District of Rhode Island
Press releases recorded for this federal judicial district.
Mortgage Loan Originator Pleads Guilty, Unlicensed Appraiser Charged in Ongoing Mortgage Fraud InvestigationRead the Press Release
PROVIDENCE, R.I. – An ongoing federal and state law enforcement investigation into alleged mortgage fraud in Rhode Island has resulted to date in a former mortgage originator pleading guilty in federal court to conspiracy to commit bank fraud, and an unlicensed real estate appraiser being charged with allegedly stealing the identity of other appraisers when performing and submitting real estate appraisals to banks as documentation for mortgage loan applications.
Franchesco Franco, 34, of Providence, a former mortgage loan originator, pleaded guilty in federal court to conspiracy to commit bank fraud for his participation with a local real estate attorney and others in a scheme to defraud Flagstar Bank, by filing a fraudulent mortgage loan application and supporting documentation in the name of a person known to him who had recently died, in order to secure a loan in the amount of $157,102 for the purchase of a residence at 63 Wendell Street in Providence.
According to court documents, after the mortgage was issued, Franco filed fraudulent documents in the deceased person’s name in order to have his own name added to the deed for the property. Loan payments were never made to Flagstar Bank, an FHA-insured lender, by Franco or anyone else. As a result, the U.S. Department of Housing and Urban Development (HUD) paid an insurance claim to Flagstar Bank for the unpaid balance of the loan in the amount of $165,062. According to court documents, a corporation formed by the real estate attorney, an alleged co-conspirator in this matter, later purchased the note for $35,000.
In a separate matter discovered during the investigation into mortgage fraud in Rhode Island which resulted in the charges being brought against Franco, it is alleged that Dylan T. Kelly, 40, whose real estate appraiser’s license expired in September 2008, has continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of licensed appraisers without the licensed appraisers’ permission or knowledge. Kelly has been charged in federal court with conspiracy to commit bank fraud, false statements in loan applications and aggravated identity theft.
Franchesco Franco’s guilty plea and charges brought against Dylan T. Kelly are announced by United States Attorney Peter F. Neronha; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Franco admitted to the court that beginning in January 2010, he participated in a conspiracy in which he made false statements on a mortgage loan application and provided false documentation, including fraudulent tax returns, pay stubs, verification letters and bank statements, all in the name of a deceased person known to Franco, in order to secure a federally insured mortgage from Flagstar Bank in the amount of $157,102. Franco also provided copies of the deceased person’s social security card and driver’s license.
According to court documents, as part of the scheme, on April 15, 2010, more than three weeks after the death of the individual known to Franco, Franco filed a tax return for tax year 2009 in the deceased person’s name. In the filing, Franco provided the IRS his own personal bank account number, purporting that the bank account number belonged to the deceased individual and was to be used for direct deposit of a tax refund. The tax form was later provided by Franco to Flagstar Bank as supporting documentation for the mortgage loan application in the deceased person’s name.
According to court documents, in September 2010, one month after Flagstar issued the mortgage and a closing took place for purchase of the Wendell Street property, Franco forged or caused to be forged documents and the deceased person’s signature in order to have his name added to the deed for the property. No payments were ever made on the mortgage loan by Franco or anyone else. As a result, in July 2011, HUD paid an insurance claim to Flagstar Bank in the amount $165,062, which represented the balance of the mortgage loan. In March 2012, the real estate attorney allegedly involved in the conspiracy bought the note, which was in the deceased person’s name, for $35,000.
In a separate matter discovered by federal and state law enforcement and prosecutors from the U.S. Attorney’s Office during the ongoing investigation into mortgage fraud in Rhode Island, it is alleged that on at least four occasions Dylan Kelly, whose real estate appraiser’s license expired in September 2008, continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of licensed appraisers without the licensed appraisers’ permission or knowledge. It is alleged that between February 19, 2014, and December 2, 2014, Kelley fabricated and submitted appraisals in support of mortgage loans being sought on at least four properties in Providence and Pawtucket.
This matter, which is being investigated by the U.S. Department of Housing and Urban Development Office of Inspector General, U.S. Secret Service, Rhode Island State Police and the United States Attorney’s Office, is being prosecuted by Assistant U.S. Attorney’s Sandra R. Hebert and William J. Ferland.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Smithfield Woman Sentenced for Embezzling More Than $274,000 from Her EmployerRead the Press Release
PROVIDENCE, R.I. – Christi Romano, aka Christi Machala, 36, of Smithfield, R.I., was sentenced today to four years probation, the first six months to be served in home confinement, for embezzling more than $274,000 from Christa Creations, a toy manufacturer and distributor in Smithfield where she was employed, and for lying to FBI agents during the investigation into the theft, announced United States Attorney Peter F. Neronha and Joseph R. Bonavolonta, Acting Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Romano to pay restitution in the amount of $274,751.06. Romano pleaded guilty on May 27, 2015, as charged by way of a federal indictment returned in October 2014, to charges of wire fraud and making false statements.
At the time of her guilty plea, Romano admitted to the court that between February 16, 2010, and March 26, 2012, she made 126 unauthorized wire transfers totaling $274,751.06 from a bank account belonging to Christa Creations. Romano admitted to the court that she used the funds to pay her personal credit card debt.
At the time of her guilty plea, Romano also admitted to the court that during the investigation she made false statements to FBI agents when she told the agents that she did not steal or misapply funds belonging to Christa Creations.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by the FBI, with the assistance of the Internal Revenue Service Criminal Investigation.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
R.I. Businessman, 3 Others Indicted in $2.8 Million Identity Theft and Fraudulent Treasury Check SchemeRead the Press Release
PROVIDENCE, R.I. – A Pawtucket, R.I., businessman and three others, including two employees and the businessman’s sister, have been indicted by a federal grand jury in Providence for their alleged participation in an extensive stolen identity and tax refund fraud scheme which resulted in 448 fraudulently obtained U.S. Treasury checks totaling $2.8 million dollars being deposited into 26 bank accounts under their control.
The indictment charges Juan Vasquez, 55, of Pawtucket, and Erika Tomasino, 43, Belkis Vasquez, 49, and Doris Morel, 43, of Central Falls, with aggravated identity theft, theft of government property, money laundering and mail fraud.
The indictment is announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and James V. Buthorn, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
Juan Vasquez is the owner and operator of the Dominican Market in Pawtucket, through which it is alleged that a majority of the fraud was perpetrated. Juan Vasquez controlled the bank accounts of the Dominican Market and numerous other businesses in his name and others through which it is alleged the fraud scheme operated.
Juan Vasquez was arrested by federal agents in Tampa, Florida, on September 9, 2015, on a criminal complaint and arrest warrant issued in Rhode Island charging him for his alleged role in the fraud scheme. Vasquez will be returned to Rhode Island for an initial appearance on the criminal complaint and for arraignment on the indictment on dates not yet determined.
Erika Tomasino, an employee of Juan Vasquez, and his sister, Belkis Vasquez, were arraigned today before U.S. District Court Magistrate Judge Lincoln D. Almond and released on personal recognizance. Doris Morel, an employee of Juan Vasquez, was arraigned on Tuesday before U.S. District Court Magistrate Judge Lincoln D. Almond and released on unsecured bond. Not guilty pleas were entered.
According to court documents, an investigation by federal agents and the U.S. Attorney’s Office, the findings of which are detailed in the indictment returned on September 17, 2015, alleged that between January 2010 and November 2014, the individuals participating in the fraud conspiracy used the stolen identities of hundreds of individuals, mostly residents of Puerto Rico, to file fraudulent tax returns in order to obtain tax refunds.
It is alleged that the defendants deposited 448 fraudulently obtained tax refund checks totaling $2.8 million dollars into 26 bank accounts controlled by the defendants. It is alleged that funds were quickly withdrawn from the banks and used for a variety of personal expenses as well as transferred to the Dominican Republic.
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. Attorneys Sandra R. Hebert and John P. McAdams.
The matter was investigated by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Postal Inspection Service, with the assistance of the Pawtucket Police Department.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Financial Management Consultant Indicted for Allegedly Embezzling $1MRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned an eleven-count indictment charging John M. Hairabet, Jr., 43, a former business associate and office manager of New England Anesthesiologists, Inc., and president of Anesthesia Management Consultants, LLC, with allegedly embezzling more than $1 million dollars in bank account funds belonging to the medical firm and from employee 401(k) pension fund contributions.
The grand jury returned an indictment charging Hairabet with seven counts of wire fraud, two counts of money laundering, and one count each of pension theft and aggravated identity theft.
The indictment is announced by U.S. Attorney Peter F. Neronha, William P. Offord, Special Agent in Charge of IRS Criminal Investigation; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Susan A. Hensley, Regional Director, U.S. Department of Labor Employee Benefits Security Administration.
It is alleged in the indictment that between November 13, 2007, and January 31, 2013, Hairabet, in his capacity as an independent contractor bookkeeper and office manager of New England Anesthesiologists, and through his management consulting firm, Anesthesia Management Consultants, stole the identity of the owner of New England Anesthesiologists and used that stolen identity while signing bank documents and to convert more than $500,000 of New England Anesthesiologists funds for his own personal use.
It is also alleged in the indictment that between January 1, 2012, and December 31, 2012, that Hairabet collected from employees of New England Anesthesiologists and converted for his own personal use several hundreds of thousands of dollars of 401(K) retirement fund employee contributions.
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.
Wire fraud is punishable by up to 30 years imprisonment and a fine of up to $1,000,000; money laundering is punishable by up to 10 years imprisonment and a fine of up to $250,000 or twice the amount of criminally deprived property; pension theft is punishable by up to 5 years imprisonment and a fine of up to $250,000; and aggravated identity theft is punishable by a mandatory sentence of 2 years imprisonment to be served consecutive to any other sentence imposed by the court.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Department of Labor, Employee Benefits Security Administration.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
‘Career Con-man” Sentenced to Nearly Six Years in PrisonRead the Press Release
PROVIDENCE, R.I. – A ‘career con-man’ with twenty-one previous convictions for fraud has been sentenced to nearly six years in federal prison for devising a scheme to deposit counterfeit bank checks into bank accounts he controlled then withdrawing some or all of the funds, and for violating the terms of supervised release on a previous federal conviction for fraud.
Michael P. Tatro, 45, was sentenced on Friday by U.S. District Court Chief Judge William E. Smith to 46 months in prison for bank fraud and to a consecutive sentence of 24 months in prison for violating the terms of supervised release. Tatro was also ordered to serve 5 years of supervised release upon completion of his current prison term and to pay restitution to the banks defrauded in the amount of $45,427.91.
Tatro’s sentence is announced by United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
Tatro pleaded guilty on January 30, 2015, to bank fraud.
At the time of his guilty plea, Tatro admitted to the court that on October 1, 2013, he opened a business account which he controlled at Bank Rhode Island. Tatro admitted that between December 19 and December 30, 2013, he deposited into the account counterfeit cashier’s checks totaling $108,995. Tatro admitted that after making the deposits he took steps to quickly withdraw monies from the account.
In addition, Tatro admitted to the court that on December 30, 2013, and on January 2, 2014, he deposited checks he wrote on his Bank Road Island business account into an account in his name at Greenwood Credit Union and then quickly withdrew monies. Bank Rhode Island returned the checks unpaid to Greenwood Credit Union.
The court found that at the time Tatro defrauded Bank Rhode Island and Greenwood Credit Union he had violated the terms of supervised release on a previous conviction for bank and tax fraud. In January 2009 he was sentenced to 51 months imprisonment to be followed by 5 years supervised release.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the United States Secret Service.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Plead Guilty to Trafficking Firearms into ProvidenceRead the Press Release
PROVIDENCE, R.I. – Kinmonte Markell Brown, 28 and Dennis Wells, 24, of Greenville, North Carolina pleaded guilty in federal court in Providence on Friday to trafficking more than a dozen firearms from North Carolina into Providence between November 2014 and January 2015.
The defendants pleaded guilty to conspiracy to deal firearms without a license, dealing firearms without a license, being felons in possession of a firearm and possession of a firearm with an obliterated serial number.
The guilty pleas are announced by United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Providence Police Chief Colonel Hugh T. Clements, Jr.
Information that led to the arrest of Brown and Wells and the interruption of the flow of the firearms from North Carolina to an apartment in the Hartford Park neighborhood was developed as a result of the Rhode Island Urban Violent Crime Initiative - a wide-ranging collaboration of local, state and federal law enforcement and federal and state prosecutors who are targeting violent crime and violent criminals in urban neighborhoods of Rhode Island.
In late 2013, the Initiative began targeting the distribution of heroin and crack cocaine in Providence and the importation of firearms onto the streets of Providence. Simultaneously, and in close coordination, the FBI’s Safe Street Task Force and Providence Police began targeting gang members and associates engaged in violent crime, including gun crimes, in Providence.
Information gathered during these investigations led to a separate investigation by DEA, ATF, Providence Police, and state and federal prosecutors which resulted in the interruption of the flow of illegal firearms into Providence from Greenville, North Carolina, and the arrest of Kinmonte Brown and Dennis Wells.
According to information presented to the court, beginning in late November 2014, and continuing through January 2015, a person working at the direction of DEA began a series of negotiations with Brown and Wells for the purchase and shipment of illegal firearms into Rhode Island. The ongoing negotiations led to a series of sales and delivery of 15 illegal firearms and ammunition from North Carolina to Providence by Brown and Wells. Each time firearms were delivered they were quickly secured by law enforcement.
On January 31, 2015, as previously arranged by the person working at the direction of DEA, Brown and Wells drove to Rhode Island from North Carolina to sell and deliver seven firearms, including a .357 magnum revolver with an obliterated serial number, a .38 caliber handgun and several shotguns and rifles. Browns and Wells were detained moments after they delivered the firearms.
The defendants, who have been detained since their arrest, are scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on December 18, 2015.
The case is being prosecuted by in federal court by Assistant U.S. Attorney Paul F. Daly, Jr. and Joseph J. McBurney, Special Assistant R.I. Attorney General
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Rhode Island Resident Sentenced for Operating Meth LabRead the Press Release
PROVIDENCE, R.I. – Nicholas Selser, 33, of Cranston, R.I., has been sentenced to 24 months in federal prison for manufacturing methamphetamine (meth) inside a residence of the D’Evan Manor housing complex in Cranston, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Michael Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
A co-defendant in this matter, Michael Fortes, 48, of Cranston, R.I., is scheduled to be sentenced on October 29, 2015.
At sentencing on September 18, 2015, U.S. District Court Chief Judge William E. Smith also ordered Nicholas Selser to serve three years supervised release upon completion of his prison term. Selser and Fortes pleaded guilty in July as charged in a grand jury indictment returned in March 2015, to one count each of conspiracy, knowingly manufacturing methamphetamine, possession of pseudoephedrine with the intent to manufacture methamphetamine and possessing equipment to manufacture methamphetamine.
On February 18, 2015, Cranston Police, the R.I. DEA Drug Task Force and a DEA Clandestine Laboratory Enforcement Team executed a court authorized search of the defendants’ D’Evan Manor apartment and seized various chemicals, supplies and items used in the manufacture of meth.
Information was developed and evidence was seized by law enforcement that indicated that the defendants had manufactured meth inside the apartment of the densely populated complex approximately eleven times. The defendants admitted to the court that they used the “one pot” method to manufacture meth, a simple but potentially dangerous method of manufacturing meth in approximately one hour. The manufacture of methamphetamine is often times a dangerous process which may result in explosion or fire.
Selser and Fortes have been detained in federal custody since their arrest on February 18, 2015.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
Rhode Island Law Enforcement Teams up to Participate in National Prescription Drug Take Back ProgramRead the Press Release
On September 26, 2015 from 10 a.m. to 2 p.m., Rhode Islanders are encouraged to drop off their unused and expired prescription drugs at one of more than 30 locations across the state as part of the national Prescription Drug Take Back Program. The program was created in 2010 by the federal Drug Enforcement Administration (DEA) to prevent pill abuse and theft by allowing residents to rid their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
A list of locations and participating police departments can be found at www.dea.gov or www.riag.ri.gov. The service is free and anonymous, no questions asked. In addition, many police departments provide free drop-off boxes year-round. Contact your local police department to see if they offer the service. ((Note: The DEA cannot accept liquids or needles or sharps, only pills or patches.))
"Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse," said DEA Special Agent in Charge Michael J. Ferguson. "Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."
US Attorney Peter F. Neronha added, “America has a prescription pill problem, and Rhode Island is no exception. The overprescribing, diversion, and misuse of prescription opioids is a significant threat to public health in its own right, made worse by the fact that in many instances it leads to heroin abuse, often with catastrophic results. There is no single solution to this problem. But one thing that can help is to provide a safe and effective way to dispose of unneeded prescription pills, and this take-back does precisely that.”
“With the disturbing and dangerous rise of prescription opioid addiction and abuse in Rhode Island, this take back program is a simple and anonymous way for people to rid homes of potential dangers. Opioid addiction and abuse is one of the most serious public health and safety threats within our state. While there are many fronts on which we need to fight this war, this program is a key piece to ending the cycle of addiction by eliminating the temptation to use these pills in the first place,” said Attorney General Peter F. Kilmartin.
In 2014, the DEA issued regulations that would legally expand options for disposing of controlled substances beyond the scheduled prescription drug take back days. Recognizing the success and popularity of the one-day events, the DEA decided to once again support the program nationwide in partnership with state and local law enforcement. In Rhode Island, there are several police departments that offer this service year round. In addition, other methods for safe disposal of prescription medications are available throughout the state including at pharmacies and healthcare facilities.
Last September, Americans turned in 309 tons (over 617,000 pounds) of prescription drugs at nearly 5,500 sites operated by the DEA and more than 4,000 of its state and local law enforcement partners. When those results are combined with what was collected in its eight previous Take Back events, DEA and its partners have taken in over 4.8 million pounds - more than 2,400 tons - of prescription medications.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
For more information about the disposal of prescription drugs or about the September 26 Take Back Day event, visit www.riag.ri.gov or www.dea.gov.
##
Providence Man Indicted on Sex Trafficking, Witness Tampering & Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned a five-count indictment charging Dujuan Harris, 35, of Providence, R.I., with sex trafficking a 17-year-old girl, witness tampering and production of child pornography, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
The indictment charges Harris with one count each of sex trafficking a child, transportation of a minor with intent to engage in criminal sexual activity, production of child pornography, possession of child pornography and witness tampering.
It is alleged that after befriending a 17-year-old female on the Internet, Harris purchased tickets for the teenager to pay for her to travel by bus from her home in Texas to Boston. Harris met the young woman when she arrived in Boston on June 12, 2015, and then purchased a ticket for her to travel with him by bus to Providence. Within a few days of her arrival in Providence, it is alleged that the defendant took photographs of the victim in various stages of undress and posted them in ads on Backpage.com.
According to an investigation by the Providence Police Department and agents from Homeland Security Investigations (HSI), the response to the ad was immediate and several sexual encounters with the 17-year-old for a fee were allegedly arranged. All of the funds were allegedly turned over to Harris.
According to court documents, when Harris told the young woman that he wanted to earn more money by having her engage in an increased number of sexual encounters for payment, the young woman told Harris she no longer wanted to participate. It is alleged that Harris removed the battery from the victim’s cell phone so that she could not be located and on several occasions refused to allow her to leave the Providence apartment they were staying in.
On June 30, 2015, HSI agents, Providence Police detectives and members of the Human Trafficking Task Force located the victim in an apartment in Providence. Following the rescue of the victim, law enforcement discovered numerous nude photographs of the 17-year-old victim on Harris’ cell phone allegedly taken from Skype conversations between Harris and the victim while she was in Texas.
According to the indictment, it is alleged that between August 19 and September 15, 2015, while detained, Harris allegedly engaged in numerous telephone conversations with the victim in an intimidating and/or threatening manner, in an attempt to influence, delay and prevent the victim from providing testimony in this matter to a grand jury and to law enforcement.
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 Ly T. Chin.
Prosecutors from the Rhode Island Department of the Attorney General are assisting the United States Attorney’s Office in the prosecution of this matter.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Navy Base Employee Sentenced in Death of Navy Police DetectiveRead the Press Release
PROVIDENCE, R.I. – Alan Bradley, 54, of Middletown, R.I., was sentenced today by U.S. District Court Judge Mary M. Lisi to five years probation, having been convicted at trial by a federal court jury of driving to endanger death resulting in the death of Navy Detective Frank Lema in September 2013.
U.S. District Court Judge Mary M. Lisi, who presided over the trial, ordered Bradley to serve the first year of his term of probation on home confinement with electronic monitoring and to perform 1,500 hours of community service. Bradley was also ordered to pay restitution to the estate of Detective Lema in the amount of $16,504.72.
The Government recommended to the court that the defendant be sentenced to serve 48 months in prison, a sentence which falls within the recommended guideline sentence for this matter of between 41-51 months incarceration.
The sentence imposed is announced by United States Attorney Peter F. Neronha; Leo S. Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to the government’s evidence presented at trial, Bradley, who was a civilian employee on Naval Station Newport, was operating a Navy vehicle on the base on September 26, 2013, when he struck and killed Detective Lema. Lema was standing outside of the Navy public safety building with a fellow Navy law enforcement officer when he was struck. After striking Detective Lima, Bradley’s vehicle continued to travel another 200 feet before stopping on a grassy embankment.
According to the government’s evidence, on at least six occasions between February 2011 and July 2013, Bradley’s personal physician warned Bradley not to drive because he was a risk to both himself and others due to a seizure disorder. The evidence also showed that Bradley was involved in a serious single car crash in 2011in Middletown in which his young son was a passenger. Bradley attributed his seizure disorder as a contributing factor to the cause of that accident.
The case was prosecuted by First Assistant United States Attorney Stephen G. Dambruch.
The case was investigated by Naval Criminal Investigative Service and the Rhode Island State Police.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Rhode Island Businessman Pleads Guilty to Marketing and Selling Unapproved Remedies for Cancer Mitigation and Treatment, Tax EvasionRead the Press Release
PROVIDENCE, R.I. – James Feijo, 68, owner and operator of Daniel Chapter One, a Portsmouth, R.I., based company, pleaded guilty in federal court in Providence to marketing and selling products not approved by the U.S. Food and Drug Administration (FDA) as cancer mitigation and treatment options, and failing to pay more than $218,000 in employment taxes due the IRS, announced United States Attorney Peter F. Neronha, Michael Mangiacotti, Resident Agent in Charge of the FDA Office of Criminal Investigations, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Feijo pleaded guilty to one count of introduction of a new unapproved drug and one count of tax evasion.
At the time of his guilty plea, Feijo admitted to the court that he engaged in the marketing, sale and distribution of unapproved health products and supplements, 7 Herb Formula, Bio Shark and GDU, which were not generally recognized as safe and effective for use by the FDA. Additionally, the products, as marketed, were not generally recognized as safe and effective by qualified experts for the cure, mitigation, treatment, or prevention of cancer. The products were marketed and sold through various websites, in-store advertisements, a call center, on the Feijos’ daily radio program, and through the use of promotional materials and publications.
In addition, at the time of his guilty plea, Feijo admitted to the court that from 2006 through 2011, he falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. During that time, Feijo failed to issue IRS Wage and Tax Statements, Forms W-2, accounting for employees’ wages and taxes withheld. Feijo admitted that through 2011, Daniel Chapter One employees were paid by checks written out to cash, and that for at least sixteen quarters he failed to collect, account for and pay over employment taxes due the IRS totaling $218,408.04.
Feijo is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on January 12, 2016.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the Rhode Island FDA Task Force and by IRS Criminal Investigation.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Gang Associate Pleads Guilty to Drug Trafficking and Firearms ChargesRead the Press Release
PROVIDENCE, R.I. – Antonio Fortes, 25, of Cranston, an associate of the YNIC street gang, pleaded guilty in federal court in Providence today to trafficking heroin and cocaine, and to 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.
Fortes, who is scheduled to be sentenced on December 3, 2015, is also facing murder and weapons charges in Rhode Island state court for his alleged role in the October 22, 2014, shooting in Providence that resulted in the death of Terry Robinson. Fortes is charged in state court with one count of murder, three counts of discharge of a firearm while in the commission of a crime of violence, two counts of assault with a dangerous weapon, two counts of carrying a firearm without a license, and one count of conspiracy.
According to federal court documents and information presented to the court, an investigation by ATF agents into Fortes drug trafficking activities included controlled purchases of crack cocaine and repeated surveillance by law enforcement. The investigation culminated with the execution of a court authorized federal search warrant on March 24, 2015, at Fortes’ Cranston residence. The search resulted in the seizure of numerous packets of heroin, crack cocaine and a loaded .45 caliber handgun.
The case is being prosecuted by Assistant U.S. Attorneys Milind M. Shah and William J. Ferland.
Law enforcement officers from the Cranston, Pawtucket and Providence Police Departments assisted agents from ATF in the investigation of this matter.
Two Plead Guilty in Conspiracy to Cash Stolen U.S. Treasury ChecksRead the Press Release
PROVIDENCE, R.I. – Brenda Canuelas, 39, and Jesus Rivera, 45, of Providence, pleaded guilty in U.S. District Court in Providence to conspiring with one another to cash between $81,463 and $107,006 worth of stolen United States Treasury checks, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Rafael Medina, Special Agent in Charge of the Northeast Area United States Postal Service Office of Inspector General (USPS-OIG).
Appearing before U.S. District Court Judge John J. McConnell, Jr., Canuelas and Rivera pleaded guilty to one count of conspiracy and one count of converting stolen U.S. Treasury checks. They are scheduled to be sentenced on December 15, 2015.
According to court documents and information presented to the court, in September 2014, USPS-OIG agents and detectives from the Providence Police Intelligence and Organized Crime Unit began investigating the circumstances surrounding a significant number of missing Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The investigation determined that many individual bank accounts were being opened in the name on missing checks, usually in a slightly altered form, by individuals other than the true owner of the check. The stolen checks were deposited in the accounts in amounts ranging from a few thousand dollars to more than $10,000. The accounts were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, or by the purchase of money orders. Most of the bank accounts were opened in Rhode Island.
According to court documents, USPS-OIG agents reviewed surveillance photographs and videos from area banks and retail stores and identified two individuals who repeatedly made deposits of stolen U.S. Treasury checks, made cash withdrawals and made purchases using funds from the stolen checks. USPS-OIG agents and Providence Police Intelligence and Organized Crime Unit detectives worked together to identify the individuals as Brenda Canuelas and Jesus Rivera.
The defendants were arrested on May 19, 2015.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Federal agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service Office of Inspector General and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Rhode Island Man Sentenced to Five Years in Prison for Masterminding Bank Fraud Conspiracy, Identity Theft, Passing Counterfeit MoneyRead the Press Release
PROVIDENCE, R.I. – David Alcantara, 33, of Warwick, has been sentenced to 60 months in federal prison for masterminding an elaborate conspiracy to defraud two Rhode Island banks of nearly $600,000, by using stolen personal identifying information of several unsuspecting individuals, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
A federal court jury convicted Alcantara on May 1, 2015, of leading the conspiracy to defraud the banks and for leading a conspiracy to convert counterfeit $100 bills into real American dollars by making small retail purchases with bogus $100 bills and receiving cash back in Rhode Island, Massachusetts and Connecticut.
The jury convicted Alcantara of conspiracy to commit bank fraud, eight counts of aggravated identity theft and conspiracy to pass counterfeit money.
According to the government’s evidence presented at trial, in December 2009 and January 2010, Alcantara’s schemes resulted in the transfer of over $600,000 from bank accounts of legitimate bank customers into accounts fraudulently created with the use of several individuals’ stolen identities. Money was then withdrawn from the fraudulent accounts in the form of cashier’s checks.
In one scheme, Alcantara was responsible for the use of stolen identifying information belonging to a small business owner in Harrisburg, Pennsylvania, to affect in Rhode Island the transfer of $250,000 from the company’s business account into a newly opened fraudulent bank account. The account was opened using stolen identifying information of an individual who is deceased.
In a second scheme, Alcantara provided others with stolen identifying information of unsuspecting individuals and instructed them on how to use the information to establish fraudulent bank accounts at several branch offices of the same bank. Alcantara also provided them with stolen identifying information of legitimate owners of existing accounts at the same bank and instructed them to transfer funds from the legitimate accounts into the fraudulent accounts.
According to the government’s evidence, at the same time that Alcantara was affecting the bank fraud schemes, he reached out to an individual he thought could assist him in obtaining fraudulent Massachusetts drivers’ licenses. The individual he reached out to was in fact an undercover DEA agent. The DEA agent, working in conjunction with U.S. Secret Service Agents who were investigating Alcantara and the bank fraud schemes and the passing of bogus $100 bills, recorded several conversations he had with Alcantara as he attempted to secure the fraudulent IDs.
Alcantara has been detained since the date of his conviction.
The case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Lee H. Vilker.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pawtucket, R.I., Man Detained on Federal Firearm, Drug Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Jose Gomez, 26, of Pawtucket, has been ordered detained in federal custody following an investigation into Gomez’s alleged trafficking of crack cocaine, including the alleged trading of firearms for crack cocaine, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The investigation included three undercover purchases of crack cocaine allegedly from Gomez and a court authorized search of Gomez’s residence. Inside Gomez’s residence, law enforcement located a one-year-old child and a two-year-old child unattended in a bedroom where they also allegedly discovered approximately four grams of crack cocaine on a window sill.
Gomez is detained on a criminal complaint charging him with three counts of distribution of crack cocaine, one count of possession with the intent to distribute crack cocaine, one count of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and information presented to the court, it is alleged that on two occasions between August 31 and September 3, 2015, Gomez sold nearly three grams of crack cocaine for $200 in cash to an undercover ATF agent. Both transactions alleged occurred outside of Gomez’s Pawtucket residence.
According to court documents and information presented to the court, on September 8, 2015, the ATF undercover agent allegedly arranged with Gomez to trade two firearms for $200 in cash and a quantity of crack cocaine. The two met outside of Gomez’s residence two days later, and moments after Gomez allegedly exchanged $200 in cash and a plastic bag containing crack cocaine for the two firearms, a .380 caliber handgun and a 9mm handgun, agents detained Gomez.
According to information presented to the court, a court authorized search of Gomez’s residence moments after Gomez was detained allegedly resulted in the discovery of approximately four grams of crack cocaine on a digital scale stored on a window sill inside a bedroom where two unattended children, aged one and two, were located. The bedroom doorway was blocked to prevent the unattended children from leaving the room.
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.
ATF was assisted in the investigation of this matter by Pawtucket Police, Central Falls Police and the Special Investigations Unit of the Adult Correctional Institutions.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Mastermind of Arson-for-Profit Scheme Sentenced to PrisonRead the Press Release
PROVIDENCE, R.I. – Kormahyah Karmue, 40, of Providence, was sentenced today to 78 months in federal prison, having been convicted by a federal court jury of being the mastermind behind an arson-for-profit scheme to set fire to an occupied multi-family dwelling he owned in Providence in an effort to collect more than $725,000 in insurance payments.
Karmue was also sentenced for defrauding the government of $61,250 in unemployment compensation he was not entitled. Prior to the start of his trial on charges of masterminding the arson-for-profit scheme, Karmue admitted to the court that beginning in July 2009 he repeatedly filed false documents and collected unemployment compensation from the Rhode Island Department of Employment and Training while self-employed. On his application, Karmue denied he was unemployed. He pleaded guilty to theft of government funds.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Karmue to serve three years supervised release upon completion of his prison term and to pay $72,420 restitution: $35,000 to U.S. Treasury, $26,250 to State of Rhode Island and $11,200 to Allstate Insurance. A jury convicted Karmue on May 14, 2015, of conspiracy to commit arson and three counts each of wire fraud and mail fraud.
Three co-defendants who pleaded guilty to charges related to their participation in the scheme were sentenced earlier this month. Gbabia Kollie, 27, of Johnson City, Tenn., was sentenced on July 15 to three years in federal prison to be followed by three years supervised release, and ordered restitution in the amount of $2,800; Nakele Freeman, 21, of Providence, was sentenced on July 16 to three years in federal prison to be followed by three years supervised release, and ordered to pay restitution in the amount of $2,800; and Abraham Kerkula, 21, of Pawtucket, who was arrested and detained on November 15, 2013, was sentenced on July 16, 2015 to time served in federal prison and three years supervised release. He was ordered to pay restitution in the amount of $2,800.
The sentences are announced by United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Providence Public Safety Commissioner Steven M. Paré.
The government’s evidence showed that on November 2, 2013, an individual working at the direction of Karmue and others, intentionally spread gasoline around a third floor apartment inside 31-33 Ida Street. The gasoline was inadvertently ignited by a flame from a gas heater before the individual could strike a match. Several occupants in the building, including a family with five young children inside a second floor apartment, fled from the building. Karmue orchestrated the scheme from Liberia.
According to the government’s evidence, beginning in early October 2013, Karmue communicated from Liberia with Kollie, convincing him to travel to Rhode Island to set fire to the Ida Street building in an effort to avoid foreclosure and to collect insurance payments. Karmue promised to pay Kollie between $15,000 and $30,000 for his role in the arson-for-profit scheme.
According to the government’s evidence, after arriving in Rhode Island in late October, Kollie changed his mind and decided that he would not set fire to the tenement and returned home to Tennessee. After returning home, Kollie contacted a brother-in-law in Rhode Island, Nakelee Freemen, and enlisted his assistance to help to carry out the arson-for profit scheme in exchange for $7,500.
On November 1, 2013, Freeman contacted Abraham Kerkula and asked him to drive him to a location where he, Freeman, was going to set fire to a building for “a lot of money.” Freeman and Kerkula traveled together to at least two retail outlets where Freeman purchased several items, including a five-gallon gasoline storage container, a one-gallon liquid storage container and gloves. They then traveled to a local supermarket where Freeman filled the larger storage container with gasoline.
According to the government’s evidence, in the early morning hours of November 2, 2013, Kerkula and Freeman drove to the target property. A surveillance camera attached to a nearby building captured images of the vehicle Kerkula was driving as it arrived at the targeted property, drove past the building, then returned and stopped in front of a driveway. Freeman can be seen in the video exiting the vehicle, removing the gasoline container and other items from the vehicle and then entering the property through a side door using keys the evidence showed that he and Kerkula retrieved earlier in the day.
According to the government’s evidence, once inside the building Freeman entered a third floor apartment where he spread gasoline on the floor of a bedroom which was being used for storage and in the kitchen. Before Freeman could finish spreading the gasoline and striking a match to ignite the fuel, the gasoline was ignited by a flame from a gas heater. Freeman fled the building to Kerkula’s vehicle which had moved to at a pre-determined location on a nearby side street. Once inside the vehicle Freeman stated to Kerkula that the fire had not gone as planned, and they fled the area.Members of the Providence Fire Department’s Arson Squad who responded to the Ida Street property shortly after Providence Fire Department firefighters quickly determined that the fire likely was deliberately set.
As the Providence Fire Department, joined by investigators and agents from ATF, continued to investigate the cause of the fire and who was responsible, Karmue began communicating with his insurance carrier seeking payment for damages to the building and for relocation expenses. Over the course of the next several months Karmue was provided three insurance payments for relocation expenses. The building was insured for $725,583.
As a result of information developed by the Providence Fire Department’s Arson Squad and ATF, Freeman and Kerkula were arrested on federal criminal complaints on November 15, 2013, and ordered detained. Gbabia Kollie was removed from an outbound international flight leaving Atlanta for Liberia and arrested by ATF agents on a federal criminal complaint on December 5, 2013. He was returned to Rhode Island and ordered detained.
Karmue, who returned to the United States from Liberia within days of the fire being set, was arrested in Providence on May 27, 2014, and detained in federal custody.
The case was prosecuted by Assistant U.S. Attorneys William J. Ferland and Richard B. Myrus.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Providence Man Detained on Sex Trafficking, Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Dujuan Harris, 35, of Providence, R.I., has been ordered detained in federal custody on charges that he allegedly sex trafficked a 17-year-old female from Texas, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Providence Police Chief Hugh T. Clements, Jr., and Bruce M. Foucart, Special Agent in Charge of Homeland Security (HSI) Investigations for New England.
Harris is also charged with production of child pornography, after investigators allegedly discovered numerous nude photographs of the 17-year-old victim on Harris’ cell phone taken from Skype conversations with the victim while she was in Texas.
Harris appeared before U.S. District Court Magistrate Judge Patricia A. Sullivan on Monday and was ordered detained in federal custody after having been detained in state custody on related state charges since June 30, 2015.
Harris is charged by way of a federal criminal complaint with one count each of sex trafficking a child, transportation of a minor with intent to engage in criminal sexual activity, production of child pornography and possession of child pornography.
According to federal court documents, after allegedly befriending the teenager on the Internet, it is alleged that Harris provided funds to the teenager to pay for her to travel by bus from her home in Texas to Boston. It is alleged that Harris met the young woman when she arrived in Boston on June 12, 2015, and then paid for her to travel with him by bus to Providence. It is alleged that within a few days of her arrival in Providence, the defendant took photographs of the victim in various stages of undress and posted them in ads on Backpage.com.
According to an investigation by the Providence Police Department and agents from Homeland Security, the response to the ad was immediate and several sexual encounters with the 17-year-old for a fee were arranged. All of the funds were allegedly turned over to Harris.
According to court documents, when Harris told the young woman that he wanted to earn more money by having her engage in an increased number of sexual encounters for payment, the young woman told Harris she no longer wanted to participate. It is alleged that Harris removed the battery from the victim’s cell phone so that she could not be located and on several occasions refused to allow her to leave the Providence apartment they were staying in.
On June 30, 2015, Homeland Security agents, Providence Police detectives and members of the Human Trafficking Task Force located the victim in an apartment in Providence.
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 Ly T. Chin.
Prosecutors from the Rhode Island Department of the Attorney General are assisting the United States Attorney’s Office in the prosecution of this matter.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Charged in Large Scale Indoor Marijuana GrowRead the Press Release
PROVIDENCE, R.I. – Two Providence men charged by way of federal criminal complaints appeared in U.S. District Court in Providence today in connection with an ongoing FBI investigation into an alleged large scale indoor marijuana growing operation inside a converted mill building at 725 Branch Avenue in Providence and inside a Providence residence, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI, Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Providence Police Chief Colonel Hugh T. Clements, Jr.
On Wednesday, FBI agents, assisted by DEA agents and members of the Rhode Island State Police and Providence Police Department, executed nine federal court authorized search warrants in and around 725 Branch Avenue in Providence where it is alleged that law enforcement discovered approximately 1,400 marijuana plants in various stages of growth inside numerous otherwise vacant apartments and offices inside the converted mill building.
A tenth federal search warrant was executed at a Providence residence at 60 Valley Street where agents and officers allegedly discovered approximately 100 marijuana plants in various stages of growth.
Also seized by law enforcement was a .22 caliber firearm and ammunition, and approximately $14,000 in cash.
Richard L. Yang, 35, was released to home confinement and electronic monitoring by U.S. District Court Magistrate Judge Lincoln D. Almond following his initial appearance in federal court on charges of manufacturing over 100 marijuana plants and conspiracy to manufacture marijuana.
William L. Ricci, 69, the owner and a resident of the 725 Branch Avenue facility, was released by U.S. District Court Magistrate Judge Lincoln D. Almond following his initial appearance on a charge of being a felon in possession of a firearm.
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.
A third defendant has been arrested and charged in state court in connection with the investigation.
The matter is being prosecuted in federal court by Assistant U.S. Attorney William J. Ferland.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Scituate Resident Pleads Guilty to Defrauding Social Security AdministrationRead the Press Release
PROVIDENCE, R.I. – Luke Clarke, 72, of Hope, R.I., pleaded guilty in federal court in Providence today to fraudulently collecting more than $250,000 in social security benefits in his deceased mother’s name, announced United States Attorney Peter F. Neronha and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of Inspector General/Office of Investigations.
Clarke admitted to the court that the Social Security Administration was never notified of his mother’s death in January 1998, and that he continued to collect his mother’s retirement benefits in the amount of $1,517 per month until October 2014. The monthly benefit was direct deposited into a bank account he shared with his mother. Clarke admitted to fraudulently collecting $257,959.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Clarke pleaded guilty to one count of theft of government funds. Clarke is scheduled to be sentenced on November 12, 2015.
The matter was investigated by the Social Security Administration, Office of Inspector General/Office of Investigations.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Drug Diversion Claims Against CVS Health Corp. Resolved with $450,000 Civil SettlementRead the Press Release
PROVIDENCE, R.I. - Pharmacy chain CVS Health Corp. has agreed to pay $450,000 to resolve the United States’ allegations that several of its Rhode Island stores violated the federal Controlled Substances Act by filling invalid prescriptions and maintaining deficient records, announced United States Attorney Peter F. Neronha and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
The settlement caps an investigation by the United States Attorney’s Office for the District of Rhode Island and the DEA Office of Diversion Control of CVS’ conduct at its Rhode Island retail pharmacy locations in filling prescriptions for various controlled substances with a high potential for abuse. Under the Controlled Substances Act and its implementing regulations, substances such as painkillers and opioids can only be prescribed for legitimate medical purposes by a physician. The law, however, also places a “corresponding responsibility” on the pharmacist filling the prescription to ensure that the prescription is valid and legal, and that that the prescriber has the legal authority to prescribe the drug. The Act also imposes a number of recordkeeping requirements.
In this case, the United States alleged that CVS retail pharmacies in Rhode Island filled a number of forged prescriptions with invalid DEA numbers, and filled multiple prescriptions written by psychiatric nurse practitioners for the opioid painkiller hydrocodone, despite the fact that these practitioners were not legally permitted to prescribe these drugs. Additionally, the government alleged that CVS had recordkeeping deficiencies.
Under the terms of a civil agreement, CVS will pay a civil penalty of $450,000 for its alleged conduct in the State of Rhode Island. CVS, while acknowledging that its pharmacists bear a corresponding responsibility under the Controlled Substances Act, has denied wrongdoing in this case.
“It should come as no surprise to any Rhode Island citizen – individual or corporate –that diversion and misuse of prescription painkillers are a public health crisis in the State of Rhode Island,” commented U.S. Attorney Peter F. Neronha. “This crisis demands that all citizens – individual and corporate – act responsibly when it comes to the dispensing of controlled substances. Even in cases where there is no evidence of abuse or nefarious intent, this Office remains committed to using all the legal tools at our disposal to ensure that everyone in the chain of controlled substance distribution -- from physicians to pharmacists -- abides by the strict requirements of the law.”
“DEA registrants are responsible to handle controlled substances in compliance with the Controlled Substance Act,” said Special Agent in Charge Michael J. Ferguson. “Our obligation is to improve public safety and public health, and we are committed to working with our law enforcement and regulatory partners nationwide to ensure that these rules and regulations are followed.”
This matter was litigated by Assistant U.S. Attorneys Zachary A. Cunha and Bethany N. Wong.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Rhode Island Man Sentenced to 12 Years in Prison for Sex TraffickingRead the Press Release
Ricky T. Wallace aka Justice, 34, of Pawtucket, Rhode Island, was sentenced today to 12 years in federal prison for trafficking a 17-year-old female resident of a group home in the Boston area to Rhode Island for the purposes of commercial sexual activity.
At the time of his guilty plea, Wallace admitted to the court that in addition to trafficking the 17-year-old, he also brought a 20-year-old woman from the Boston area to Rhode Island where she was directed to pose in photographs that were posted on Backpage.com and then offered for commercial sexual activity.
At sentencing, U.S. District Court Judge Mary M. Lisa also ordered Wallace to serve five years supervised release upon completion of his prison sentence and to have no contact, direct or indirect, with the victims. Wallace pleaded guilty on March 23, 2015, to one count each of conspiracy, sex trafficking of a child, transportation of a minor for sexual activity and two counts of transportation of an individual for sexual activity.
Wallace’s sentenced is announced by U.S. Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office and Superintendent Colonel Steven G. O’Donnell of the Rhode Island State Police.
Two co-defendants in this matter, Kemont Bowie aka Daddy, 34, and Raechyl Spooner aka Kitty, 21, of Pawtucket, Rhode Island, are scheduled to be sentenced in September. Bowie pleaded guilty on June 11, 2015, to one count each of conspiracy, sex trafficking of a child and transportation of a minor for sexual activity. Spooner pleaded guilty on June 12, 2015, to one count of conspiracy.
“At bottom, the defendant here traded in, and made money on, the vulnerability of his teenage and young adult victims,” said U.S. Attorney Neronha. “Few, if any, crimes are more outrageous and he deserves every minute of the twelve years he will serve in federal prison. Those on the other side of these criminal transactions – the sex buyers – should also take notice, for they too are the focus of our law enforcement efforts and they too will have a price to pay, whether in the context of this case or in others.
“Mr. Wallace profited from a sex trafficking venture that used force and coercion to compel women to engage in commercial sex acts,” said Special Agent in Charge Lisi. “These crimes often go undetected because victims live in fear from physical abuse. My Office is committed to aggressively investigating individuals and organizations that profit from this illegal conduct.”
“Targeting and prosecuting those who prey on the vulnerability of young girls and women, and force them into trafficking for sex, is a major priority of the Rhode Island State Police,” said Superintendent Colonel O’Donnell. “This is another great example of collaborative law enforcement and prosecution. I applaud the strong sentence imposed today for being involved in this activity as a means to deter others from being involved in this underground culture and to send the message to victims that they have a place to turn for help.”
According to court documents and information presented to the court, the 17-year-old victim in this case was driven from South Station in Boston to Rhode Island in the early morning hours of Aug. 19, 2014, for the purposes of being trafficked for commercial sexual activity. The young woman was driven to a Pawtucket residence where she was located and rescued six days later by FBI agents and officers from the Pawtucket and Central Falls Police Departments.
Additionally, according to court documents, on Aug. 22, 2014, Wallace offered a 20-year-old Boston area woman a ride from South Station in Boston to nearby Cambridge. Instead of being driving to Cambridge, the woman was driven first to Pawtucket and then to a motel in Seekonk, Massachusetts. The woman was photographed and offered on Backpage.com for commercial sexual activity. The woman repeatedly asked that she be driven back to the Boston area. She was able to get away from Wallace the next day after her repeated requests to be driven back to the Boston area were ignored.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The U.S. Marshal Service, the Arlington, Massachusetts, Police Department and the Pawtucket and Central Falls, Rhode Island Police Departments assisted the FBI and Rhode Island State Police in the investigation of this matter.
R.I. Man Sentenced to 12 Years in Prison for Sex TraffickingRead the Press Release
PROVIDENCE, R.I. - Ricky T. Wallace, a/k/a Justice, 34, of Pawtucket, R.I., was sentenced today to 144 months in federal prison for trafficking a 17-year-old female resident of a group home in the Boston area to Rhode Island for the purposes of commercial sexual activity.
At the time of his guilty plea, Wallace admitted to the court that in addition to trafficking the 17-year-old, he also brought a 20-year-old woman from the Boston area to Rhode Island where she was directed to pose in photographs that were posted on Backpage.com and then offered for commercial sexual activity.
At sentencing, U.S. District Court Judge Mary M. Lisa also ordered Wallace to serve 5 years supervised release upon completion of his prison sentence and to have no contact, direct or indirect, with the victims. Wallace pleaded guilty on March 23, 2015, to one count each of conspiracy, sex trafficking of a child, transportation of a minor for sexual activity, and two counts of transportation of an individual for sexual activity.
Wallace’s sentenced is announced by United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
Two co-defendants in this matter, Kemont Bowie, a/k/a Daddy, 34, and Raechyl Spooner, a/k/a Kitty, 21, of Pawtucket, R.I., are scheduled to be sentenced in September. Bowie pleaded guilty on June 11, 2015, to one count each of conspiracy, sex trafficking of a child and transportation of a minor for sexual activity. Spooner pleaded guilty on June 12, 2015, to one count of conspiracy.
“At bottom, the defendant here traded in, and made money on, the vulnerability of his teenage and young adult victims. Few, if any, crimes are more outrageous, and he deserves every minute of the twelve years he will serve in federal prison,” said United States Attorney Peter F. Neronha. “Those on the other side of these criminal transactions – the sex buyers – should also take notice, for they too are the focus of our law enforcement efforts, and they too will have a price to pay, whether in the context of this case or in others.
“Taking on the scourge of human trafficking requires a team approach, and that team is not limited to law enforcement. Accordingly, I want to especially thank our partners at Hasbro Children’s Hospital and Day One for efforts in assisting the victims in this case, and other cases like it. I also want to thank Attorney General Peter Kilmartin and the Rhode Island Department of Attorney General for their continuing partnership with this Office as we work these important cases.”
Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI added, “Mr. Wallace profited from a sex trafficking venture that used force and coercion to compel women to engage in commercial sex acts. These crimes often go undetected because victims live in fear from physical abuse. My Office is committed to aggressively investigating individuals and organizations that profit from this illegal conduct.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police commented, “Targeting and prosecuting those who prey on the vulnerability of young girls and women, and force them into trafficking for sex, is a major priority of the Rhode Island State Police. This is another great example of collaborative law enforcement and prosecution. I applaud the strong sentence imposed today for being involved in this activity as a means to deter others from being involved in this underground culture and to send the message to victims that they have a place to turn for help.”
According to court documents and information presented to the court, the 17-year-old victim in this case was driven from South Station in Boston to Rhode Island in the early morning hours of August 19, 2014, for the purposes of being trafficked for commercial sexual activity. The young woman was driven to a Pawtucket residence where she was located and rescued six days later by FBI agents and officers from the Pawtucket and Central Falls Police Departments.
Additionally, according to court documents, on August 22, 2014, Wallace offered a 20-year-old Boston area woman a ride from South Station in Boston to nearby Cambridge. Instead of being driving to Cambridge, the woman was driven first to Pawtucket, R.I., and then to a motel in Seekonk, Mass. The woman was photographed and offered on Backpage.com for commercial sexual activity. The woman repeatedly asked that she be driven back to the Boston area. She was able to get away from Wallace the next day after her repeated requests to be driven back to the Boston area were ignored.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The United States Marshal Service, the Arlington, Mass., Police Department, and the Pawtucket and Central Falls, R.I. Police Departments assisted the FBI and Rhode Island State Police in the investigation of this matter.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Career Offender Sentenced to More than 12 Years in Prison for Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – Richard Palmisano, 41, formerly of Central Falls, a career offender with a criminal history dating back more than twenty years, including convictions on drug trafficking, firearms and assault charges, was sentenced today to 150 months in federal prison for trafficking more than 90 grams of crack cocaine, announced United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF; and Central Falls Police Chief Colonel James J. Mendonca.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Palmisano to serve five years supervised release upon completion of his prison term. Palmisano pleaded guilty on February 19, 2015, as charged in a six-count indictment to six counts of distribution of crack cocaine. No plea agreement was filed in this matter.
According to court records and information presented to the court, a joint investigation in the spring and summer of 2014 by ATF agents and Central Falls Police into Palmisano’s drug trafficking activities included five purchases of crack cocaine from Palmisano by an ATF undercover agent between April 24 and July 18. The purchases were of between 7.45 grams and more than 31grams for between $400 and $1,700.
Additionally, a court-authorized search of Palmisano’s residence, with the assistance of Rhode Island State Police and Providence Police, resulted in the seizure of 31 grams of crack cocaine which the undercover ATF agent had previously arranged to purchase from Palmisano.
Palmisano has been detained in federal custody since his arrest by ATF agents and Central Falls Police on August 7, 2014.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Businessman Sentenced to Five Years in Federal Prison for Conspiracy to Misbrand a Product for Human Consumption, Money LaunderingRead the Press Release
Labeling Failed to Disclose That “Potion 9” Contained an Ingredient Known to Metabolize into What is Commonly Referred to as a “Club Drug” or “Date Rape Drug.”
Tayfun Karauzum, 45, of Newport Beach, California, has been sentenced in U.S. District Court in Providence, Rhode Island, to five years in federal prison for manufacturing, marketing and distributing for human consumption Potion 9, a product containing butanediol, an industrial solvent that rapidly metabolizes into gammahydroxybutyric acid (GHB) – commonly referred to as a “club drug” or “date rape drug.”
Karauzum was the owner of Max American Distribution LLC in Newport Beach through which he marketed and distributed between $1 million and $2.5 million worth of Potion 9 through online sales and dietary supplement companies.
An investigation by the U.S. Attorney’s Office for the District of Rhode Island and the Rhode Island U.S. Food and Drug Administration (FDA) Task Force, with the assistance of the U.S. Postal Inspection Service and IRS Criminal Investigation, determined that Karauzum provided to a lab the ingredients for the manufacture of his Potion 9, including unlabeled containers of butanediol, which Karauzum claimed to be a proprietary ingredient. Karauzum also provided labels for the packaging of Potion 9, which did not list butanediol as an ingredient.
Karauzum marketed Potion 9 as a “mood enhancer” that “may improve stamina and energy, promote a feeling of well-being, produce euphoria, [and] increase intensity of orgasms.”
The investigation revealed that Karauzum caused to have manufactured and made available for distribution nearly 13.5 million milliliters of the misbranded product Potion 9. The investigation also determined that Karauzum routinely transferred proceeds from the sale of Potion 9 sales in increments in excess of $10,000 from his business’ PayPal account into a personal bank account.
Karauzum’s sentencing is announced by U.S. Attorney Peter F. Neronha of the District of Rhode Island and Acting Special Agent in Charge Jeff Ebersole of the Office of FDA Criminal Investigations’ New York Field Office.
“The misbranding of drugs is an ongoing and increasing threat to public safety in general,” said U.S. Attorney Neronha. “Here, the defendant’s criminal conduct was particularly egregious. He misbranded not just any drug, but an incredibly dangerous one, one used to victimize unsuspecting innocent people, on an enormous scale. The lengthy prison sentence he has received is well-deserved.”
“The defendant’s actions exposed unsuspecting consumers to potentially serious danger,” said Acting Special Agent in Charge Ebersole. “This investigation demonstrates the Office of Criminal Investigations’ commitment to vigorously pursue criminal violations that threaten the public health. We thank our partners from the U.S. Attorney’s Office in the District of Rhode Island, the U.S. Postal Inspection Service and the Criminal Investigation Division of the Internal Revenue Service for their efforts in this case.”
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Karauzum to serve three years supervised release upon completion of his prison term. Karauzum pleaded guilty on Jan. 30, 2015 to one count of conspiracy to misbrand a product for human consumption and one count of money laundering.
The case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
Businessman Sentenced to 5 Years in Prison for Conspiracy to Misbrand a Product for Human Consumption, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Tayfun Karauzum, 45, of Newport Beach, Calif. has been sentenced in U.S. District Court in Providence, R.I., to 60 months in federal prison for manufacturing, marketing and distributing for human consumption Potion 9, a product containing butanediol, an industrial solvent that rapidly metabolizes into gammahydroxybutyric acid (GHB) – commonly referred to as a “club drug” or “date rape drug.”
Karauzum was the owner of Max American Distribution LLC in Newport Beach, Calif., through which he marketed and distributed between $1 million and $2.5 million dollars worth of Potion 9 through online sales and dietary supplement companies.
An investigation by the United States Attorney’s Office for the District of Rhode Island and the Rhode Island U.S. Food and Drug Administration Task Force, with the assistance of the U.S. Postal Inspection Service and IRS Criminal Investigation, determined that Karauzum provided to a lab the ingredients for the manufacture of his Potion 9, including unlabeled containers of butanediol which Karauzum claimed to be a proprietary ingredient. Karauzum also provided labels for the packaging of Potion 9, which did not list butanediol as an ingredient.
Karauzum marketed Potion 9 as a “mood enhancer” that “may improve stamina and energy, promote a feeling of well-being, produce euphoria, [and] increase intensity of orgasms.”
The investigation revealed that Karauzum caused to have manufactured and made available for distribution nearly 13.5 million milliliters of the misbranded product Potion 9. The investigation also determined that Karauzum routinely transferred proceeds from the sale of Potion 9 sales in increments in excess of $10,000 from his business’ PayPal account into a personal bank account.
Karauzum’s sentencing is announced by United States Attorney Peter F. Neronha and Jeff Ebersole, Acting Special Agent in Charge of the Office of FDA Criminal Investigations’ New York Field Office.
United States Attorney Peter F. Neronha said, “The misbranding of drugs is an ongoing and increasing threat to public safety in general. Here, the defendant’s criminal conduct was particularly egregious. He misbranded not just any drug, but an incredibly dangerous one, one used to victimize unsuspecting innocent people, on an enormous scale. The lengthy prison sentence he has received is well-deserved.”
“The defendant’s actions exposed unsuspecting consumers to potentially serious danger. This investigation demonstrates the Office of Criminal Investigations’ commitment to vigorously pursue criminal violations that threaten the public health,” said Jeff Ebersole, Acting Special Agent in Charge of FDA’s Office of Criminal Investigations’ New York Field Office. “We thank our partners from the United States Attorney’s Office in the District of Rhode Island, the U.S. Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service for their efforts in this case.”
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Karauzum to serve three years supervised release upon completion of his prison term. Karauzum pleaded guilty on January 30, 2015 to one count of conspiracy to misbrand a product for human consumption and one count of money laundering.
The case was prosecuted by Assistant United States Attorneys Sandra R. Hebert and Richard B. Myrus.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Providence Landlord Pleads Guilty to Arson Related Charge in Arson-for-Profit SchemeRead the Press Release
PROVIDENCE, R.I. – Rony Metellus, 52, of Providence, pleaded guilty in federal court in Providence on Monday to setting fire on July 23, 2014, to an occupied three family tenement building he owned in an effort to benefit by the collection of insurance payments, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Providence Public Safety Commissioner Steven M. Paré and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Metellus pleaded guilty to one count of defrauding an insurance company – wire fraud.
According to information presented to the court, an investigation by the Providence Fire Department Arson Squad, the Providence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Rhode Island Attorney General’s Office, determined that an early morning fire on July 23, 2014 to an occupied three family tenement at 346 Admiral Street in Providence was intentionally set. The investigation determined that the building’s owner, Rony Metellus, intentionally set fire to the building in order to collect insurance payments.
At the time of the fire, three adults and three children were living in a first floor apartment. The second and third floors, including the apartment where the fire was intentionally set, were vacant. The building sustained significant damage.
At the time of his guilty plea, Metellus admitted to the court that he drove from his Providence home at approximately 3:30 in the morning on July 23, 2014, set fire to the Admiral Street building and quickly returned home as Providence fire apparatus were responding to the fire.
Surveillance videos reviewed by investigators captured Metellus leaving his home a mile away from his rental property, arriving and then departing eight minutes later from the vicinity of his property, and then returning to his home as Providence firefighters were responding to a reported fire at his Admiral Street property.
Metellus admitted to the court that he hired a public adjuster to represent him in filing an insurance claim for damages to the burned building. Records indicate a claim was filed with the insurer, Lloyd’s of London. The defendant’s claim was filed through a local insurance agency.
Metellus, who has been detained in federal custody since his arrest on August 8, 2014, is scheduled to be sentenced on November 3, 2015.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Milind M. Shah.
Two Plead Guilty to Operating Cranston, R.I., Meth LabRead the Press Release
PROVIDENCE, R.I. – Nicholas Selser, 33, and Michael Fortes, 48, of Cranston, R.I., have pleaded guilty in federal court to charges related to the manufacture of methamphetamine (meth) inside a residence at the D’Evan Manor housing complex in Cranston, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Michael Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
Selser and Fortes pleaded guilty as charged in a grand jury indictment returned in March 2015, to one count each of conspiracy, knowingly manufacturing methamphetamine, possession of pseudoephedrine with the intent to manufacture methamphetamine and possessing equipment to manufacture methamphetamine.
Fortes, who entered his guilty plea on Wednesday, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on October 9, 2015. Selser, who pleaded guilty on June 29, 2015, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 18, 2015.
According to court documents and information presented to the court, Cranston Police, the R.I. DEA Drug Task Force and a DEA Clandestine Laboratory Enforcement Team executed a court authorized search of the D’Evan Manor apartment on February 18, 2015, and seized various chemicals, supplies and items used in the manufacture of meth.
Evidence was seized which indicated that the defendants had manufactured meth inside the apartment of the densely populated complex approximately eleven times on prior occasions. The defendants admitted to the court that they used the “one pot” method to manufacture meth, a simple but potentially dangerous method of manufacturing meth in approximately one hour. The manufacture of methamphetamine is often times a dangerous process which may result in explosion or fire.
Selser and Fortes have been detained in federal custody since their arrest on February 18, 2015.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Glocester Resident Detained for Allegedly Manufacturing MethamphetamineRead the Press Release
PROVIDENCE, R.I. – Kevin Lewis, 40, of Glocester, R.I., was ordered detained in federal custody following an initial appearance in federal court in Providence today on charges of manufacturing and possessing methamphetamine (meth) with the intent to distribute, announced United States Attorney Peter F. Neronha, Glocester Police Chief Joseph S. Delprete and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
On Tuesday, a Glocester patrol officer stopped a vehicle being driven by Lewis, knowing that an active arrest warrant for Lewis had been issued by the Rhode Island Family Court. During the traffic stop, the officer saw on the back seat of the vehicle materials he recognized as items allegedly used in the production of meth. The officer also detected a strong odor of acetone, which is associated with the production of meth.
After placing Lewis in custody on the arrest warrant, police requsted of Lewis’ wife, who was a passenger in the vehicle, that she drive the vehicle to the Glocester Police Department while under police supervision. A subsequent search of Lewis’ vehicle by members of the Glocester Police Department, the R.I. DEA Drug Task Force and the DEA Clandestine Laboratory Tactical Team allegedly resulted in the discovery and seizure from the trunk of the vehicle a batch of meth in the process of being produced. They also seized three hydrochloric acid gas generators used in the production of meth, a completed one-pot meth cook and additional items used in the production of meth.
Glocester Police and members of the DEA Clandestine Laboratory Tactical Team also conducted a court authorized search of a vehicle parked behind Lewis’ Glocester residence where they allegedly discovered numerous items used in the manufacture of meth.
Lewis is charged by way of a federal criminal complaint with one count each of manufacturing methamphetamine and possession with intent to distribute methamphetamine. 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.
lewis_criminal_complaint_and_affidavit.pdf (285.15 KB)
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
New York Man Sentenced, 2nd Defendant Pleads Guilty in Counterfeit Credit Card SchemeRead the Press Release
PROVIDENCE, R.I. - Joshua Cutchin, 27, of Brooklyn, N.Y., has been sentenced to 18 months in federal prison for conspiracy to possess and for possessing more than 135 fraudulent credit cards, announced United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
At sentencing on July 23, U.S. District Court Chief Judge William E. Smith also ordered Cutchin to serve two years supervised release upon completion of his prison term and to pay restitution in the amount of $3,910.59. Cutchin pleaded guilty on April 17, 2015, to one count of conspiracy to possess counterfeit credit cards and one count of possession of counterfeit credit cards.
Jibri Eady, 22, of Brooklyn, N.Y., a co-conspirator in this matter, is scheduled to be sentenced on October 9, 2015. Eady pleaded guilty on July 23 to one count of conspiracy to possess counterfeit credit cards and one count of possession of counterfeit credit cards.
According to court documents and information presented to the court, on December 30, 2014, Jibri Eady and Joshua Cutchin were traveling north on Route 95 when their vehicle was stopped by Rhode Island State Police troopers for speeding. The operator of the vehicle, Jibri Eady, was found to have a suspended New York driver’s license and was taken into custody. Cutchin was also detained.
During searches of the vehicle by Rhode Island State Police and the United States Secret Service, 139 counterfeit credits cards and a sheet of counterfeit hologram stickers of MasterCard world symbols resembling the MasterCard world symbols on the back of counterfeit MasterCards were seized.
The investigation by the Rhode Island State Police Financial Crimes Unit and the United States Secret Service determined that several purchases were made using fraudulent cards similar to those seized drawn from at least six different financial institutions.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Heroin Trafficker Sentenced to More Than 7 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Efrain Arroyo Melendez, aka Frank Feliz Baez, 49, of the Allston section of Boston, Mass., has been sentenced to 87 months in federal prison for trafficking heroin into Providence, R.I., announced United States Attorney Peter F. Neronha and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
At sentencing on July 22, 2015, U.S. District Court Judge Mary M. Lisi also ordered Melendez to serve 5 years supervised release upon completion of his prison sentence. Melendez pleaded guilty on March 2, 2015, to one count of conspiracy to distribute and to possess with the intent to distribute heroin, and one count of possession and attempt to possess with the intent to distribute heroin.
According to court records and information presented to the court, on January 27, 2014, as a result of a DEA investigation into the alleged trafficking of heroin into Providence, DEA agents, with the assistance of Rhode Island State Police, intercepted a piece of luggage at the Amtrak Station inside of which they discovered approximately 2.3 kilograms of heroin.
After taking the woman who was carrying the luggage, Amalia Martin, 39, of Providence, into custody, agents learned that the package of heroin was to be delivered to Melendez. The next day DEA agents arranged to deliver a package purporting to contain the heroin to Melendez. Melendez was arrested after taking custody of the package from a DEA undercover agent.
Martin, who pleaded guilty on December 18, 2014, to one count of conspiracy to distribute and to possess with the intent to distribute heroin, and one count of possession and attempt to possess with the intent to distribute heroin is scheduled to be sentenced on September 15, 2015.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
Officers assigned to the Rhode Island DEA Drug Task Force assisted in the investigation.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Crack Cocaine Trafficker Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Kendall Ferrara, 33, of Providence, was sentenced today to three years in federal prison for trafficking crack cocaine in and around Providence, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Ferrara to serve three years of supervised release upon completion of his prison term. Ferrara pleaded guilty on April 6, 2015, to one count of distribution of crack cocaine.
According to court documents and information presented to the court, an undercover FBI Safe Streets Violent Gang Task Force investigation in the fall of 2014 into drug trafficking activities in and around Providence included five purchases of crack cocaine in varying amounts from Ferrara. The purchases were made between October 10 and November 21, 2014. The purchases totaled nearly 59 grams of crack cocaine.
Ferrara was arrested by members of the FBI Safe Streets Task Force on February 23, 2015.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
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, Johnston and Central Falls Police Departments and the RI Adult Corrections Institutions.
Contact:
Jim Martin
(401) 709-5357
on Twitter @USAO_RI
Veterans’ Cemetery Worker to Plead Guilty to Stealing GravestonesRead the Press Release
PROVIDENCE, R.I. – Kevin Maynard, 59, of Charlestown, R.I., an employee at the Rhode Island Veteran’s Memorial Cemetery in Exeter, R.I., has agreed to plead guilty in federal court to stealing granite gravestones and other items from the Veterans’ Memorial Cemetery for use at his home as garage and shed flooring, announced United States Attorney Peter F. Neronha; Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General (VA OIG), Northeast Field Office; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to court documents, it is alleged that over a lengthy period of time Maynard removed worn or broken grave markers from the cemetery and brought them to his Charlestown residence. On April 23, 2015, a VA-OIG agent and Rhode Island State Police detective accompanied Maynard to his home where investigators discovered at least 150 veterans’ grave markers being used as flooring for a shed and two make-shift garages. Investigators also located additional markers on the property and a box of American flags allegedly stolen from the Veterans' Cemetery.
According to Government regulations, all Government-furnished headstones/markers/ medallions remain the property of the United States Government in perpetuity and that the “destruction, mutilation, defacement, injury, or removal of any monument, gravestone, or other structure within the limits of any national cemetery is prohibited.”
According to court documents, Maynard will plead guilty as charged by way of an information with theft of government property. Maynard is scheduled to be arraigned before U.S. District Court Magistrate Judge Patricia A. Sullivan on July 13, 2015.
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 case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Three Plead Guilty to Trafficking Heroin from Mill & Stash HouseRead the Press Release
PROVIDENCE, R.I. – Michael Santana Guilermo, 33, of Cranston, R.I., Carlos Ramos Rosa, 37, and Felix Fuentes Perez, 35, of Boston, Mass., pleaded guilty in federal court in Providence today to operating a heroin mill & stash house in West Warwick, R.I., where they cut and packaged for sale large quantities of high-purity heroin.
Appearing before U.S. District Court Judge Mary M. Lisi, the three men pleaded guilty to conspiring to distribute and possess with the intent to distribute one kilogram or more of heroin.
The guilty pleas are announced by United States Attorney Peter F. Neronha, Michael Ferguson, Special Agent in Charge of the DEA’s New England Field Division, Cranston Police Chief Colonel Michael J. Winquist and West Warwick Police Chief Colonel Richard G. Silva.
A fourth individual, Yhoel Pujols Morel, 25, of Providence, an alleged member of the heroin trafficking conspiracy, is detained in federal custody and awaiting trial.
According to court documents and information presented to the court, an investigation by the Rhode Island DEA Drug Task Force determined that during 2014, packages containing one or more kilograms of heroin were repeatedly shipped into Rhode Island via common carrier parcel delivery services. After receipt of the heroin, members of a drug trafficking conspiracy processed the high-purity heroin for further distribution, by breaking apart the kilograms, mixing in adulterants and then repackaging the heroin for redistribution.
Based on information developed by members of the Drug Task Force, law enforcement determined that a conspiracy to process, package and distribute the heroin was being operated out of a heroin mill & stash house in West Warwick. As a result of evidence developed during the investigation, including the use of electronic surveillance, on November 10, 2014, shortly after Yhoel Pujols Morel allegedly exited the stash house carrying a white bag and drove away from the area, a member of the Cranston Police Department working with the Drug Task Force conducted a traffic stop of the Pujols’ vehicle. A subsequent search of the vehicle revealed a non-factory installed concealed compartment within the driver's side door of the vehicle which allegedly contained approximately 653 grams of heroin.
The following day, Felix Fuentes Perez and Carlos Ramos Rosa exited the West Warwick residence and entered one vehicle while Michael Santana Guilermo exited the residence and entered a second vehicle. Shortly after driving away from the residence, a Cranston Police officer working with the Drug Task Force conducted a motor vehicle stop of Perez and Rosa’s vehicle. A search of the vehicle yielded 1,111.4 grams of heroin concealed inside a hidden compartment under the rear seat.
Guilermo was arrested on March 4, 2015, by DEA and DEA Drug Task Force agents.
Carlos Ramos Rosa and Michael Santana Guilermo are scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on September 18, 2015. Felix Fuentes Perez is scheduled to be sentenced on October 1, 2015.
Conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin is punishable by statutory penalties of between 10 years to life imprisonment to be followed by between 5 years to lifetime supervised release, and a fine of up to $10,000,000.
The cases are being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The DEA Drug Task Force is comprised of law enforcement agents and officers from DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
Pawtucket Police detectives assisted in the investigation of this matter.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Bristol Resident Sentenced to 5 Years in Federal Prison for Possession and Distribution of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Mathew S. Antignano, 32, of Bristol, was sentenced today to 5 years in federal prison for possessing and distributing child pornography, 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 Antignano to serve 3 years supervised release upon completion of his prison term. Antignano pleaded guilty on April 10, 2015, to one count each of possession of child pornography and distribution of child pornography.
According to information presented to the court at the time of Antignano’s guilty plea, in July 2014, a member of the Rhode Island Internet Crimes Against Children (ICAC) Task Force detected an IP address being used to share numerous files of child pornography. Investigators quickly determined that the account holder and address of the IP holder belonged to Mathew Antignano.
On July 23, 2014, detectives assigned to the ICAC Task Force executed a court authorized search warrant at Antignano’s residence and seized a computer and other digital media which contained images of child pornography. Antignano was arrested a short time later at his place of employment.
A forensic examination of the computer and digital media resulted in the discovery of approximately 7,750 images and 180 video depicting child pornography primarily involving prepubescent males and females engaged in sexual acts with adults.
Antignano has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Homeland Security Investigations assisted the Rhode Island Internet Crimes Against Children Task Force in the investigation of this matter.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Financial Customer Service Specialist to Plead Guilty to Bilking Sisters’ Estate of $1.2 Million DollarsRead the Press Release
PROVIDENCE, R.I. – A former financial customer service specialist for Columbia Management Investment Services (CMIS), a subsidiary of Ameriprise Financial, is expected to plead guilty in federal court in Providence to defrauding the estate of two deceased sisters from Galway, Ireland of more than $1.2 million dollars, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the United States Secret Service.
Ronald Hunt, 44, of Collinsville, Ill., formerly of Bristol, R.I., has been charged by way of an information with one count of wire fraud. A plea agreement in this matter was filed today in U.S. District Court in Providence.
According to court documents, it is alleged that in March 2013, Hunt, while working at a CMIS call center in Providence, used his position to research deceased clients who had unredeemed Ameriprise Financial accounts and no listed beneficiaries. During his research, it is alleged that Hunt identified two such accounts belonging to deceased sisters in Galway, Ireland.
Court documents allege that in May 2013, Hunt established a fictitious business bank account at a Rhode Island bank branch office under the name “Celtic Savings,” located in Bristol, R.I. It is further alleged that two days later, Hunt applied for a mutual fund account, also under the name “Celtic Savings.”
It is alleged that on May 19, 2013, Hunt submitted redemption paperwork for the two sisters’ CMIS accounts, using the alias “Sean Kane” as the fictitious executor for both accounts. It is alleged that on May 20, 2013, using the fictitious “Sean Kane” alias, Hunt transferred $769,242.24 from one sister’s account and $459,531.91 from the second sister’s account into a CMIS account he created. Two days later he transferred the entire amount, $1,228,774.15, to the fictitious business account he created in Rhode Island.
On May 23, 2013 and again on August 29, 2013, Hunt withdrew a total of $750,000.00 from his “Celtic Savings” business account.
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. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment and a fine of up to $250,000.
The case against Ronald Hunt is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the United States Secret Service, with the assistance of the Securities and Exchange Commission, Division of Enforcement.
Criminal Information and Plea Agreement (4.97 MB)
Cranston, Warwick Police Investigation Leads to Federal Drug Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Dennis Bernard, 29, of Cranston, arrested by Cranston and Warwick Police on Thursday on federal drug trafficking charges, was ordered to home confinement with GPS monitoring following an initial appearance today in U.S. District Court in Providence, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Warwick Police Chief Colonel Stephen M. McCartney.
Bernard is charged by way of a federal criminal complaint with one count each of possession with the intent to distribute 28 grams or more of crack cocaine, possession with the intent to distribute heroin, and distribution of crack cocaine.
According to an affidavit in support of a criminal complaint filed with the court, during the month of June, members of the Cranston Police Special Investigations Unit and the Warwick Police Special Operations Group worked collaboratively to investigate Bernard’s alleged drug trafficking activities in Cranston and Warwick. During the investigation, a Warwick undercover detective allegedly made at least four purchases of crack cocaine.
On Thursday, one day after the alleged fourth purchase, law enforcement executed a court authorized search warrant at Bernard’s Cranston residence where they located and seized nearly 45 grams of crack cocaine and nearly 21 grams of heroin stashed inside a backpack found hidden in bedroom closet, and $5,000 in cash found concealed inside a panel in a bathroom. Additionally, law enforcement seized $1,251 in cash and 2.4 grams of crack cocaine located in the kitchen, and various items used in the packaging and distribution of drugs.
Law enforcement also seized a BMW automobile, a Rolex watch and other assorted jewelry which the investigation revealed were allegedly purchased by Bernard with proceeds allegedly derived from the sale of crack cocaine and heroin.
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. Attorneys Pamela E. Chin and Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force assisted Cranston and Warwick Police in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact:
Jim Martin
(401) 709-5357
Email: [email protected]
on Twitter @USAO_RI
Former Rhode Island House Speaker & Providence Licensing Board Vice-Chairman Gordon Fox to Plead Guilty in Federal Court to Wire Fraud, Bribery and Tax EvasionRead the Press Release
PROVIDENCE, R.I. – Former Rhode Island House Speaker Gordon D. Fox, 53, of East Providence, has waived federal indictment and is expected to plead guilty in federal court to a three-count Information charging him with wire fraud, bribery and filing a false tax return. The charges stem from former Speaker Fox’s theft of $108,000 donated by campaign supporters to pay for personal expenses; his acceptance of a $52,000 bribe to advocate and move for issuance of a liquor license for an East Side restaurant while serving as Vice-Chairman of the City of Providence Board of Licenses in 2008; and his failure to account for these illegal sources of income on his tax returns.
An 18-month federal grand jury investigation led by prosecutors from the United States Attorney’s Office and the Rhode Island Attorney General’s Office, the FBI, IRS and Rhode Island State Police, included the execution of court authorized search warrants at the former speaker’s home and State House office in March of 2014; the issuance of more than 200 subpoenas; the examination of more than 36,000 bank, government, personal and campaign records belonging to former Speaker Fox; and forensic examinations of several computers and other electronic devices.
United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, FBI Special Agent in Charge Vincent B. Lisi, IRS Criminal Investigation Special Agent in Charge William P. Offord, and Rhode Island State Police Superintendent Colonel Steven G. O’Donnell today announced the conclusion of the investigation and the filing of the Information, together with a Plea Agreement which, if accepted by the District Court, will result in Former Speaker Fox being sentenced to three years in federal prison.
United States Attorney Peter F. Neronha commented, “When the search warrants in this case were executed nearly a year ago, there was talk about the State House being ‘the People’s House.’ I agree completely. The People’s House should be occupied by elected officials who hold office to serve the people, not themselves. As federal and state prosecutors, and federal and state law enforcement officials, we represent the people of the United States and the people of Rhode Island. And we will go anywhere – anywhere – we can lawfully go to obtain the evidence we need to protect their interests.”
“Last year, as the federal case began against Speaker Fox, I pledged to U.S. Attorney Neronha, the support and resources of the Department of Attorney General should they become necessary. During the investigation, when the evidence of the bribery was discovered, the State possessed the prosecutorial tools necessary to move forward with this charge. It was that need and the state’s ability to move forward which helped secure a just resolution today,” said Attorney General Peter F. Kilmartin. “The close working relationship between the Department of Attorney General and the United States Attorney’s Office allows both offices to leverage state and federal resources to bring those who violate our laws – and the public’s trust – to justice. Hopefully, the state and its citizens can now move on from this case. I wish to commend and thank Assistant Attorney General Patrick Youngs for his effort in this case.”
Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division, added, “The citizens of Rhode Island put a lot of trust in their elected officials and once again another elected official has betrayed that trust by using his position to line his own pockets. Mr. Fox will now pay the price for his decision to put his personal greed before his duty to those he was supposed to serve.”
“Gordon Fox accepted a bribe, diverted campaign and PAC funds for his personal use, and omitted this illegal income from his federal income tax returns,” stated William Offord, Special Agent in Charge of IRS Criminal Investigation. “No public official gets a free pass to ignore the tax laws, and IRS Criminal Investigation works to ensure that everyone pays their fair share”.
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, “I commend the United States Attorney and the Attorney General and their prosecutors, agents from the FBI, IRS, and our State Police for their unwavering commitment to justice. Corruption impacts every aspect of our free society, and we stand committed to ferret out and to prosecute those who prey on the public’s trust.”
According to court documents filed in this matter, from February 2008 until March of 2014, just before the execution of federal search warrants at his State House office and home, former Speaker Fox repeatedly used money received from campaign donors to pay for personal expenses. After transferring the money from his campaign accounts to his personal accounts, former Speaker Fox used the money - $108,000 in all - to pay the mortgage on his home, the loan payments on his car, and the balance on his personal American Express card, which he used to make purchases at various retail outlets. To conceal this fraudulent conduct, former Speaker Fox falsified his mandatory Rhode Island Board of Elections filings. According to documents filed in court, at the conclusion of 2013, his filing claimed a balance in the Friends of Fox campaign account of $212,060.66, when in fact the balance in the account was $52,403.02.
According to court documents, in the course of the investigation into former Speaker Fox’s fraudulent diversion of campaign funds for his personal use, prosecutors and investigators discovered that, in 2008, former Speaker Fox accepted a $52,000 bribe while serving as an appointed member and Vice-Chairman of the City Providence Board of Licenses. As alleged in court documents, in 2008, the Shark Sushi Bar and Grill, a new restaurant on Thayer Street in Providence, applied for a liquor license from the Providence Board of Licenses. There was considerable neighborhood opposition to the application. As alleged, in the face of that opposition, Shark Bar partners met with then Vice-Chairman Fox. As a result of this meeting, Vice-Chairman Fox agreed to accept a bribe from the partners in exchange for supporting the Shark Bar application before the Board.
According to court documents, at a Board of Licenses hearing on August 13, 2008, two Shark Bar partners testified in favor of the application, and members of the public voiced their opposition. The Board took the application under advisement. At a subsequent Board hearing on August 29, 2008, Vice-Chairman Fox, pursuant to his agreement with the Shark Bar partners, spoke in detail regarding why the license should be awarded, and moved the Board to approve the Shark Bar’s application. The Board voted to approve the Shark Bar’s application.
The investigation revealed that within a week following the Board’s vote to approve the license application, two Shark Bar partners delivered $32,000 in cash and checks to then Vice-Chairman Fox. A third, silent Shark Bar partner delivered an additional $17,500 to Fox through one of the other Shark Bar partners. In all, Vice-Chairman Fox accepted a $52,000 bribe in exchange for his official action as Vice-Chairman of the Providence Board of Licenses on behalf of the Shark Bar.
Additionally, according to court documents, the investigation determined that for the tax years 2008 through 2012, former Speaker Fox filed false tax returns, in that he knowingly omitted from his statement of total income for each of those calendar years the personal income he received as a result of his receipt of the bribe in 2008 and his fraudulent transfers from his campaign accounts to his personal accounts.
The case is being jointly prosecuted in federal court by Assistant U.S. Attorneys Dulce Donovan and Adi Goldstein, and Rhode Island Assistant Attorney General J. Patrick Youngs.
Gordon Fox is scheduled to appear before U.S. District Court Judge Mary M. Lisi at 12:00 p.m. today for arraignment on the three-count Information and for a change-of-plea hearing.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Wyatt Detention Center Correctional Officer Sentenced for Accepting Payment to Deliver Contraband to an InmateRead the Press Release
PROVIDENCE, R.I. – Scott William Allen Denton, 32, of Warwick, a former correctional officer and employee at the Wyatt Detention Center in Central Falls, R.I., was sentenced in U.S. District Court in Providence on Thursday by U.S. District Court Judge John J. McConnell, Jr., to three years probation and ordered to perform 300 hours of community service for accepting $500 in cash payments to deliver contraband to an inmate.
Denton pleaded guilty on March 6, 2015, to one count of bribery by a public official. Denton has resigned from his position at the Wyatt Detention Center.
Denton’s sentence is announced by United States Attorney Peter F. Neronha and Department of Justice Office of the Inspector General Special Agent in Charge Ronald G. Gardella, New York Field Office.
At the time of his guilty plea, Denton admitted to the court that he agreed to accept $500 in cash payments from an inmate’s family to deliver pills and pornography to the inmate. Denton admitted that he delivered the contraband after the inmate’s wife made a $200 cash deposit into his bank account on March 7, 2013, and a $300 cash deposit on May 17, 2013.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the Department of Justice Office of Inspector General.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Westerly Bank Robber Sentenced to Nearly Six Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Lawrence M. Sullivan, 36, of Pawcatuck, Conn., was sentenced in U.S. District Court in Providence on Thursday to 70 months in federal prison for robbing a branch office of the Washington Trust Company in Westerly, R.I., on September 15, 2014, announced United States Attorney Peter F. Neronha and Westerly Police Chief Edward W. St. Clair.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sullivan to serve three years supervised release upon completion of his prison term. Sullivan pleaded guilty on March 2, 2015, to one count of bank robbery.
At the time of his guilty plea, Sullivan admitted to the court that on September 15, 2014, he approached a teller at a Washington Trust Company branch office located inside a supermarket in Westerly and demanded cash. According to the teller, Sullivan threatened to “start shooting” if his demands were not met. The teller gave Sullivan $1,049.
On September 16, 2014, acting on information provided by Westerly Police Department detectives, Groton, Conn., police located and arrested Sullivan at a motel in Groton. Sullivan was discovered hiding inside a storage closet at the motel.
According to court records, at the time of his arrest, Sullivan was serving a term of 3 years federal supervised release, having recently completed serving a 63-month federal prison sentence imposed in February 2010 for robbing two banks in Connecticut and one in Maine, in 2008 and 2009. He pleaded guilty in U.S. District Court in New Haven in December 2009 to two counts of bank robbery.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The FBI and the Groton, Conn., Police Department assisted the Westerly Police Department in the investigation of this matter.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Rhode Island Businessman Pleads Guilty to Aggravated Identity Theft, Tax Charges in $3.5 Million Tax Refund ScamRead the Press Release
PROVIDENCE, R.I. – Anthony Delfarno, 53, of East Greenwich, R.I., pleaded guilty in U.S. District Court in Providence today to using personal identifying information of his children and other family members, a girlfriend, and from more than a dozen corporations that he created in order to file fraudulent tax returns seeking more than $3.5 million dollars in tax refunds.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Delfarno admitted that for four years he repeatedly made false representations on personal and business tax documents he filed with the IRS seeking $3.5 million in tax refunds, and that he collected more than $1.4 million dollars to which he was not entitled.
Delfarno’s guilty plea to eleven counts of mail fraud, twenty-eight counts of theft of government funds and three counts of aggravated identity theft is announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
According to court documents and information presented to the court, Delfarno filed twenty-five false individual income tax returns for tax years 2008 through 2011 in his own name, the names of several family members, including five of his children, and in the name of a girlfriend, claiming fraudulent refunds totaling $1.1 million dollars. Delfarno signed the returns either electronically or manually. Approximately $400,000 was paid to the defendant.
Additionally, Mr. Delfarno filed thirty false corporation income tax returns, for which he claimed refunds of $2.4 million dollars. $1 million dollars was paid to the defendant. The corporations were formed by Delfarno in order to execute the scheme.
Wire fraud is punishable by statutory penalties of up to 20 years in federal prison and a fine of up to $250,000; false claims against the United States is punishable by a statutory penalty of up to 5 years in federal prison and a fine of up to $250,000; and aggravated identity theft is punishable by a statutory penalty of a mandatory sentence of two years in federal prison, to be served consecutive to all other penalties imposed.
Delfarno, who has been released with GPS monitoring since his arrest and arraignment on December 18, 2014, is scheduled to be sentenced on September 16, 2015.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by IRS Criminal Investigation and the Rhode Island State Police.
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.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Woonsocket Man Sentenced to 13 ½ Years in Prison in Armed Drug-Rip and AssaultRead the Press Release
PROVIDENCE, R.I. – Tyronne Seams, 29, of Woonsocket, was sentenced on Friday to 161 months in federal prison for his role in a September 2013 armed robbery and drug-rip at a Woonsocket residence, during which time he and an accomplice opened fire at the occupants of the residence, announced United States Attorney Peter F. Neronha and Woonsocket Police Chief Thomas S. Carey.
The pair made off with a bag of cocaine and a firearm they stole from one of the occupants.
At sentencing, U.S. District Court Judge William E. Smith also ordered Seams to serve 3 years supervised release upon completion of his prison term. Seams pleaded guilty on March 24, 2015, as charged in a three-count indictment, to one count each of conspiracy, Hobbs Act robbery and discharging a firearm in furtherance of a crime of violence.
At the time of his guilty plea, Seams admitted to the court that on September 12, 2013, he and David Bunnell, 22, of Franklin, Mass., conspired to rob and steal drugs from a Woonsocket residence. The next day, armed with a handgun and a double-barrel shotgun, he and Bunnell broke into the intended apartment.
Once inside the apartment, Seams admitted that he and Bunnell fired their weapons at or near the occupants of the apartment. Seams admitted that after subduing the occupants, he grabbed a gun from one of the occupants, assaulted one person and demanded to know where drugs could be found. Seams admitted that he located and took a bag containing cocaine and then fled with the drugs and the gun taken away from one of the residents.
Bunnell, who has been detained along with Seams since their arrest by Woonsocket Police on October 19, 2013, pleaded guilty on October 20, 2014, to one count each of conspiracy, Hobbs Act robbery and discharging a firearm in furtherance of a crime of violence. He is awaiting sentencing.
The cases are being prosecuted by Assistant U.S. Attorney Milind M. Shah.
Woonsocket Police Department officers and detectives were assisted in the investigation of this matter by agents and officers from ATF, the DEA Drug Task Force, Rhode Island State Police, North Smithfield Police and the Franklin and Blackstone, Mass., Police Departments.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]30 Alleged Gang Members & Associates Charged InRead the Press Release
Latest RI Urban Violent Crime Initiative Investigation
PROVIDENCE, R.I. –For the second time in four months, the collaborative efforts of the Rhode Island Urban Violent Crime Initiative, a wide-ranging collaboration of local, state and federal law enforcement and federal and state prosecutors who are targeting violent crime and violent criminals in urban neighborhoods of Rhode Island, has resulted in state and federal criminal charges being brought against numerous individuals.
In February, it was announced that a year-long series of undercover investigations initiated by the Providence Police Department and the DEA, with substantial assistance from local, state and federal law enforcement, and state and federal prosecutors, was targeting the distribution of heroin and crack cocaine and the importation of firearms onto the streets of Providence. At the time, the Rhode Island Urban Violent Crime Initiative resulted in the arrests of more than 35 individuals and the seizure of at least 15 firearms.
Building on a series of ongoing investigations which began in September 2013 and bolstered by law enforcement and prosecutors participating in the Violent Crime Initiative, an FBI Safe Streets Gang Task Force and Providence Police Department investigation, with substantial assistance of the Urban Violent Crime Initiative Task Force, more than two-dozen gang members and associates who are allegedly trafficking cocaine and heroin in Providence and surrounding communities have been charged in federal or state court.
Within the past five days, 14 individuals have been indicted by a Providence Country grand jury on state drug trafficking charges and 11 individuals have been charged by way of indictment of criminal complaint in federal court with trafficking heroin and cocaine. The federal indictments were for delivery of heroin in excess of 100 grams and conspiracy. The state indictments were for delivery of heroin, cocaine, and conspiracy. There are several remaining suspects that have warrants issued for their arrest. Five additional gang members were arrested on state firearm charges during this investigation. Two subjects were also additionally charged with armed robbery with a firearm. Most of the individuals charged have been identified as members or associates of gangs in and around the South Side of Providence.
"Today- once again- we are proving that when all levels of government and public safety join together to target violent offenders we see substantial results," said Mayor Jorge O. Elorza. "Addressing drug distribution and gang violence is a very high priority for me, and we will continue working with our partners to stop this kind of violent criminal behavior."
“This is another example of federal state and local law enforcement providing a direct focus on specific criminals who chose to cause violence, distribute drugs and create fear in the City of Providence. This also is a warning to those who wish to engage in drug dealing and violence, this team will be targeting you next,” said Commissioner Steven M. Paré
“This investigation initiated by the Providence Police Department, strikes at the very core of drug, gang, and gun violence in the City of Providence. It also signifies what can be accomplished by coordinated, interagency efforts to take down violent gang activity. This was another excellent investigation by all involved,” said Colonel Hugh T. Clements, Jr.“Gang members who try to fill the vacuum left by these arrests should know we will come after them too. Nobody should have to live in the midst of these drug dealing, violent criminals and the FBI hopes this well-coordinated effort will help bring peace to the streets of Providence and its surrounding communities,” said Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division.
At a news conference announcing the latest round of arrests, United States Peter F. Neronha said, "The arrests we announce today, and those we announced last February, are tied together by one over-arching principle: that if we want to be smart about reducing crime, we have to shape our investigative and prosecutorial efforts in such a way as to have the most impact. We have to identify those who by their use of violence are keeping those who simply want to work and go to school effectively locked in their homes, and we have to build cases against them before they can do catastrophic harm. "
Mr. Neronha added, "Virtually every one of the charged individuals we are talking about today is a gang member or a gang associate. They are ready to use violence to achieve their aims, the aims, and however trivial. That is their creed."
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former House Speaker Gordon Fox Sentenced to 3 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Former Rhode Island House Speaker and former Vice-Chairman of the City of Providence Board of Licenses Gordon D. Fox, 53, of East Providence, was sentenced today to 3 years in federal prison for stealing $108,000 donated by campaign supporters to pay for personal expenses; his acceptance of a $52,000 bribe to advocate and move for issuance of a liquor license for an East Side restaurant while serving as Vice-Chairman of the City of Providence Board of Licenses in 2008; and his failure to account for these illegal sources of income on his tax returns.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Fox to serve two years supervised release upon completion of his prison term, and to pay $109,000 in restitution. Fox pleaded guilty on March 3, 2015, to wire fraud, bribery and filing a false tax return.
Fox has been ordered to self-surrender to begin serving his prison sentence by July 7, 2015.
An 18-month federal grand jury investigation led by prosecutors from the United States Attorney’s Office and the Rhode Island Attorney General’s Office, and investigators from the FBI, IRS and Rhode Island State Police, included the execution of court authorized search warrants at the former speaker’s home and State House office in March of 2014; the issuance of more than 200 subpoenas; the examination of more than 36,000 bank, government, personal, and campaign records belonging to former Speaker Fox; and forensic examinations of numerous computers and other electronic devices.
United States Attorney Peter F. Neronha commented, "It is a great irony that the man in Rhode Island once most responsible for securing the passage of laws somewhere along the way decided he no longer needed to follow them. And the laws former Speaker Fox chose not to follow were not just any laws, but rather laws designed to ensure the integrity of the legal and political process. In short, he violated his oath to the people of Rhode Island. He promised to do their business, not his own. His failure to keep that promise has brought him down today, and deservedly so.
“I want to thank the FBI and IRS Special Agents, Rhode Island State Police Detectives, and the federal and state prosecutors, whose outstanding work has secured justice and ensured that Rhode Island can chart a new path forward. Hopefully, Rhode Island can take advantage of it."
Attorney General Peter F. Kilmartin said, “From day one, I pledged the resources of my office, and when the allegations surrounding the acceptance of a bribe by Gordon Fox arose, and it was recognized that the federal statute of limitations for that offense had expired, this office made a commitment to the United States Attorney to proceed with the prosecution of that charge in state court if necessary. The State, working jointly with the United States Attorney, was ready to prosecute the bribery charge had this case not been resolved in Federal Court, and this case now stands as a testament to the commitment of both offices to aggressively prosecute corrupt public officials.”
Attorney General Kilmartin further stated, “Gordon Fox is not the first public official that our two offices have jointly prosecuted. While we can all hope it’s the last time we prosecute a public official, unfortunately history has taught us that it will happen again. But, let this serve as a warning to all public officials in this state, whether they are the Speaker of the House or a local board member - if you break the law, violate the trust the voters put in you, and abuse your office, you will be held accountable. You can be assured, as can the public, that we stand together, as federal and state prosecutors, with a single purpose, and will continue to work with our prosecutorial and law enforcement partners to ensure justice prevails.”
At the time of his guilty plea, Fox admitted to the Court that from February 2008 until March of 2014, just prior to the execution of federal search warrants at his State House office and home, he repeatedly used money received from campaign donors to pay for personal expenses. After transferring the money from his campaign accounts to his personal accounts, former Speaker Fox used the money - $108,000 in all - to pay the mortgage on his home, the loan payments on his car, and the balance on his personal American Express card, which he used to make purchases at various retail outlets. Fox admitted that in order to conceal his fraudulent conduct, he falsified his mandatory Rhode Island Board of Elections filings.
Additionally, Fox admitted to the Court that in 2008, while serving as an appointed member and Vice-Chairman of the City of Providence Board of Licenses, he accepted a $52,000 bribe from the owners of Shark Sushi Bar and Grill to help secure a liquor license for the establishment. At the time, there was considerable neighborhood opposition to the application. At a hearing in August 2008, Vice-Chairman Fox, pursuant to his agreement with the Shark Bar partners, spoke in detail regarding why the license should be awarded, and moved the Board to approve the Shark Bar’s application. The Board voted to approve the Shark Bar’s application.
Additionally, Fox admitted to the Court that for the tax years 2008 through 2012, he filed false tax returns, in that he knowingly omitted personal income he received as a result of his receipt of the bribe in 2008 and his fraudulent transfers from his campaign accounts to his personal accounts.
Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division said, “Gordon Fox accepted a bribe, used campaign donations for his own personal use and lied on his tax return. The FBI will continue to go after corrupt individuals like him who abuse their elected office and betray the public’s trust.”
“Public servants are entrusted by all of us to act in the best interests of the citizens they serve,” said Special Agent William Offord, IRS Criminal Investigation. “Gordon Fox betrayed the public’s trust and his sentencing today sends a clear message - corruption at all levels of government will not be tolerated. IRS-CI will continue to lend our financial expertise to these important prosecutions.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, "I commend all the Troopers, Detectives, FBI and IRS agents as well as the prosecutors from the US Attorney's office and Attorney General's office for their dedication and commitment to justice".
The case was jointly prosecuted by Assistant U.S. Attorneys Dulce Donovan and Adi Goldstein, and Rhode Island Assistant Attorney General J. Patrick Youngs.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
United States Attorney’s Office
Jim Martin
(401) 709-5357Rhode Island Attorney General’s Office
Amy Kempe
(401) 274-440 ext. 2234###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Providence Felon Sentenced to Federal Prison on Firearm Charge, Violating Supervised ReleaseRead the Press Release
PROVIDENCE, R.I. – Sarunn N. Phan, 28, of Providence, was sentenced today to 45 months in federal prison for being a felon in possession of a firearm and for violating the terms of federal supervised release on a previous conviction on a federal firearm charge, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge Mary M. Lisi sentenced Phan to 30 months imprisonment to be followed by 3 years supervised release for being a felon in possession of a firearm; and a consecutive sentence of 15 months in prison for violating the terms of federal supervised release on a previous federal firearm conviction. In June 2009, Phan was sentenced to 24 months in federal prison to be followed by 3 years supervised release for being a felon in possession of a firearm.
Phan will begin serving his federal sentence after completing a two-year sentence that he is currently serving at the Rhode Island Department of Corrections for violating the terms of his state probation on a 2006 conviction for receiving stolen property over $1,500.
According to information presented to the court, late in the evening of April 9, 2014, Providence Police responded to shots fired in the vicinity of Oakland and Dickens Street. Responding officers found eleven .9mm shell casings on the ground and noticed a Jeep Grand Cherokee in the vicinity. About an hour later, officers observed the same vehicle at Douglas Avenue and Eaton Street. The officers affected a traffic stop after observing a traffic violation.
While pulling in behind the vehicle, officers observed an individual in a rear passenger seat toss a large black box into the rear cargo area. Upon arriving at the vehicle, the officers observed an open box with a firearm inside in the rear cargo area. Upon further inspection, officers discovered a .9mm handgun with an empty magazine. They also located a black plastic bag with ten .380mm rounds and a Glock 40 caliber magazine with 8 rounds of ammunition.
According to information presented to the court, Phan admitted to the police that the weapon was his, and he told officers, “It was self-defense.” Phan claimed to police that he had been shot at earlier in the evening.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Providence Resident Sentenced to Federal Prison in Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Juan C. Maldonado, 31, of Providence, was sentenced on Friday, June 5, 2015, to 36 months in federal prison for participating in a conspiracy to trafficking cocaine, announced United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Maldonado to serve three years supervised release upon completion of his prison term. Maldonado pleaded guilty on March 13, 2015, as charged in a federal indictment, to one count of conspiracy to distribute and possess with the intent to distribute cocaine, and one count of attempting to possess with the intent to distribute cocaine.
According to information presented to the court, on July 2, 2014, during an inbound inspection from the U.S. Virgin Islands, Customs and Border Protection agents in Puerto Rico discovered two packages which contained safes, each with 4 kilograms of cocaine inside, addressed to recipients in Providence. One was addressed to a house where the defendant, his girlfriend and his brother, Elix Javier, 24, were living. The second package was addressed to a residence where the defendant’s mother, sister and others were living.
On July 7, 2014, an undercover postal inspector delivered the first package to the address where Juan Maldonado was living. The postal inspector was greeted at the door by Mr. Maldonado, who called out for his brother who then signed for and accepted the package. Approximately twenty minutes later, Mr. Maldonado and another individual exited the house. Agents seized a black bag Maldonado was carrying. Inside the bag was the package containing the safe and cocaine delivered by the undercover postal inspector.
Following Maldonado’s arrest, a court authorized search of his residence resulted in the seizure of a shoebox with two digital scales, approximately 80 gross grams of ground up acetaminophen or Tylenol, baggies, and other cutting agents used in the packaging and sale of narcotics.
As agents entered the residence, Elix Javier fled through a back door. He remained a fugitive until his arrest on July 24, 2014, in Lynn, Massachusetts. Elix Javier was acquitted at trial by a jury on March 26, 2015, of one count of conspiracy to distribute and possess with the intent to distribute cocaine and one count of aiding and abetting.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by Homeland Security Investigations with the assistance of U.S. Postal Inspectors, R.I. State Police HIDTA Task Force, DEA and Warwick Police Department.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Navy Base Newport Employee Convicted of Driving to Endanger Death Resulting in Death of Navy Police Detective Frank LemaRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today found Alan Bradley, 53, of Middletown, R.I., guilty of driving to endanger death resulting in the death of Newport Navy Detective Frank Lema in September 2013, announced United States Attorney Peter F. Neronha; Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to the government’s evidence, Bradley, who was a civilian production employee on Navy Base Newport, was operating a Navy vehicle on the base on September 26, 2013, when he struck and killed Detective Lema. Lema was standing outside of the Navy public safety building with a fellow Navy law enforcement officer when he was struck. After striking Detective Lima, Bradley’s vehicle continued to travel another 200 feet before stopping on an embankment.
According to the government’s evidence, on at least six occasions between February 2011 and July 2013, Bradley’s personal physician warned Bradley not to drive because he was a risk to both himself and others due to a seizure disorder. The evidence also showed that Bradley was involved in a serious single car crash in 2011in Middletown in which his young son was a passenger. Bradley attributed his seizure disorder as a contributing factor to the cause of that accident.
“As the jury found today, because of the defendant’s reckless and entirely unnecessary operation of a motor vehicle, with full knowledge that he was endangering the safety of others, Detective Lema is no longer with us today. While I know that today’s verdict can do nothing to ease the Lema family’s loss, I hope that it does provide some sense that justice has been done,” said United States Attorney Peter F. Neronha. “I want to thank the NCIS agents and the Rhode Island State Police Accident Reconstruction Unit, and First Assistant United States Attorney Stephen Dambruch, for their outstanding work in bringing this challenging case to a successful conclusion.”“On behalf of the United States Navy and the Navy Base Newport community, it is my sincere hope that today’s verdict provides the family of Detective Frank Lema some measure of comfort knowing that the person responsible for the untimely and tragic death of Detective Lema is being held accountable,” commented Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service. “Our thanks to the United States Attorney’s Office, in particular First Assistant United States Attorney Stephen Dambruch, and the Rhode Island State Police for their efforts working side-by-side with agents from NCIS to bring this investigation and prosecution to a successful conclusion.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, "There can be no verdict or sentence that can change what occurred on September 26, 2013, but our system of justice has spoken and the defendant will be held accountable for his actions. On behalf of the men and women of the Rhode Island State Police, we commend the dedication and diligence of the Naval Criminal Investigative Service Agents, members of the State Police Accident Reconstruction Unit and prosecutors from the United States Attorney's Office for their dedication to justice."
Operating a motor vehicle in reckless disregard of the safety of others resulting in the death of another person is punishable by a statutory penalty of up to 10 years in federal prison followed by up to 3 years supervised release and a fine of up to $5,000.
U.S. District Court Judge Mary M. Lisi, who presided over the trial, is scheduled to sentence Alan Bradley on September 17, 2015.
The case is being prosecuted by First Assistant United States Attorney Stephen G. Dambruch.
The case was investigated by Naval Criminal Investigative Service, with the assistance of the Rhode Island State Police.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Rhode Island Resident Indicted for Allegedly Sex Trafficking 14-Year-Old GirlRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned a three-count indictment charging Paul J. Monteiro, a/k/a “Peezy,” 29, of Providence, with allegedly transporting a 14-year-old Rhode Island girl to New Jersey for the purpose of engaging in commercial sexual activity. It is also alleged that Monteiro enticed the minor female to engage in sexually explicit conduct which was video recorded.
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 was detained by Franklin Township police. The victim, who had been reported missing from a group home in Rhode Island in November 2014, was returned to Rhode Island.
The indictment, which charges Monteiro with one count each of sex trafficking of a minor to engage in a commercial sexual activity, interstate transportation of a minor with the intent that the minor participate in unlawful sexual activity and sexual exploitation of a child, is announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Bruce M. Foucart, Special Agent in Charge of HSI for New England; and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
According to court documents, on March 23, 2015, Rhode Island State Police detectives received information from the National Center for Missing and Exploited Children that they had received a report that a juvenile female from Rhode Island had allegedly been sexually molested by an adult male she met on Facebook and that the young teen was afraid to end the relationship due to threats of bodily harm.
According to court documents, an investigation by Rhode Island State Police identified the victim of the alleged sexual molestation as being a 14-year-old Rhode Island girl who was reported missing from a group home in Rhode Island on November 20, 2014. A Facebook friend of the missing girl told State Police that the girl had communicated to her that she had traveled to New Jersey with an individual identified as “Peezy.”
According to court documents, on April 6, 2015, Rhode Island State Police tracked a cell phone in the possession of the missing teenager to Franklin Township, New Jersey. Agents from HSI and the FBI, 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 a video of Monteiro allegedly involved in a sex act with the 14-year-old girl.
While speaking with the girl, an HSI agent located a Backpage.com advertisement depicting the young girl and a solicitation for male companionship. The girl later confirmed for investigators that she was the person in the picture and that Monteiro allegedly arranged for her to participate in sex acts with at least two individuals who responded to the advertisement.
A federal criminal complaint charging Monteiro with sex trafficking of a child and transporting a child with intent to engage in criminal sexual activity was issued in Rhode Island on May 1, 2015. Monteiro was returned to Rhode Island and appeared in federal court on May 29, 2015, and was ordered detained in federal custody by U.S District Court Magistrate Judge Patricia A. Sullivan.
A criminal complaint and an indictment are merely allegations and are 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.
Sex trafficking of a minor to engage in a commercial sexual activity and interstate transportation of a minor with the intent that the minor participate in acts of prostitution is punishable by statutory penalties of up to life imprisonment with a mandatory minimum of 10 years and a fine of up to $250,000. Sexual exploitation of a child is punishable by statutory penalty of 15 to 30 years imprisonment and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
United States Attorney Peter F. Neronha acknowledges and thanks Geoffrey D. Soriano, Somerset County, New Jersey, Prosecutor, and prosecutors in his office, for their assistance in ensuring the quick return of Paul Monteiro to Rhode Island for prosecution in U.S. District Court in Providence.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Utah Brothers Sentenced for Trafficking Marijuana into Rhode IslandRead the Press Release
PROVIDENCE, R.I. – Benjamin J. Daniels, 38, of Sandy, Utah, was sentenced today in federal court in Providence, R.I., to 34 months in federal prison to be followed by 5 years supervised release for his participation in a conspiracy to ship 239 pounds of marijuana to Rhode Island from Pennsylvania in December 2013.
Benjamin’s brother, Michael Daniels, 33, of Provo, Utah, formerly of Tiverton, R.I., was sentenced on December 18, 2014, to 18 months in federal prison to be followed by 3 years supervised release for his participation in the drug trafficking conspiracy.
The sentences, imposed by U.S. District Court Chief Judge William E. Smith, are announced by United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Benjamin Daniels pleaded guilty on September 14, 2014, to conspiracy to distribute and possess with the intent to distribute fifty kilograms or more of marijuana. Michael Daniels pleaded guilty on August 28, 2014, to conspiracy to distribute and possess with the intent to distribute fifty kilograms or more of marijuana.
According to court files and information presented to the court, in December 2013, HSI agents in Pittsburgh, working with the Customs and Border Protection Air and Marine Division in Riverside, CA, conducted an investigation of a single-engine aircraft located at an airport in New Castle, PA, believed to be involved in the transportation of large quantities of marijuana. A court authorized search of the aircraft resulted in the discovery of twelve sealed boxes marked “Sun Max, Hot Water Solutions” which contained a total of 239 pounds of marijuana. HSI agents determined that Benjamin Daniels arranged to have the packages flown to New England for delivery, either to Benjamin Daniels or a person designated by him.
On December 16, 2013, federal agents followed the shipment from Pennsylvania to North Central Airport in Smithfield, RI. Once on the ground, at the direction of Benjamin Daniels, the boxes were transported to a hotel in Lincoln, RI. At the hotel, HSI agents arrested Michael Daniels as he was loading the boxes into a rented vehicle that he was driving. Agents seized the twelve boxes of marijuana and $4,694 in cash found on Michael Daniels’ person.
A federal arrest warrant was issued for Benjamin Daniels. He was arrested on January 31, 2014, during a traffic stop in Park City, Utah.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island State Police High Intensity Drug Trafficking Area Task Force and Warwick Police Department assisted in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Smithfield Woman Pleads Guilty to Stealing More Than $274,000 from Her EmployerRead the Press Release
PROVIDENCE, R.I. – Christi Romano, aka Christi Machala, 35, of Smithfield, R.I., pleaded guilty in federal court in Providence today to stealing more than $274,000 from Christa Creations, a toy manufacturer and distributor in Smithfield where she was employed, and that she lied to the FBI during the investigation into the theft, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
Romano pleaded guilty as charged in a federal indictment returned on October 15, 2014, to seven counts of wire fraud and one count of making false statements.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Romano admitted to the court that between February 16, 2010, and March 26, 2012, she made numerous electronic transfers totaling $274,751.06 from a bank account belonging to Christa Creations to pay her personal credit card debt.Romano also admitted to the court that during the investigation she falsely stated to the FBI that she did not steal or misapply funds belonging to Christa Creations.
Romano is scheduled to be sentenced on August 25, 2015.
Wire fraud is punishable by statutory penalties of up to 30 years in federal prison and a fine of up to $1,000,000. Making false statements is punishable by statutory penalties of up to 5 years in federal prison.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by the FBI, with the assistance of the Internal Revenue Service Criminal Investigation.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Two Postal Employees Among Four Charged in Alleged Mail Theft ConspiracyRead the Press Release
PROVIDENCE, R.I. – Four individuals, including two mail sorters employed at the Providence Processing and Distribution Center, have been charged in U.S. District Court in Providence by way of federal criminal complaints for their alleged roles in a conspiracy to steal U.S. Treasury checks from the mail and either sell them on the street or deposit them in bank accounts opened with stolen or fraudulent personal information. The funds were withdrawn from ATM machines or used to make retail purchases with the use of debit cards.
The investigation by the Providence Police Intelligence and Organized Crime Unit and United States Postal Service (USPS) Office of Inspector General (OIG) included the execution of court authorized search warrants resulting in the seizure of approximately $1.6 million dollars worth of allegedly stolen U.S. Treasury checks and the seizure of more than $165,000 in proceeds allegedly gained as a result of the sale of stolen U.S. Treasury checks and other items allegedly stolen from the U.S. mail.
United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Rafael Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Field Office today announced the arrest and initial appearance in U.S. District Court in Providence of:
Joan Manuel Mustafa, 36, of Providence, on charges of conspiracy, embezzlement, theft of public money (U.S. Treasury checks) and theft of mail;
Erick Vera Garzon, 35, of Providence, on charges of conspiracy, embezzlement, theft of public money (U.S. Treasury checks) and theft of mail;
Brenda Canuelas, 39, of Providence, on charges of conspiracy, theft of mail, theft of government money in excess of $1,000, forging endorsements on Treasury checks in excess of $1,000, bank fraud and aggravated identity theft; and
Secundino Velazquez Tirado, a/k/a Jesus Rivera, 45, of Providence, on charges of conspiracy, theft of mail, theft of government money in excess of $1,000, forging endorsements on Treasury checks in excess of $1,000, bank fraud and aggravated identity theft.
Major David A. Lapatin, Commanding Officer Investigative Division Providence Police Department said, “I commend the Intelligence and Organized Crime Unit of the Providence Police Department. The investigation led by Sgt. Nicholas Ludovici along with Detectives Andres Perez and Andrew Lawton, who did a fine job developing information and worked that information along with federal agencies, brought down the alleged major organized crime pattern that inconvenienced and hurt so many people of the State of Rhode Island.”
“Mail theft is always a crime, but when it is perpetrated by Postal Service employees and it impacts our veterans and our most vulnerable customers who depend on these checks, it is beyond disgraceful,” stated USPS-OIG Special Agent-in-Charge Rafael Medina. “The Special Agents of the USPS-OIG will continue to work closely with our local law enforcement partners to vigorously investigate those Postal Service employees who compromise their integrity for personal gain.”
According to court documents and information presented to the court, in September 2014, USPS-OIG agents began investigating the circumstances surrounding a significant number of missing Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The checks were handled by employees at the U.S. Mail Providence Processing and Distribution Center. The investigation determined that many individual bank accounts were being opened in the name on missing checks, usually in a slightly altered form, by individuals other than the true owner of the check. The stolen checks were deposited in the accounts in amounts ranging from a few thousand dollars to more than $10,000. The accounts were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, or by the purchase of money orders. Most of the bank accounts were opened in Rhode Island. Some were opened in Massachusetts, New York, and in the southeast United States.
According to court documents, independent of the ongoing investigation by USPS-OIG, a Providence Police Intelligence and Organized Crime Unit detective developed information that two postal employees at the Processing and Distribution Center, Joan Manuel Mustafa and Erick Vera Garzon, co-workers on the night shift, were allegedly stealing U.S. Treasury checks from the mail while the mail was being sorted. The detective developed information that Garzon was allegedly selling many of the stolen checks on the street at 20% of face value to local buyers and buyers in New York.
Based on the information developed by the detective, court authorized search warrants were obtained for both Mustafa and Garzon’s residences and were executed on April 16, 2015, with the assistance of agents from USPS-OIG. A search of Garzon’s residence and his vehicle resulted in the seizure of more than 900 U.S. Treasury checks valued at approximately $1.6 million dollars, dozens of gift cards and $33,250 in cash. From Mustafa’s residence detectives and other officers and agents seized $19,650 in cash and assorted Visa gift cards. The next day detectives and agents seized $113,100 from a safe deposit box opened by Garzon.
According to court documents, while detectives from the Providence Police Intelligence and Organized Crime Unit were gathering information on Mustafa and Garzon, USPS-OIG agents were reviewing surveillance photographs and videos from area banks and retail stores in an effort to determine who was responsible for depositing the stolen Treasury checks and withdrawing and spending the pilfered funds. Two individuals were identified as allegedly repeatedly making deposits of stolen Treasury checks, making cash withdrawals and making purchases using funds from the stolen checks. Agents and detectives worked together to identify the individuals as being Brenda Canuelas and Secundino Velazquez Tirado.
Canuelas and Tirado were arrested earlier today on federal criminal complaints and released on unsecured bond following initial appearances before U.S. District Court Magistrate Judge Patricia A. Sullivan.
Joan Manuel Mustafa and Erick Vera Garzon were arrested on April 16, 2015, on federal criminal complaints and released on unsecured bond following initial appearances before U.S. District Court Magistrate Judge Patricia A. Sullivan. Court documents pertaining to their arrest remained sealed per an order of the court until the arrest today of Canuelas and Tirado.
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.
Federal agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service (USPS) Office of Inspector General (OIG) and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]