District of Rhode Island
Press releases recorded for this federal judicial district.
Westerly Resident Detained on Federal Child Pornography ChargesRead the Press Release
PROVIDENCE – Jay Gaccione, 39, of Westerly, today was ordered detained in federal custody on a criminal complaint charging him with production and possession of child pornography. He was arrested earlier today by agents from Homeland Security Investigations (HSI), and members of the Rhode Island State Police and the State Police Internet Crimes Against Children Task Force. Gaccione made an initial appearance late this afternoon before U.S. District Court Magistrate Judge Lincoln D. Almond.
Gaccione’s arrest is announced by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Acting Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
As part of an on-going investigation, HSI agents and Rhode Island State Police today executed court authorized search warrants at Gaccione’s residence where they seized, among other items, electronic and digital storage devices.
A federal criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
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Supermarket Owner, Accomplice Sentenced in Identity Theft, Tax Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Juan Vasquez, 53, of Providence, the mastermind behind a long-running scheme to use the stolen identities of more than 400 individuals on fraudulent tax returns resulting in the receipt of more than $2.6 million in fraudulent tax refunds, was sentenced today to 6 years in federal prison to be followed by 3 years supervised release. Vasquez ran the scheme out of his business, the former Dominican Supermarket in Pawtucket.
An accomplice to Juan Vasquez, his sister Belkis Vasquez, 50, of Central Falls, was sentenced today to serve 3 years probation, the first 8 months in home detention with GPS electronic monitoring, and was ordered to perform 200 hours of community service.
Juan Vasquez were ordered to pay restitution to the IRS in the amount of $2,682,042.88. Belkis Vasquez was ordered to pay restitution to the IRS in the amount of $325,490.
Juan Vasquez pleaded guilty on August 19, 2016, to one count of conspiracy and one count of aggravated identity theft. Belkis Vasquez pleaded guilty on August 17, 2016, to one count of conspiracy.
The sentences, imposed by U.S. District Court Chief Judge William E. Smith, are announced by United States Attorney Peter F. Neronha; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the United States Postal Inspection Service, Boston Division; Brian Deck, Resident Agent in Charge of the United States Secret Service; and Pawtucket Police Chief Paul King.
On September 27, 2016, a federal jury convicted Doris Morel 44, of Central Falls, a full-time cashier at the Dominican Supermarket, on one count of conspiracy, one count of theft of government property, four counts of money laundering and four counts of aggravated identity theft. The jury also convicted Erika Tomasino, 44, of Central Falls, a secretary for Juan Vasquez, on one count of conspiracy, one count of theft of government property, three counts of mail fraud, three counts of money laundering and one count of aggravated identity theft.
Morel and Tomasino are scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on December 22, 2106.
According to the government’s evidence, for nearly four years, beginning in January 2010, the defendants participated in a scheme in which they used stolen personal identifying information of more than 400 individuals, most of whom are residents of Puerto Rico, to file fraudulent tax returns.
According to the government’s evidence, fraudulent treasury checks were mailed to various locations in Rhode Island, Massachusetts and New York, and later deposited by the co-conspirators into 26 different bank accounts. The bank accounts were controlled by the co-conspirators or other individuals affiliated with the Dominican Supermarket.
The government’s evidence showed that the defendants and their co-conspirators withdrew the proceeds of the checks, caused others to withdraw some of the proceeds, transferred the proceeds between accounts, and spent the funds on personal expenses. Additionally, according to the government’s evidence, more than $235,000 of fraudulently obtained funds were transferred to a bank in the Dominican Republic.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
The matter was investigated by Internal Revenue Service - Criminal Investigation, with the assistance of the United States Secret Service, United States Postal Inspection Service, and the Pawtucket Police Department.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former NELCN Member Pleads Guilty to Obstruction, Making False StatementsRead the Press Release
BOSTON – A former New England La Cosa Nostra (NELCN) caporegime pleaded guilty today in U.S. District Court in Boston to obstructing a federal investigation into the murder of a Boston nightclub owner in the 1990s.
Robert P. DeLuca, 70, pleaded guilty to one count of obstruction of justice and two counts of making false statements. U.S. District Court Judge Denise J. Casper scheduled sentencing for February 1, 2017. In June 2016, DeLuca was arrested in Florida and indicted.
DeLuca pleaded guilty to lying to federal prosecutors and investigators regarding the 1993 disappearance of Stephen DiSarro who operated The Channel, a South Boston nightclub. In March 2016, authorities discovered DiSarro’s remains behind a mill in Providence, R.I. According to court documents, DiSarro disappeared in May 1993 after then LCN boss Frank Salemme and Frank Salemme, Jr.’s involvement with The Channel became the focus of a federal grand jury investigation.
DeLuca also pleaded guilty to lying about his knowledge of other organized crime murders. He made false statements in connection with his cooperation deal with federal authorities in Rhode Island after his 2011 racketeering arrest and indictment. Despite a cooperation agreement with federal authorities, DeLuca lied about his knowledge of DiSarro’s disappearance and other LCN-perpetrated murders.
DeLuca has also agreed to plead guilty in Rhode Island Superior Court to conspiracy to commit the 1992 murder of Kevin Hanrahan.
The obstruction of justice statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The false statements statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorneys Carmen M. Ortiz of the District of Massachusetts and Peter F. Neronha of the District of Rhode Island; Rhode Island Attorney General Peter F. Kilmartin; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Massachusetts and Rhode Island State Police provided assistance with the investigation. Assistant U.S. Attorneys Fred M. Wyshak, Jr. of Ortiz’s Public Corruption Unit and William Ferland of Neronha’s Office are prosecuting the case.
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Dominican National Sentenced for Passport FraudRead the Press Release
PROVIDENCE, R.I. – George L. Wilson, 54, of Providence, was sentenced today to 8 months in federal prison to be followed by 3 years supervised release for making false statements on a passport application and making false statements to a government agent. Wilson previously admitted to the court that he used the personal identifying information of a person living in the United States Virgin Islands to apply for a name change, and to obtain a U.S. passport and social security card.
The sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Wilson, a Dominican national, will face deportation proceedings upon completion of his prison term.
According to information presented to the court, an investigation by HSI and immigration agents determined that in 1989, George L. Wilson, purporting to be Alwyn E. Todman, petitioned the state of Connecticut and was granted a name change to George L. Wilson. He did so using Alwyn Todman’s person identifying information, including Todman’s date of birth and social security number. Todman was a resident of the United States Virgin Islands.
In May 2013, Wilson applied for and was granted a U.S. passport, having provided his name and Todman’s personal identifying information.
In December 2014, Alwyn E. Todman passed away in the United States Virgin Islands.
In April 2015, Wilson visited the Pawtucket Social Security Administration office to inquire about getting a “death notice” removed from the social security number he was using. Wilson, attempting to show that the “death notice” was in error, presented to a Social Security Administration manager a social security card with his name and Todman’s social security number, and his fraudulently obtained passport which contained his name and photograph, but which also contained some of Todman’s personal identifying information. The Social Security Administration manager took possession of the social security card.
As a result of further investigation by HSI agents, Wilson was arrested in August 2015. Wilson admitted that he was born in the Dominican Republic and he provided a date of birth different from the one he used to obtain a U.S. passport.
The case was prosecuted by Assistant United States Attorney Zechariah Chafee.
The matter was investigated with the assistance of the Office of Inspector General - Social Security Administration.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Warwick Resident Admits to Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Sami-Joe Daou, 27, of Warwick, pleaded guilty in federal court in Providence today to possessing and distributing child pornography. A joint federal, state and local law enforcement investigation determined that Daou possessed images of child pornography, some of which he shared via Facebook.
Appearing before U.S. District Court Chief Judge William E. Smith, Daou pleaded guilty to one count of possession of visual depiction of a minor engaged in sexual explicit conduct and one count of distribution of visual depiction of a minor engaged in sexual explicit conduct.
Daou’s guilty plea is announced United States Attorney Peter F. Neronha; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Superintendent of the Rhode Island State Police Acting Colonel Ann C. Assumpico; and Cranston Police Chief Colonel Michael J. Winquist.
According to information presented to the court, in March 2015, the defendant stored on his computer sexually explicit images involving a pre-teenage female. At least one of the images was shared via Facebook. Additionally, in July 2015, the defendant stored on his computer three sexually explicit video files depicting sexual contact he had with a 17-year-old female.
Daou is scheduled to be sentenced on February 24, 2017. Distribution of child pornography is punishable by a statutory penalty of up to 20 years imprisonment, with a mandatory minimum term of 5 years imprisonment; possession of child pornography is punishable by a statutory penalty of up to 10 years imprisonment. Daou also faces a maximum life term of supervised release.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Rhode Island State Police Computer Crimes Unit, the Cranston Police Department, and the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
West Warwick Resident Admits to Robbing Coventry BankRead the Press Release
PROVIDENCE, R.I. – John Ryder, 28, of West Warwick, pleaded guilty in federal court in Providence today to bank robbery by force, violence and intimidation. Ryder admitted to the court that he robbed a BankRI branch office in Coventry while wielding a machete on May 2, 2016. Ryder robbed the bank of nearly $6,000 in cash.
Appearing before U.S. District Court Chief Judge William E. Smith, Ryder pleaded guilty as charged in an indictment returned by a federal grand jury on June 7, 2016. No plea agreement was filed in this matter.
Ryder’s guilty plea is announced by United States Attorney Peter F. Neronha, Coventry Police Chief John S. MacDonald, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
At the time of his guilty plea, Ryder admitted to the court that beginning on April 29, 2016, and on the days leading up to the robbery, he spent a considerable amount of time in and around a shopping plaza where the bank is located and in a wooded area directly behind the plaza. Ryder admitted to the court that on May 2, 2016, he entered the bank carrying a machete which he wielded while demanding cash from bank tellers. After robbing the bank of $5,937, he fled into the wooded area behind the shopping plaza.
According to information presented to the court, later that evening Ryder is seen on video surveillance running from the area and getting into a vehicle. On May 6, 2016, law enforcement interviewed Ryder. Four days later obtained a court authorized search warrant to search Ryder’s cell phone. On Ryder’s cell phone they discovered pictures of an individual wearing the same clothing and mask as worn by the bank robber. The photograph was taken in the wooded area behind the shopping plaza where the bank is located.
Ryder was arrested by Coventry Police Detectives and FBI agents, with the assistance of the West Warwick Police Department, on May 13, 2016.
Ryder, who has been detained in federal custody since his arrest, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 20, 2017.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Sex Trafficker SentencedRead the Press Release
PROVIDENCE, R.I. – Cristian Garcia, 21, of Providence, was sentenced today to 24 months in federal prison for sex trafficking two young teenagers, announced United States Attorney Peter F. Neronha, Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England, Warwick Police Chief Colonel Stephen M. McCartney and Seekonk, Mass., Police Chief Craig A. Mace.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Garcia to serve 5 years supervised release upon completion of his prison term. Garcia pleaded guilty on May 13, 2016, to one count of conspiracy to sex trafficking children and one count of sex trafficking children.
A co-defendant in this matter, Mackenzy Scott, 20, of Providence, pleaded guilty on September 20, 2016, to conspiracy to sex trafficking children. He is scheduled to be sentenced on December 14, 2016.
According to court records and information presented to the court, beginning in December 2014, Garcia and Scott conspired together to take provocative photographs of a 14-year-old girl and a 16-year-old girl, and post the photographs in advertisements on Backpage.com, offering the young teenagers for sex. Numerous individuals responded to the ads. Garcia and Scott either drove or arranged for the teenagers to be driven to various locations in Rhode Island and Massachusetts to engage in sex acts in exchange for cash.
Mackenzy Scott, arrested on April 8, 2015, and Cristian Garcia, arrested on March 14, 2016, have been detained since their arrests.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by Homeland Security Investigations, and the Warwick and Seekonk Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
U.S. Attorney's Office, FBI Prepared to Respond to Complaints of Election Fraud, Voting Rights AbusesRead the Press Release
PROVIDENCE - United States Attorney Peter F. Neronha announced today that Assistant United States Attorney (AUSA) Terrence P. Donnelly will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Donnelly has been appointed to serve as the District Election Officer (DEO) for the District of Rhode Island, 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.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Peter F. Neronha announced today that AUSA/DEO Donnelly will be on duty in this District while the polls are open. He can be reached by the public at (401) 709-5068.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (401) 272-8310.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
West Warwick Resident Pleads Guilty to Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Mathew E. Pasetti, 35, of West Warwick, pleaded guilty in federal court in Providence today to possession and distribution of child pornography. A court authorized law enforcement search of Pasetti’s residence in December 2015, resulted in the seizure of approximately 600 videos and 175,000 images depicting child pornography, primarily involving prepubescent children.
Pasetti’s guilty plea before U.S. District Court Judge John J. McConnell, Jr., to possession of child pornography and distribution of child pornography is announced by United States Attorney Peter F. Neronha; Lieutenant Colonel Kevin M. Barry, Acting Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to information presented to the court, in October 2015, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force identified an Internet Protocol (IP) address that was sharing child pornography. An ICAC and HSI investigation determined that the IP address was registered to Pasetti at his West Warwick residence. A court authorized search of Pasetti’s residence on December 2, 2015, by ICAC Task Force members and HSI agents resulted in the seizure a laptop computer and several digital storage devices. A forensic examination of the electronic equipment by the ICAC Task Force resulted in the discovery of videos and images depicting child pornography.
Pasetti, who is detained in federal custody, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell on January 17, 2017.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
New York Resident Sentenced in ATM Skimming SchemeRead the Press Release
PROVIDENCE, R.I. – Moises Morales Cano, 32, of Astoria, N.Y., was sentenced today to 24 months in federal prison for his participation in a conspiracy to manipulate ATMs in order to steal personal identifying information belonging to bank customers. The information was used to create fraudulent debit cards.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Cano to serve 5 years supervised release upon completion of his prison term and to pay restitution in the amount of $709,597.50. Cano pleaded guilty on May 3, 2016, to bank fraud and aggravated identity theft charges.
Cano’s sentence is announced by United States Attorney Peter F. Neronha; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Warwick Police Chief Colonel Stephen M. McCartney.
At the time of his guilty plea, Cano admitted to the court that between January 1 and April 4, 2015, he participated in a scheme to attach skimming devices on ATMs at banks in several communities in Rhode Island and Connecticut. Approximately 1,329 individuals had their debit cards compromised resulting in a loss of approximately $709,597.50.
An ATM skimming device is technology that directly attaches to an ATM in order to intercept unknowing customers’ debit card information from the magnetic strip on ATM cards. The stolen information and PINs are downloaded and re-encoded onto counterfeit debit cards. The counterfeit debit cards are used to make fraudulent transactions from the accounts of unknowing victims.
Cano has been detained in federal custody since his arrest on September 9, 2015.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the United States Attorney’s Office, U.S. Secret Service and the Warwick Police Department, with the assistance of the Smithfield, East Providence, Cranston, and Johnston Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Johnston Resident Admits to Trafficking Oxycodone and MarijuanaRead the Press Release
PROVIDENCE, R.I. – Juan G. Catala, 41, of Johnston, pleaded guilty in federal court in Providence today to trafficking oxycodone and marijuana, announced United States Attorney Peter F. Neronha and Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration Office of Criminal Investigations (FDA OCI).
Appearing before U.S. District Court Judge John J. McConnell, Jr., Catala pleaded guilty to four counts of distributing oxycodone and one count of possession of marijuana with the intent to distribute.
According to court documents and information presented to the court, between January 2016 and March 2016, an individual assisting law enforcement in the investigation of Catala’s drug trafficking activities made at least four purchases of oxycodone tablets from Catala. Each of the transactions, ranging between 39 and 87 oxycodone tablets, were electronically monitored by law enforcement.
On July 6, 2016, FDA Task Force agents executed a court authorized search of Catala’s Johnston residence and seized 65 pounds of marijuana, in excess of $13,000 in cash, and several empty prescription bottles which previously contained oxycodone tablets. Agents seized an additional $1,500 in cash from Catala’s vehicle.
Catala is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on January 5, 2017.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The matter was investigated by the FDA Task Force, with the assistance of the Middletown and Johnston Police Departments. The FDA Task Force is comprised of agents and officers from the FDA, DEA, Homeland Security Investigations, U.S. Postal Inspection Service, Rhode Island State Police, Rhode Island National Guard, and the East Providence and North Providence Police Departments.
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Former Labor & Training Employee to Plead Guilty to Fraud, Theft of FundsRead the Press Release
PROVIDENCE, R.I. – According to documents filed in federal court in Providence today, Ambulai R. Sheku, 37, of Providence, a former Senior Employment Interviewer with the Rhode Island Department of Labor and Training (DLT), has agreed to plead guilty to an information charging him with conspiracy to commit mail fraud, theft of government funds and accessing a protected computer to commit fraud.
It is alleged in the information that between June 2009 and February 2015, Sheku used his position at DLT and his authorized access to DLT computer files to participate in a scheme to make unauthorized changes to benefit recipients’ files which resulted in the fraudulent disbursement of more than $508,000 of unemployment insurance benefits.
Charges filed in this matter are announced by United States Attorney Peter F. Neronha; Lieutenant Colonel Kevin M. Barry, Acting Superintendent of the Rhode Island State Police; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations.
According to court documents, it is alleged that Sheku used his authorized access to DLT computers and computer files to obtain unemployment benefits for himself and others to which they were not entitled. It is alleged that as part of the scheme Sheku changed the mailing addresses of legitimate unemployment insurance beneficiaries, thus causing banks to mail unemployment insurance benefits to individuals not entitled to receive them; without authorization, extended the expiration of benefits for members of the conspiracy; caused fraudulent claims, including claims by individuals who were employed and thus ineligible for unemployment benefits, to be approved and dispersed; increased the balance of unemployment insurance benefits; and fraudulently removed blocks or “stops” on benefit payments, thus allowing coconspirators to continue receiving benefits to which they were not entitled.
It is alleged in court documents that the scheme resulted in a loss to the Rhode Island Department of Labor and Training of approximately $508,691, of which approximately $350,606 were federal funds.
Sheku made an initial appearance in U.S. District Court today before U.S. District Court Magistrate Judge Lincoln D. Almond. An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The matter continues to be investigated by the United States Attorney’s Office, Rhode Island State Police and the U.S. Department of Labor, with the assistance of the Rhode Island Department of Labor and Training, and the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Massachusetts Resident Indicted on Sex Trafficking ChargeRead the Press Release
PROVIDENCE, R.I. – Devon Brown, 24, of Everett, MA, was arraigned in federal court in Providence today on a sex trafficking charge. It is alleged that Brown transported a woman from Massachusetts to Rhode Island for the purpose of commercial sexual activity.
A federal indictment returned yesterday and unsealed in U.S. District Court in Providence today charges Brown with a Mann Act charge of interstate transportation with the intent to engage in prostitution.
The indictment of Devon Brown is announced United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Cranston Police Chief Colonel Michael J. Winquist.
According to information presented to the court, a joint investigation by the Cranston Police Department and HSI agents determined that on March 7, 2016, Devon Brown, allegedly operating out of a motel in Seekonk, MA, paid for and posted Backpage ads offering a woman for commercial sexual activity.
On March 7, 2016, an HSI undercover agent responded to the ad posing as a customer and allegedly arranged with Brown for the woman to be brought to a Cranston residence. According to information presented to the court, when the woman arrived at the Cranston residence and allegedly engaged in a sex for money conversation with the undercover agent she was detained while Brown was arrested outside of the building.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The matter, charged first in Rhode Island State Court prior to the return of a federal indictment, is being prosecuted in federal court by Assistant U.S. Attorney Terrence P. Donnelly with the assistance of Rhode Island Assistant Attorney General Daniel C. Guglielmo.
Brown, arrested earlier today at his residence in Massachusetts, appeared before U.S. District Court Magistrate Judge Lincoln D. Almond. A not guilty plea was entered. Brown was released to home confinement with electronic monitoring.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
US Attorney Warns IRS Impersonation Scam May Continue Despite ArrestsRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha and Treasury Inspector General for Tax Administration J. Russell George today warned Rhode Island taxpayers that, despite reports from Mumbia, India, that numerous individuals were recently arrested at a call center where aggressive IRS impersonation scam telephone calls were allegedly originating from, they should continue to be vigilant and simply hang up the telephone if they receive a telephone call purported to be from the IRS demanding money or personal identifying information.
The reported arrests do not eliminate the possibility that others may still be perpetrating or impersonating the telephone scam.
Since October 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees. The Treasury Inspector General for Tax Administration (TIGTA) has received reports of over 1.8 million impersonation related calls with nearly 9,400 victims reporting losses of nearly $50 million.
“Seemingly everyone, including me, has received a call, or multiple calls, from a person purporting to be from the IRS threatening arrest or legal action in court unless money is immediately paid,” said United States Attorney Peter F. Neronha. “While it is good news that some are being held accountable for repeatedly seeking to victimize people in Rhode Island and across the country, we can expect similar calls going forward, because unfortunately this scam has proven to be successful in some instances. The right response when getting such a call is simple: don’t talk, just hang up.”
“TIGTA is concerned that the recent arrests in India will not bring a total halt to the IRS telephone impersonation scams,” said J. Russell George, Treasury Inspector General for Tax Administration.
“Members of the public cannot and must not let their guard down. As TIGTA continues to investigate the many IRS impersonation complaints we have received, our warning to the public remains the same: just hang up the phone if you receive a call purporting to be from the IRS where the caller states that to avoid arrest or a lawsuit, payment must be made immediately.”
If you believe you may have fallen victim to an IRS impersonation scam, you may file a report with the TIGTA at https://www.treasury.gov/tigta/contact_report_scam.shtml
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Denise M. Barton, Amy R. Romero Appointed Assistant U.S. AttorneysRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced the appointment of Denise M. Barton and Amy Retsinas Romero as Assistant United States Attorneys for the District of Rhode Island.
Ms. Barton, a criminal prosecutor for more than fourteen years, including five years as a county and state prosecutor in Massachusetts, and nine years as a federal prosecutor in the United States Attorney’s Office in San Francisco, graduated cum laude from the University of Massachusetts in 1991, and earned her Juris Doctor at Tulane Law School, graduating magna cum laude in 1996. Ms. Barton is a native of Medfield, MA. Ms. Barton has been assigned to the Criminal Division.
Prior to her appointment as an Assistant United States Attorney, Ms. Romero clerked for the United States Court of Appeals for the Third District and was a former staff attorney for Rhode Island Legal Services and Community Legal Aid in Worcester, MA. Ms. Romero, a Providence, RI native, graduated from Swathmore College in 2001 and earned her Juris Doctor at the University of Pennsylvania School of Law, graduating cum laude in 2009. Ms. Romero has been assigned to the Civil Division.
In making the announcement, United States Attorney Peter F. Neronha said, “I am enormously pleased to welcome AUSAs Barton and Romero to the Office. Ms. Barton is a talented and experienced federal prosecutor who can ably handle any type of case, and will add great strength to our Criminal Division. Ms. Romero has spent her career using her considerable talents as a civil litigator to help others, particularly those who, due to limited resources, would otherwise have difficulty exercising their legal rights. That is difficult, important, and often unheralded work, and I look forward to relying on her experience in strengthening our civil rights program.”
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Heroin, Cocaine Trafficker Pleads GuiltyRead the Press Release
PROVIDENCE, R.I. – Tomas Martinez, 27, of Pawtucket, pleaded guilty on Thursday to federal heroin and cocaine trafficking charges. Appearing before U.S. District Court Chief Judge William E. Smith, Martinez pleaded guilty to two counts of possession of heroin with the intent to distribute and one count of cocaine with the intent to distribute.
Martinez’s guilty plea is announced by United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division, and Pawtucket Police Chief Paul King.
According to court documents and information presented to the court, in early January 2016, based on information developed by DEA agents, the Rhode Island DEA Drug Task Force launched an investigation into Martinez’s drug trafficking activities. The investigation included several undercover purchases of heroin from Martinez. Law enforcement surveillance of Martinez included seeing Martinez make several visits to a Weeden Street, Pawtucket residence.
In March 2016, members of the Pawtucket Police Department’s Special Squad developed information that a drug stash house was being operated out of a first floor apartment at 603 Weeden Street, the same location Martinez was seen by law enforcement visiting on several occasions. On March 3, 2016, DEA Drug Task Force agents and Pawtucket Police Department detectives executed a court authorized search warrant at the apartment, and seized in excess of 100 grams of heroin, cutting agents, and other items used in the packaging and distribution of heroin and cocaine.
While law enforcement was conducting a search of the residence, Martinez arrived by vehicle and was immediately detained by law enforcement. A search of Martinez’s person and vehicle resulted in the seizure of 3.6 grams of heroin, 1.2 grams of cocaine, and $8,370 in cash.
Martinez has been detained since his arrest. He is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 3, 2017.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Cranston Man Detained on Drug Trafficking ChargesRead the Press Release
Michael Bermudez, a/k/a Michael J. Morales, 34, of Cranston, was ordered detained in federal custody following an initial appearance in federal court in Providence today before U.S. District Court Magistrate Lincoln D. Almond on a criminal complaint charging him with possession of heroin with the intent to distribute and possession of cocaine with the intent to distribute.
Bermudez was detained by Cranston Police on Thursday after a search of his residence resulted in the seizure of approximately 6,600 packets of heroin and approximately 153 grams of cocaine.
Bermudez’s arrest and initial appearance is announced by United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist, and Michael J. Ferguson, Special Agent in Charge of the DEA in New England.
According to information provided to the court, on Thursday, Cranston Police Department detectives, with the assistance of agents from the Rhode Island DEA Drug Task Force, executed a court authorized search warrant at Bermudez’s residence. The search resulted in the seizure of approximately 6,600 packets of heroin and several plastic bags containing a total of approximately 153 grams of cocaine. The search warrant was authorized by the court during an investigation into Bermudez’s alleged drug trafficking activities, which allegedly included multiple controlled purchases of heroin from Bermudez.
According to information presented to the court, after being detained by Cranston Police, Bermudez allegedly described for investigators his involvement in the distribution of heroin and cocaine. This allegedly included Bermudez’s description of receiving approximately $12,000 worth of heroin from a supplier on multiple occasions and distributing this heroin within a two-day period, resulting in $1000 profit to him.
According to court records and information presented to the court, Bermudez was convicted in U.S. District Court in 2009 on fraud charges, and is currently on state probation, having been convicted in Rhode Island Superior Court in September 2015 on drug trafficking charges.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Providence Resident Pleads Guilty to Trafficking 14-Year-OldRead the Press Release
PROVIDENCE, R.I. – Paul J. Monteiro, a/k/a “Peezy,” 31, of Providence, pleaded guilty in federal court in Providence today to sex trafficking of a minor, admitting to the court that he transported a 14-year-old girl from Rhode Island to New Jersey for the purpose of engaging in commercial sexual activity.
Monteiro and the minor female were located in a hotel room in Franklin Township, New Jersey, on April 6, 2015, by agents and officers from Homeland Security Investigations (HSI), the FBI and Franklin Township police.
Monteiro’s guilty plea is announced by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Lieutenant Colonel Kevin M. Barry, Acting Superintendent of the Rhode Island State Police; and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to information presented to the court, on March 23, 2015, the National Center for Missing and Exploited Children reported to Rhode Island State Police that they had received a report of a juvenile female from Rhode Island who had allegedly been sexually molested by an adult male and that she was afraid to end the relationship due to threats of bodily harm.
Rhode Island State Police determined that the young female was reported missing on November 20, 2014, from a group home in Rhode Island. Through further investigation, Rhode Island State Police learned that the girl had traveled to New Jersey with an individual identified as “Peezy.”
On April 6, 2015, Rhode Island State Police tracked a cell phone in the possession of the missing teenager to Franklin Township, New Jersey. HSI and FBI agents, and police officers from Franklin Township located the missing girl and Paul Monteiro in a hotel room in Franklin Township. Monteiro was arrested by Franklin Township police on New Jersey state charges and detained. A court authorized search of a cell phone belonging to Monteiro resulted in the discovery of photographs of the 14-year-old girl that had been posted in advertisements on Backpage.com offering the young victim for commercial sex.
Monteiro, who has been detained since his arrest on April 6, 2015, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on December 22, 2016.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
Jury Convicts Two in $2.6M Stolen Identity, Tax Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today convicted two employees of a Pawtucket grocery store, the Dominican Supermarket, for their participation in a conspiracy to use the stolen identities of more than 400 individuals on fraudulent tax returns, resulting in the receipt of more than $2.6 million dollars in fraudulent federal tax return payments, announced United States Attorney Peter F. Neronha; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the United States Postal Inspection Service, Boston Division; and Stephen Marks, Special Agent in Charge of the United States Secret Service.
The jury, following six days of testimony and seven hours of deliberations over two days, convicted Doris Morel 44, of Central Falls, a full-time cashier at the Dominican Supermarket, on one count of conspiracy, one count of theft of government property, four counts of money laundering and four counts of aggravated identity theft. The jury convicted Erika Tomasino, 44, of Central Falls, a secretary for the owner of the supermarket, on one count of conspiracy, one count of theft of government property, three counts of mail fraud, three counts of money laundering and one count of aggravated identity theft.
The jury acquitted Morel of one count of mail fraud and Tomasino of one count of aggravated identity theft.
Morel and Tomasino, released on unsecured bond with electronic monitoring, are scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on December 22, 2014.
Two other individuals who participated in the conspiracy, Juan Vasquez, 53, of Pawtucket, the owner of the Dominican Supermarket, and his sister, Belkis Vasquez, 50, of Central Falls, previously pleaded guilty to federal charges brought in this matter and are scheduled to be sentenced on November 4, 2016.
Juan Vasquez pleaded guilty on August 19, 2016, to one count of conspiracy and one count of aggravated identity theft. Belkis Vasquez pleaded guilty on August 17, 2016, to one count of conspiracy. Both are scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on November 4, 2016.
According to the government’s evidence, for nearly four years, beginning in January 2010, the defendants participated in an extensive Stolen Identity Refund Fraud (SIRF) scheme. SIRF schemes involve the misuse of personal identifying information of individuals to file fraudulent tax returns. In this particular scheme, fraudulent tax returns were filed using stolen personal identifying information of more than 400 individuals, most of whom are residents of Puerto Rico.
According to the government’s evidence, fraudulent treasury checks were mailed to various locations in Rhode Island, Massachusetts and New York, and later deposited by the co-conspirators into 27 different bank accounts. The bank accounts were controlled by the co-conspirators or other individuals affiliated with the Dominican Supermarket.
The government’s evidence showed that the defendants and their co-conspirators withdrew the proceeds of the checks, caused others to withdraw some of the proceeds, transferred the proceeds between accounts, and spent the funds on personal expenses. Additionally, according to the government’s evidence, more than $235,000 of fraudulently obtained funds were transferred to a bank in the Dominican Republic.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
The matter was investigated by Internal Revenue Service Criminal Investigation, with the assistance of the United States Secret Service, United States Postal Inspection Service and the Pawtucket Police Department.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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US Attorney to Launch Heroin and Opioid Awareness Week in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced a series of public discussions and town hall meetings to raise awareness about the rising public health crisis in Rhode Island of opioid addiction, and opioid and heroin overdoses. The programs, to begin on Monday, September 19, 2016, will reinforce the Department of Justice’s three-fold approach to the opioid and heroin epidemic - prevention and awareness; enforcement; and treatment.
On Friday, President Barack Obama and Attorney General Loretta E. Lynch designated the week of September 19-23, 2016, as National Heroin and Opioid Awareness Week.
Regional town hall meetings and discussions organized in collaboration with Prevention Coalitions from across Rhode Island, and open to the public, will be held in Providence, South Kingstown, Woonsocket and Middletown on Monday, September 19 thru Thursday, September 22, respectively. Each program will include the screening of the powerful documentary Chasing the Dragon: The Life of an Opioid Addict; the personal stories of our neighbors touched by the epidemic of drug overdoses that is devastating families across Rhode Island; and a discussion with members of the medical, treatment, education, community-outreach and law enforcement communities. Parents, students, teachers, school administrators and the public are strongly encouraged to join the discussion at these events.
“We are all aware of the opioid/heroin overdose numbers in Rhode Island and across the country. They are staggering, so staggering that it can sometimes be hard to get a handle on this epidemic's real human cost. But behind each number is a person, a real person, with great potential, and with family and others who love them. Some are gone forever, and others are on a path that may soon take them there” said United States Attorney Peter F. Neronha. “Heroin and Opioid Awareness Week is about raising awareness about existing treatment that can divert people from that path, and about preventing addiction in the first place. Thanks to the continuing, terrific work of so many, Rhode Island is an opioid/heroin treatment and prevention leader. Hopefully our discussions can contribute to this effort.”
On Monday, September 19, 2016, at 10:00 am, at the Brown University School of Professional Studies, 200 Dyer Street, Providence, United States Attorney Peter F. Neronha, joined by United States Senators Jack Reed and Sheldon Whitehouse, will kick off National Heroin and Opioid Awareness Week in Rhode Island with a screening of the powerful documentary Chasing the Dragon; the personal story of a local person impacted by addiction; and a discussion about heroin and opioid addiction awareness with local physicians, treatment specialists, educators, and the leadership of the FBI, DEA, and local law enforcement.
Town hall meetings and discussion events around Rhode Island will continue on Tuesday, September 20, 2016. Each program will include a screening of Chasing the Dragon, the personal stories of local families and individuals impacted by addiction, and a discussion about heroin and opioid addiction awareness with local physicians, treatment specialists, educators, and the leadership of the FBI, DEA, and local law enforcement.
The schedule for Heroin and Opioid Awareness Week programs in Rhode Island for the week of September 19, 2016, is as follows:
Monday, September 19, 2016
10:00 a.m.
Brown University School of Professional Studies
200 Dyer Street, Providence
Tuesday, September 20, 6:30 p.m.
South Kingstown High School Auditorium
215 Columbia Street, Wakefield
Wednesday, September 21, 6:00 p.m.
Woonsocket City Hall, Harris Hall
169 Main Street, Woonsocket
Thursday, September 22, 6:30 p.m.
Middletown Town Hall, Council Chambers
350 Main Road, Middletown
The public and the media are strongly encouraged to attend and to participate in the discussion.
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Providence Felon Sentenced on Drug, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Thealeah Duopu, 40, of Providence, was sentenced today to 72 months in federal prison for trafficking crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Mickey D. Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Duopu to serve 4 years supervised release upon completion of his prison term. Duopu pleaded guilty on June 24, 2016, to one count of possession with the intent to distribute 28 grams or more of crack cocaine, one count of distribution of 28 grams or more of crack cocaine, three counts of distribution of crack cocaine, and one count of being a felon in possession of a firearm.
According to court records and information presented to the court, in October and November 2015, an ATF Task Force investigation of Duopu’s drug trafficking activities included at least four purchases of crack cocaine by an ATF undercover Task Force agent. The purchases ranged in amounts of between 8 and 52 grams, for between $375 and $3,200.
On November 12, 2015, Duopu was arrested by ATF Task Force agents as he left his Providence residence to meet with an undercover agent for a previously arranged delivery of crack cocaine. Agents seized nearly 54 grams of crack cocaine and $538 in cash from Duopu. A court authorized search of Duopu’s residence which immediately followed his arrest resulted in the seizure of more than 67 grams of crack cocaine, nearly $20,300 dollars in cash and a loaded semi-automatic firearm.
During the course of the investigation, law enforcement seized from Duopu more than 200 grams of crack cocaine and nearly $21,000 in cash.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
The Pawtucket Police Department and the Providence Arson Squad assisted the ATF Task Force in the investigation of this matter. The ATF Task Force is comprised of agents and officers from ATF; the Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Children’s Charity Treasurer Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Robert Lonardo, 67, of Burrillville, treasurer of the Rhode Island Association for Cardiac Children (RIACC), was sentenced today to 6 months in federal prison and ordered to serve 100 hours of community service for converting nearly $186,000 from the charity for his own personal use. RIACC, founded by Lonardo’s mother, raised funds to purchase hospital equipment, support children’s cardiac treatment and research, and help meet the needs of Rhode Island families whose children were undergoing surgery for cardiac disease.
At sentencing, U.S. District Court Judge John J. McConnell, Jr. also ordered Lonardo to serve 2 years supervised release upon completion of his prison term. Restitution in this matter will be determined by the court at a later date.
Lonardo pleaded guilty on June 28, 2016, to one count of wire fraud.
Lonardo’s sentence is announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of Internal Revenue Service Criminal Investigation.
At the time of his guilty plea, Lonardo admitted to the court that beginning in January 2013, following the death of his mother, he began withdrawing funds from RIACC bank accounts and converted the money for his own personal use. Lonardo admitted that from January 2013 to August 2015 he converted RIACC funds totaling $185,945.77.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the FBI and IRS Criminal Investigation.
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Voting Rights Abuse Hotline EstablishedRead the Press Release
PROVIDENCE - United States Attorney Peter F. Neronha announced today that Assistant United States Attorney (AUSA) Terrence P. Donnelly will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for Rhode Island’s Primary on Tuesday, September 13. AUSA Donnelly has been appointed to serve as the District Election Officer for the District of Rhode Island, 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.
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 Primary Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.
To report suspected election fraud or voting rights abuses at the polls in Rhode Island, the United States Attorney’s Office can be reached by the public at (401) 709-5068. In addition, the FBI field office in Rhode Island will be prepared to receive allegations of voting fraud and other election abuses at (401) 272-8310.
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Providence Felon Sentenced for Possessing Six FirearmsRead the Press Release
PROVIDENCE, R.I. – Anthony Jenkins, 52, formerly of Providence, was sentenced today to 5 years in federal prison for being a felon in possession of six firearms, announced United States Attorney Peter F. Neronha and Mickey D. Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Jenkins to serve 3 years supervised release upon completion of his prison term. Jenkins pleaded guilty on May 24, 2016, to being a felon in possession of six firearms.
According to court documents and information presented to the court, in November 2015, members of an ATF task force became aware of Jenkins plans to steal several firearms with the intent to sell some of them to a person recently released from prison. On November 5, 2015, Jenkins, accompanied by an ATF undercover task force agent, traveled to a storage unit facility in Cranston where Jenkins believed numerous firearms and assorted ammunition were being stored inside a locked unit. Jenkins cut off the lock and removed six firearms and assorted ammunition. Jenkins was detained by members of the task force immediately after he took possession of the firearms and the ammunition.
According to court records and information presented to the court, Jenkins’ previous adult criminal history includes 19 convictions for felony theft offenses.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Tax Preparer Pleads Guilty to Tax Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE, R.I. – A Cranston, Rhode Island, resident pleaded guilty yesterday to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced U.S. Attorney Peter F. Neronha and Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Belkis M. Guzman, 48, a tax return preparer who worked at El Centro Multiservicios LLC in Providence admitted to preparing false individual income tax returns for clients for tax years 2009 through 2011, which included false dependents, exemptions, tax credits, deductions or expenses. She also admitted to depositing more than 100 fraudulently obtained U.S. Treasury checks totaling more than $800,700 into her personal bank account, which were generated by the filing of false tax returns prepared by others. Guzman distributed a portion of these ill-gotten proceeds to others and received a percentage of the negotiated checks as payment for depositing the checks into her account.
U.S. District Judge William E. Smith scheduled sentencing for Dec. 2. Guzman faces a statutory maximum sentence of 20 years in prison for the wire fraud count, 10 years in prison for each count of theft of government funds, three years in prison for each count of assisting in the preparation of false tax returns for clients and a mandatory two years in prison for each count of aggravated identity theft, as well as a period of supervised release and monetary penalties.
U.S. Attorney Neronha and Principal Deputy Assistant Attorney General Ciraolo commended the hard work of special agents of Internal Revenue Service’s Criminal Investigation who conducted the investigation, and Assistant U.S. Attorney Richard W. Rose and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting this case.
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Convicted Felon Sentenced to 6 Years in Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Brandon Dale Hayes, 31, of Central Falls, was sentenced today to 72 months in federal prison for being a felon in possession of a firearm. Hayes was arrested by Rhode Island State Police on July 12, 2015, after troopers discovered a loaded semi-automatic firearm Hayes had stashed under the front seat of a vehicle during a routine traffic stop.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Hayes to serve 3 years supervised release upon completion of his prison term. Hayes pleaded guilty on June 6, 2016, to being a felon in possession of a firearm, as charged in a federal indictment returned on October 14, 2015. No plea agreement was filed in this matter.
Hayes’ sentence is announced by United States Attorney Peter F. Neronha and Rhode Island State Police Superintendent Colonel Steven G. O’Donnell.
According to information presented to the court, on July 12, 2015, a State Police trooper stopped a vehicle in which Hayes was a rear-seat passenger. The vehicle, which carried five individuals, was stopped along Route 95 in Warwick after the trooper observed several motor vehicle violations. After approaching the vehicle, the State Police trooper detected an odor of marijuana. Upon questioning, Hayes admitted to the trooper that he was in possession of a small amount of marijuana.
After removing Hayes and the rest of the individuals from the vehicle, the trooper discovered a loaded 9mm semi-automatic handgun under the passenger front seat and several items in the trunk of the vehilce used in the distribution of marijuana. Hayes later admitted to State Police that the firearm and the items located in the trunk of the vehicle belonged to him. The investigation determined that Hayes had removed the loaded 9mm semi-automatic handgun from his waistband during the traffic stop and stowed it under the front passenger seat.
Hayes has been detained since his arrest. According to court records, Hayes was previously convicted on felony assault, drug and firearm charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former LCN Members Indicted in Murder of Club OwnerRead the Press Release
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), and former NELCN associate Paul Weadick, were charged in an indictment unsealed today in connection with the 1993 murder of Steven A. DiSarro.
Francis P. Salemme, 83, and Paul Weadick, 61, of Burlington, were indicted on one count of murder of a federal witness. On Aug. 10, 2016, Salemme was arrested pursuant to a criminal complaint. Weadick was arrested this morning by the FBI and Massachusetts State Police and will appear in before U.S. District Court Magistrate Judge Donald. L. Cabell in Boston at 12:45 p.m.
The indictment alleges that, on or about May 10, 1993, Salemme and Weadick murdered DiSarro to prevent DiSarro from communicating with federal law enforcement officials about violations of federal laws by Salemme and others. Shortly after the murder, Salemme transported DiSarro’s body to Providence, R.I., where his associates arranged to have it buried in the vicinity of 715 Branch Avenue. In March 2016, DiSarro’s remains were recovered by federal authorities behind a mill in Providence, R.I.
DiSarro was murdered after his relationship with Salemme and Salemme’s son, Francis P. Salemme, Jr., became the subject of federal investigation. Part of that investigation revolved around the operation of a South Boston night club known as “The Channel.” Weadick was a close associate of Salemme, Jr.
Salemme was the boss of the New England La Cosa Nostra during the early 1990’s until his indictment for racketeering in 1995 and conviction in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Richard D. McKeon, Superintendent of the Massachusetts State Police; and Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Chief Michael Kent of the Burlington Police Department made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr. of Ortiz’s Office and William J. Ferland of Neronha’s Office.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Senior Litigation Counsel Named for the District of Rhode IslandRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha has announced the appointment of Assistant U.S. Attorney John P. McAdams as Senior Litigation Counsel (SLC) for the District of Rhode Island. Mr. McAdams, who has been a federal prosecutor since 2002, replaces Assistant U.S. Attorney William J. Ferland who was named Criminal Division Chief in July.
As SLC, Mr. McAdams is charged with dealing with some of the most difficult and complex legal matters, under the direct supervision of the United States Attorney. Mr. McAdams is responsible for organizing, preparing and directing complex, and at times novel, investigations and proceedings leading to litigation. The SLC is often consulted for advice by supervisors and prosecutors of the Office’s legal divisions. The SLC is also responsible for developing and implementing litigation-oriented training programs.
In the making the announcement, United States Attorney Peter F. Neronha said, “John is an exceptional attorney, with a breadth of experience, and I know that he will provide sound advice to me as well as to all of the prosecutors in this office.”
Prior to joining the United States Attorney’s Office in Rhode Island in 2007, Mr. McAdams served as a Trial Attorney with the Criminal Enforcement Section of the Department of Justice’s Tax Division from 2002-2007. He also served as a Special Assistant United States Attorney in the Eastern District of Virginia in 2003.
At present, Mr. McAdams serves as the Civil Rights coordinator, public corruption coordinator and Tribal Liaison for the District. In 2014, Mr. McAdams received the prestigious Executive Office of United States Attorneys Director’s Award for superior performance by a criminal Assistant U.S. Attorney for his efforts in the prosecution of Joseph Caramadre.
Mr. McAdams graduated from Saint Anselm College in 1995. He earned his Juris Doctor and graduated from Boston College Law School in 2002.
After graduating from Saint Anselm College and prior to attending Boston College Law School, Mr. McAdams served as a full-time volunteer teacher for at-risk youth on the Colville Indian Reservation in the state of Washington, and as a full-time volunteer at Amate House in Chicago, IL, where he developed and directed a high-profile organization for at-risk youth.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Jamaican National Sentenced on Firearm, Illegal Re-entry ChargesRead the Press Release
PROVIDENCE, R.I. - Marlon A. Straw, 45, of Hyde Park, Mass., a Jamaican national, was sentenced on Tuesday to 46 months in federal prison for being a felon in possession of a firearm and illegal re-entry into the United States, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered the defendant to serve three years supervised release upon completion of his prison term. The defendant is subject to deportation proceedings following completion of his term of incarceration.
Straw pleaded guilty on May 23, 2016, as charged in an indictment returned in May 2015, with one count each of felon in possession of a firearm and illegal re-entry.
According to information presented to the court, on March 31, 2015, a car driven by the defendant’s wife was stopped by Rhode Island State Police on Route 95 in Exeter for speeding. During the traffic stop, Marlon Straw, who was not carrying any personal identifying information, provided troopers with multiple names, none of which were his true identity. Straw was detained and brought to the State Police Hope Valley barracks where troopers learned his true identity through a check of his fingerprints. While in custody, troopers discovered a loaded .45 caliber pistol containing hollow point bullets tucked into the defendant’s long underwear and sock.
According to information presented to the court, a criminal background check conducted by the Rhode Island State Police revealed that Straw had previously been convicted of a felony crime punishable by imprisonment of a term exceeding one year. U.S. Immigration and Customs Enforcement records showed that Straw was previously removed from the United States and was deported to Jamaica on August 29, 2013.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Coventry Man Indicted for Allegedly Providing False Information on Federal Firearms FormRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Thursday returned a two-count indictment charging Bradley Richard Allen, 25, of Coventry, with making false statements on a federal firearms form to a federally licensed firearms dealer. It is alleged in the indictment that Allen, while attempting to purchase a firearm, denied that he was the subject of a domestic violence restraining order issued by the Rhode Island Family Court, when in fact he is.
The indictment, which charges Allen with one count of false statement during the attempted purchase of a firearm and one count of false statement to a federally licensed gun dealer, is announced by United States Attorney Peter F. Neronha and Lawrence J. Panetta, Interim Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to court documents, it is alleged that on February 13, 2016, the defendant claimed on an ATF form required to be completed by the purchaser of a firearm that he was not the subject of a protective order. A background investigation by law enforcement revealed that, according to court records, Allen is the subject of a domestic violence restraining order issued by the Rhode Island Family Court on December 1, 2014. The restraining order remains in effect for three years.
According to court records, on March 28, 2016, an ATF agent spoke by telephone with Allen regarding the information he allegedly provided on the ATF form. As a follow-up to that conversation, Allen was scheduled to appear in person at a local ATF office within the next two days to further discuss his claim that he was not subject to a protective order. Allen failed to respond to the ATF office or to contact the agent.
Allen is scheduled to be arraigned in U.S. District Court on August 19, 2016.
Making a false statement during an attempted purchase of a firearm is punishable by a statutory penalty of up to 10 years imprisonment; a fine of $250,000; and a 3-year term of supervised release. Making a false statement to a federally licensed gun dealer is punishable by a statutory penalty of up to 5 years imprisonment; a fine of $250,000; and a 3-year term of supervised release.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
25-Count Indictment Charges Pair with Drug Trafficking, Bank FraudRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned a 25-count indictment charging Robert Wilkins, 25, and Christian M. Domenech, 23, of West Warwick, with trafficking heroin, cocaine and crack cocaine, and with bank fraud, announced United States Attorney Peter F. Neronha; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
The indictment charges Wilkins and Domenech with one count each of conspiracy to distribute heroin and crack cocaine; one count each of possession with intent to distribute heroin, crack cocaine and cocaine; fifteen counts of distribution of crack cocaine; three counts of distribution of heroin; and one count of bank fraud. The defendants have been detained since their arrest on July 12, 2016, on a federal criminal complaint charging them with drug trafficking and bank fraud.
According to court documents, it is alleged that a three-month investigation by the FBI Safe Streets Task Force into the defendants alleged drug trafficking activity included numerous purchases from the defendants of between one gram and seven grams of crack cocaine and heroin for between $80 dollars and $350 dollars. Each alleged transaction was monitored by law enforcement.
Additionally, according to court documents, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants allegedly created and deposited bogus checks into bank accounts each established, and withdrew some of those funds. It is alleged that Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. It is alleged that Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew at total of $2,099.55.
On July 12, 2016, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court authorized search of the defendants’ Church Street, West Warwick residence. Varying quantities of cocaine, crack cocaine, and heroin was seized, along with approximately $800 in cash. Law enforcement also seized two vehicles.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, and Central Falls Police Departments and the Rhode Island Department of Corrections.
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Jim Martin (401) 709-5357
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Sex Trafficker Sentenced to 10 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Reginald Chaney, a/k/a “Reggie,” 21, of East Providence, was sentenced today to 10 years in federal prison for conspiring to transport minors for the purpose of sex trafficking, announced United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Providence Police Chief Colonel Hugh T. Clements, Jr.; East Providence Police Chief Christopher J. Parella; and Seekonk, Mass., Police Chief Craig A. Mace.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Chaney to serve 5 years supervised release upon completion of his prison term. On May 10, 2016, Chaney admitted to the court that in January 2015, he conspired with two juveniles to transport two females, ages 15 and 16, to motels in Seekonk, Mass., and to locations in Providence, Warwick, Charlestown and Narragansett for the purpose of sex trafficking.
United States Attorney Peter F. Neronha commented, “Make no mistake, this defendant preyed on children with one motivation – making money. He sold children for sex, plain and simple. Nothing is more reprehensible, and he deserves every day of his ten year sentence. Yet my thoughts today are less than with him than with his victims, who have shown such courage in the face of such despicable conduct. It is my hope that, with ongoing support from our many non-governmental partners, they can continue to rebuild their promising young lives.”
“This case is a stark reminder that sex trafficking can and does happen in every community, and is often perpetrated by individuals not much older than their victims. It is disturbing to think that anyone as young as the three defendants in this case could be capable of manipulating and forcing young women into sex trafficking, yet it happens quite frequently,” said Attorney General Peter Kilmartin. “I commend the cooperative efforts of local, state, and federal law enforcement to save these young victims. We have come a long way in the past few years in both getting help for the victims and putting the traffickers behind bars for a long time. That cooperation between agencies is critical to shutting down these types of operations.”
According to information presented to the court, on January 28, 2015, Providence Police responded to Hasbro Childrens’ Hospital for a report of sexual exploitation offenses involving a 16 year-old female. As a result of information provided to the officers, and a subsequent investigation by Providence Police and Homeland Security Investigations, law enforcement learned that on January 16, 2015, Chaney and two juvenile males conspired to take photographs of the 16 year-old female and a 15 year-old female in various stages of undress, and posted the photographs on Backpage.com. Between January 16 and January 28, 2015, Chaney and the two juvenile males conspired to transport the teenage girls from Chaney’s East Providence residence to locations in Massachusetts and Rhode Island for the purpose of offering the girls for prostitution.
Chaney was arrested by East Providence Police on January 29, 2015, and ordered detained in state custody as a Superior Court probation violator on a 5-year suspended sentence imposed on January 14, 2015, on a weapons charge.
Two juvenile males from East Providence identified as co-conspirators in this matter were arrested on January 29, 2015, and prosecuted in Family Court by the Rhode Island Attorney General’s Office. Brian Desmarais, who was 17 at the time of his arrest, pleaded nolo contendere on November 2, 2015, to two counts of sex trafficking of a minor and one count of conspiracy to commit sex trafficking of a minor. Under the terms of the plea agreement, Desmarais received a certified sentence of 10 years with 19 months plus two days to serve, the remainder suspended with probation. He is serving his sentence at the Rhode Island Training School until a “modification hearing” takes place at which time a Family Court judge will determine if the sentence should be modified or continued to be served at the Adult Correctional Institution.
The second juvenile offender, J’Maire Wray, who was 15 at the time of his arrest, pleaded nolo contendere before Family Court Judge Kathleen A. Voccola to two counts of sex trafficking of a minor, one count of conspiracy to commit sex trafficking of a minor, and one count of felony assault. Under the terms of a plea agreement, Wray received a certified sentence of 15 years, with six years to serve.
Under certification, both Desmarais and Wray are convicted and their sentences will extend into adulthood.
The cases were jointly prosecuted by Assistant U.S. Attorney Terrence P. Donnelly and Rhode Island Assistant Attorney General Daniel Carr Guglielmo.
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Former LCN Boss Arrested in Connection with the Murder of a Federal WitnessRead the Press Release
This press release is issued jointly with the U.S. Attorney for the District of Massachusetts
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), was arrested today and charged with murder of a witness.
Francis P. Salemme, 82, was arrested this morning in Connecticut and is scheduled to appear in U.S. District Court in Boston today at 3:00 p.m.
In the early 1990s, Salemme was the “boss” of the New England La Cosa Nostra until he was indicted on racketeering charges in 1995 and convicted in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of Steven A. DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the U.S. Marshals Service; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr., Chief of Ortiz’s Public Corruption Unit and Assistant U.S. Attorney William Ferland of Neronha’s Office.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Investment Advisor Admits to Orchestrating $21M Dollar Ponzi Scheme, Using Client Funds to Purchase $2.5 Million Home, Failure to Pay TaxesRead the Press Release
PROVIDENCE, R.I. – Patrick E. Churchville, 47, of Barrington, R.I., owner and president of ClearPath Wealth Management, LLC, formerly located in Providence and Barrington, admitted in federal court in Providence today that he orchestrated a $21 million dollar Ponzi scheme, stole $2.5 million dollars of investors’ funds to purchase a waterfront home, and failed to pay more than $820,000 in personal federal income taxes.
Appearing before U.S. District Court Chief Judge William E. Smith, Churchville pleaded guilty as charged in an Information filed on July 5, 2016, to five counts of wire fraud and one count of tax fraud, announced United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation.
According to court documents and information presented to the court, an investigation by the FBI, IRS Criminal Investigation and the United States Attorney’s Office determined that in the spring of 2008 through October 2011, Churchville and ClearPath, on behalf of their client investors, invested approximately $18 million dollars in JER Receivables, an entity incorporated in Maryland. In June 2010, Churchville became aware that the investments with JER were no longer producing returns and that ClearPath had been subjected to fraudulent and misleading representations by the principals of JER. Churchville failed to notify his client investors that he had lost millions of dollars of invested funds.
According to court documents, in order to hide the fact that he had lost millions of dollars of client investor funds through his dealings with JER Receivables, and to continue to operate his business and reap his investment fees, Churchville misappropriated approximately $21 million dollars of investment money. To obtain the $21 million dollars, Churchville misused investor money already under his control and obtained new investor funds. He used this money to pay back the JER investors and told them, falsely, that the money was the return on their investments. To induce new investments to carry out the schemes, Churchville lied and told investors that ClearPath’s previous investments with JER Receivables had been successful and produced high rates of return.
Additionally, the investigation determined that in 2011, Churchville created a scheme to obtain $2.5 million dollars, using investors’ funds as collateral without their knowledge, to purchase a personal residence in Barrington. Churchville failed to report the $2.5 million dollars as income on his personal tax returns, resulting in a loss to the IRS of $820,528.
Churchville, who was ordered by the court to home detention with GPS electronic monitoring, is scheduled to be sentenced on October 25, 2016.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
United States Attorney Peter F. Neronha acknowledges and thanks the United States Postal Inspection Service - Boston Division for their assistance in the investigation of this matter.
Patrick Churchville is also a defendant in a U.S. Securities and Exchange Commission civil matter.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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Massachusetts Resident Admits to Enticement of a Minor for Illicit Sexual ActivityRead the Press Release
PROVIDENCE, R.I. – Christopher Chassey, 49, of Plymouth, Mass., pleaded guilty in federal court in Providence, R.I., today to one count of enticement to travel in interstate to engage in illicit sexual activity. Appearing before U.S. District Court Chief Judge William E. Smith, Chassey admitted to the court that he sent hundreds of emails and mailed cash to a person he believed to be a 14 year-old male in Rhode Island in an effort to entice him to travel to Massachusetts to engage in illicit sexual activity.
Chassey’s guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
According to court documents, in April 2015, a member of the Rhode Island Internet Crimes Against Children (ICAC) Task Force observed an online advertisement from a person seeking a young male to engage with in illicit sexual activity in exchange for a cash payment. An ICAC law enforcement agent posing as a 14 year-old male from Rhode Island answered the ad, and, over the next eight months, engaged in an exchange of hundreds of emails, many of which were sexually explicit.
According to court documents, on at least three occasions Chassey mailed cash to the supposed 14 year-old. The third mailing, $100 in cash which arrived on December 4, 2015, was to be used to purchase a bus ticket to Plymouth, Mass., so the two could meet. Chassey was arrested on December 17, 2015, charged in a federal criminal complaint with enticement to travel in interstate to engage in illicit sexual activity.
Chassey is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on October 14, 2016.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit, along with detectives from the Coventry, Warwick, North Smithfield, Cranston, East Providence, North Kingstown, Portsmouth and Woonsocket Police Departments, and agents from the Federal Bureau of Investigation, Homeland Security Investigations and United States Postal Inspection Services.
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Jim Martin (401) 709-5357
email: [email protected]
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Two Detained in FBI Safe Streets Task Force, Cranston Police Department Drug ProbeRead the Press Release
PROVIDENCE, R.I. – Randolph Reynoso, 25, of Warwick, and Richard Lora, 20, of Providence, were ordered detained today following court appearances on conspiracy and drug trafficking charges. The two men were arrested on Tuesday following an investigation by the FBI Safe Streets Task Force and the Cranston Police Department Special Investigations Unit.
Reynoso was ordered detained in federal custody following an initial appearance in U.S. District Court on a criminal complaint charging him with one count of conspiracy to distribute heroin and crack cocaine, one count of distribution of crack cocaine and five counts of distribution of crack cocaine and heroin. At the time of his arrest, Reynoso was on federal pre-trial release on charges of conspiracy to distribute cocaine and heroin.
Lora was ordered detained in state custody following his arraignment in Providence District Court on six counts of delivery of crack cocaine, 5 counts of delivery of heroin, one count of conspiracy and one count of operating on a suspended license. The state charges were brought by the Cranston Police Department.
Reynoso and Lora’s arrests are announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the FBI Boston Division, and Cranston Police Chief Michael J. Winquist.
According to court documents, an investigation by the FBI Safe Streets Task Force and the Cranston Police Department Special Investigations Unit into Reynoso and Lora’s alleged drug trafficking activities included at least six alleged purchases of varying amounts of crack cocaine and/or heroin. The alleged transactions, which occurred between June 24, 2016, and July 26, 2016, were electronically monitored by law enforcement.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Reynoso’s case in U.S. District Court is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Richard W. Rose.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, and Central Falls Police Departments and the R.I. Department of Corrections.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Sex Offender Admits to Failing to Register in R.I.Read the Press Release
PROVIDENCE, R.I. – Vernon G. Massie, 49, of Cranston, pleaded guilty in federal court in Providence today to violating the Sex Offender Registration and Notification Act (SORNA). Massie failed to register as a sex offender in Rhode Island, having moved to Cranston from Monroe, North Carolina, where he is a convicted and registered sex offender. SORNA requires that a registered sex offender notify law enforcement of a change of address.
Massie’s guilty plea to one count of failure to register as a sex offender having travelled in interstate is announced by United States Attorney Peter F. Neronha, United States Marshal Jamie A. Hainsworth, and Cranston Police Chief Michael J. Winquist.
According to court records, on August 24, 2015, an arrest warrant was issued for Massie by the State of North Carolina charging Massie, who was convicted in September 2011 in Union County Superior Court of indecent liberties with a minor, with failing to update his residence in accordance with North Carolina sex offender laws.
According to court documents, on April 15, 2016, the Cranston Police Department responded to a 911 call for a domestic assault in that city. The female victim identified Vernon Massie as her fiancé and the person who allegedly assaulted her. She alleged to police that Massie had choked her, and that when she attempted to call 911 for emergency assistance he prevented her from calling and strangled her a second time. Masse had fled the residence prior to the arrival of Cranston Police. An arrest warrant was issued for Massie charging him with domestic strangulation, domestic assault, domestic disorderly and refusal to relinquish a phone.
During the investigation it was determined that Massie was a non-compliant sex offender in the State of North Carolina, with active warrants for his arrest. It was also determined that Massie had failed to register as a sex offender in Rhode Island as required by SORNA. The Cranston Police Department requested the assistance of the U.S. Marshals to locate and arrest Massie. Massie was located and arrested by U.S. Marshals on April 22, 2016, at a hotel in Springfield, Mass.
Massie, who has been detained since his arrest, will be sentenced by U.S. District Court Judge John J. McConnell, Jr., on October 26, 2016, for violating SORNA. Following the completion of his federal sentence, Mr. Massie will be turned over to the State of Rhode Island to face domestic violence charges and then to the State of North Carolina on a charge of being a non-compliant sex offender.
The case in U.S. District Court in Providence is being prosecuted by Assistant U.S Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pawtucket Man Sentenced on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Jose Gomez, 27, of Pawtucket, was sentenced today to 24 months in federal prison on drug trafficking and firearm charges. Gomez was arrested in September 2015, following an investigation by ATF agents into Gomez’s drug trafficking activities, which included purchases of crack cocaine from Gomez in exchange for cash and firearms.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Gomez to serve three years supervised upon completion of his prison term. Gomez pleaded guilty on April 1, 2016, to three counts of distribution of crack cocaine, one count of possession with the intent to distribute crack cocaine, and one count of being a felon in possession of a firearm.
Gomez’s sentence is announced by United States Attorney Peter F. Neronha and Lawrence J. Panetta , Interim Special Agent in Charge of the Boston Field Division of ATF.
According to court documents and information presented to the court, on August 31 and September 3, 2015, Gomez sold nearly three grams of crack cocaine for $200 in cash to an undercover ATF agent. On September 8, 2015, the ATF undercover agent arranged to meet with Gomez to trade two firearms for crack cocaine and $200 in cash. Two days later, Gomez and the undercover agent met outside Gomez’s residence and exchanged $200 in cash and a plastic bag containing crack cocaine for two firearms, a .380 caliber handgun and a 9mm handgun. Gomez was immediately detained by ATF agents. Following his arrest, Gomez told ATF agents he intended to sell the firearms to another individual.
According to information presented to the court, a court authorized search of Gomez’s residence moments after Gomez was detained resulted in the discovery of approximately four grams of crack cocaine on a digital scale which was stored on a window sill inside a bedroom. Two unattended children, ages one and two, were located in the bedroom. The bedroom doorway had been blocked to prevent the children from leaving the room.
Gomez has been detained in federal custody since his arrest on September 10, 2015.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
ATF was assisted in the investigation of this matter by the Pawtucket and Central Falls Police Departments, and the Special Investigations Unit at the Adult Correctional Institutions.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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U.S. Attorney Neronha Names Criminal Chief, Deputy Criminal ChiefRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced the appointment of Assistant U.S. Attorney William J. Ferland to the position of Criminal Chief and Assistant U.S. Attorney Sandra R. Hebert to the position of Deputy Criminal Chief.
Mr. Ferland, a career prosecutor for more than 26 years, joined the United States Attorney’s Office in Rhode Island in May 2010, after having served as a Rhode Island state prosecutor for more than 20 years. Mr. Ferland has led numerous high-profile criminal investigations and prosecutions, including the dismantling of the New England La Cosa Nostra in Rhode Island.
Ms. Hebert joined the United States Attorney’s Office in Rhode Island in June 2006, after having served as an Assistant U.S. Attorney in the Western District of Texas and as an officer in the U.S. Army Judge Advocate General Corps at Fort Hood, Texas. Ms. Hebert has led numerous criminal investigations and prosecutions, including the dismantling of several conspiracies which defrauded the government of millions of dollars.
In announcing the appointments, United States Attorney Peter F. Neronha said, “Bill Ferland and Sandy Hebert are experienced, talented attorneys with sound judgment and excellent leadership skills. I have known both of them for many years, and am confident that they will serve this Office and the people of Rhode Island extraordinarily well in their new positions.”
Background
Assistant U.S. Attorney William J. Ferland
Since being appointed an Assistant U.S. Attorney in May 2010, Mr. Ferland has, among his responsibilities, overseen the investigation and federal prosecution of organized crime in Rhode Island. These investigations and prosecutions resulted in the dismantling of the leadership of the New England La Cosa Nostra in Rhode Island, and the prosecution of numerous members and associates of organized crime. Additionally, Mr. Ferland has successfully led several investigations and prosecutions of defendants in arson for profit schemes and numerous violent crime matters, including drug trafficking conspiracies and firearms cases.
Beginning in June 2012, and until his appointment as Criminal Chief, Assistant U.S. Attorney William J. Ferland served as Senior Litigation Counsel.
A former patrolman, detective and police sergeant in East Greenwich from 1982-1990, Mr. Ferland also served in numerous capacities as a R.I. Assistant Attorney General, including Chief of the Criminal Division, Chief of the Narcotics and Organized Crime Unit, Chief of the Welfare Fraud Unit, and as Senior Trial Counsel, coordinating and overseeing the investigation and prosecution of high profile felony matters.
Mr. Ferland graduated magna cum laude from Rhode Island College in May 1982. He earned his Juris Doctor and graduated magna cum laude from New England School of Law in 1989.
Mr. Ferland serves as an adjunct faculty member at Roger Williams University Metropolitan College. Previously, he served as an instructor at the Rhode Island Police Training Academy.
Assistant U.S. Attorney Sandra R. Hebert
Since her appointment as an Assistant U.S. Attorney in the District of Rhode Island in June 2006, Ms. Hebert has led the investigation and prosecution of a wide variety of significant criminal matters, including drug trafficking and white collar crime cases.
Ms. Hebert served as OCEDTF Chief, where she supervised the investigation and prosecution of numerous significant drug traffickers and drug trafficking conspiracies. Additionally, Ms. Hebert oversaw the investigation and dismantling of several wide-ranging conspiracies which defrauded the government of millions of dollars of food stamp program money, and the prosecution of numerous defendants.
Prior to joining the U.S. Attorney’s Office in Rhode Island, Ms. Hebert served as an Assistant U.S. Attorney in the Western District of Texas - Midland Division, beginning in 2004. Prior to that appointment, Ms. Hebert served as an officer in the U.S. Army Judge Advocate General Corps at Fort Hood, Texas. While serving as an Army lawyer, Ms. Hebert was appointed as a Special Assistant U.S Attorney; served as defense counsel for over 30 court-martials; served as a Legal Assistance Attorney; and served as a Claims Attorney. Ms. Hebert rose to the rank of Captain prior to her discharge from the United States Army in 2004.
Ms. Hebert is a 1996 graduate of the University of North Carolina and received her law degree from the University of Virginia School of Law in 1999. After earning her law degree, Ms. Hebert served as a Law Clerk for U.S. District Court Judge John D. Rainey in the U.S. District Court for the Southern District of Texas.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Detained on Drug Trafficking, Bank Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – Robert Wilkins, 25, and Christian M. Domenech, 24, of West Warwick, were arrested today and ordered detained in federal custody following initial appearances in federal court in Providence on drug trafficking and bank fraud charges.
The two men were arrested following an investigation by the FBI Safe Street Task Force into the defendants’ alleged drug trafficking activities, and an investigation by the Rhode Island State Police Financial Crimes Unit into allegations of bank fraud.
Robert Wilkins’ and Christian Domenech’s arrest and detention on federal criminal complaints charging them with trafficking crack cocaine, trafficking heroin and bank fraud are announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the FBI Boston Division, and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
At the time of their arrest, Wilkins and Domenech were free on court ordered conditions of release on unrelated crimes. Wilkins, after having been sentenced in federal court in November 2014 to serve a sentence of one year and a day for trafficking crack cocaine, was released to federal supervised release in November 2015. His supervised release was set to expire in November 2018.
At the time of his arrest, Domenech was free on bail on a state charge of trafficking heroin, brought by the Newport Police Department in November 2015. Additionally, according to court documents, Domenech was previously convicted in Rhode Island state court on drug trafficking charges.
Wilkins is charged with 15 counts of distribution of crack cocaine, 3 counts of distribution of heroin, and one count each of conspiracy to distribute 28 grams or more of crack cocaine, conspiracy to distribute heroin and bank fraud. Domenech is charged with 12 counts of distribution of crack cocaine, 3 counts of distribution of heroin, and one count each of conspiracy to distribute 28 grams or more of crack cocaine, conspiracy to distribute heroin and bank fraud.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
According to court documents, it is alleged that a three-month investigation by the FBI Safe Streets Task Force into the defendants alleged drug trafficking activity included numerous purchases from the defendants of crack cocaine and heroin, ranging from one gram to seven grams for between $80 dollars and $350 dollars. Each alleged transaction was monitored by law enforcement.
Additionally, according to court documents, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants allegedly created and deposited bogus checks into bank accounts each established and withdrew some of those funds. It is alleged that Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. It is alleged that Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew at total of $2099.55.
Earlier today, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court authorized search of the defendants’ Church Street, West Warwick, residence. An undetermined quantity of cocaine, crack cocaine, heroin and approximately $800 in cash were seized. Law enforcement also seized two vehicles parked at the residence.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, and Central Falls Police Departments and the RI Adult Corrections Institutions.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Connecticut Resident Indicted in Rhode Island on Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – Robert Oathout, 35, of Hartford, Conn., has been arraigned in federal court in Rhode Island on charges that he allegedly defrauded family members and family friends of at least $398,000. According to court documents, it is alleged that Oathout told the victims that he needed to borrow money from them to pay medical expenses in advance of his receipt of a one million dollar settlement payment. He claimed he was due the settlement as the result of a botched medical procedure performed on him at a Hartford medical facility. Oathout told the victims that the medical facility would repay them upon payment of the settlement.
According to court documents filed in this case, no such medical procedure occurred and no such settlement payment was due Oathout. It is alleged that a portion of the fraudulently obtained money was used by Oathout to pay gambling debts.
United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division, today announced the return on June 30, 2016, of a federal indictment which charges Oathout with eight counts of wire fraud. The indictment was unsealed on Thursday following Oathout’s arrest in Hartford by FBI agents and his arraignment in U.S. District Court in Providence. A not guilty plea was entered.
According to the indictment and information provided to the court, it is alleged that as part of the scheme, between September 27, 2013, and December 22, 2015, Oathout fraudulently induced his victims, all between the ages of 67 an 87 years, to transfer funds to him electronically. Electronic transfers of varying amounts were made to Oathout before, while and after he was a federal inmate at the Donald W. Wyatt Detention Center in Central Falls, R.I. Some of the funds were transferred into his and other inmates’ prison accounts while he was detained on federal drug charges in an unrelated case brought against him by the United States Attorney’s Office for the District of Connecticut.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
At the conclusion of a detention hearing today, Magistrate Judge Lincoln D. Almond ordered that Oathout, who has been in custody since his arrest on Thursday, be released on the terms of his current federal probation which was imposed at sentencing on his previous drug conviction.
Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; a fine of up to $250,000; and up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert. The matter was investigated by the FBI.
United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division, acknowledge and thank investigators at the Donald W. Wyatt Detention Center for their assistance in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Johnston Resident Charged with Drug Trafficking, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Juan G. Catala, 41, of Johnston, made an initial appearance in U.S. District Court in Providence today on charges he allegedly trafficked oxycodone and marijuana, and that he allegedly laundered the proceeds of his drug trafficking activities, announced United States Attorney Peter F. Neronha and Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration Office of Criminal Investigations (FDA OCI).
Catala is charged by way of a federal criminal complaint with one count each of distribution of oxycodone, possession with the intent to distribute marijuana and money laundering.
According to information presented to the court, between January 2016 and March 2016, an individual assisting law enforcement in the investigation of Catala’s alleged drug trafficking activities allegedly made at least four purchases of oxycodone tablets from Catala. Each of the purchases, ranging between 39 and 87 oxycodone tablets, were electronically monitored by law enforcement. It is alleged that, at Catala’s direction, most of the cash payment for each alleged transaction was made directly into a bank account established by Catala.
On July 6, FDA OCI agents executed a court authorized search of Catala’s residence where they discovered and seized 70 pounds of marijuana, in excess of $10,000 in cash and several empty prescription bottles which previously contained oxycodone tablets. Agents seized an additional $1,500 in cash from Catala’s vehicle.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. Catala, who has been detained since his arrest, was ordered released on $10,000 unsecured bond with electronic monitoring following his initial appearance in U.S. District Court.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
United States Attorney Peter F. Neronha acknowledges and thanks the Rhode Island State Police, DEA, and the Johnston and Middletown Police Departments for their assistance in this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
Alleged Bank Robber DetainedRead the Press Release
PROVIDENCE, R.I. – Joseph W. Lavoie, 49, of Providence, was ordered detained in federal custody today on federal bank robbery and arson charges. It is alleged that on Wednesday Lavoie robbed and set fire to a North Providence branch office of Citizens Bank.
Lavoie is charged by way of a federal criminal complaint with one count each of bank robbery and use of fire to commit a federal felony.
Lavoie’s arrest and detention are announced by United States Attorney Peter F. Neronha, Acting North Providence Police Chief Christopher J. Pelagio, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
According to court documents, it is alleged that shortly before 10:00 AM on Wednesday, Lavoie telephoned the FBI and threatened to rob and burn down a bank. Lavoie allegedly made the call while at the North Providence branch office of Citizens Bank. While speaking with an FBI agent on the telephone, Lavoie was heard asking someone for the address of the bank, which he then relayed to the FBI agent. Lavoie made the call moments before he allegedly jumped over the counter and announced to a teller, “This is a robbery.” It is alleged that Lavoie opened the cash drawer and began removing cash which he then stuffed inside his sweatshirt. It is alleged that during the robbery, Lavoie grabbed, assaulted and threatened a female teller, and then ignited several items inside the bank.
North Providence Police Department patrol units were dispatched to the bank while the robbery was in progress. First responders observed multiple individuals exiting the bank as black smoke filled the interior of the building. Officers entered the bank where they encountered and detained Lavoie who was located standing behind the teller counter.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Investment Advisor to Plead Guilty to Orchestrating $21M Dollar Ponzi SchemeRead the Press Release
PROVIDENCE, R.I. – According to documents filed in U.S. District Court in Providence today, Patrick E. Churchville, 47, of Barrington, R.I., owner and president of ClearPath Wealth Management, LLC, formerly located in Providence and Barrington, has agreed to plead guilty to criminal charges related to his orchestration of a $21 million dollar Ponzi scheme, his theft and use of $2.5 million dollars of investors’ funds to purchase his home, and his failure to pay more than $820,000 in personal federal income taxes.
According to court documents, Patrick Churchville will plead guilty as charged in an Information to five counts of wire fraud and one count of tax fraud, announced United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation.
According to court documents, an investigation by the FBI, IRS Criminal Investigation and the United States Attorney’s Office determined that in the spring of 2008 through October 2011, Churchville and ClearPath, on behalf of their client investors, invested approximately $18 million dollars in JER Receivables, an entity incorporated in Maryland. In June 2010, Churchville became aware that the investments with JER were no longer producing returns and that ClearPath had been subjected to fraudulent and misleading representations by the principals of JER. Churchville failed to notify his client investors that he had lost millions of dollars of invested funds.
According to court documents, in order to hide the fact that he had lost millions of dollars of client investor funds through his dealings with JER Receivables, and to continue to operate his business and reap his investment fees, Churchville misappropriated approximately $21 million dollars of investment money. To obtain the $21 million dollars, Churchville misused investor money already under his control and obtained new investor funds. He used this money to pay back the JER investors and told them, falsely, that the money was the return on their investments. To induce new investments to carry out the schemes, Churchville lied and told investors that ClearPath’s previous investments with JER Receivables had been successful and produced high rates of return.
Additionally, the investigation determined that in 2011, Churchville created a scheme to obtain $2.5 million dollars, using investors’ funds as collateral without their knowledge, to purchase a personal residence in Barrington. Churchville failed to report the $2.5 million dollars as income on his personal tax returns, resulting in a loss to the IRS of $820,528.
United States Attorney Peter F. Neronha commented, “Mr. Churchville, motivated by greed and a desire to live an outlandishly expensive lifestyle, used sleight of hand to swindle dozens of investors out of funds they had properly earned, giving false assurances all along the way. Rather than act in the interest of his clients, he acted only in his own. His lies, piled on one after another, have led to today’s substantial and serious charges. His conduct is a reminder to those who invest that integrity is not found behind every door.”
“Mr. Churchville betrayed his investors’ trust, stealing their savings and leaving them with uncertain financial futures for his own personal greed,” said Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI. “This behavior destroyed the financial security of hard-working individuals all over the country and the FBI hopes this case will serve as a reminder to executives everywhere that honesty and integrity are more important than the bottom line.”
“Investment schemes that seem too good to be true should be a sign for investors to stay clear,” said Special Agent in Charge Joel Garland, IRS Criminal Investigation. “We remain committed to ferreting out such schemes, which defraud investors of millions in savings and also taxes due to the IRS.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
United States Attorney Peter F. Neronha acknowledges and thanks the United States Postal Inspection Service - Boston Division and the U.S. Securities and Exchange Commission for their assistance in the investigation of this matter.
Patrick Churchville is also a defendant in a U.S. Securities and Exchange Commission civil matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Providence Resident Pleads Guilty to Sex Trafficking 16-Year OldRead the Press Release
PROVIDENCE, R.I. – Paris Peters, 24, of Providence, pleaded guilty in federal court in Providence today to sex trafficking a 16-year old female. Peters admitted to the court that beginning in August 2015, he and two co-defendants conspired to post photographs and advertisements on Backpage.com offering the juvenile female for prostitution, and arranging for and transporting the victim to various locations in Rhode Island and Massachusetts to engage in commercial sexual activity.
Appearing before U.S. District Court Chief Judge William E. Smith, Peters pleaded guilty as charged in a federal indictment returned on December 3, 2015, with conspiracy to sex traffic a child, sex trafficking a child, transportation of a minor with the intent to engage in criminal sexual activity.
Paris Peters’ guilty plea is announced by United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Pawtucket Police Chief Paul King and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to court records and information presented to the court, it is alleged that in mid-August 2015, a 16-year old female was introduced to Paris Peters and Marcus Jamal Gibbs, 28, of Providence, with the intent that the she work for them as a prostitute. Within days, the two men introduced her to a third individual, Michael Sabatino, 24, of Providence. It is alleged that from approximately August 20, 2015 to September 27, 2015, the three men recruited, enticed, transported, harbored and advertised the minor victim for purposes of prostitution.
Peters is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 14, 2016. Gibbs and Sabatino are detained in federal custody awaiting trial on charges of conspiracy to sex trafficking a child, sex traffic a child, transportation of a minor with the intent to engage in criminal sexual activity.
According to information presented to the court, an investigation by Pawtucket Police detectives and HSI agents determined that on the night of August 20-21, 2016, Peters posted pictures of the juvenile victim in various stages of undress on Backpage.com, offering her for prostitution. The advertisement posted by Peters claimed the person in the photographs was 20-years old, knowing that she was only 16-years old.
According to information presented to the court, over the next several weeks numerous individuals responded to the advertisement on Backpage.com posted by Peters. As a result, it is alleged that the victim was driven by the defendants to various hotels and private residences in Rhode Island and Massachusetts to engage in commercial sexual activity.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being co-prosecuted in federal court by Assistant U.S. Attorney Adi Goldstein and Rhode Island Assistant Attorney General Daniel Guglielmo.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Employment Agency Owner Sentenced for Tax FraudRead the Press Release
PROVIDENCE, R.I. – Rossy Noriega, 50, of Providence, R.I., owner of New Diamond Work, Inc., a temporary employment agency based in Fall River, Mass., was sentenced in federal court in Providence today to two years probation, the first six months to be served in home confinement with electronic monitoring, for failing to pay employment taxes for employees she paid in cash and failing to pay personal income taxes on unreported cash she pocketed from her business.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Noriega to perform 100 hours of community service and to pay full restitution to the IRS. Noriega pleaded guilty on April 7, 2016, to income tax evasion and failure to withhold employment taxes.
Noriega’s sentence is announced by United States Attorney Peter F. Neronha and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation (IRS CI).
At the time of her guilty plea, Noriega admitted to the court that during tax years 2009-2013, she withdrew more than $2.5 million dollars in cash from company bank accounts, a portion of which was used to pay some of her employees in cash. A significant amount of the cash was withdrawn for her own personal use.
Noriega admitted to the court that she failed to accurately report to the IRS the number of paid employees, total payments to employees, and federal employment taxes due the IRS. She also failed to accurately report her own personal income, thus she failed to pay the appropriate amount of taxes due the IRS. In total, Noriega failed to pay $720,923 in employment and personal income taxes due the IRS.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The U.S. State Department Office of Inspector General assisted IRS CI in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Children’s Cardiac Charity Treasurer Admits to Stealing $186,000Read the Press Release
PROVIDENCE, R.I. – Robert Lonardo, 67, of Burrillville, treasurer of the Rhode Island Association for Cardiac Children (RIACC), admitted in federal court today that he converted nearly $186,000 from the charity for his own personal use. RIACC, founded by Lonardo’s mother, raised funds to purchase hospital equipment, support children’s cardiac treatment and research, and help meet the needs of Rhode Island families whose children were undergoing surgery for cardiac disease.
Lonardo’s guilty plea to one count of wire fraud is announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of Internal Revenue Service Criminal Investigation.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Lonardo admitted to the court that beginning in January 2013, following the death of his mother, he began withdrawing funds from RIACC bank accounts and converted the money for his own personal use. Lonardo admitted to the court that from January 2013 to August 2015 he converted RIACC funds totaling $185,945.77.
Lonardo is scheduled to be sentenced by U.S. District Court Judge John J. McConnell. Jr., on September 14, 2016. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment, a fine of up to $250,000, and a term of supervised release of up to 3 years.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the FBI and IRS Criminal Investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former LCN Member Charged in Connection with Murder of Boston Club OwnerRead the Press Release
BOSTON – A former member of the New England Family of La Cosa Nostra (NELCN) was arrested today in Florida after being indicted in the District of Massachusetts in connection with allegations that he obstructed a federal investigation into the murder of a Boston nightclub owner in the 1990s.
Robert P. DeLuca, 70, was indicted on one count of obstruction of justice and two counts of making false statements. He is scheduled to appear in U.S. District Court in the Southern District of Florida.
According to the indictment, DeLuca is charged with lying to federal prosecutors and investigators investigating the 1993 disappearance of Stephen DiSarro who operated The Channel, a South Boston nightclub. In March 2016, the remains of DiSarro were recovered by federal authorities behind a mill in Providence, R.I. The indictment alleges that DiSarro disappeared in May 1993 after the involvement of then LCN boss Frank Salemme and Frank Salemme, Jr. with The Channel became the focus of a federal grand jury investigation.
DeLuca is also charged with lying to federal authorities about his knowledge of other organized crime murders. It is alleged that DeLuca made the false statements in connection with his cooperation with federal authorities in Rhode Island after he was charged with racketeering and arrested in 2011. Despite his cooperation, DeLuca lied about his knowledge of the disappearance of DiSarro and other LCN murders.
The charge of obstruction of justice provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of false statements provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Carmen M. Ortiz for the District of Massachusetts; U.S. Attorney Peter F. Neronha for the District of Rhode Island; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was provided by the Massachusetts State Police, Rhode Island State Police and Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr. of Ortiz’s Public Corruption Unit and Assistant U.S. Attorney William Ferland of U.S. Attorney Neronha’s Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Providence Man Pleads Guilty to Operating Large-Scale Indoor Marijuana GrowsRead the Press Release
PROVIDENCE, R.I. – Richard A. Yang, 36, of Providence, pleaded guilty in federal court in Providence today to participating in conspiracies to operate large-scale marijuana grow facilities inside a converted Providence mill building. Yang is one of eight individuals charged in February 2016 by way of a federal superseding indictment for participating in conspiracies to operate marijuana grow facilities inside the former mill building.
Yang’s guilty plea is announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, Michael Ferguson, Special Agent in Charge of DEA’s New England Field Division, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Providence Police Chief Colonel Hugh T. Clements, Jr.
On August 13, 2015, FBI agents, assisted by DEA agents, Rhode Island State Police and Providence Police, executed nine federal court authorized search warrants in and around 725 Branch Avenue. Approximately 1,400 marijuana plants in various stages of growth were discovered inside numerous otherwise vacant apartments and offices. A tenth federal search warrant was executed at a Providence residence at 60 Valley Street in Providence where law enforcement seized approximately 100 marijuana plants in various stages of growth.
Appearing before U.S. District Court Chief Judge William E. Smith, Yang admitted to the court that between December 2012 and August 2015, he conspired with others to operate large-scale marijuana grow facilities inside two rooms of the Branch Avenue building. Law enforcement seized 884 marijuana plants in various stage of growth and 35 kilograms of harvested marijuana from Yang’s operations.
Yang pleaded guilty to conspiracy to manufacture over 100 marijuana plants and manufacture of over 100 marijuana plants. He faces statutory penalties of between 5 years and 40 years imprisonment when he is sentenced on September 23, 2016, by U.S. District Court Chief Judge William E. Smith. Yang is also required to forfeit $20,000 to the government prior to imposition of sentence.
Additionally, during a search of the building at 725 Branch Avenue, law enforcement seized a .22 caliber firearm from an area occupied by the owner of the building, William L. Ricci, 69. Appearing before U.S. District Court Chief Judge William E. Smith on March 11, 2016, Ricci pleaded guilty to manufacturing and storing marijuana, and being a felon in possession of a firearm. Ricci is scheduled to be sentenced on October 11, 2016.
The cases in this matter are being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Convicted Felon Pleads Guilty to Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Thealeah Duopu, 40, of Providence, pleaded guilty in U.S. District Court in Providence today to trafficking crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
Appearing before U.S. District Court Chief Judge William E. Smith, Duopu pleaded guilty to one count each of possession with the intent to distribute 28 grams or more of crack cocaine and distribution of 28 grams or more of crack cocaine, three counts of distribution of crack cocaine, and one count of being a felon in possession of a firearm.
According to court records and information presented to the court, in October and November 2015, an ATF Task Force investigation of Duopu’s drug trafficking activities included at least four purchases of crack cocaine by an undercover ATF Task Force agent from Duopu, ranging in amounts from 8 grams to 52 grams for $375 to $3,200. The transactions occurred in a parking lot in Pawtucket.
On November 12, 2015, Duopu was arrested by ATF Task Force agents as he left his Providence residence to meet with an undercover Task Force agent for a previously arranged delivery of crack cocaine. Agents seized nearly 54 grams of crack cocaine and $538 in cash from Duopu. A court authorized search of Duopu’s residence immediately after his arrest resulted in the seizure of more than 67 grams of crack cocaine, nearly $20,300 dollars in cash and a loaded semi-automatic firearm.
During the course of the investigation, law enforcement seized from Duopu a total of more than 200 grams of crack cocaine and nearly $21,000 in cash.
Duopu, who has been detained in federal custody since his arrest on November 12, 2015, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 14, 2016.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
The Pawtucket Police Department and the Providence Arson Squad assisted the ATF Task Force in the investigation of this matter. The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI