendant was fined $5,000.00, will be required to register as a sex offender in any state in which he lives or works and will be supervised by United States Probation for ten years after he is released from prison.
This case was investigated by the Federal Bureau of Investigation, the New Hampshire and Vermont Crimes Against Children Task Forces and the Oklahoma City, Oklahoma Police Department. It was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.Former New Hampshire Financial Consultant SentencedRead the Press Release
To Prison For Fraud, Money Laundering And Tax EvasionCONCORD, NEW HAMPSHIRE – Frederick V. McMenimen, III, 53 formerly of Exeter, NH was sentenced in United States District Court for the District of New Hampshire to 42 months in prison for mail fraud, money laundering and federal income tax evasion, announced United States Attorney John P. Kacavas.
Beginning in September 2008, through October 2011, McMenimen fraudulently solicited more than $1 million in purported investments from some of his financial advisory clients. Each of the clients was an elderly widow whose family had long-standing personal relationships with his family.
McMenimen advised each client to liquidate existing annuities or other investments, to deposit the proceeds in their checking accounts and to then write checks payable to PSB. In most instances, McMenimen caused the clients to write those checks by falsely leading them to believe that PSB was another investment vehicle that was better for them than their existing annuities. In actuality, PSB was a shorthand reference to a defunct retail sporting goods business, PSB Sports LLC, that McMenimen had once owned and operated.
McMenimen deposited the checks into a bank account he maintained in the name of PSB. He then used those funds to purchase official bank checks which he directly or indirectly deposited into a checking account maintained in a relative’s name at an FDIC insured financial institution. The relative in whose name the account was maintained provided McMenimen with several books of pre-signed but otherwise blank checks, thereby affording McMenimen complete access to the fraudulently obtained funds.
Despite expending all of the proceeds on personal expenses, McMenimen did not record any of the fraudulently obtained funds as income on the tax returns he filed for tax years 2008, 2009 and 2010. Since McMenimen underreported his income for those tax years, his tax returns reflected a tax due and owing that was substantially less than his true tax liability.This case was investigated by the Bedford (N.H.) field of the Federal Bureau of Investigation, the Portsmouth (N.H.) field office of the IRS’s Criminal Investigation division and the Department of Education. The case was prosecuted by Assistant United States Attorney Bill Morse.
Florida Woman Sentenced for Participating in Nashua-Based, Nationwide Tax Return ScamRead the Press Release
CONCORD, NEW HAMPSHIRE – Ann Marie Howard Aguiar, 47, of Jacksonville, Florida was sentenced in United States District Court for the District of New Hampshire to thirty-months in prison after pleading guilty to one count of conspiracy to commit wire fraud in connection with a nationwide tax refund scheme, announced United States Attorney John P. Kacavas.
Aguiar admitted that she participated in a scheme, organized by former Nashua resident Craig S. Cudhea, to file a large number of false tax returns claiming refunds to which the persons in whose names the returns were filed were not entitled. The scheme, based in Nashua, resulted in the filing of thousands of false claims for tax refunds from the Internal Revenue Service.
Cudhea recruited a nationwide network of pastors to solicit members of their congregations to provide their names and social security numbers on the false pretense that their personal identifying information would be used to secure stimulus funds that the government was giving to the poor, disabled and unemployed. The pastors led churches in Virginia, Georgia, New York, Texas, South Carolina, Arkansas, Ohio and Nevada. Many congregants at these churches, consisting mostly of low-income individuals with limited experience with the IRS, provided their personal identifying information and the pastors forwarded that information to Cudhea.
Cudhea then transmitted the personal identifying information to approximately eight women around the country who had been recruited via the internet to enter the information on electronic tax returns. Cudhea dubbed this group of women his “Angels,” and Aguiar was one of Cudhea’s Angels. Cudhea instructed his Angels to report certain information on the falsified tax returns, including specific income amounts, withholding, and expenses such as education and child care that would generate credits and refunds. The information reported was always very similar and often identical.
Although Aguiar was aware that the financial information she reported was false, she prepared and electronically filed the tax returns with the IRS. Cudhea and his Angels filed more than 5,000 false tax returns seeking refunds of approximately $9.4 million. Cudhea paid Aguiar a flat fee for each false return that she prepared that was accepted for processing by the IRS. Cudhea directed the IRS to pay portions of each refund to himself, the pastor who provided the personal identifying information, and sometimes the person in whose name the return was filed. The scheme induced the IRS to pay more than $4 million in false refund claims before it became aware of the fraudulent nature of the claims.United States Attorney John P. Kacavas said, “Prosecuting cases of financial fraud, particularly cases in which the American taxpayer is the victim, is an essential mission of my office. We will continue to work with our law enforcement partners to identify and prosecute fraudsters and restore stolen monies to the public fisc.”
Cudhea, who was charged with conspiracy, wire fraud and other crimes in connection with the scheme, committed suicide after learning that he was being prosecuted. The charges against him have been dismissed.
This case was investigated by the Manchester field office of the IRS’s Criminal Investigation division. The case was prosecuted by Assistant U.S. Attorney Bill Morse.Milford Man Sentenced for Robbing Bank in Merrimack, New HampshireRead the Press Release
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Frank Mione, 49, of Milford, was sentenced in United States District Court for the District of New Hampshire to 151 months in prison for committing an armed bank robbery and brandishing a firearm during a crime of violence, announced United States Attorney John P. Kacavas.
Mione pleaded guilty on September 29, 2014. Mione admitted that on August 21, 2013, he robbed the TD Bank at 300 Daniel Webster Highway in Merrimack, New Hampshire and that he used a shotgun to commit the robbery and pointed the gun at several tellers in the bank. Mione obtained approximately $2,261 during the robbery.
This investigation involved the cooperative efforts of federal and local law enforcement entities, including the Federal Bureau of Investigation, the Merrimack Police Department, and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney John J. Farley.
New Hampshire Corporation Sentenced on Violation of Arms Export Control ActRead the Press Release
CONCORD, NEW HAMPSHIRE – Netria Corporation, of 37 Industrial Drive, Exeter, NH, was sentenced in United States District Court for the District of New Hampshire for violating the Arms Export Control Act (AECA). On May 14, 2014, charges were filed alleging that Netria exported aircraft parts to Malaysia, specifically two Lockheed Martin Fuel Quantity Indicators, without having first obtained a license from the United States Department of State, as required by federal law, announced United States Attorney John P. Kacavas.
Under the (AECA), the President is authorized to control the export of “defense articles.” Items so designated constitute the United States Munitions List (USML). If an article is covered by the U.S. Munitions List, the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) regulates its export. The DDTC develops and updates the regulations, known as the International Traffic in Arms Regulations, or ITAR.
Under the provisions of the AECA, individuals or organizations must register with the DDTC, and apply for an export license to export defense articles. It is a felony to willfully violate the provisions of the AECA. This includes the requirement that those in the business of exporting defense articles, or in the business of brokering activities with respect to exporting defense articles, must register and obtain a license before exporting defense articles.
As a result of an inquiry by Netria to a Department of Homeland Security undercover storefront, agents from Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HIS) and the Defense Criminal Investigative Service (DCIS) in San Diego, CA began an investigation of Netria. Working with ICE agents in New Hampshire, evidence established that Netria had exported aircraft parts listed on the USML without having obtained a license from the U.S. State Department, in violation of the AECA. Court documents in this case disclose that between July 2007 and October 2009, Netria brokered the sale and export of approximately $2 million worth of aerospace parts, and included in those exports, between September 2008 and April 2009, Netria exported “defense articles,” specifically nine shipments of C-130 parts without a requisite State Department License.
“We will hold to account those who circumvent requirements designed to protect our national security,” said HSI Boston Special Agent in Charge Bruce Foucart. “I would like to congratulate the special agents of HSI and our partners with the Defense Criminal Investigative Service, who work tirelessly every day to pursue those who flout our export control laws and attempt to supply anyone with technology that could threaten our national security.”
On September 30, 2014, Netria pled guilty to the federal charges and admitted that it had exported two Lockheed Martin Fuel Quantity Indicators, which were “defense articles,” without having first obtained a license from the United States Department of State, as required by federal law. United States District Court Judge Landya McCafferty sentenced Netria to one year of probation and ordered the forfeiture of $12,560. This case was investigated by Immigration and Customs Enforcement, Homeland Security Investigations and Defense Criminal Investigative Service, and was prosecuted by Assistant U.S. Attorney Arnold H. Huftalen and Julie Edelstein of the United States Department of Justice, Counterespionage Section, National Security Division.
Ayer Massachusetts Man Sentenced to 51 Months in PrisonRead the Press Release
CONCORD, NEW HAMPSHIRE – Luis Pavao, 60, a citizen of Portugal and most recently a resident of Ayer, Massachusetts, has been sentenced in United States District Court for the District of New Hampshire to 51 months in prison after a jury found him guilty in an investment fraud scheme that involved the use of the mails and interstate travel, announced United States Attorney John P. Kacavas.
Pavao secured the trust of three couples who live in New Hampshire by pretending to be a licensed stockbroker. He then duped the victims into giving him more than $32,000 by falsely promising to invest their money in the stock market. While assuring the victims that their respective investments were earning substantial profits, Pavao used their money for his personal benefit.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Robert Kinsella.Keene Man Sentenced on Child Pornography OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE – Daniel Erickson, 39, of Keene, was sentenced in United States District Court for the District of New Hampshire to 3 years in prison after pleading guilty to one count of transportation of child pornography, announced United States Attorney John P. Kacavas
The investigation began in March, 2014, when the Internet Crimes Against Children (ICAC) Task Force received information from the National Center for Missing and Exploited Children that images of child pornography being traded via email. The Task Force traced the images to a computer associated with the defendant’s address. After further investigation by the Department of Homeland Security and the Hinsdale Police Department, a search warrant was executed at the defendant’s home in May of 2014. An external computer storage device seized from the defendant was found to contain images of child pornography which had been downloaded through the internet.
The defendant will be required to register as a sex offender in any state in which he lives or works and will be supervised by United States Probation for five years after he is released from prison.
The charge was the result of an investigation by the Department of Homeland Security Investigations, the Hinsdale Police Department and the New Hampshire ICAC Task Force and is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.New Hampshire Man Pleads Guilty to Firearms ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE – Johnathon Irish, 28, of Brentwood, New Hampshire, has entered a guilty plea in the United States District Court for the District of New Hampshire to one count of aiding and abetting the making of a material false statement in connection with the acquisition of a firearm, and one count of lying to a federal law enforcement agent, announced United States Attorney John P. Kacavas.
In February 2013, Irish was interviewed by a Special Agent with the Federal Bureau of Investigation, pursuant to an open FBI investigation into Irish’s firearms activities. During that interview, when asked about the status of his personal firearms, Irish falsely stated that he had sold all of his firearms to a friend, when they had in fact been concealed from authorities. Several months later, in September of 2013, Irish instructed another individual to purchase a firearm for him in that individual’s name, thereby circumventing the legally required background check. Irish will be detained pending sentencing, which is presently scheduled for February 23, 2015.
This prosecution arose from an investigation by the Federal Bureau of Investigation, which was assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Brentwood Police Department. The case is being prosecuted by the United States Attorney for the District of New Hampshire, John P. Kacavas, and Assistant United States Attorney Nick Abramson.Lowell Man Convicted of Aiding and Abetting the Illegal Purchase of FirearmsRead the Press Release
CONCORD, NEW HAMPSHIRE – Lawrence Madsen of Lowell, Massachusetts was convicted, after a jury trial in United States District Court for the District of New Hampshire on six counts of aiding and abetting the illegal purchase of firearms at various southern New Hampshire federally licensed firearms dealers, announced United States Attorney John P. Kacavas.
The case was investigated by Federal Bureau of Alcohol, Tobacco, Firearms and Explosives agents and officers, Dan Futrell, Richard Donahue, Eric Kotchian and Michael Bergeron. The case was prosecuted by Assistant United States Attorneys Nick Abramson and Seth Aframe.
The trial evidence showed that Madsen, who could not legally buy firearms in Massachusetts, asked his New Hampshire friend, Brett Crawford, to purchase the firearms on his behalf in exchange for a payment of $100 for each gun purchased. In October and November 2013, Crawford purchased eight hand guns on six occasions for Madsen. On each occasion, Madsen was present and identified the guns which he wanted Crawford to buy. When Crawford made the purchases using Madsen's money, Crawford lied on a federal form required for the sale of a firearm by stating that he was purchasing the firearms for himself when, in fact, he was buying them for Madsen. The evidence further established that, following the illegal purchase of these firearms, Madsen sold them on the street in Lowell.Arizona Resident Sentenced for Drug Trafficking ConspiracyRead the Press Release
CONCORD, NEW HAMPSHIRE – Alvaro Rivera-Pedrego of Douglas, Arizona and Agua Pietra, Mexico was sentenced in United States District Court for the District of New Hampshire to 60 months in federal prison after pleading guilty to conspiracy to distribute cocaine, announced United States Attorney John P. Kacavas.
The United States alleged that Rivera-Pedrego conspired with members of the Sinaloa Cartel, led by Joaquin Guzman-Loera, a/k/a “Chapo”, to establish a cocaine distribution route that would ship cocaine to European ports to be distributed in Europe, the United States, Canada and other countries. In 2009, the defendant met with a confidential human source in Mexico to discuss the creation of the distribution network. Over a period of months in 2009 and 2010, the defendant facilitated meetings between his coconspirators and the confidential human source. Those meetings led to meetings between the defendant’s coconspirators and undercover agents of the Federal Bureau of Investigation that began in early 2010 and continued through August 2012, including meetings in Miami in August 2010 and November 2010, in Madrid, Spain, in March 2011, in Portsmouth and New Castle, New Hampshire in April 2011, and in Boston in August 2011. The coconspirators offered to deliver thousands of kilograms of cocaine secreted in cargo containers that would be shipped to various ports on the eastern seaboard of the United States and to ports in Europe. The conspirators ultimately delivered 346 kilograms of cocaine to the FBI at a port in Algeciras, Spain on July 27, 2012 hidden in a cargo container in boxes that purportedly held glassware.
The cartel’s leader, by Joaquin Guzman-Loera, a/k/a “Chapo”, was arrested by Mexican authorities in February 2014. The District of New Hampshire, several other districts and the Department of Justice are working to have him extradited to the United States.
The case was investigated by the Federal Bureau of Investigation and prosecuted by First Assistant United States Attorney Don Feith.
United States Attorney’s Office EstablishesRead the Press Release
Election Day HotlineCONCORD, NEW HAMPSHIRE – United States Attorney John P. Kacavas announces the establishment of an Election Day hotline in coordination with the U.S. Justice Department’s nationwide Election Day program for the general election on November 4, 2014.
United States Attorney Kacavas said, “The freedom to vote without interference, discrimination, or hindrance is one of the most fundamental civil rights enjoyed by United States citizens. However, the integrity of the election process depends on the vigilance of all who participate. Information about discrimination or election fraud should be reported immediately to my office, the FBI, or the Civil Rights Division. The Department of Justice and the U.S. Attorney’s Office will act promptly and aggressively to ensure that those who seek to undermine the integrity of the election process are brought to justice.”
United States Attorney Kacavas has appointed Assistant United States Attorney Mark Zuckerman to serve as the District Election Officer for the District of New Hampshire and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington. He is also responsible for monitoring the Election Day hotline and the hotline number is (603)230-2503.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, Assistant United States Attorney/DEO Zuckerman will be on duty in this District while the polls are open. He can be reached by the public at the following dedicated Election Day hotline: (603)230-2503.
In addition, the FBI will have Special Agents available in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI can be reached by the public at (603) 472-2224.
Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or 202-307-2767.
A Federal Election Fraud Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights is posted on the United States Attorney’s website: www.usdoj.gov/usao/nh.Former New Hampshire Financial Consultant PleadsRead the Press Release
Guilty To Fraud, Money Laundering And Tax EvasionCONCORD, NEW HAMPSHIRE – Frederick V. McMenimen, III, 53, of Bow, pleaded guilty in United States District Court for the District of New Hampshire to one count of mail fraud, one count of money laundering and three counts of federal income tax evasion, announced United States Attorney John P. Kacavas.
McMenimen admitted that from approximately September 2008, to about October 2011, he fraudulently solicited more than $1 million in purported investments from some of his financial advisory clients. Each of the clients was an elderly widow whose family had long-standing personal relationships with McMenimen’s family.
McMenimen advised each client to liquidate existing annuities or other investments, to deposit the proceeds in their checking accounts and to then write checks payable to APSB.@ In most instances, McMenimen caused the clients to write those checks by falsely leading them to believe that PSB was another investment vehicle that was better for them than their existing annuities. In actuality, PSB was a shorthand reference to a defunct retail sporting goods business, PSB Sports LLC that McMenimen had once owned and operated. Between approximately September 8, 2008, and October 2011, McMenimen fraudulently induced the clients to write twenty-three checks payable to PSB in the aggregate estimated amount of approximately $1.3 million.
McMenimen deposited the checks into a bank account he maintained in the name of PSB. He then used those funds to purchase official bank checks which he directly or indirectly deposited into a checking account maintained in a relative’s name at an FDIC insured financial institution. The relative in whose name the account was maintained provided McMenimen with several books of pre-signed but otherwise blank checks, thereby affording McMenimen complete access to the fraudulently obtained funds.
Despite expending all of the proceeds on personal expenses, McMenimen did not record any of the fraudulently obtained funds as income on the tax returns he filed for tax years 2008, 2009 and 2010. Because McMenimen underreported his income for those tax years, his tax returns reflected a tax due and owing that was substantially less than his true tax liability. McMenimen is scheduled to be sentenced on February 11, 2015.
This case was investigated by the Bedford (N.H.) field of the Federal Bureau of Investigation, the Portsmouth (N.H.) field office of the IRS’s Criminal Investigation division and the Department of Education. The case is being prosecuted by Assistant United States Attorney Bill Morse.
Biddeford Maine Man Sentenced to 15 Years on Drug ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE – Frederick Drane, 48, of Biddeford, Maine, was sentenced on Monday in the United States District Court for the District of New Hampshire on one count of conspiracy to possess in excess of 28 grams of crack cocaine with the intent to distribute it, and one count of possessing crack cocaine with the intent to distribute it. The Court imposed a term of 15 years’ imprisonment, to be followed by 8 years of supervised release.
In October 2012, Drane was pulled over by the New Hampshire state police for a motor vehicle infraction. During the ensuing stop, authorities located a crack pipe and more than 28 grams of crack cocaine in the vehicle, already packaged for sale.
The case was investigated by the New Hampshire State Police, and prosecuted by Assistant United States Attorneys Seth Aframe and Nick Abramson.
Project Safe ChildhoodRead the Press Release
Nottingham Man Pleads Guilty To Child Pornography PossessionCONCORD, NEW HAMPSHIRE: Ryan Rathe, 28, of Nottingham, pled guilty in United States District Court for the District of New Hampshire to possessing child pornography, announced U.S. Attorney John P. Kacavas.
The investigation into Rathe began in 2010, when the Department of Homeland Security (DHS) received information from the New Hampshire Crimes Against Children Task Force that an undercover officer had intercepted images of child pornography being made available by a computer user in Nottingham, New Hampshire.
Based on information provided by the task force, DHS conducted further investigation and secured a search warrant for Rathe’s residence in Nottingham. Computer evidence seized from Rathe’s home was examined and found to contain multiple images depicting young children engaged in illicit sexual acts.
United States Attorney Kacavas said, “Identifying, finding, and prosecuting predators like the defendant has been, and will continue to be, among the highest priorities of my office.”
Rathe, who is scheduled for sentencing in January 2015, faces a maximum prison term of ten years, followed by no less than five years of supervised release, and a maximum fine of $250,000.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, in conjunction with the New Hampshire Crimes Against Children Task Force (NH ICAC) and the Massachusetts State Police and is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
This is case is being prosecuted by Assistant United States Attorney Nick Abramson.New Hampshire Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
WASHINGTON – A Hampton, New Hampshire, man pleaded guilty today in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Menashe Cohen, an oriental carpet dealer, and his sister maintained an undeclared bank account at UBS in Switzerland that had a balance of approximately $1.3 million. Cohen also maintained bank accounts in Israel and in Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France. Although Cohen’s return for tax year 2009 reported that he had a financial interest in a bank account in Jersey, the return failed to report that he had financial interests in the accounts located in Switzerland and Israel. In addition, Cohen’s return only reported $350 in interest income, when in fact he had received approximately $66,500 in interest income during 2009.
In total, for tax years 2006 through 2009, Cohen failed to report approximately $170,000 in income earned from offshore bank accounts. In addition, Cohen filed a false and fraudulent Report of Foreign Bank and Financial Accounts (FBAR) for 2009, wherein Cohen reported he had bank accounts in Israel and Jersey on the FBAR, but failed to report his financial interest in the UBS account in Switzerland.
According to the law, U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns (Forms 1040). Additionally, U.S. citizens and residents must file a FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest or signature or other authority.
Cohen faces a statutory potential maximum sentence of three years in prison and a maximum fine of $250,000 at his Jan. 26, 2015, sentencing. In addition, Cohen has agreed to resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Senior Litigation Counsel John E. Sullivan of the department’s Tax Division and Assistant U.S. Attorney Robert M. Kinsella for the District of New Hampshire.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax/.Sinaloa Cartel Member Found Guilty of Drug Trafficking Conspiracy –Read the Press Release
Four Others Plead Guilty
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Rafael Humberto Celaya Valenzuela, 41, formerly of Sonora, Mexico, was convicted following a jury trial of conspiracy to distribute controlled substances, including cocaine, heroin and methamphetamine, announced United States Attorney John P. Kacavas.
Celaya Valenzuela and his co-conspirators were members of the Sinaloa drug cartel, led by represented the Sinaloa Cartel, led by the notorious drug lord Joaquin Guzman-Loera, also known as “Chapo.” The cartel was seeking new cocaine distribution routes from South America to Europe, Canada and the United States. Beginning in early 2010 and continuing through August 2012, undercover FBI agents posing as members of a European organized crime syndicate met with the cartel representatives. Many of the meetings were audio and video recorded and portions of those recordings were played for the jury. The recordings showed Celaya Valenzuela and several co-conspirators attending meetings in Miami, Boston, Madrid, Spain, and in Portsmouth and New Castle, New Hampshire.
Celaya Valenzuela held himself out as an attorney and financial planner working on behalf of Chapo and the cartel. Manuel Gutierrez Guzman, a co-conspirator and first cousin of Chapo, held himself out as his cousin’s representative in the negotiations. The cartel representatives offered to deliver thousands of kilograms of cocaine by containerized cargo vessels to various ports on the northeastern seaboard of the United States and in Europe. They further represented that the cocaine would come from any number of source countries, including Bolivia, Panama, Belize and Colómbia. The deal was consummated by a face-to-face meeting with Chapo and several telephone calls in which he himself discussed details of the intended shipments.
On July 27, 2012, the conspirators delivered 346 kilograms of cocaine, more than 750 pounds worth millions of dollars, to a port in Algeciras, Spain. The cocaine was shipped via cargo container in boxes that purportedly held glassware. The FBI seized the cocaine, and Celaya Valenzuela, Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto were arrested by Spanish law enforcement in Madrid on Aug. 7, 2012. The defendants were then extradited to New Hampshire.
Manuel Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto pleaded guilty before trial. A sentencing hearing for Soto is scheduled for Dec. 22, 2014. Sentencing hearings for Manuel Gutierrez Guzman and Samuel Zazueta Valenzuela are scheduled for Jan. 15, 2015. Celaya Valenzuela’s sentencing is scheduled for Jan. 22, 2015. All the defendants face a mandatory minimum sentence of 10 years and a maximum sentence of life imprisonment.
The cartel’s leader, Joaquin “Chapo” Guzman-Loera, was arrested by Mexican authorities in February 2014. He is under indictment in multiple jurisdictions in the United States, including the District of New Hampshire.
“Today’s guilty verdict, together with the guilty pleas of the defendant’s co-conspirators, demonstrates the Department of Justice’s commitment to disrupting and dismantling international drug trafficking organizations wherever they seek to peddle their poison,” said U.S. Attorney Kacavas. “Whether along our southwest border, in major American cities, or in bucolic New Hampshire, we will use every law enforcement and prosecutorial tool at our disposal to bring international drug traffickers to justice. I want to thank our federal law enforcement partners, especially the FBI agents who went undercover at significant risk to their personal safety, and the Spanish National Police for their assistance in foiling this far-reaching scheme.”
The case was investigated by the Federal Bureau of Investigation, and the Justice Department’s Office of International Affairs provided assistance with the extradition. The case was prosecuted by First Assistant United States Attorney Don Feith.
Nottingham Man Sentenced to 15 Years in Prison for Possessing FirearmRead the Press Release
CONCORD, NEW HAMPSHIRE – Joshua Fields, 32, of Nottingham, was sentenced in United States District Court for the District of New Hampshire to 15 years in prison for being a felon in possession of a firearm, announced United States Attorney John P. Kacavas.
Fields pleaded guilty to the charge on July 3, 2014. Fields admitted that on November 19, 2013, he and others participated in a burglary in Candia, New Hampshire. Among the items stolen during the burglary were six firearms. A few days later, Fields and two accomplices entered the Kittery Trading Post in Kittery, Maine, where they attempted to pawn one of the stolen firearms. As a convicted felon, it was unlawful for Fields to possess a firearm.
United States Attorney John P. Kacavas praised the efforts of federal, state and local law enforcement in this case and said “ensuring that persons who violate the prohibition against possessing firearms are brought to justice is a central mission of my office. We will continue to work closely with our law enforcement partners to enforce federal gun laws.”
This investigation involved the cooperative efforts of federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Candia Police Department, the New Hampshire State Police, the Kittery Police Department, the Rockingham County Attorney’s Office and the District Attorney’s Office in York County, Maine. The case was prosecuted by Assistant U.S. Attorney John J. Farley.FCI Berlin Inmate Pleads Guilty ToRead the Press Release
Federal Weapon Possession Charge
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Myron Armstrong, 38, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, has entered a guilty plea in the United States District Court for the District of New Hampshire to one count of possessing a weapon in a federal correctional facility, announced United States Attorney John P. Kacavas.
In January 2014, Armstrong fashioned a makeshift weapon out of a combination lock and a sock, which he subsequently used to assault another inmate. Armstrong – who faces a maximum sentence of five additional years in prison and criminal fines of up to $250,000 – will be sentenced in January of 2015.
This prosecution arose from an investigation by the Federal Bureau of Investigation, in collaboration with the Federal Correctional Institution in Berlin, New Hampshire. The case is being prosecuted by Assistant United States Attorney Nick Abramson.Florida Woman Pleads Guilty to ParticipatngRead the Press Release
IN NASHUA-BASED NATIONWIDE TAX RETURN SCAMCONCORD, NEW HAMPSHIRE – Ann Marie Howard Aguiar, 47, of Jacksonville, Florida, has pleaded guilty in United States District Court for the District of New Hampshire to one count of conspiracy to commit wire fraud in connection with a nationwide tax refund scheme, announced United States Attorney John P. Kacavas.
Aguiar admitted that she participated in a scheme, organized by former Nashua resident Craig S. Cudhea, to file a large number of false tax returns claiming refunds to which the persons in whose names the returns were filed were not entitled. The scheme, based in Nashua, resulted in the filing of thousands of false claims for tax refunds from the Internal Revenue Service.
Cudhea recruited a nationwide network of pastors to solicit members of their congregations to provide their names and social security numbers on the false pretense that the information would be used to secure stimulus funds that they claimed the government was giving to the poor, disabled and unemployed. The pastors led churches in Virginia, Georgia, New York, Texas, South Carolina, Arkansas, Ohio and Nevada. Many congregants at these churches, consisting mostly of low income individuals with limited experience with the IRS, provided their personal identifying information and the pastors forwarded that information to Cudhea.
Cudhea then transmitted the personal identifying information to approximately eight women around the country who he had recruited via the internet to enter the information on electronic tax returns. Cudhea dubbed this group of women his “Angels,” and Aguiar was one of Cudhea’s Angels. Cudhea instructed Aguiar and the other Angels to report certain information on the falsified tax returns, including specific income amounts, withholding, and expenses such as education and child care that would generate credits and refunds. The information reported was always very similar and often identical.Although Aguiar was aware that the financial information she reported was false, she prepared and electronically filed the tax returns with the IRS. Cudhea and his Angels filed more than 5000 false tax returns seeking refunds of approximately $9.4 million. Cudhea paid Aguiar a flat fee for each false return that she prepared that was accepted for processing by the IRS. Cudhea directed the IRS to pay portions of each refund to himself, the pastor who provided the personal identifying information, and sometimes the person in whose name the return was filed. The scheme induced the IRS to pay more than $4 million in false refund claims before it became aware of the fraudulent nature of the claims.
United States Attorney John P. Kacavas said, “Prosecuting cases of financial fraud, particularly cases in which the American taxpayer is the victim, is an essential mission of my office. We will continue to work with our law enforcement partners to identify and prosecute fraudsters and restore stolen monies to the public fisc.”
Aguiar faces a maximum term of imprisonment of five years and maximum fine of $250,000. She is scheduled to be sentenced on January 16, 2015.
Cudhea, who was charged with conspiracy, wire fraud and other crimes in connection with the scheme, committed suicide after learning that he was being prosecuted. The charges against him have been dismissed.
This case was investigated by the Manchester field office of the IRS’s Criminal Investigation division. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
Sinaloa Cartel Member Pleads Guilty to Drug ConspiracyRead the Press Release
CONCORD, NEW HAMPSHIRE – Jesus Gonzalo Palazuelos Soto, 51, of Mexico pleaded guilty today in United States District Court for the District of New Hampshire to conspiracy to distribute five or more kilograms of cocaine, announced United States Attorney John P. Kacavas.
Soto was arrested in Spain on August 7, 2012 after he and others arrived there to monitor the delivery of 346 kilograms of cocaine to Algeciras, Spain. The cocaine was hidden in a shipping container that was purported to contain glassware. The delivery resulted from negotiations between members of the Sinaloa Cartel, led by Joaquin Guzman-Loera, a/k/a “Chapo”, and undercover agents of the Federal Bureau of Investigation posing as members of an organized crime syndicate. Negotiations for the shipment began in 2009 and culminated in the delivery of the cocaine in 2012. Soto was responsible for supervising the loading of the cocaine in Brazil and monitoring its arrival in Algeciras.
A sentencing hearing has been scheduled for December 22, 2014. Soto is facing a mandatory minimum sentence of 10 years and a maximum sentence of life.
The case was investigated by the Federal Bureau of Investigation and prosecuted by First Assistant United States Attorney Donald Feith.Manchester Man Sentenced for Methamphetamine ManufacturingRead the Press Release
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Robert Pineault, 39, of Manchester, was sentenced in United States District Court for the District of New Hampshire to 60 months in prison in connection with offenses involving methamphetamine manufacture, announced United States Attorney John P. Kacavas.
Pineault was indicted by a Federal Grand Jury in October 2013 and plead guilty on June 2, 2014, to manufacturing methamphetamine, conspiring with others to do so, and possessing materials used in connection with manufacturing the drug. The indictment charged that these activities occurred between November 2012 and March 2013 in Manchester. Pineault was arrested on March 5, 2013 during the execution of a search warrant at 16 Walnut Street in Manchester.
The investigation was conducted by the Drug Enforcement Administration and the Manchester Police and was prosecuted by Assistant U.S. Attorney Robert J. Veiga.
Two California Men Sentenced in Federal Court for Conspiracy to Traffic in Methamphetamine, Using the U.S. MailsRead the Press Release
TO FACILIATE DRUG TRAFFICKING AND MONEY LAUNDERING
CONCORD, NEW HAMPSHIRE – Michael Collins, 38, of Bellflower, California, Keith Cotlage, 45, of Pasadena, California were sentenced in United states District Court for the District of New Hampshire to 18 months and 60 months respectively for conspiracy to possess with the intent to distribute methamphetamine, conspiracy to use the U.S. Mails to facilitate drug trafficking offenses, and conspiracy to commit money laundering, announced United States Attorney John P. Kacavas.
As part of their plea agreements, the defendants admitted that beginning in 2007, Cotlage shipped quantities of methamphetamine secured inside of U.S. Postal “Express Mail” packages from California to Collins, who at the time resided in New Hampshire. Upon receiving the packages, Collins distributed a portion of the methamphetamine to others and kept a portion for his own personal use. Upon generating proceeds from the sale of the methamphetamine, Collins’ sent additional funds to Cotlage via Green Dot prepaid debit cards. Cotlage then used a Green Dot card linked to Collins’ Green Dot account to withdraw the funds in California after which he purchased additional quantities of methamphetamine which he again shipped to Collins. Collins also transferred money to Cotlage via Western Union.
In March of 2008, law enforcement intercepted an “Express Mail” package sent from Cotlage to Collins which was found to contain approximately 28 grams of methamphetamine. During an undercover operation, the package was subsequently delivered to Collins while he was at work at a construction site in Bethlehem. Immediately upon observing Collins take possession of the package, law enforcement attempted to arrest Collins; however he fled and was arrested after a brief foot pursuit.
Law enforcement subsequently determined through U.S. Postal “Express Mail” shipping labels and Green Dot records that from July, 2007 to March, 2008, Collins and Cotlage conspired to ship approximately ten additional packages containing methamphetamine.
Collins was also sentenced to three years of supervised release while Cotlage was sentenced to a four years of supervised release which they will begin after they are released from prison. During the period of supervised release, the defendants’ behaviors will be monitored by the United States Probation Office. If the defendants violate the terms and conditions of their release, they could be sent back to prison.
The pleas were the result of an investigation conducted by the United States Drug Enforcement Administration Resident Offices in New Hampshire, the United States Postal Inspection Service, the Internal Revenue Service – Criminal Investigation, and the Bethlehem and Lancaster Police Departments. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
Raymond Man Sentenced for Diverting Fentanyl at Exeter HospitalRead the Press Release
CONCORD, NEW HAMPSHIRE – Peter McGlynn, 46, of Raymond, New Hampshire, was sentenced today in United States District Court for the District of New Hampshire to 42 months of probation for obtaining a controlled substance by fraud, announced United States Attorney John P. Kacavas.
McGlynn pleaded guilty to the charge on May 22, 2014. At the plea hearing before Chief U.S. District Judge Joseph Laplante, McGlynn admitted that on or about January 16, 2013, while working as an Emergency Medical Technician at Exeter Hospital, McGlynn volunteered to administer fentanyl (a powerful opiate) to a patient who was being treated at the Emergency Department of the hospital. Although he obtained 100 micrograms of fentanyl and claimed to administer the drug to a patient, the patient did not obtain any pain relief. A nurse suspected that the drug had not been provided to the patient. A drug test was performed on McGlynn. The test detected the presence of fentanyl in his system.
McGlynn’s crime took place just six months after another Exeter Hospital employee, David Kwiatkowski, was arrested for diverting fentanyl and tampering with consumer products. Kwiatkowski’s criminal activities resulted in the infection of dozens of people with Hepatitis C. On December 2, 2013, Kwiatkowski was sentenced to 39 years in prison for his conduct. The investigation of McGlynn did not reveal any evidence indicating that he had infected patients or exposed patients to any disease.
United States Attorney John P. Kacavas said, “My office remains committed to stopping drug diversion by health care workers. The Kwiatkowski case demonstrated that health care workers who divert or tamper with drugs can jeopardize the health and safety of their patients. Not only do drug diversion and tampering create the potential for patients to become infected with diseases, but it also can cause patients to experience unnecessary pain. Health care workers who divert drugs and ingest them on the job can also put patients at risk because their judgment can be clouded by the drugs they have taken. This can lead to errors that can have life-threatening consequences. I encourage all health care facilities to be alert to potential drug diversion incidents and to report them promptly to law enforcement officers. That is what Exeter Hospital did in this case.”
This investigation involved the cooperative efforts of federal and local law enforcement entities, including the Federal Bureau of Investigation, the Exeter Police Department, and the New Hampshire Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney John J. Farley.
Merrimack Man Sentenced on Child Pornography OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE – Keith Burns, 41, of Merrimack, was sentenced in United States District Court for the District of New Hampshire to 15 years in prison after pleading guilty to one count of attempted receipt of child pornography, announced United States Attorney John P. Kacavas.
The investigation began in March of 2013 when investigators in Jackson County, Oregon, received information from the parents of a 13-year-old girl that a man was communicating with her online and pressuring her to take pornographic images of herself. The local authorities then contacted the FBI. A subsequent investigation led to the identification and arrest of Keith Burns of Merrimack. Burns was previously convicted of sexually assaulting a minor and is required by New Hampshire law to register with the state’s sex offender registry list.United States Attorney Kacavas said, “Identifying, finding, and prosecuting predators like the defendant has been, and will continue to be, among the highest priorities of my office.”
The charge was the result of an investigation by the Federal Bureau of Investigation, the Merrimack Police Department and the Jackson County, Oregon, Sherriff’s Department and the New Hampshire Internet Crimes Against Children Task Force. This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
This case is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former Manchester Police OfficerRead the Press Release
Pleads Guilty To Federal Offense
CONCORD, NEW HAMPSHIRE – Joseph Cespedes, 37, formerly a police officer in Manchester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to misprision of a felony, announced United States Attorney John P. Kacavas.
Under federal law, it is unlawful for anyone who has knowledge of the commission of a federal felony to conceal the crime and withhold information about it from federal authorities.
This investigation began in 2011, when the Department of Homeland Security – Homeland Security Investigations (HSI) learned that Cespedes – a Manchester police officer at the time – was associating with an individual in Lawrence, Massachusetts, who was the target of a separate drug-related investigation. Federal agents also discovered that the targeted drug dealer enlisted Cespedes to run criminal records checks on certain stolen identities to determine whether they were clear of outstanding arrest warrants. Cespedes ran the criminal records checks through unwitting Manchester Police Department dispatchers. When those criminal records checks came back negative, Cespedes sold that information to the drug dealer for $350.00 and a small quantity of cocaine. Rather than report the drug dealer’s activities to the proper authorities, Cespedes affirmatively concealed that felonious conduct.
HSI shared the results of its investigation with the FBI, who, in turn, shared it with the Manchester Police Department. Within days, Cespedes preemptively resigned from the Manchester Police Department, ostensibly for reasons unrelated to this investigation. Despite his resignation, the investigation into his activities continued. During a subsequent interview conducted by federal agents and Manchester police, Cespedes admitted his association with the drug dealer and his illegal conduct on the drug dealer’s behalf.
United States Attorney John P. Kacavas said, “I want to commend HSI, the FBI and the Manchester Police Department for their joint efforts in bringing this rogue former police officer to justice. His illegal conduct is a betrayal not only to the community he was sworn to serve but also to the officers of the Manchester Police Department with whom he served. His guilty plea today is a testament to the determination of law enforcement and this office to find, deter, and punish criminals regardless of their status or occupation.”“I would like to congratulate my special agents for following the evidence wherever it lead, but I would equally like to commend the Manchester Police Department for their swift and decisive action,” said special agent in charge of HSI Boston, Bruce Foucart. "It's always difficult when the actions of a single officer stains the badge, honor and integrity of all the other brave men and women who choose to put their lives on the line in order to uphold the law. “
Cespedes faces up to three years in federal prison and a possible fine of $250,000.00. He is scheduled to be sentenced on November 4, 2014.
The case was investigated by the U.S. Department of Homeland Security-Homeland Security Investigations, the Federal Bureau of Investigation, and the Manchester Police Department. The case is being prosecuted by Assistant United States Attorney Robert Kinsella.
CaliforniaRead the Press Release
Man Sentenced On Charges Of Conspiracy To Distribute More Than 5 Kilograms Of Cocaine And 1000 Kilograms Of Marijuana And Money Laundering Charges
CONCORD, NEW HAMPSHIRE – Jon Hagstrom, 34, of North Hollywood, California, was sentenced in United States District Court for the District of New Hampshire 126 months in prison after pleading guilty to conspiracy to distribute more than 5 kilograms of cocaine and more than 1000 kilograms of marijuana, conspiracy to commit money laundering and aiding and abetting the possession of more than 5 kilograms of cocaine with the intent to distribute, announced United States Attorney John P. Kacavas.
Between the summer of 2007 and August of 2009, members of the conspiracy, who had ties to a Canadian criminal organization, imported more than 1000 kilograms of exotic/high grade marijuana into the United States for distribution in the New England area, including New Hampshire, and New York. The organization used the proceeds received from the distribution of the marijuana to purchase more than 150 kilograms of cocaine from California which was then exported to Canada. Hagstrom was the source of the cocaine.
The defendant worked with other co-conspirators to coordinate the transport of the cocaine from California to New Hampshire and elsewhere in New England. On each occasion, the defendant directed couriers to transport approximately 25 to 50 kilograms of cocaine from California to New Hampshire and elsewhere in New England. The defendant also directed the couriers to pick up millions of dollars in marijuana drug proceeds and transport those drug proceeds back to him in California. The defendant also used private jets to travel from California to the Boston, Massachusetts area to pick up illegal marijuana drug proceeds.
During its investigation and prosecution of the 23 individuals involved in the drug conspiracy, the United States seized over three million dollars, over 1000 kilograms of marijuana and over 50 kilograms of cocaine. Hagstrom forfeited $90,000.00 in property to the United States and was the last defendant sentenced in the investigation.
The investigation was conducted by the Drug Enforcement Administration, Internal Revenue Service, Department of Homeland Security, Customs and Border Protection and Massachusetts State Police. The case was prosecuted by Assistant U.S. Attorneys Debra M. Walsh, Robert Kinsella and Robert Rabuck.