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Wednesday 2 December 2020
Seven charged in 67-count indictment for animal-fighting operation dismantled in Dodge CountyRead the Press Release
DUBLIN, GA: Seven men have now been indicted on federal charges involving a dog-fighting operation broken up in 2018 in Dodge County.
The indictments in the Southern District of Georgia were secured in a federal grand jury session by Special Assistant U.S. Attorney Jessica Rock, the district’s dedicated animal cruelty prosecutor, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The 67-count indictment targets the owner of a site used for dog fighting and individuals alleged to have participated in fights at the facility.
“Contests of animal cruelty not only are illegal, but also are cesspools of associated criminal activity including gambling, drug trafficking and illegal firearms possession,” said U.S. Attorney Christine. “We won’t tolerate it, and with our prosecutors and law enforcement partners, we are determined to eradicate this barbaric practice.”
The lead defendant in the case, James Lampkin, a/k/a “Pookie,” 45, of Eastman, Ga., is charged with Conspiracy to Violate the Animal Welfare Act; and 63 counts of Possessing and Training a Dog for Purposes of an Animal Fighting Venture, related to the 63 dogs seized on his property where the dog fights were alleged to have taken place. The charges all are felonies, each carrying a possible penalty upon conviction of up to five years in prison. Lampkin also is charged with Attending an Animal Fighting Venture, a misdemeanor punishable by up to one year in prison. Also charged are:
- Benjamin Shinhoster III, 40, of Augusta, charged with Conspiracy to Violate the Animal Welfare Act; Transporting and Delivering a Dog for Purposes of an Animal Fighting Venture; Sponsoring and Exhibiting a Dog in an Animal Fighting Venture; and Attending an Animal Fighting Venture;
- Deveon Hood, 33, of Tennille, Ga., charged with Conspiracy to Violate the Animal Welfare Act; and Attending an Animal Fighting Venture;
- Xavier Simmons, 34, of Sandersville, Ga., charged with Conspiracy to Violate the Animal Welfare Act; and Attending an Animal Fighting Venture;
- Andre Archer, 23, of Sandersville, Ga., charged with Conspiracy to Violate the Animal Welfare Act; and Attending an Animal Fighting Venture;
- Joe Ford, 32, of Elgin, S.C., charged with Conspiracy to Violate the Animal Welfare Act, and Attending an Animal Fighting Venture; and,
- Dwight McDuffie, 44, of Eastman, Ga., charged with Attending an Animal Fighting Venture.
The animals were seized and the defendants identified on March 17, 2018, when Georgia State Patrol troopers and Georgia Department of Natural Resources game wardens responding to reports of a dog fight being held in the area performed traffic stops in Eastman, discovering a dog in one of the vehicles that appeared to have been injured while fighting. The 63 dogs were later seized at Lampkin’s residence after investigators serving a search warrant found the animals chained in the back yard.
While the Asset Forfeiture Unit of the Southern District of Georgia U.S. Attorney’s Office initiated a civil forfeiture action, an animal rescue operation took custody of the dogs and evaluated them for adoption. After a favorable ruling in the forfeiture case, with the exception of one animal diagnosed with cancer, all of the dogs were adopted.
“The vicious pastime of pitting animals against each other in a fight to the death has no place in a civilized society,” said Special Agent in Charge Jason Williams of USDA-OIG. “The outstanding work of the USDA-OIG agents who investigated this case and the prosecutors of the U.S. Attorney’s Office made it possible to bring these operators of a major animal fighting venture to justice.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of Agriculture Office of the Inspector General, and prosecuted for the United States by Special Assistant U.S. Attorney Jessica Rock.
Robbers Sentenced to 20 Years in Prison for Violent Albany Crime SpreeRead the Press Release
ALBANY, Ga. – The final defendant involved in a string of violent convenience store robberies in Albany in 2016, shooting and injuring two clerks, was sentenced to prison for his crime today, announced Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Anthony Parks, 28, of Albany, was sentenced by U.S. District Judge Leslie Gardner to a total of 240 months in prison, 120 months per count, after pleading guilty to two counts of possession and discharge of a firearm during a crime of violence. In June, co-defendant Javarius Mallory, 26, of Albany, was sentenced by Judge Gardner to the same term of imprisonment, after pleading guilty to two counts of possession and discharge of a firearm during a crime of violence. There is no parole in the federal system.
“One cashier was shot while he was face-down, another shot in the leg. Parks and Mallory, always armed and often masked, did not hesitate to unload rounds of ammunition while demanding cash from terrified, hard-working employees of these businesses. This kind of violence will not be tolerated in Albany or elsewhere in the Middle District of Georgia, and we will seek severe prison sentences for violent criminals,” said U.S. Attorney Charlie Peeler. “I want to commend the good work of the Albany Police Department and FBI who teamed up to track these defendants down and bring them to justice.
“To the victims of these robberies, including two injured by gun shots, not even this sentence will justify the pain you have gone through,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “You feared for your lives and may never fully recover emotionally from that terror. But, hopefully knowing no one else will be threatened by them will bring some comfort to you.”
“This is another example of the collaboration that the Albany Police Department has with state and federal resources in addressing criminal acts in our community. Let this be a message to those who are intent on causing chaos and disorder, that the consequences of your decisions will have lasting effects on your life,” said Chief Michael Persley, Albany Police Department. “Our community has many challenges, and I am asking for community members to get involved and help our youth avoid situations like this. Many thanks to the men and women of the police department and FBI who worked tirelessly to bring these subjects to justice. There is more work to be done, but together we can continue to keep the good in the Good Life City.”
The defendants were involved in a violent robbery spree across Albany during 2016, both admitting guilt in a total of four of the seven robberies charged in the indictment. Parks and Mallory, armed and masked, robbed the Neighborhood Grocery on West Gordon Avenue close to midnight on September 9, 2016. During the robbery, Parks fired three shots into a locked office door, stealing a total of $8,702. A little more than two weeks later, on September 23, 2016, Mallory admitted he held up the same Neighborhood Grocery Store on West Gordon Avenue, armed with a loaded 9mm pistol. Every time Mallory demanded more money from the store clerk, he would discharge his weapon into the ceiling. Five spent 9mm shell casings were found inside the store, and Mallory ran off with $3,923. The defendants held up the BP store on Dawson Road in the early morning hours of October 6, 2016 with two clerks inside. One clerk, who got on the floor when the pair walked in, armed and masked, was shot by Parks in the buttocks. The other clerk chased the defendants after they ran off on foot with cash stolen from the store, and fired his own gun at them, shattering the back windshield of a customer’s vehicle. Both Parks and Mallory, armed with handguns and wearing ski masks to cover their faces, robbed the Dawson Food Mart on Dawson Road on November 3, 2016. Mallory shot the clerk in his leg.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the FBI and the Albany Police Department. U.S. Attorney Charlie Peeler and Assistant U.S. Attorney and Criminal Chief Michael Solis prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Queens Man Going to Prison for 20 Years for Narcotics Conspiracy and His Role in the Murder of Two BrothersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Misael Montalvo, 45, of Queens, NY, who was convicted of conspiracy to distribute cocaine, was sentenced to serve 20 years in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2000 and November 2011, the defendant conspired to sell cocaine in the Buffalo area. In 2004, Montalvo, having previously resided in Buffalo, moved to Queens, NY, and returned to Buffalo approximately twice a month to sell cocaine.
Following a lengthy sentencing hearing, the Court determined that, as part of the drug conspiracy, the defendant orchestrated an armed burglary and robbery at the apartment of Nelson and Miguel Camacho, two brothers with whom Montalvo had been previously involved in drug trafficking activities. On November 11, 2004, Montalvo drove co-defendants Efrain Hidalgo and Brandon Jonas, whom he had recruited, along with a juvenile, to the area of the victims’ apartment. The defendant dropped them off with a loaded AK-47 rifle and an aluminum baseball bat and drove away. Thereafter, Hidalgo, Jones and the juvenile forced their way into the victims’ apartment. Once inside, Jonas immediately shot Nelson Comacho in the arm with the AK-47. As Hildalgo, Jonas, and the juvenile searched the apartment for money, Hildalgo encountered Miguel Comacho, who pointed a gun at him. Jonas then shot Miguel Comacho repeatedly with the AK-47, killing him. Thereafter, Jonas also shot an injured Nelson Comacho in the head, killing him as well. No money or drugs were stolen during the armed burglary and robbery. In determining that Montalvo ought to be held responsible for the murders, Judge Arcara concluded, “while the defendant did not intend for Jonas to murder his former co-conspirators, the ruthlessness of his planned armed burglary and robbery that resulted in their murder reflects of the nature of the co-conspirator relationships with the victims sufficiently to reflect on the seriousness of his drug conspiracy offense of conviction. Accordingly, the Court finds that an upward departure or variance to account for the felony murders applies.”
While imposing sentence, Judge Arcara noted that an innocent man, Josue Ortiz, wrongly served 10 years in state prison for the murders of the brothers. As a result of this federal prosecution, in 2015, Josue Ortiz was able to get his New York State homicide conviction vacated by an Erie County Court judge.
Efrain Hidalgo, who was the leader of the 7th Street Gang, was previously convicted and sentenced to serve 330 months in prison. Brandon Jonas was also previously convicted and is awaiting sentencing.
“This prosecution, quite literally, helped to transform the West Side of the City of Buffalo,” noted U.S. Attorney Kennedy. “Thanks to the investigative efforts of the Buffalo Police Department, the New York State Police, and the FBI, and the tremendous work of prosecution team led by AUSA Tripi, control of the West Side of Buffalo was removed from these violent street gangs and returned to the law-abiding residents and business owners who live in the neighborhood. As a result of this prosecution, a total of 65 individuals who were members or associates of the 10th Street and 7th Street gangs were convicted in federal court, and 64 have been sentenced. Ten cold case homicides, involving murders of victims ranging in age from 14-to 47-years-old, and including gang rivals, drug dealers, and innocent bystanders/people shot via mistaken identity, were solved as a result of this prosecution—as were dozens of non-fatal attempted murder shootings. Four of the 65 defendants went to trial and each was convicted and each sentenced to life imprisonment. This prosecution demonstrates that although a strong law enforcement response may not alone be sufficient to solve the problem of violence in our community, it is an indispensable part of the solution, and there can be no lasting solutions without it.”
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Previously Convicted Felon Involved in Shooting Admits Illegal Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man previously convicted of three felonies admitted today to illegally possessing a firearm and ammunition in connection with a shooting, U.S. Attorney Craig Carpenito announced.
Jamel Armfield, 20, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On June 24, 2020, Armfield knowingly possessed a .45 caliber Springfield Armory semi-automatic handgun, Model XD-45 ACP, and 14 rounds of .45 caliber ammunition, when he fired nine rounds from that handgun at a vehicle traveling on Gates Avenue in Jersey City. The motive and intended target(s) remain unknown. The shooting was captured on a nearby surveillance camera. The firearm was then hidden by Armfield and recovered by members of the Jersey City Police Department. It contained five additional rounds of ammunition. At that time, Armfield had previously been convicted in the Superior Court of New Jersey, Hudson County, of possession of a controlled dangerous substance, possession with intent to distribute controlled dangerous substances on or near school property, and resisting arrest, all of which are felonies.
The charge to which Armfield pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 6, 2021.
This case is part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
U.S. Attorney Carpenito credited special agents and task force officers of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Rahul Sharma Esq., Assistant Federal Public Defender, Newark
Parmelee Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on November 30, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Aaron Brian James Neck, age 44, was sentenced to 10 months in federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Neck was indicted by a federal grand jury on October 16, 2019. He pled guilty on September 14, 2020.
The conviction stemmed from an incident that occurred on August 29, 2019, near Norris, South Dakota, when Neck did forcibly assault and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and such conduct did involve physical contact.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Neck was immediately turned over to the custody of the U.S. Marshals Service.
Omaha Man Sentenced for Distributing Crack Cocaine and Possessing a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Jordan D. Cotton, 29, of Omaha, Nebraska, was sentenced today for distributing crack cocaine while possessing a firearm. United States District Judge Brian C. Buescher sentenced Cotton to 130 months in federal prison. There is no parole in the federal system. Cotton will also serve a 5-year term of supervised release following his release from the Bureau of Prisons.
On December 3, 2019 law enforcement used a Confidential Informant (CI) to buy 4.5 grams of crack cocaine from Cotton at his residence in Omaha. On December 6, 2019, the Omaha Police Department Gang Unit executed a search warrant at Cotton’s home, recovering 51 grams crack cocaine, a 9mm handgun, $1,734 in United States Currency, digital scales, vacuum sealed bags with cocaine residue and venue items. Cotton was present and was arrested when the warrant was executed. At the time of his arrest Cotton, a previously convicted felon for Carrying a Concealed Weapon, Second Offense, and Possession of a Deadly Weapon by a Felon, was on Nebraska state parole after being released from prison on January 25, 2018.
This case was investigated by the Omaha Police Department and Bureau of Alcohol Tobacco, Firearms, and Explosives task force as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Odessa Pharmacy and Owner to Pay $320,000 in Civil Penalties for Alleged Violations of the Controlled Substances Act and the Combat Methamphetamine Epidemic Act of 2005Read the Press Release
Odessa pharmacy Town & Country Drug, Inc. (Town & Country) and its owner, pharmacist Gary Warren, have entered into a civil settlement with the United States that requires them to pay $320,000 in civil penalties to resolve allegations that they violated certain provisions of the Controlled Substances Act (CSA) and the Combat Methamphetamine Epidemic Act of 2005 (CMEA), announced U.S. Attorney Gregg N. Sofer and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Division.
During a routine inspection of Town & Country in May 2017, DEA Diversion investigators identified significant discrepancies in the pharmacy’s inventory of controlled substances. DEA investigators noted that Town & Country was in violation of numerous regulatory recordkeeping provisions and had sold pseudoephedrine and ephedrine products without self-certifying as required by the Combat Methamphetamine Epidemic Act of 2005 (CMEA). During a follow-up inspection in February 2020, DEA Diversion investigators identified additional discrepancies in the pharmacy’s inventory of controlled substances, determining that Town & Country continued to both violate CSA recordkeeping requirements and sell pseudoephedrine and ephedrine products without self-certifying. These requirements are intended to prevent the diversion of controlled substances for illegal purposes.
The CMEA was signed into law on March 9, 2006 to regulate, among other things, over-the-counter sales of ephedrine, pseudoephedrine, and phenylpropanolamine products, common ingredients in cough, cold, and allergy products. Retail provisions of the CMEA include daily sales limits and 30-day purchase limits, placement of product out of direct customer access, sales logbooks, customer ID verification, employee training and self-certification of regulated sellers. The CMEA was passed because those drugs are precursor chemicals used in the illicit manufacture of methamphetamine or amphetamine.
“Pharmacies play a vital role in ensuring that opioids and other addictive drugs are not diverted and abused,” said U.S. Attorney Sofer. “This office will use all available tools at our disposal, including civil remedies when appropriate, to detect, prevent, and prosecute violations of federal recordkeeping requirements.”
“Historically, most diversion of legitimate controlled substance occurs at the retail level,” said DEA Special Agent in Charge Williamson. “The DEA will continue to combat the rising tide of prescription abuse in our country by ensuring DEA-registered entities follow all requirements set forth by the law.”
Town & Country has informed the government that it is enhancing its recordkeeping and compliance program in response to the deficiencies identified by the DEA and that it will maintain a current certification under the CMEA.
The DEA’s Diversion Control Unit in El Paso led the investigation of this matter. Assistant U.S. Attorney Thomas Parnham negotiated the settlement on behalf of the government. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
North Carolina man admits to ginseng violationRead the Press Release
ELKINS, WEST VIRGINIA – David Changhyub Lee, of Raleigh, North Carolina, has admitted to aiding and abetting the illegal transportation of ginseng across state lines, U.S. Attorney Bill Powell announced.
Lee, 35, pled guilty today to one count of “Interstate Transportation of Ginseng in Violation of State Law – Aiding and Abetting.”
In the fall of 2018, Lee was identified as a willing buyer of illegally transported ginseng. In September and October 2018, Lee facilitated and purchased nearly 15 pounds of ginseng for a total of $4250 from Randolph County and elsewhere and transported it to North Carolina.
This case was in violation of the federal Lacey Act (16 USC § 3371 et seq.), which prohibits the taking and interstate trafficking of protected plants and animals in violation of state law. Under 16 USC § 3373, it's a felony if the plant's market value exceeds $350.00. West Virginia's ginseng statute (WV Code 19-1A-3a) has various requirements for the ginseng market. One requirement is that ginseng not be transported to another state absent a certificate of origin from the West Virginia Division of Forestry.
Lee faces up to one year of incarceration and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The U.S. Fish and Wildlife Service and the West Virginia Natural Resources Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Nine Individuals Charged in A Superseding Indictment for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a superseding indictment charging nine individuals for firearms trafficking without a license in the District of Puerto Rico, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The investigation was a joint effort between U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), and the Puerto Rico Police Department (PRPD).
According to the superseding indictment, defendants Kenrick Vargas-Castro, Emmanuel Rivera-Figueroa, Christopher Shaquille Pérez-Álvarez, Kassandra Cruz, and Mariam Figueroa engaged in the business of dealing in firearms without a license. The purpose of their firearms trafficking conspiracy was to ship firearms from Texas to Puerto Rico for distribution within Puerto Rico for pecuniary gain.
As part of the conspiracy, Pérez-Álvarez purchased firearms in Texas and sent them to Puerto Rico where other co-conspirators delivered them to other individuals in exchange for money. Defendant Mariam Figueroa-Alicea straw purchased firearms in Texas and received money transfers from co-conspirators who were part of the firearms trafficking organization located in Puerto Rico. Defendant Kassandra Cruz prepared firearms for mailing, sent them to Puerto Rico by mail, and received money transfers related to these transactions.
Kenrick Vargas-Castro delivered the firearms to individuals in Puerto Rico in exchange for money. Rivera-Figueroa received firearms from Vargas-Castro and others and delivered them to other individuals in exchange for money.
Count two of the superseding indictment charges Kenrick Vargas-Castro, Kevin Ramos, Leemarie Torres-Castro, Julio Torres-Castro, Emmanuel Rivera-Figueroa, and Christian Pérez-Álvarez for conspiracy to possess with intent to distribute over five (5) kilograms of cocaine. These defendants are facing a narcotics forfeiture allegation of $66,933.
Count three charges Kenrick Vargas-Castro, Kevin Ramos, Leemarie Torres-Castro, and Julio Torres-Castro with using means of communication, that is, telephones and the United States mail, to facilitate the trafficking of firearms. Count four charges Kenrick Vargas-Castro, Kevin Ramos, and Leemarie Torres-Castro with a money laundering conspiracy. According to the superseding indictment, these three coconspirators transported currency from the continental United States into Puerto Rico, having the currency concealed within luggage and transported through commercial airlines for delivery in Puerto Rico. They are facing a money laundering forfeiture allegation of $66,291.
Upon conviction of the offenses listed in the superseding indictment, Kenrick Vargas-Castro shall forfeit to the United States one Keltec PLR16 pistol, one Aero Precision X-15 pistol, sixty-three (63) .300 caliber bullets, one round of .45 caliber ammunition, and fifty (50) rounds of .40 caliber ammunition. Christopher Shaquille Pérez-Álvarez and Mariam Figueroa-Alicea shall forfeit to the United States nine (9) Century Arms Micro Draco pistols 7.62 caliber.
“We will vigorously prosecute those involved in the illegal trafficking of drugs and firearms, which are subsequently used in the commission of violent crimes like the shootings that we have seen lately in our communities,” said U.S. Attorney Muldrow. “These arrests show our commitment to hold people accountable for drug and firearms trafficking, as well as for laundering the proceeds of their criminal activities.”
“The indictment and arrest of these individuals sends a clear message to those involved in money laundering as well as drug and illegal weapons trafficking,” said Ivan J. Arvelo, special agent in charge for HSI San Juan. “ICE HSI, along with its local, state and federal law enforcement partners, will go after them, bring them to justice and seize the assets produced by their illicit activity.”
Assistant U.S. Attorneys Jeanette M. Collazo-Ortiz and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, are in charge of the prosecution of the case. If convicted, the defendants face up to five years in prison for the firearms trafficking conspiracy; up to twenty for drug trafficking; and up to twenty years for money laundering.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Navajo man pleads guilty to sexual abuse of a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Copey Ferlin Henderson, 27, an enrolled member of the Navajo Nation, pleaded guilty in federal court in Albuquerque today to sexually abusing a child in Indian Country.
According to the plea agreement, Henderson admitted that on May 16, 2019, he engaged in sexual activity with a child, who at the time of the offense was older than 12 but younger than 16. Henderson, who was 25 at the time, committed the offense in Cibola County on the Navajo Nation.
Henderson is currently in custody pending sentencing. He faces up to 15 years in federal prison.
The Ramah Navajo Police Department investigated this case. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Nashville Man Pleads Guilty to Drug Distribution & Firearms Charges in Case That Left A Three-Year-Old Child with A Gunshot to the HeadRead the Press Release
NASHVILLE, Tenn. – December 2, 2020 – Kedrick Ross, 27, of Nashville, pleaded guilty Monday in U.S. District Court to drug distribution and firearms charges, resulting from an 11-count indictment handed down last year, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Ross was initially charged in a criminal complaint on October 2, 2019, and indicted by a federal grand jury in November 2019 and charged with three counts of being a convicted felon in possession of firearms; three counts of possession of a firearm in furtherance of a drug crime; possession of a controlled substance with intent to distribute marijuana, methamphetamine and Xanax, within 1,000 feet of an educational institution; possession of a controlled substance with intent to distribute marijuana and methamphetamine, within 1,000 feet of a public housing complex; possession with intent to distribute methamphetamine; and two counts of obstruction of justice.
On December 13, 2018, Ross, a convicted felon, was in possession of a stolen Glock .40 caliber handgun, 208 grams of marijuana, and a mixture of methamphetamine near the Watkins College of Art in Nashville. While out on bond on these state charges, on May 29, 2019, Ross was in possession of a stolen Glock 9mm handgun, a stolen Glock .45 caliber handgun, marijuana and methamphetamine, while in the Cumberland View Public Housing development, and on September 9, 2019, Ross was in possession of a stolen Glock .40 caliber handgun while in possession of methamphetamine, with intent to distribute. This firearm was determined to have been the same firearm that Ross left unattended at a relative’s house and with which his 3-year- old son shot himself in the head on the same day and was critically injured. Ross later obstructed justice during the investigation of this incident by attempting to persuade his cousin to falsely claim that this firearm belonged to the cousin’s deceased husband.
Ross faces a mandatory minimum sentence of 16 years and up to life in prison when he is sentenced on April 23, 2021.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department Youth Services Division. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
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Montrose Man Sentenced to 180 Months in Prison for Methamphetamine TraffickingRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MARK OREN SCHORN, 53, to 180 months in prison for his role in a methamphetamine trafficking conspiracy. SCHORN, who pleaded guilty on August 19, 2020, was sentenced today before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, SCHORN and his co-conspirators engaged in a large-scale methamphetamine trafficking operation. On April 14, 2020, law enforcement stopped SCHORN’s co-conspirators, including Lucas Jay Madison, near Faribault, Minnesota, as they traveled back from Phoenix, Arizona. Law enforcement conducted a search of the vehicle and recovered approximately 23 pounds of methamphetamine contained within a backpack. Lucas Jay Madison was sentenced to 235 months in prison on November 24, 2020.
According to the defendant’s guilty plea and documents filed in court, the recovered methamphetamine was intended for delivery to SCHORN and other co-conspirators in the Twin Cities. On the same day, law enforcement conducted multiple search warrants, including at SCHORN’s apartment in Montrose, Minnesota. Law enforcement found over $100,000, two digital scales, an empty holster, metal knuckles with a retractable knife, and ammunition in various calibers inside SCHORN’s bedroom. During the execution of the search warrant, SCHORN attempted to flee the apartment. The following day, law enforcement located a 9mm handgun hidden along SCHORN’s flight path.
This case is the result of an investigation conducted by the United States Drug Enforcement Administration, the Anoka Hennepin Drug Task Force, the Cannon River Drug & Violent Offender Task Force, the Southeast Minnesota Gang and Drug Task Force, the Wright County Sheriff’s Office, the Rice County Sheriff’s Office, the Anoka County Sheriff’s Office, the Minnesota State Patrol, and the Edina Police Department.
Assistant United States Attorney Allen A. Slaughter prosecuted the case.
Defendant Information:
MARK OREN SCHORN, 53
St. Paul, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
- 180 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Michigan Man Living in the Philippines Pleads Guilty to Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JASON KELLER, 35, originally of Dearborn Heights, Michigan, pleaded guilty today to one count of receipt of child pornography.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Victor A. Bolden occurred via videoconference.
According to court documents and statements made in court, in September 2018, Keller, using the moniker “Eddie Buttered Toast,” contacted a 14-year-old female in Connecticut and claimed he was a 17-year-old boy from Chicago. At the time, Keller was living in the Philippines. Keller then sent the minor victim a series of grooming emails that eventually coaxed the minor victim into sending photos of herself engaged in sexually explicit conduct to Keller. Some of the emails Keller sent to the minor victim included sexually explicit images of himself.
On December 19, 2018, a grand jury in New Haven returned an indictment charging Keller. Keller was located and arrested in the Philippines in June 2019. He was removed from the Philippines and returned to the U.S. on December 12, 2019. He has been detained since his arrest.
Receipt of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter has been investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Marshals Service, International Investigations Branch, with the assistance of the Philippine Bureau of Immigration, Fugitive Search Unit. The case is being prosecuted by Assistant U.S. Attorney Lauren Clark.
U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Mercer County Man Charged with Possessing A Large Quantity of Heroin with Intent to DistributeRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man is expected to make his initial appearance today after being charged with possession with the intent to distribute 100 grams or more of heroin, U.S. Attorney Craig Carpenito announced.
Daevon Bell, 26, of Hamilton Township, New Jersey, is charged by complaint with one count of possession with intent to distribute 100 grams or more of heroin. He was arrested by special agents of the U.S. Drug Enforcement Administration on Dec. 1, 2020, and is scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert.
According to documents filed in this case and statements made in court:
A law enforcement investigation revealed that Bell was engaged in the distribution of heroin in Trenton and the surrounding area. Based on information received from a reliable source, law enforcement officials determined that Bell was in possession of a large quantity of heroin on Dec. 1, 2020. Law enforcement officials followed Bell in his vehicle from Trenton to Morrisville, Pennsylvania. Bell drove to an apartment complex, retrieved a bag from the trunk of his vehicle and entered an apartment. Shortly thereafter, Bell exited the apartment holding a bag and returned to his vehicle. Law enforcement agents approached Bell, who then attempted to flee in his vehicle, striking a DEA agent and striking another occupied law enforcement vehicle. Bell discarded the bag from the vehicle, and then led law enforcement on a high-speed chase into New Jersey, and was apprehended in Lawrenceville, New Jersey. Law enforcement recovered approximately 150 bricks of suspected heroin from the bag that Bell had discarded from the vehicle.
The charge of possession with intent to distribute 100 grams or more of heroin carries a minimum sentence of five years and a maximum of 40 years in prison, and a $5 million fine.
U.S. Attorney Carpenito credited special agents of the DEA under the direction of Special Agent in Charge Susan A. Gibson.in Newark, and the Philadelphia Division under the direction of Special Agent in Charge Jonathan A. Wilson, with the investigation leading to today’s charges. He also thanked the Buck’s County District Attorney’s Office, under the direction of District Attorney Matthew D. Weintraub and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, for their assistance.The case was investigated as part of the Violent Crime Initiative (VCI) in Mercer County, New Jersey. The VCI was formed in August 2020 by the U.S. Attorney’s Office for the District of New Jersey and the Mercer County Prosecutor’s Office, and the Trenton Police Department for the purpose of combatting violent crime in and around Trenton. As part of this partnership, federal, state, and local agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the Trenton Police Department, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Member of North Shore Latin Kings Chapter Pleads Guilty to Drug Distribution ChargesRead the Press Release
BOSTON – A member of the North Shore Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug distribution charges.
Jesus Diaz, a/k/a “King Kiko,” 37, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine base, also known as “crack” cocaine. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for March 24, 2021. Diaz was charged in December 2019, at which time he was in custody for another pending case in Massachusetts state court.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
During the plea proceedings, Diaz admitted to selling a cooperating witness over 70 grams of cocaine base, or “crack” cocaine, in a series of audio/video recorded sales that took place between January and March of 2015.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Diaz is the 24th defendant to plead guilty in the case.
The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Member of “Boogaloo” Movement Group Charged with Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
SAN FRANCISCO – Robert Jesus Blancas, a/k/a “Orgotloth” a/k/a “MuskOx,” made his initial appearance today after being charged in a federal criminal complaint alleging the enticement of a minor to engage in sexual activity, that is, the production of child pornography, announced U.S. Attorney David L. Anderson and FBI Special Agent in Charge Craig D. Fair.
According to the criminal complaint, Blancas, 33, a transient resident of the Bay Area, was identified as a member of an anti-government citizen militia group associated with the so-called “boogaloo” movement. A search of his electronic devices revealed not only evidence of his association with this group and communications related to acts of violence against law enforcement, but also evidence of his activities related to child pornography.
The criminal complaint alleges that in or about May 2020, Blancas met a 15-year-old minor female on an online forum. Through at least August 2020, Blancas exchanged thousands of text messages over multiple online and text message platforms with the minor victim, instructing her to send him pornographic photographs and videos of herself.
The criminal complaint further alleges that photographs and videos of the minor victim sent to Blancas depict a young girl and the bedroom of a young girl. The criminal complaint also describes examples of Blancas’s prior conversations of a sexually explicit nature with additional users who identified their ages to him as 13, 15, and 16.
Blancas is charged with the enticement of a minor to engage in sexual activity in violation of 18 U.S.C. § 2422(b). If convicted, Blancas faces a minimum penalty of 10 years to a maximum of lifetime in prison, a minimum of 5 years to a maximum of lifetime of supervised release, and a maximum of a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that a crime has been committed, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Blancas was arrested on December 1, 2020, and made his initial appearance in federal court earlier today before U.S. Magistrate Judge Laurel Beeler. Blancas is currently held in custody pending further proceedings. His next federal court appearance is scheduled for a detention hearing on December 8, 2020, before U.S. Magistrate Judge Laurel Beeler.
The prosecution is being handled by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Marshall County man indicted on firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – James Warren, of Cameron, West Virginia, is facing a firearms charge, U.S. Attorney Bill Powell announced.
Warren, 59, was indicted on one count of “Unlawful Possession of Firearms.” Gray, a person prohibited from having a firearm because of a prior felony conviction, is accused of having six firearms and various ammunition in May 2020 in Marshall County.
Warren faces up to 10 years of incarceration and a fine of up to $250 ,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Marshall County Sheriff’s Office investigated.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manitowoc Couple Indicted on Methamphetamine ChargeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 1, 2020, a federal grand jury indictment was issued against Malachi R. Hetzer (age: 29) and Breanna E. Pieschel (age: 32) both of Manitowoc, Wisconsin.
The indictment alleges that Hetzer and Pieschel conspired to distribute in excess of five grams of actual methamphetamine with the intent to distribute it to others in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(A). “Actual” methamphetamine possesses a high level of purity and is also known as “crystal” methamphetamine or “ice.” If convicted of the charge, Hetzer and Pieschel face a mandatory minimum of five years’ imprisonment and up to 40 years’ imprisonment. They face a fine of up to $5,000,000 and from four years to a lifetime on supervised release.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was investigated by the Manitowoc County Metropolitan Drug Enforcement Group. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
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Man Charged with Kidnapping and Carjacking with Intent to KillRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment today charging a Maryland man with the kidnapping and carjacking of a woman in Henrico County in September 2019.
According to allegations in the indictment, on Sept. 18, 2019, Devon Allen Odell Scott, 38, of Edgewood, abducted a woman for the purpose of committing a sexual assault on and robbery of that same victim, and after traveling from Maryland to Virginia in furtherance of that offense. In the course of the kidnapping, Scott forcibly carjacked the victim’s vehicle with the intent to cause death and serious bodily harm to that victim.
Scott is charged with carjacking and kidnapping. If convicted, he faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; and Eric D. English, Chief of Henrico County Police Division, made the announcement.
Assistant U.S. Attorneys Thomas A. Garnett and Peter S. Duffey are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Man Admits Role in Nationwide Card Fraud, Money Laundering SchemeRead the Press Release
Assistant U. S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – December 2, 2020
SAN DIEGO – A former Glendale resident pleaded guilty today to engaging in a long-running, nationwide fraud conspiracy that stole unwitting victims’ financial information by skimming it from ATMs and gas pumps in San Diego and across the country, and used the stolen information to make phony credit and debit cards. Seven men in total are charged with participating in that conspiracy, and in a related money laundering conspiracy, that netted over a million dollars in ill-gotten gains.
Defendant Arsen Minasyan entered a guilty plea today before U.S. Magistrate Judge Linda Lopez to participating in a conspiracy to launder the proceeds of fraud committed by unauthorized access devices: essentially, fake credit and debit cards used as part of the fraud scheme.
The indictment alleges that Minasyan and his co-defendants worked together to steal unwitting victims’ credit and debit card information by using skimming devices installed in common points of sale such as gas pumps and ATMs. With the stolen information in hand, the conspirators made a host of unauthorized cards that they then used to buy postal money orders and make withdrawals from victims’ accounts.
“This office will not tolerate those who prey upon unwitting victims innocently using the financial system for their everyday needs,” said U.S. Attorney Robert Brewer, “nor thieves’ criminal partners who launder their money. Both fraudsters and their money laundering accomplices will face justice.” Brewer praised prosecutor Nick Pilchak and U.S. Secret Service agents for their excellent work on this case.
“The fraudulent compromise of individuals’ financial security threatens our economic stability and security as a whole, and will not go undetected,” said San Diego Acting Special Agent in Charge of Secret Service Timothy Scott. “I commend the especially skilled investigators who worked tirelessly to detect these defendants and their criminal activity, despite their futile efforts to operate in the shadows.”
In his plea agreement, Minasyan admitted that he and another defendant had between them $13,380 in illicit cash and 68 phony cards on just a single day last summer during the conspiracy. Minasyan acknowledged that the entire scheme inflicted losses and attempted losses of at least $1.2 million on its victims, and that he personally participated in the scheme in Glendale, New York, Oklahoma, and Southern California.
According to the charges in the indictment, the conspiracy victimized individuals and their accounts across the country: in New York, Illinois, Missouri, Oklahoma, and at over a dozen post offices in Southern California, including throughout the San Diego area, where the perpetrators used stolen cards to buy hundreds of thousands of dollars of postal money orders, which they then laundered through the banks.
The money laundering charges detail how three defendants—the Simonyan brothers and their accomplice, Minasyan—laundered the criminal funds through shell bank accounts and structured withdrawals. For example, in one month alone, the Simonyan brothers allegedly withdrew $91,500 in cash from a single bank account in structured amounts under $10,000 to avoid the threshold for reporting the withdrawals to the authorities.
Minasyan is set to be sentenced February 24 at 9:30 a.m. by U.S. District Judge Michael M. Anello. The remaining defendants are next in court on January 13, 2021 before Judge Anello.
Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Age Case Number 20cr314-MMA
- Davit Simonyan 30 Residence: Glendale, California
- Vahram Simonyan 34 Residence: Glendale, California
- Arsen Minasyan 34 Residence: Western Region Detention Facility
- Gor Plavchyan 26 Residence: Winnetka, California
- Arsen Galstyan 40 Residence: Glendale, California
- Mukuch Mkrtchyan 32 Residence: Fair Oaks, California
- Smbat Shahinyan 41 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments, in violation of Title 18, United States Code, Section 1956(h) (Defendants 1 through 3 only)
Maximum Penalty: Twenty years in prison; fine of $500,000 or twice the value of the property involved
Conspiracy to Possess Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(3), and 1029(c)(1)(A)(i) (Defendants 1 and 3–7 only)
Maximum Penalty: Five years in prison; fine of $250,000 or twice the gross gain or loss
AGENCY
United States Secret Service
U.S. Postal Inspection Service
*The charges and allegations contained in an indictment are merely accusations. The defendants are considered innocent unless and until proven guilty
MS-13 Gang Associate Sentenced to Life Imprisonment for Murder in Deli on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jose Suarez, an associate of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced to life in prison by United States Circuit Judge Joseph F. Bianco. In May 2019, Suarez was convicted following a three-week jury trial of murder, racketeering and assault charges in connection with the January 30, 2017 murder of Esteban Alvarado-Bonilla and the shooting of a female employee at a deli in Central Islip, and the December 18, 2016 assault of a man outside a restaurant in Brentwood.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Suarez will deservedly spend the rest of his life in a federal prison for the brutal murder and mayhem he committed in the name of the MS-13 gang,” stated Acting United States Attorney DuCharme. “The investigation and trial of this case is the result of the unyielding commitment of the Office and our partners on the FBI’s Long Island Gang Task Force to eradicate the MS-13 in this district.”
“Mr. Suarez' life sentence in federal prison is simply another brick in the wall we've built around MS-13 to stop this violent gang from terrorizing people on Long Island. Agents and detectives assigned to the FBI's Long Island Gang Task Force, whose work continues to this day, have put in a tremendous amount of time and effort to dismantle this gang. The results of their labor, as well as the community's commitment to working with us to prevent a resurgence in gang activity, is commendable,” stated FBI Assistant Director-in-Charge Sweeney.
“The relentless efforts of the FBI’s Long Island Gang Task Force and the Eastern District of New York have never wavered in holding MS-13 gang members accountable for their violent, senseless crimes,” stated SCPD Commissioner Hart. “Thanks to their dedication, Suarez will spend the rest of his life behind bars for the murder and assaults that he committed. This sentence sends a message that our department along with our local and federal law enforcement partners remain determined to dismantle this transnational gang.”
“The continued efforts of the Long Island Gang Task Force continues to show positive results in their commitment to eradicate criminal gang activity. The conviction of MS-13 Gang Member Jose Suarez on charges of Murder, Racketeering and Assault charges is a clear example that this multi-agency approach is working. I would like to acknowledge the continued efforts of the dedicated investigators and their agencies for keeping residents and our communities safe,” stated NCPD Commissioner Ryder.
On January 30, 2017, a member of the Sailors clique saw Alvarado-Bonilla inside El Campesino Deli in Central Islip. Believing that Alvarado-Bonilla was a rival gang member, several members of the Sailors clique plotted to kill him. Suarez drove MS-13 member Mario Aguilar-Lopez and an MS-13 associate to a street near the deli. Aguilar-Lopez entered the deli, approached the victim from behind and shot him multiple times, killing him. One of the bullets traveled through Alvarado-Bonilla’s head and struck a female employee of the deli standing directly in front of him. Aguilar-Lopez ran out of the deli and to the car where Suarez was waiting, and the two fled the scene. The store employee survived a gunshot wound to the chest. In November 2018, Aguilar-Lopez pleaded guilty to causing Alvarado’s death and shooting the store clerk. He is awaiting sentencing.
On December 18, 2016, Suarez and several MS-13 members and associates assaulted two men outside the Super Taco facility in Brentwood, seriously injuring one of the men. The victims were attacked because one of them had disrespected the MS-13.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. The MS-13’s leadership is based in El Salvador, Mexico, Guatemala and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, NCPD, SCPD, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Office, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Michael T. Keilty, Paul G. Scotti and Justina L. Geraci are in charge of the prosecution.
The Defendant:
JOSE SUAREZ (also known as “Chompira”)
Age: 26
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (JFB)
Licensed Attorney and Disbarred Attorney Charged with Securities Fraud for Roles in Fraudulent Opinion Letter SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Carl W. Hoecker, the Inspector General of the Office of Inspector General of the U.S. Securities and Exchange Commission (“SEC-OIG”), announced today the unsealing of an Indictment in Manhattan federal court charging RICHARD RUBIN and THOMAS CRAFT with securities fraud. The Indictment alleges that RUBIN, a disbarred attorney, and CRAFT, an attorney licensed in Florida, engaged in a fraudulent scheme in which CRAFT falsely represented that he had undertaken certain legal work in connection with three types of attorney opinion letters, all of which enabled the relevant securities to be sold to the investing public. In truth and in fact, RUBIN, despite his disbarment, had undertaken all of the legal work attested to in the letters; CRAFT merely served as a “rubber stamp” on the letters in exchange for tens of thousands of dollars in monetary compensation. RUBIN was taken into custody today in New York, New York, and will be presented today before Magistrate Judge Katharine H. Parker in Manhattan federal court. CRAFT was taken into custody today in West Palm Beach, Florida, and will be presented today in federal court in Florida. The case has been assigned to United States District Judge Paul A. Engelmayer.
Acting U.S. Attorney Audrey Strauss said: “As alleged, rather than act as gatekeepers against fraud, the defendants used their positions as attorneys – albeit one of them disbarred – to actively carry out a fraud, working to generate dozens of attorney opinion letters containing false representations that brought false comfort to the investing public that certain legal work had been performed and certain information had been confirmed as accurate.
SEC Inspector General Carl W. Hoecker said: “Today’s criminal indictment demonstrates our commitment to holding bad actors accountable for undermining the integrity of the securities registration system.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
Securities Registration Requirements and SEC Rule 144
Under the Securities Act of 1933 (the “Securities Act”), anyone seeking to sell a security must first register the offering of that security unless an exemption applies. See 15 U.S.C. § 77e. This registration requirement protects investors by promoting disclosure of information pertinent to informed investment decisions.
A company registering the offer of securities must complete a registration statement such as SEC Form S-1 before the securities can be listed on a national exchange and publicly traded. SEC Form S-1 contains information pertinent to informed investment decisions, including, among other things, information on the company’s business operations, the company’s financial condition, and a description of the company’s management. In connection with SEC Form S-1, the company is required to file an opinion letter (the “Form S-1 Opinion Letter”) from a licensed attorney regarding the legality of the securities being offered or sold pursuant to the registration statement. A company’s SEC Form S-1 and the Form S-1 Opinion Letter are available to the public on the SEC’s Electronic Data Gathering, Analysis, and Retrieval System (“EDGAR”).
“Restricted securities” refers to securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer, with “affiliate” meaning a person that directly or indirectly controls, or is controlled by, or is under common control with, an issuer. Affiliates can also include an executive officer or a director or large shareholder who is in a relationship of control with respect to the issuing company. Restricted securities bear a legend indicating that the securities may not be resold in the marketplace unless they are registered with the SEC or are exempt from such registration requirements.
Securities Act Rule 144 (“Rule 144”), codified at 17 C.F.R. § 230.144, provides a registration exemption for the resale of restricted securities. Specifically, it permits the public resale of restricted securities if a number of conditions are met, including conditions relating to how long the securities are held, the way in which they are sold, the public information available to investors about the securities, and the amount that can be sold at any one time. However, even if these conditions are met, the sale of restricted securities to the public is still not permitted until a transfer agent removes the “restricted” legend from the security.
The term “transfer agent” refers to a company that keeps track of individuals and entities that own the stocks and bonds of a given company that has publicly traded securities. Among other things, transfer agents issue and cancel certificates to reflect changes in ownership, serve as the company’s intermediary for payouts, exchanges, or mailings, and handle lost, destroyed or stolen certificates. Transfer agents also, when appropriate, remove the “restricted” legend from securities.
A Rule 144 Seller’s Representation Letter, or “Seller’s Representation Letter,” is a letter to a transfer agent to establish certain facts underlying a legal opinion that the securities at issue can be sold publicly pursuant to Rule 144. The transfer agent relies on the Seller’s Representation Letter in determining whether to remove the restricted legend from a security.
Over-the-Counter Securities and OTC Markets Group
Over-the-counter (“OTC”) securities are securities that are traded between two counterparties outside of a formal securities exchange. OTC Markets Group (“OTC Markets”) is a company headquartered in New York, New York that provides price and liquidity information for OTC securities.
OTC Markets requires issuers seeking to be quoted on certain tiers of OTC Markets to hire a licensed attorney to review company records and submit a letter to OTC Markets (an “OTC Markets Attorney Letter”) regarding whether information publicly disclosed by the issuer is in compliance with the condition in SEC Rule 144 governing the public information available to investors about the issuer. OTC Markets relies on the OTC Markets Attorney Letter to determine whether an issuer’s security may be quoted on OTC Markets. OTC Markets Attorney Letters are available to the public on the OTC Markets website.
The Scheme to Defraud
From at least in or about 2011 through at least in or about September 2018, RUBIN and CRAFT, the defendants, participated in a fraudulent scheme in which CRAFT falsely represented that he had undertaken certain legal work in connection with Seller’s Representation Letters, OTC Markets Attorney Letters, and S-1 Opinion Letters, all of which enabled the relevant securities to be sold to the investing public. In addition, in connection with the securities of certain issuers, RUBIN, the defendant, falsely represented that he was an attorney in Seller’s Representation Letters and OTC Markets Attorney Letters, all of which enabled the relevant securities to be sold to the investing public. The false representations were in letters pertaining to over a dozen companies.
RUBIN, 78, of Brooklyn, New York, and CRAFT, 55, of Tequesta, Florida, are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, one count of securities fraud in violation of 18 U.S.C. §§ 1348 and 2, which carries a maximum sentence of 25 years in prison, and one count of securities fraud in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
* * *
Ms. Strauss praised the investigative work of the SEC OIG. Ms. Strauss also thanked the U.S. Postal Inspection Service, Office of the Inspector General, which assisted in the investigation. Ms. Strauss also thanked the SEC Division of Enforcement, which brought a separate civil enforcement action against the defendants.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Martin Bell and Jordan Estes are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Lee County Man Sentenced to Jail for Communicating A False Distress Message to the U.S. Coast GuardRead the Press Release
Fort Myers, Florida – U.S. District Judge John L. Badalamenti today sentenced Justin Patrick Obert (32, Fort Myers) to three months in federal prison, followed by three years of supervised release, for communicating a false distress message to the Coast Guard. The court also ordered Obert to pay $13,414.78 to the Coast Guard for costs associated with their search and rescue response.
Obert had pleaded guilty on August 21, 2020.
According to court documents, on the evening of September 9, 2019, Obert drunkenly discharged two red distress flares from a vessel near Fort Myers Beach, triggering an emergency search and rescue operation by the United States Coast Guard, Fort Myers Beach Fire Rescue, and the Florida Fish and Wildlife Commission. Ultimately, an intoxicated Obert was determined to be the person who had discharged the emergency flares, which he did when no emergency assistance was actually needed, causing the unnecessary diversion of search and rescue personnel from multiple agencies.
“Hoax calls put the public at risk,” said Capt. Matt Thompson, Coast Guard Sector St. Petersburg Commander. “Mariners on the water rely and count on Coast Guard assets and personnel to be ready and able to respond when they are in distress. Hoax calls can redirect critical rescue capabilities and put lives at risk in the dangerous maritime domain.”
This case was investigated by the Coast Guard Investigative Service, the Florida Fish and Wildlife Commission, and the Collier County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Simon R. Eth.
La Crosse Man Sentenced to over 10 Years for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Dean, 37, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 10 ½ years in federal prison for possessing methamphetamine with intent to distribute.
On February 5, 2020, La Crosse police officers received a tip from an informant that Dean was at a gas station. Officers were aware that Dean had an active felony arrest warrant. Officers responded to the gas station and saw Dean get into the passenger side of a car. As the car left the gas station, officers attempted a traffic stop but Dean ran out of the car. During a brief foot pursuit, Dean ran full speed into a picnic table and flipped into the air. After Dean hit the ground, officers were able to arrest him after a short struggle.
During a search incident to the arrest, officers found multiple bags in Dean’s pockets containing a total of 58 grams of methamphetamine. Officers searched the area around Dean and found a loaded 9 mm Smith and Wesson handgun. Officers also searched the vehicle in which Dean was a passenger and found 219 grams of methamphetamine hidden inside of a laptop case.
In imposing the sentence, Judge Peterson expressed his displeasure that the crime involved a large amount of methamphetamine, a loaded firearm, and resisting arrest. Judge Peterson noted that Dean has a “really horrible” criminal history, including over 20 felony convictions, and was involved in selling a significant amount of methamphetamine to the La Crosse community. Judge Peterson also stated that Dean was participating in criminal activity at a high level and the 10 ½ year sentence was necessary to protect the public.
The charge against Dean was a result of an investigation conducted by the La Crosse Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Kevin M. Epstein Appointed as U.S. Trustee for the Southern and Western Districts of TexasRead the Press Release
Attorney General William P. Barr has appointed Kevin M. Epstein as the U.S. Trustee for the Southern and Western Districts of Texas (Region 7) effective Jan. 1, 2021, the Executive Office for U.S. Trustees (EOUST) announced today. He will replace Henry G. Hobbs Jr., who is retiring after 28 years of government service.
Mr. Epstein has been a Trial Attorney with the U.S. Trustee Program for 21 years, first in San Jose, California, and since 2003 in San Antonio, Texas. During his tenure, he also has served as an Acting Assistant U.S. Trustee in charge of three different field offices. Mr. Epstein received his law degree from the University of Texas School of Law and his undergraduate degree from Duke University, both with honors.
“We are pleased to have Mr. Epstein join our leadership team,” said EOUST Director Cliff White. “His depth of legal experience and practical approach to management, along with his strong commitment to mission, will serve Region 7 well. I also want to extend my best wishes and deepest appreciation to Mr. Hobbs for his many significant contributions to the U.S. Trustee Program over the years.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 7 has offices in Austin, Corpus Christi, Houston, and San Antonio, Texas.
Justice Department Settles with Amtrak to Resolve Disability Discrimination Across its Intercity Rail SystemRead the Press Release
The Justice Department today announced that it reached an agreement with Amtrak, the National Railroad Passenger Corporation, to resolve the department’s findings of disability discrimination in violation of the Americans with Disabilities Act (ADA). Under the agreement Amtrak will fix inaccessible stations and pay $2.25 million to victims hurt by its inaccessible stations.
The accompanying complaint filed by the department alleges that Amtrak has violated and continues to violate the ADA by failing to make existing stations in its intercity rail transportation system readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs. The ADA gave Amtrak 20 years from the law’s 1990 enactment to make its stations accessible, requiring Amtrak to comply by July 26, 2010.
“When Congress enacted the Americans with Disabilities Act in 1990, it recognized the crucial role transportation plays in our lives,” said Eric Dreiband, Assistant Attorney General of the Civil Rights Division. “Transportation is the linchpin of access for people with disabilities to the full economic, social, and cultural benefits of our country. The Americans with Disabilities Act gave Amtrak until 2010 to make its stations accessible for individuals with disabilities. Amtrak failed or refused to comply with the Congressionally-mandated 2010 deadline, and Amtrak’s noncompliance with the Americans with Disabilities Act injured individuals with disabilities. Passengers with disabilities have waited long enough. Today’s agreement is a historic victory for individuals with disabilities, Amtrak, the rule of law, and the promise of equal opportunity for all Americans. We welcome Amtrak’s commitment today to bring its system into compliance with the law so that all individuals have an equal opportunity to barrier-free rail transportation.”
Under the agreement, Amtrak has committed to make its intercity rail stations accessible, prioritizing stations with the most significant barriers to access. Over the next 10 years, Amtrak will design at least 135 stations to be accessible, complete construction at 90 of those stations, and have at least 45 more under construction. Amtrak will also train staff on ADA requirements and implement an agreed-upon process for accepting and handling ADA complaints. As part of this commitment, Amtrak recently established an Office of the Vice President of Stations, Properties & Accessibility to coordinate its compliance with the ADA.
To compensate those harmed by inaccessible stations while trying to travel by train, Amtrak will establish a $2.25 million settlement fund. Individuals with mobility impairments who traveled or desired to travel at 78 specified stations with significant accessibility issues may be compensated from the settlement fund.
This action was brought by the Disability Rights Section of the department’s Civil Rights Division. To read the settlement agreement, please click here, and to read the complaint, please click here.
This year marks the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. To learn more about the ADA’s history and impact, please visit the department’s ADA Anniversary webpage.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Files Lawsuit Against Village of Airmont, New York, for Zoning Restrictions that Target the Orthodox Jewish CommunityRead the Press Release
The Justice Department today announced that it filed a lawsuit against the Village of Airmont, New York, alleging that it violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by targeting the Orthodox Jewish community through zoning ordinances restricting religious schools and home synagogues, and by enforcing its zoning code in a discriminatory manner to prevent Orthodox Jews from using their property consistent with their faith.
“In this country, states, towns, and villages cannot make or enforce any law that abridges the privileges or immunities of American citizens, nor can they deny to any person within their jurisdiction the equal protection of the laws,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “The Fourteenth Amendment to the U.S. Constitution enshrined these principles in our law, and the Congress extended them when it enacted the Religious Land Use and Institutionalized Persons Act. Zoning ordinances that seek to exclude people and organizations because of their religion violate the law. Furthermore, targeting Orthodox Jewish individuals for the purpose of excluding them from a community is both illegal and a direct assault on this Nation’s fundamental values. This unlawful anti-Semitic conduct is wholly unacceptable in the United States of America, and the U.S. Department of Justice will not tolerate it. The Department of Justice will continue to use the full force of its authority to stop this despicable conduct and prevent its recurrence.”
“As a jury found over two decades ago, the Village of Airmont was born out of a spirit of animus against a religious minority,” said Acting U.S. Attorney for the Southern District of New York Audrey Strauss. “Sadly, rather than working to overcome that shameful legacy, Airmont has flagrantly ignored the terms of a court judgment and implemented land use practices that by design and operation are again meant to infringe unlawfully on the rights of a minority religious community. Religious discrimination will not be tolerated. We will remain vigilant to ensure that the right to worship freely and without undue interference is protected for all.”
The complaint, filed in the Southern District of New York, alleges that the Village adopted a zoning code that, in violation of the terms of a prior federal court judgment, eliminated residential places of worship as by-right uses and applied its code in a manner that made it impossible for members of the Orthodox Jewish community to obtain approval for religious schools and home synagogues. The complaint also alleges that the Village implemented an 18-month moratorium used to prevent the Orthodox Jewish community from advancing religious zoning applications, and interpreted and enforced its zoning code to prevent Orthodox Jews from using their property to construct Sukkahs, ritual huts required under Orthodox Jewish beliefs, and Mikvahs, ritual baths necessary for religious observance.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Judge sentences St. Louis man for carjacking resulting in death of Gus Gus Fun Bus OwnerRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Curtis Alford to 20 years in prison today. The 22-year-old East St. Louis, Illinois resident pleaded guilty to one count of carjacking resulting in the death of Michael Arnold.
On June 16, 2018, Alford and his accomplice rushed up to two victims putting money in a parking meter. The victims were in St. Louis attending the ‘Taste of St. Louis’ event downtown. Alford sprayed the victims with pepper spray as he tried to grab their truck keys. While Alford struggled with both victims, he grabbed one by the hair and neck, pulling her to the sidewalk. Alford then pulled the keys from her belt loop and got in her truck. One of the victims then attempted to stop Alford as he started the engine. He shoved her out of the way and began to pull away from the curb.
“I definitely have animosity towards the defendant because he tried to either cause me serious harm or possibly even kill me, when all I was doing was standing there. I have never witnessed something like that before, somebody being murdered, even as a draftee during the Korean conflict,” said Harry Frye, Jr, who is one of Alford’s carjacking victims.
Michael Arnold, who witnessed the carjacking, was in the street near the truck and taking a picture of the incident. As Alford pulled away, Arnold tried moving out of the way, but Alford drove over him, pinning Mr. Arnold under the truck. Alford then dragged Mr. Arnold across the street, jumped the curb, hit another victim who had been walking on the sidewalk, struck a fire hydrant and then sped off. Alford picked up his accomplice around the corner and continued to speed away. As a group of pedestrians and two police officers gathered near the corner of Seventh Street and Chestnut, Alford sped in their direction, eventually crashing the truck. The officers and pedestrians had to scatter to avoid being hit. Officers immediately arrested Alford and his accomplice. Mr. Arnold suffered multiple, severe internal injuries and died days later of these injuries.
"The loss of Mike is always with us and that will never change. This day is about what the defendant took from all of us. However, now we may be able to move past the criminal aspects of this terrible event,” said Mike Arnold’s wife, Suzanne Arnold. “More than anything, though, I hope we can remember all the beautiful things Mike was to us. Hopefully he gets the justice he deserves."
Arnold’s daughter Molly Arnold states, “My dad was such a major part of this community and of my family. It's been over two years of trying to get past the responsibilities that came along with his death. When the pandemic required shutting down the courts, I felt like we'd been thrown back into uncertainty and this looming last loose end wouldn't get tied up any time soon. It feels now like we can grieve the way we were meant to grieve.” Molly Arnold continues, “Thinking only of Dad and not worrying about whether we will see justice, if our statements are ready, and what our next steps have to be. I appreciate the love and the support that we've received from so many, and I appreciate that I find myself coming across kind words and happy memories even now. It has helped us to get through the hardest parts of this, and I'm so grateful for that. The fact that people still honor him over two years after his death is a true testament to the kind of person my father was. The love that he sowed reaches farther than I could have expected and it continues to grow through the community. It's a legacy that most dream of."
"Our family has forever been changed for the worst and each person in our family has lost an important person to them since we lost Mike," said Michael Arnold’s mom, Barbara Arnold.
U.S. Attorney Jeff Jensen says, “My heart breaks for the Arnold Family and I greatly appreciate the cooperation of the other victims. This is a senseless tragedy.” Jensen goes on to say, “Curtis Alford deserves every day of his sentence.”
The Federal Bureau of Investigation and St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Judge sentences Jefferson County owner of of mushroom grow lab for possessing and intending to distribute methamphetamineRead the Press Release
ST. LOUIS, MO – United States District Judge Stephen N. Limbaugh, Jr. sentenced Shawn Tepen to 90 months in prison today. The 32-year-old Cedar Hill, Missouri resident pleaded guilty to possession of methamphetamine with the intent to distribute.
Tepen was identified, in May 2019, as a suspect who was receiving a large number of suspected narcotics packages at his home on Golden Spring Court in Cedar Hill. Investigators, from the FBI and USPIS, worked with members of the Jefferson County Drug Task Force who advised they also received information Tepen was distributing meth and other narcotics.
On September 3, investigators learned Tepen would be receiving a package containing meth. On September 6, investigators located a package addressed to Tepen’s home with a return address from Los Angeles, California and a fake name listed as the sender. Investigators used a K-9 to sniff the package and the dog indicated a presence of narcotics. Investigators, using a search warrant, searched the package and discovered four pounds and 7.8 ounces of a crystalline substance later determined to be meth.
On September 9, an undercover postal investigator did a controlled delivery of the package to Tepen’s home. Eventually, Tepen left his home, picked up the package and went back into his home. Investigators, using an anticipatory search warrant, searched Tepen’s home and found a firearm with three magazines, 1,983.7 grams of meth and a large mushroom grow lab in the basement.
The FBI, U.S. Postal Inspection Service, and Jefferson County Drug Task Force investigated this case. Assistant United States Attorney Nauman Wadalawala is handling the case.
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Jefferson County Carjacker Receives Nearly a Decade in PrisonRead the Press Release
BEAUMONT, Texas – A 24-year-old Beaumont, Texas man has been sentenced to federal prison for violent crime violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Tremaurice Arthur Randall pleaded guilty on Aug. 4, 2020, to carjacking and brandishing a firearm in furtherance of a crime of violence and was sentenced to 114 months in federal prison today by U.S. District Judge Marcia Crone.
A co-defendant, Thaddiaus Joseph Thomas, 34, of Beaumont, Texas, pleaded guilty to the same charges on Aug. 12, 2020 and is awaiting sentencing.
According to information presented in court, on Dec. 21, 2019, Thomas and Randall traveled to the Excellent Carwash located at 5010 Haden Road in Beaumont, Texas, wearing masks, where they approached a man who was sitting in the driver’s seat of his 2003 Dodge Ram pickup truck. Thomas pointed a pistol at the man and Randall ordered him to “give it up” before the two pulled the man out of his truck and threw him to the ground. Thomas then pistol whipped the man in the head and fired one shot toward his feet. Randall and Thomas then entered the pickup truck and fled. Thomas and Randall were indicted by a federal grand jury on March 4, 2020 and charged with conspiracy to commit carjacking, carjacking, possession of a firearm during a crime of violence, and possession of a firearm by a prohibited person.
This case is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce un violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
Jamestown Man Pleads Guilty to Receiving Naked Pictures of Young Girls on Social MediaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shane Guay, 30, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that in November 2016, the defendant solicited minor victims through the Instagram application to produce images of child pornography. On November 6, 2016, the defendant received an image of Victim 1, who was 12 years old at the time. On November 8, 2016, Guay received two images of Victim 2, who was 13 years old at the time.
During the investigation, law enforcement officers recovered 587 images and five videos of child pornography on electronic devices seized from the defendant. Some of the images included prepubescent children, as well as depictions of violence.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the HSI Office of International Affairs in S. Africa; the New York State Police, under the direction of Major James Hall; the Olean Police Department, under the direction of Chief Jeff Rowley; the Harris County, GA Sheriff’s Office, under the direction of Sheriff Mike Jolley; and the Ayer, Massachusetts Police Department, under the direction of Chief William A. Murray.
Sentencing is scheduled for April 1, 2021, at 2:00 p.m. before Judge Sinatra.
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In “Staggering” Conspiracy, Former Police Chief, Prosecutor, and Police Officers Sentenced for Framing an Innocent Man with a CrimeRead the Press Release
Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Chopra (619) 546-8817, and Colin McDonald (619) 546-9144
NEWS RELEASE SUMMARY – December 2, 2020
HONOLULU, Hawaii – Former Honolulu Police Chief Louis Kealoha and his wife, former Honolulu prosecutor Katherine Kealoha, were sentenced in federal court this week to 84 months and 156 months in prison, respectively, for a range of criminal conduct, including framing their relative with a crime to conceal their own fraud. Additionally, the Kealohas’ co-conspirators, former Honolulu police officers Derek Wayne Hahn and Minh-Hung “Bobby” Nguyen, received 42 months and 54 months, respectively, for their involvement in the conspiracy.
Chief U.S. District Judge J. Michael Seabright of the District of Hawaii handed down the sentences, remarking that the conspiracy was “staggering in its breadth, its scope, and its audacity.” He stated further that “the impact on the community is clear: The conduct of the defendants has shaken the community and its trust in the Honolulu Police Department.”
The sentences mark the end of one of the largest public corruption cases in Hawaii history. In June 2019, after six weeks of trial and one day of deliberation, a federal jury in Honolulu convicted the Kealohas, Hahn, and Nguyen of conspiracy and attempted obstruction of justice pertaining to the false arrest and prosecution of Katherine’s uncle, Gerard Puana. The evidence at trial established that the conspirators used their considerable power, including commandeering the Honolulu Police Department’s elite Criminal Intelligence Unit (CIU), to frame Gerard with stealing the Kealohas’ mailbox. Hahn and Nguyen were both members of CIU, which acted directly at the behest of Louis Kealoha. The Kealohas’ motive for framing Gerard was to discredit and intimidate him after he accused Katherine of stealing money from him and his elderly mother—Katherine’s grandmother. The evidence at trial demonstrated that the Kealohas took and spent over $148,000 of the grandmother’s money in just a six-month period, with payments going towards expenses such as mortgage payments, Elton John concert tickets, Mercedes and Maserati car payments, a trip to Disneyland, and a $23,976 brunch tab at the Sheraton Waikiki to celebrate Louis Kealoha’s induction as Honolulu Police Chief in 2009.
Once Gerard started voicing claims of fraud, the Kealohas moved to silence him by falsely accusing him of a felony offense. To frame Gerard, the conspirators prepped the Kealohas’ mailbox to be “stolen,” selectively edited grainy surveillance video to conceal their preparatory acts, falsely identified Gerard as the culprit captured by the video, falsified police reports, withheld and destroyed evidence, and repeatedly lied about their activity to investigators, the federal grand jury, and the District Court for the District of Hawaii. This all occurred while Louis Kealoha was Honolulu’s Police Chief and while Katherine Kealoha was a high-ranking Honolulu prosecutor.
“This was a flagrant and stunning abuse of power that victimized an entire community by undermining public confidence in its leaders and the rule of law,” said U.S. Attorney Robert Brewer. “After years of manipulating the levers of justice to shroud their own crimes, justice has been delivered to these defendants.” Brewer praised FBI agents and Special Attorneys Michael Wheat, Joseph Orabona, Janaki Chopra, and Colin McDonald for achieving justice in this case after many years of tenacious investigation and skillful litigation.
“Our citizens entrust public servants with great powers and authorities. It is our responsibility to serve our community with integrity and authenticity – with truth and justice as our hallmark,” said Special Agent in Charge Eli S. Miranda. “The Kealohas betrayed this trust for their own selfish entitlements, using deception and breaking the same laws they swore to uphold. The FBI will enthusiastically continue to investigate any corrupt public official who willfully and maliciously abuse their office.”
In addition to their custodial sentences, Katherine Kealoha and Louis Kealoha were ordered to pay $454,984.78 and $237,698.56, respectively, in restitution to their victims, and ordered to forfeit property representing proceeds of fraud, including the Kealohas’ former home in Honolulu, a Rolex watch, and $228,746.79. Katherine Kealoha is already in custody; Louis Kealoha, Hahn, and Nguyen were ordered to self-surrender to the Bureau of Prisons on April 12, 2021.
DEFENDANTS
Louis M. Kealoha Age: 60 Honolulu, Hawaii
Katherine P. Kealoha Age: 50 Honolulu, Hawaii
Derek Wayne Hahn Age: 48 Honolulu, HawaiiMinh-Hung “Bobby” Nguyen Age: 46 Kaneohe, Hawaii
SUMMARY OF CONVICTIONS
Louis Kealoha
CR No. 17-00582-JMS-WRP
Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding – Title 18, U.S.C., Section 1512(c) (three counts)
Maximum penalty: Twenty years in prison, $250,000 fine
CR No. 18-00068-JMS-WRP
Bank Fraud, in violation of 18 U.S.C. § 1344
Maximum Penalty: Thirty years in prison, $1 million fine
Katherine Kealoha
CR No. 17-00582-JMS-WRP
Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding – Title 18, U.S.C., Section 1512(c) (three counts)
Maximum penalty: Twenty years in prison, $250,000 fine
CR No. 18-00068-JMS-WRP
Bank Fraud, in violation of 18 U.S.C. § 1344
Maximum Penalty: Thirty years in prison, $1 million fine
Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalty: Mandatory term of imprisonment of two years, to be served consecutive to the sentence imposed for any underlying charge; fine of up to $250,000
CR No. 19-00015 JMS-WRP
Misprision of Felony, in violation of 18 U.S.C. § 4
Maximum Penalty: Three years in prison; fine of up to $250,000
Derek Wayne Hahn and Minh-Hung “Bobby” Nguyen
CR No. 17-00582-JMS-WRP
Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding – Title 18, U.S.C., Section 1512(c) (three counts)
Maximum penalty: Twenty years in prison, $250,000 fine
AGENCY
Federal Bureau of Investigation
Honolulu, Portland, and San Diego Divisions
Illegal Alien with Numerous Criminal Convictions Pleads GuiltyRead the Press Release
RICHMOND, Va. – An El Salvadorian national previously convicted of sexual battery, extortion, and larceny charges pleaded guilty today to illegally reentering the United States.
According to court documents, Francisco Edgardo Palacios-Arias, 24, first illegally entered the U.S. sometime before February 2015. Thereafter, between June 2015 and July 2017, Palacios-Arias was convicted of a series of offenses in Chesterfield County, to include a sexual battery conviction in June 2015; a conviction for extortion of a school employee in December 2016; and convictions for two counts of larceny, false identification of self to law enforcement, and possession of marijuana in July 2017.
Officers of Immigration and Customs Enforcement (ICE) arrested Palacios-Arias following this third set of convictions, and he was deported in March 2018. Palacios-Arias later illegally reentered the U.S., and returned to Chesterfield County. ICE officers arrested Palacios-Arias in Chesterfield in March.
Palacios-Arias is scheduled to be sentenced on Jan. 8, 2021. He faces a maximum penalty of two years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Shawn Byers, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Assistant U.S. Attorney Thomas A. Garnett is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-62.
Illegal Alien from Mexico Indicted for Attempted Federal BriberyRead the Press Release
Jackson, Miss. – Jesus Christian Miranda-Alcantar, 33, an illegal alien from Mexico, has been charged in a federal indictment with attempted bribery of a federal officer and illegal reentry following deportation from the United States, announced United States Attorney Mike Hurst, Gilbert Trill, Acting Special Agent in Charge of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in New Orleans, and Diane Witte, Field Office Director of ICE Enforcement and Removal Operations (ERO).
The indictment, returned by a federal grand jury on November 17, 2020, charges Miranda-Alcantar with one count of attempted bribery of a federal officer, in violation of 18 U.S.C. § 201, and one count of illegal reentry to the United States following deportation, in violation of 8 U.S.C. § 1326.
In September 2020, Miranda-Alcantar was found in Hinds County, following his arrest on a domestic violence charge, present without necessary permission to be in the United States since ICE had removed him from the United States in 2013. While being transported to jail from immigration processing at the ERO offices in Pearl, Miranda-Alcantar offered to pay the federal officer transporting him a bribe of $8,000, if the officer would stop, let Miranda-Alcantar out of the vehicle by the side of the road, and let Miranda-Alcantar escape.
On December 1, 2020, Miranda-Alcantar appeared for arraignment on the indictment before United States Magistrate Judge Linda Anderson in Jackson. The Court ordered Miranda-Alcantar detained in U.S. Marshals custody while awaiting trial.
Miranda-Alcantar faces maximum penalties of 15 years in prison for the count charged for bribery, and two years in prison on the immigration charge. Each count also can merit a fine of up to $250,000.
Trial has been set for February 1, 2021, before U.S. District Judge Carlton W. Reeves in Jackson.
U.S. Attorney Hurst commended the work of the Special Agents with the Department of Homeland Security’s ICE and ERO who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Home health care owner sentenced to more than five years for defrauding Georgia MedicaidRead the Press Release
ATLANTA –Diandra Bankhead, the owner and operator of Elite Homecare (“Elite”), an Atlanta-based home healthcare provider, has been sentenced for defrauding Medicaid out of nearly $1 million. Between September 2015 and April 2018, Bankhead submitted thousands of fraudulent claims for services that were never provided to medically fragile children under the Georgia Pediatric Program (“GAPP”).
“It is outrageous that Bankhead profited off children who suffered from significant physical and cognitive disabilities,” said U.S. Attorney Byung J. “BJay” Pak. “For years her scheme exploited Medicaid-eligible children and their families by billing for services never performed and for children never seen, diverting critical resources from those who needed them most.”
“Bankhead’s greed-fueled scheme, designed to enrich herself, came at the expense of disabled children and taxpayers. Instead she faces years of imprisonment – a fate awaiting those stealing Medicaid funds,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with our State and Federal law enforcement partners we will bring to justice those who illegally drain this vital program.”
"Bankhead’s lack of concern for the needs of fragile children to profit rather than care for them is very troubling, and now she must pay the price for her greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Not only did she deny care to children in need, she also stole taxpayer dollars from a Medicaid program that should have gone to those who need them.”“Our Medicaid Fraud Division, in cooperation with our state and federal partners, will remain vigilant in maintaining the integrity of public programs and prosecuting those who take advantage of them,” said Attorney General Chris Carr. “This case is especially egregious as it involves someone purporting to help serve children in need all the while neglecting their responsibility to devote these funds for those purposes. This behavior is unacceptable.”
According to U.S. Attorney Pak, the charges and other information presented in court: GAPP is an in-home nursing program designed to serve Medicaid-eligible children under the age of 21 years of age based on a medical necessity. The program offers in-home skilled nursing services for medically fragile children who require nursing services, and personal care services, including feeding, bathing, dressing, personal hygiene, preparation of meal, and assisting with the mobility and ambulation of members.
Medically fragile children who are eligible for services under GAPP typically suffer from significant physical and cognitive disabilities, including autism, blindness, cerebral palsy, Down syndrome, epileptic seizures, and/or paralysis.
Bankhead's scheme began in September 2015 and continued until April 2018. Over that time, Elite Homecare submitted more than 5,400 claims to Georgia Medicaid—the vast majority of which were fraudulent—and for which Elite received $1.2 million in reimbursement. Bankhead defrauded Medicaid in a number of ways, including:
- Submitting fraudulent credentialing information to the State of Georgia Department of Community Health in order to become a certified GAPP provider, including falsely representing that a registered nurse (“RN”) —without her knowledge or authorization—served as Elite’s RN Supervisor.
- Falsely representing to Medicaid that an RN or RN Supervisor had conducted the initial evaluation of putative GAPP members as required by applicable regulations.
- Submitting fraudulent claims for in-home nursing services allegedly provided to families who had not retained Elite to provide any services.
- Submitting fraudulent claims in which Elite employees allegedly provided more than 24 hours of services in a given day.
- Submitting fraudulent claims where Elite employees were impossibly providing services to multiple children simultaneously.
- Submitting fraudulent claims in the names of multiple individuals, including RNs, who did not provide the services in question, and did know that their identities and credentials were being used.
- Submitting fraudulent claims that had been “upcoded” – that is claims which fraudulently increased the amount Medicaid paid Elite – by materially misrepresenting the level of care provided and the level of licensing for the individual allegedly providing the services. For example, Elite submitted fraudulent claims to Medicaid purporting that an RN (billed at $40/hour) had rendered the services when in fact an licensed professional nurse (billed at $30/hour) and/or personal care service provider (billed at $20/hour) had actually done so.
- Preparing fraudulent supporting documentation for the in-home nursing services that were never provided, including fraudulent patient care charts.
Among the fraudulent claims that Bankhead submitted to Georgia Medicaid for services that were never performed were for services allegedly provided to an infant girl after she had passed away and three children, all under the age of thirteen, who suffered from cerebral palsy or Downs Syndrome. These children were entirely dependent on others to complete the most basic tasks of life—feeding themselves, clothing themselves, bathing, and even standing up to walk.
In addition to the underlying fraud, Bankhead also failed to truthfully and completely disclose her finances to the United States Probation Office as required by her plea agreement. Rather, the information presented at sentencing established that Bankhead entered into a kickback arrangement with another Atlanta-based home health provider under which she “sold” twenty of Elite’s former clients in exchange for receiving a percentage of the Medicaid billings tied to those clients going forward. Such arrangements are generally unlawful under the federal Anti-Kickback Statute.
Bankhead, 43, of Atlanta, Georgia was sentenced by U.S. District Court Judge Thomas W. Thrash, Jr. to five years and three months in federal prison, and three years of supervised release, and ordered to pay $999,999, in restitution. On August 28, 2019, Bankhead pleaded guilty to a criminal information pursuant to a written plea agreement charging her with one count of health care fraud.
This case was investigated by the Department of Health and Human Services, Georgia Medicaid Fraud Control Unit, and Federal Bureau of Investigation.
Assistant U.S. Attorney Alex R. Sistla prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Green Bay Man Indicted on Human Trafficking and Production of Child Pornography ChargesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 1, 2020, a federal grand jury returned a two-count indictment against Darryl K. Green (age: 53) of Green Bay, Wisconsin.
Green faces charges alleging he attempted to entice a minor to engage in a commercial sex act contrary to Title 18, United States Code, Section 1591(a)(1), (b)(2), and (c). It further alleges that he used that same minor to produce a pornographic image of the child in violation of Title 18, United States Code, Section 2251(a).
If convicted of the child pornography charge, Green faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment. He would also be required to register as a sex offender. The human trafficking charge carries a mandatory ten years’ imprisonment and up to a lifetime of incarceration.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was investigated by the Green Bay Police Department, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Green Bay office of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Erica J. Lounsberry and Daniel R. Humble.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
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Gilford Man Sentenced to 84 Months for Transportation of Child PornographyRead the Press Release
CONCORD - Phillip R. Andrews, 81, of Gilford, was sentenced on Tuesday to 84 months in federal prison for transportation of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on or before June 13, 2016, Andrews used his cellular phone to produce sexually explicit images of a child. These images were uploaded onto his social media accounts using the internet.
Andrews previously pleaded guilty on January 15, 2020.
“By transporting child pornography, the defendant was involved in the exploitation of a child,” said U.S. Attorney Murray. “Those who create, transport or distribute child pornography do grave harm to the victims who are portrayed in these images. In order to safeguard our young people, we work closely with HSI and all of our federal, state and local law enforcement partners to identify and prosecute child exploitation and child pornography crimes.”
This matter was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations, the New Hampshire Internet Crimes Against Children Task Force, and the Gilford Police Department. The case is being prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Leader of Fitchburg Chapter of Latin Kings Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former leader of the Fitchburg Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today in federal court in Boston.
Marlon Rivera, a/k/a “King Pluto,” 36, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 42 months in prison and three years of supervised release. In August 2020, Rivera pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. Rivera was serving a related state sentence when he was charged in December 2019.
The Latin Kings are a violent gang comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the criminal organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and is motivated by a desire to further its influence and to protect its turf from rival gangs.
In addition to his membership in the Latin Kings, Rivera founded the Devon Street Kings Chapter in Boston, and recently was the Inca, or leader, of the Fitchburg Chapter of the Latin Kings. Evidence developed during the course of the investigation included recordings of Rivera participating in meetings, discussing business of the enterprise, and possessing cocaine base with intent to distribute.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Marlon Rivera is the sixth defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Craighead County Clerk Federally IndictedRead the Press Release
LITTLE ROCK - A federal grand jury has indicted former Craighead County Clerk Jacob Kade Holliday for allegedly taking more than $1.4 million in county money for his personal use. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the indictment of Holliday, 32, of Jonesboro.
The indictment, which was returned by the grand jury late on December 1, 2020, alleges that Holliday, as the elected County Clerk in Craighead County, served as the official bookkeeper of county government. In that capacity, Holliday was tasked with keeping an accurate account of all financial transactions within the county. The funds Holliday controlled included county payroll tax obligations as well as employment retirement contributions.
According to the indictment, from January 29, 2020, to June 24, 2020, Holliday transferred money from the Craighead County Clerk’s banking account to his own personal and business accounts. He then allegedly obtained cashier’s checks in approximately the same amounts and further converted them to his own use.
“We take all allegations of undermining public trust very seriously,” stated U.S. Attorney Hiland. “In this case and in all potential cases, any reports of public corruption will be thoroughly investigated by our office with the help of our law enforcement partners.”
“Without the diligent efforts of our partners at the Arkansas State Police, Mr. Holliday’s alleged theft of over $1.4 million from the citizens of Craighead County would not have been uncovered,” said FBI Special Agent in Charge Upchurch. “Every day, we work closely with our state partners to protect Arkansans from crimes like the ones alleged in this case.”
Holliday is charged with 11 counts of wire fraud; one for each of the 11 transactions he made during the time alleged in the indictment. Holliday will appear before United States Magistrate Judge Joe J. Volpe for plea and arraignment on December 17, 2020. The maximum penalty for wire fraud is not more than 20 years’ imprisonment, a fine of not more than $250,000, and not more than three years of supervised release.
The FBI and the Arkansas State Police conducted the investigation. Assistant United States Attorney Allison W. Bragg is prosecuting the case.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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Fitchburg Man Sentenced to 13 Years in Prison for Wide-Ranging Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Anthony Baez, 32, was sentenced by U.S. District Court Judge Timothy S. Hillman to 156 months in prison and five years of supervised release. In July 2020, Baez pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base, and 500 grams or more of cocaine; two counts of distribution of 40 grams or more of fentanyl and heroin; two counts of distribution of 100 grams or more of heroin and 40 grams or more of fentanyl; and two counts of distribution of 400 grams or more of fentanyl, 100 grams or more of heroin, and cocaine.
Following a fatal fentanyl overdose in September 2018, law enforcement began investigating a drug trafficking organization in the Fitchburg area and discovered that Baez led the organization along with his father, Pedro Baez. Court-authorized interceptions of phones used by Baez and other members of the drug trafficking organization and its suppliers revealed that Baez worked with his father, co-defendant Monica Troche, and others to distribute a fentanyl and heroin mixture, cocaine and crack cocaine on a regular basis to individuals in the Fitchburg area, some of whom resold all or a portion of those drugs to their own customers.
According to court records, Baez was responsible for the distribution of over 1.67 kilograms of a deadly fentanyl and heroin mixture, at least 1.5 kilograms of cocaine and at least 10 grams of cocaine base.
Baez was indicted, along with Pedro Baez, Troche and 15 additional defendants. Baez is the first defendant in this case to be sentenced. Pedro Baez and Troche have pleaded not guilty.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The case was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF). The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of an OCDETF operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Talladega County Employee on Drug ChargesRead the Press Release
Birmingham, Ala. – A federal jury today convicted a Talladega man on drug charges, announced United States Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mikey French.
The jury returned its guilty verdict against Anthony Lamon Frazier, 38, after 2 days of testimony before U.S. District Judge Corey L. Maze.
“Frazier’s conviction sends the message to those dealing drugs – you will get caught, and you will be held responsible for pushing this poison in our communities,” USA Escalona said. “I want to commend the Talladega County Drug Task Force and the prosecution team for their hard work on this case. I also want to thank the jurors for their time and service.”
“The partnerships with the public safety departments and the U.S. Attorney’s office were crucial in reducing the potential for violent crime in this case,” SAC French said.
Evidence at trial proved that Frazier agreed to deliver almost two pounds of methamphetamine to an individual, and ultimately did deliver that methamphetamine. Frazier used his Talladega County work truck to distribute the narcotics, and evidence at trial showed that a narcotics canine indicated on Frazier’s work truck numerous times for the presence of drugs.
The maximum penalty for possession with the intent to distribute more than 50 grams of methamphetamine is life in prison.
ATF investigated the case, along with the Talladega County Drug Task Force. Assistant U.S. Attorneys Blake Milner and Allison Garnett prosecuted the case.
Federal Indictment Charges Buncombe County Man for Receiving Veteran Benefits Based on Fraudulent Service-Connected DisabilitiesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that John Paul Cook, 57, of Alexander, N.C. is facing multiple federal charges for defrauding the U.S. Department of Veterans Affairs (the VA) by receiving veteran benefits based on fraudulent service-connected disabilities.
Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the federal indictment, Cook enlisted in the United States Army (the Army) in November 1985. The indictment alleges that six months later Cook sustained an accidental injury while on duty. Following the incident, Cook complained that as a result of the accident and injuries he sustained, a preexisting eye condition had worsened. In 1987, following a medical evaluation, Cook was discharged, placed on the retired list, and began receiving VA disability-based compensation at a rate of 60%. Over the next 30 years, Cook’s disability-based compensation increased, following Cook’s repeated false claims of increased visual impairment and unemployability due to “severe visual deficit.” The indictment alleges that, in 2005, based on Cook’s claims of severe visual impairment, Cook was declared legally blind and began receiving disability-based compensation at a maximum rate. Cook also began to receive additional benefits, including Special Monthly Compensation (an extra monetary allowance paid to a qualifying veteran due to the severity of his disability), Specially Adapted Housing (a grant that goes toward paying for adaptations in a new home), and Special Housing Adaptation (a grant that goes toward remodeling an existing home).
According to allegations in the indictment, Cook’s monthly VA disability payments in 1987 were $1,411 per month. With the increases in his disability rating, as well as cost-of-living adjustments and his Special Monthly Compensation, these payments steadily increased over the years. By 2016, the monthly payment had risen to $3,990. In total, from 1987 through 2017, Cook received approximately $978,138 in VA disability payments due to his claimed blindness, to which he was not lawfully entitled.
The indictment alleges that, contrary to Cook’s filed claims with the VA for additional disability claims and his complaints of increased visual impairment, Cook repeatedly passed vision screening tests to renew or obtain a driver’s license in North and South Carolina. The indictment further alleges that, during the relevant time period, Cook purchased and registered over 30 different motor vehicles which Cook routinely drove, including on long-distance trips, to perform errands, and to drive to medical appointments. As alleged in the indictment, from 2010 to 2016, during a time period that Cook was receiving maximum VA disability benefits for his visual impairment, Cook was actively involved with the Boy Scouts of America (BSA), including serving as a Den Leader and a Cubmaster. Among the courses the defendant completed with the BSA were courses qualifying him to be a range officer for BB guns and for archery. He was also certified for land navigation, which involves reading maps and using a compass.
The indictment alleges that, in addition to the fraudulently obtained disability benefits for visual impairment, Cook also defrauded the VA’s Beneficiary Travel Program, after filing multiple false claims for mileage reimbursement in connection with his medical appointments. The VA terminated Cook’s blindness-related disability payments in October 2017.
The federal criminal indictment charges Cook with one count of stealing from the VA, which carries a maximum penalty of 10 years in prison and a $250,000 fine; three counts of making false statements in connection with obtaining VA disability payments, which carry a maximum penalty of five years in prison and a $250,000 fine, per count; and three counts of a making false claims for travel benefits from the VA, which carry a maximum penalty of five years in prison and a $250,000 fine, per count.
The indictment also contains a Notice of Forfeiture seeking a money judgement in the amount of $978,138, which is the amount constituting the proceeds of Cook’s alleged fraudulent conduct.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray thanked the VA-OIG for their investigation of the case.
Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Erie Man Charged with Drug and Gun CrimesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Joseph Russell Wayne, Jr., 31, as the sole defendant.
According to the Indictment presented to the court, on November 17, 2020, Wayne possessed a Smith and Wesson, .40 caliber semi-automatic handgun in furtherance of the unlawful possession of marijuana, and additionally possessed a Smith and Wesson, 9mm semi-automatic handgun while prohibited under federal law. The Indictment alleged a total of $462,789.40 in assets are subject to forfeiture as proceeds of the unlawful distribution of marijuana by Wayne.
The law provides for a maximum total sentence of life in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Pennsylvania Office of the Attorney General conducted the investigation leading to the Indictment in this case. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eight Drug traffickers indicted for distributing heroin, methamphetamine, and fentanyl throughout the Puget Sound regionRead the Press Release
Seattle – Eight people are indicted today in a wide-ranging drug investigation that resulted in the seizure of significant quantities of suspected fentanyl, heroin, and methamphetamine, announced U.S. Attorney Brian T. Moran. JOSE LUIS IBARRA-VALLE, 37, a citizen of Mexico who was living in Woodinville, Washington, was stopped by law enforcement on October 25, 2020, in Seattle. In his car authorities found approximately 10,000 pills believed to contain fentanyl, more than 20 pounds of suspected methamphetamine, and more than a kilogram of suspected heroin. All those arrested today appeared in U.S. District Court in Seattle today.
“While COVID-19 may have shut down many of our businesses, it does not seem to have put a dent in the illegal drug distribution business, causing harm to our communities,” said U.S. Attorney Brian T. Moran. “I commend the law enforcement officers who continue to do the work of tracking and seizing these illegal drugs—especially fentanyl pills—that are connected with overdose deaths in our community.”
“The rising numbers of fentanyl overdoses is on the radar of all our law enforcement partners,” said DEA Special Agent in Charge Keith Weis. “We will continue to prioritize disrupting the illicit distribution of this dangerous narcotic within our communities.”
The additional defendants indicted in this wiretap investigation include:
JESUS GUTIERREZ-GARCIA, 31, Everett, Washington
JESUS GARNICA-MELGOZA, 39, Seattle, Washington
HUMBERTO GARCIA, 39, Everett, Washington
SANTOS CARO, 35, Portland, Oregon
CHARLES HOFFMAN, 43, Tulalip, Washington
LEE WALLETTE, 36, Mountlake Terrace, Washington
TISHA GIRTZ, 38, Lake Stevens, Washington
Over the course of the investigation law enforcement seized 16,000 suspected fentanyl pills, 30 pounds of suspected methamphetamine, and six pounds of suspected heroin.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
The investigation was led by the Drug Enforcement Administration in partnership with the Federal Bureau of Investigation, Homeland Security Investigations, Whatcom Gang and Drug Task Force, Washington State Patrol, Snohomish Regional Drug Task Force, United States Border Patrol, Customs and Border Protection, Skagit County Interlocal Drug Enforcement Unit, the Whatcom County Sheriff’s Office, the Lake Stevens Police Department and Tulalip Police Department. In addition to the agencies listed above, the following law enforcement agencies assisted with arrests and search warrants executed today: Everett ACT, North Sound SWAT, FBI SWAT and DEA Portland. The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA).
The case is being prosecuted by Assistant United States Attorneys Benjamin Diggs and Nicholas Manheim.
Eagle Butte Woman Sentenced for Maintaining a Drug Involved PremisesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Maintaining a Drug Involved Premises was sentenced on November 30, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Juanita Red Bird, age 26, was sentenced to a time served sentence of ten days in federal prison, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Bird was indicted by a federal grand jury on March 10, 2020. She pled guilty to a Superseding Information on September 14, 2020.
The conviction stemmed from Red Bird’s conduct between 2018 and 2019, wherein she used a residence near Eagle Butte to sell marijuana.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Drug trafficker sent to prison for shipping cocaine via mailRead the Press Release
CORPUS CHRISTI, Texas – A 41-year-old resident of Edinburg has been sentenced for his role in a drug conspiracy involving the federal mail system, announced U.S. Attorney Ryan K. Patrick.
Axel Noel Rodriguez Rivera pleaded guilty July 23.
Today, U.S. District Judge David S. Morales ordered Rivera to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard information detailing how Rivera used multiple mail center mailboxes to receive cocaine through the mail. In handing down the sentence, Judge Morales noted Rivera’s prior felony drug convictions.
“Illegal drugs have no business being a part of the mail stream,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service.“Postal inspectors work tirelessly to rid the mail of illicit and dangerous drugs and provide a safe environment for postal employees and Postal Service customers. Today’s sentencing demonstrates that postal inspectors will never tolerate the use of the U.S. Mail to distribute illegal substances. We thank the members of the Hidalgo County Criminal District Attorney’s High Intensity Drug Trafficking Area (HIDTA) Task Force task force for partnering with us to bring this criminal to justice.”
In January, law enforcement in McAllen began an investigation into a suspicious parcel which was later found to contain cocaine.
The investigation revealed Rivera had retrieved multiple parcels from mail centers within the Corpus Christi area. The packages were either sent through third-party shippers or the U.S. Postal Service. Each of the parcels contained cocaine.
Rivera was ultimately held accountable for approximately 10 kilograms of cocaine which had an estimated street value of $250,000.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspector Service and the Hidalgo County Criminal District Attorney’s High Intensity Drug Trafficking Area Task Force conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Drug Trafficker Sentenced 210 Months for Distributing Kilograms of MethamphetamineRead the Press Release
KNOXVILLE, Tenn. – On November 30, 2020, Jairo Cruz-Rico, 37, a Citizen of Mexico, was sentenced to 210 months (17.5 years) in a federal prison by Senior United States District Court Judge Thomas W. Phillips. Cruz-Rico was a supplier of methamphetamine for a drug conspiracy that distributed hundreds of kilograms of methamphetamine in Georgia and Tennessee. Cruz-Rico had earlier pled guilty to a conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine.
On April 30, 2019, Cruz-Rico was apprehended in Georgia by Homeland Security Investigations federal agents while he was on his way to deliver approximately 2 kilograms of methamphetamine. He had a gun with him in his vehicle. Cruz-Rico was a member of a far-reaching drug distribution conspiracy, which was uncovered and dismantled through an investigation led by Homeland Security Investigations and the United States Attorney’s Office for the Eastern District of Tennessee.
“This case and, more importantly, this conviction send a strong message to anyone who attempts traffic or is thinking about trafficking drugs through our highways and into our communities that you will be apprehended and prosecuted. This conviction and sentence are the result of a sweeping law enforcement effort to stem the flow of drugs from around the world that eventually end up in our communities,” said U.S. Attorney J. Douglas Overbey.
“Working with our local, state and federal law enforcement partners, HSI continues to assist in the identification and prosecution of those who participate in drug trafficking conspiracies,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “Methamphetamine is a dangerous substance that destroys lives and endangers the communities that we are sworn to protect.”
This prosecution was the result of a joint investigation by the HSI Knoxville, HSI Atlanta, TBI, 9th Judicial Drug Task Force, Cumberland County Sheriff’s Office, Middle Tennessee HIDTA Task Force, and the Tennessee Highway Patrol.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Kevin Quencer represented the United States.
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Drug Company Manager Sentenced for Role in Kickback Scheme Related to Fentanyl Spray PrescriptionsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEFFREY PEARLMAN, 53, of Edgewood, N.J., was sentenced today by U.S. District Judge Janet Bond Arterton to three years of probation for engaging in a kickback scheme related to fentanyl spray prescriptions.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, from approximately September 2012 until November 2015, Pearlman was employed by Insys Therapeutics, an Arizona-based pharmaceutical company that manufactured and sold Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. The company first hired Pearlman as a sales representative and subsequently promoted him to the position of District Sales Manager. As a District Sales Manager, Pearlman was responsible for managing the company’s sales representatives who called on licensed healthcare providers in Connecticut, New York, New Jersey and Rhode Island.
An investigation revealed that Insys Therapeutics representatives, including Pearlman and the sales representatives he managed, were inducing medical practitioners around the country to prescribe Subsys over other similar medications by paying the medical practitioners to participate in hundreds of sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners. At times, the sign-in sheets for the Speaker Programs were forged to make it appear that the programs had an appropriate audience of healthcare professionals.
In 2013, Pearlman attended a dinner at a New Haven restaurant where Heather Alfonso, who at the time was an Advanced Practice Registered Nurse (APRN) at Comprehensive Pain and Headache Treatment Center (CPHTC) in Derby, was paid a speaker fee even though no other healthcare professionals were present, and no presentation of Subsys took place.
In a meeting that occurred with Alfonso in the spring of 2013, Pearlman told the provider that the more prescriptions of Subsys that Alfonso wrote, the more Speaker Programs Pearlman could provide. In June 2013, when these prescriptions were not initially being written as planned, Pearlman emailed Natalie Levine, an Insys sales representative who was responsible for calling on Alfonso and reiterated that per the “verbal agreement” Pearlman had made with Alfonso, Alfonso needed to write more Subsys prescriptions or Pearlman was “going to have tremendous difficulty in justifying more [speaker] programs.”
As a result of this scheme, Medicare Part D plans authorized payment for nearly 400 Subsys prescriptions written by Alfonso, causing millions of dollars of losses. Pearlman personally profited from this scheme through inflated quarterly bonuses he received that were based, in large part, on the sales results of the sales representatives he managed.
Pearlman was arrested on September 29, 2016. On August 8, 2018, he pleaded guilty to one count of conspiracy to violate the anti-kickback law.
Alfonso and Levine pleaded guilty to related charges. On June 24, 2019, Levine was sentenced to three years of probation, including six months of home confinement. On November 26, 2019, Alfonso was sentenced to three years of probation.
Several other individuals affiliated with Insys Therapeutics, and medical practitioners involved in this kickback scheme, have been charged and convicted in other Districts across the U.S. On May 2, 2019, a federal jury in Boston found John N. Kapoor, the founder and former Executive Chairman of Insys Therapeutics, and four other former Insys executives guilty of racketeering conspiracy. January 23, 2020, Kapoor was sentenced to 66 months of imprisonment.
In June 2019, Insys Therapeutics agreed to pay a total of $225 million to resolve criminal and civil investigations of the company.
The investigation in the District of Connecticut was conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito, Sarah P. Karwan and Richard M. Molot.
U.S. Attorney Durham encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican man previously residing in Lawrence pleaded guilty today in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Cecilio Guzman, 28, pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Patti B. Saris scheduled sentencing for March 12, 2021. Guzman was charged by complaint and arrested by state authorities on Nov. 20, 2019. He is currently in federal custody.
Guzman arranged to sell 120 grams of fentanyl to a cooperating witness for the government. On Nov. 20, 2019, Guzman met with the witness in Lawrence, sold him the fentanyl, and was subsequently arrested.
The charge of distribution and possession with intent to distribute more than 40 grams of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. The investigation was conducted with the assistance of the Andover, Haverhill, Lawrence, Lowell and Wilmington Police Departments. Special assistance was provided by the Essex District Attorney’s Office. Assistant U.S. Attorney Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Department of Justice Launches Money Mule Initiative #DontBeAMuleRead the Press Release
ALBANY, NEW YORK – Acting U.S. Attorney Antoinette T. Bacon announced today her office’s participation in a nationwide Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are people who assist fraudsters by collecting money from victims of fraud and forwarding it to the fraud organizers, many of whom are located overseas. Some money mules know they are helping fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds.
Acting U.S. Attorney Antoinette T. Bacon stated: “It is critical for everyone to understand how criminals use “money mules” so that they can protect themselves and their loved ones from getting caught up in illegal activity. Sadly, the criminals often target our most vulnerable and lonely, particularly the elderly. We all need to work together to keep our community safe. Please be aware and think twice if you, your loved one, or neighbor is approached.”
In addition to criminal investigations, the agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. Through our Elder Justice Coordinators, Shira Hoffman and Christopher Moran, our office will be reaching out to our communities to educate the public about money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit https://www.justice.gov/civil/consumer-protection-branch/money-mule-initiative
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Additional information is available in the attached “Money Mule” document. Please distribute in every way possible.