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Monday 30 November 2020
Pennsylvania Attorney Sentenced for Role in $2.7 Million Ponzi SchemeRead the Press Release
An Allentown, Pennsylvania, attorney was sentenced today to 78 months in prison followed by three years of supervised release for his role in a $2.7 million investment fraud scheme that victimized his law clients.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office made the announcement.
Todd H. Lahr, 60, of Nazareth, Pennsylvania, was sentenced by U.S. District Judge Edward G. Smith of the Eastern District of Pennsylvania who also ordered Lahr to pay $2,106,918.60 in restitution and $273,091 in forfeiture.
Lahr, an attorney licensed to practice law in Pennsylvania and the District of Columbia, and with offices in Allentown, pleaded guilty in April 2020 to one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud.
According to Lahr’s admissions at the plea hearing and sentencing, from 2012 through 2019, Lahr conspired with others to perpetrate a securities fraud scheme targeting his own law clients, which involved the fraudulent sale of the securities of two entities, THL Holdings LLC and Ferran Global Holdings Inc.
Lahr initially sold THL Holdings investments, promising that the money raised would be used to pursue specific business opportunities, including mining operations in Papua New Guinea and the acquisition of the shares of a penny stock. In reality, the money was used for Lahr’s personal expenses and to make Ponzi scheme payments to prior investors, among other things. Once Lahr realized that he was running out of investor money to pay the THL Holdings investors, he sought investors for a second entity, Ferran. He told the Ferran investors that their money would be used for business opportunities, including even more mining in Papua New Guinea and residential property leases in Spain and England—but, in fact, these funds were used to repay the prior THL Holdings investors and, again, for Lahr’s personal expenses to fund his lifestyle. Among these personal expenses were his home mortgage, his child’s school tuition, utility bills, and other personal debt. Total investor losses are estimated to be over $2.7 million.
Even after he was caught, Lahr continued his deception by lying in sworn testimony before the U.S. Securities and Exchange Commission (SEC). In this testimony, Lahr denied writing checks to his personal accounts from the THL Holdings accounts, when, in fact, he had written at least 25 separate checks to himself over a three-year period.
The FBI investigated this case. Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael J. Rinaldi of the Eastern District of Pennsylvania are prosecuting the case.
The department appreciates the substantial assistance provided by the SEC.
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.
Pascagoula Man Sentenced to over 3 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Walter Edward Bohl, 64, of Pascagoula, was sentenced today by U.S. District Judge Sul Ozerden to 37 months in prison, followed by 3 years of supervised release, for knowingly possessing a firearm after having been committed to a mental institution, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On May 20, 2020, ATF agents executed a federal search warrant at Bohl’s residence in Pascagoula, where Bohl was found to be in possession of a Smith and Wesson, Model M&P 15, 5.56 caliber Rifle. Bohl was prohibited by law from possessing a firearm, having been previously committed to a mental institution.
Bohl was indicted by a federal grand jury on June 23, 2020. He pled guilty before Judge Ozerden on August 27, 2020.
This case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Pair charged with interfering with safety on railroad tracksRead the Press Release
Seattle – Two people arrested on the BNSF Railway tracks near Bellingham, Whatcom County, were charged with terrorist attack and other violence against a railroad carrier, and appeared in federal court today, announced U.S. Attorney Brian T. Moran. SAMANTHA FRANCES BROOKS, 27, and ELLEN BRENNAN REICHE, 23, both of Bellingham, Washington, were arrested Saturday night in Bellingham as they allegedly placed a ‘shunt’ on the tracks. A shunt disrupts the low level electrical current on the tracks and can disable various safety features.
“Since January there have been 41 incidents of shunts placed on the BNSF tracks in Whatcom and Skagit counties—causing crossing guards to malfunction, interfering with automatic braking systems, and, in one case, causing the near-derailment of tanks of hazardous chemicals,” said U.S. Attorney Moran. “These crimes endanger our community. I commend the agents from Customs and Border Protection, FBI, BNSF Police, and state and local partners who prioritized stopping this criminal conduct.”
According to the criminal complaint, the FBI’s Joint Terrorism Task Force has been investigating the placement of shunts on the BNSF tracks since January 19, 2020. The shunt is comprised of wire and magnets that are stretched between the tracks, disrupting the systems that indicate a train is on the tracks. On ten occasions, shunts were placed in areas that disrupt the crossing guards where the tracks cross streets, so vehicles could have tried to cross the tracks unaware of the oncoming train. On the night of October 11, 2020, multiple shunts were placed in three different locations in Whatcom and Skagit Counties. The shunts triggered an automatic braking system on a train that was transporting hazardous and combustible material. The emergency braking then caused a portion of the train to decouple from the engine. Decoupling has the potential to cause a derailment—in this case—of tanker cars of flammable gas in a residential area.
Shortly after the first shunts were discovered in January, a claim of responsibility was published on an anarchist website.
On Saturday night, November 28, 2020, BNSF Police observed video surveillance of two people kneeling on the tracks near a crossing in Bellingham. Whatcom County Sheriff’s deputies responded to the scene. The defendants were detained for trespassing, and a shunt was found on the tracks near where they had been observed on surveillance. The defendants had a paper bag containing wire, a drill with a brush head, and rubber gloves. The wire was similar to the wire used in the shunting incidents. The shunt that was placed on the tracks would have interfered with the railroad crossing guard at Cliffside Drive in Bellingham.
Terrorist attack on a railroad facility is punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the complaint 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.
The case is being investigated by the FBI’s Joint Terrorism Task Force, which includes agents from Customs and Border Protection (CBP), in connection with the BNSF Railway Police. Critical investigative assistance is being provided by the Whatcom County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Thomas Woods.
us_v._reiche_and_brooks.pdfOxford Man Sentenced on Firearm Charge After Attempting to Flee from PoliceRead the Press Release
GREENVILLE, N.C. – Xavier Santonio Bobbitt of Oxford man was sentenced today to 36 months in prison for possessing firearms as a convicted felon. No stranger to federal courts, this was Bobbitt’s third conviction for being a felon in possession of a firearm.
According to court documents and statements made in court, on January 21, 2020, an officer of the Oxford Police Department was traveling along College Street in Oxford, North Carolina, when he observed a silver 2005 Buick LeSabre improperly pass another vehicle at high speed. The LaSabre continued at a high speed as the officer pursued. The vehicle eventually came to an abrupt stop. The driver, later identified as Xavier Bobbitt, jumped from the vehicle and ran. Officers apprehended Bobbitt on foot shortly thereafter.
A nearby witness advised law enforcement that someone threw two firearms from the passenger side window of the vehicle as it stopped. Officers recovered the firearms, a Springfield .45 caliber pistol loaded with 29 rounds in an extended magazine and a Stag Arms 5.56 caliber rifle loaded with 28 rounds of ammunition. Both had been reported stolen. In the car’s trunk, officers found a black mesh bag that contained various caliber ammunition, two loaded pistol magazines, and a loaded drum magazine.
Bobbitt was transported to Oxford PD, where he waived his Miranda Rights and was interviewed. He said he bought the firearms off the street and had instructed his passenger to throw them out the window when he realized they were going to be stopped by the police.
This case is 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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Oxford Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-0089-BO.
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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.
Owner and operator of India-based call centers sentenced for scamming U.S. victims out of millionsRead the Press Release
HOUSTON - An Indian national was sentenced to 20 years in prison for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.
U.S. District Judge David Hittner sentenced Hitesh Madhubhai Patel aka Hitesh Hinglaj, 44, of Ahmedabad, India, for wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering and impersonation of a federal officer or employee. Patel was also ordered to pay restitution of $8,970,396 to identified victims of his crimes.
“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task. Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison. His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”
“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes. Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”
According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS) and engaged in other telephone call scams designed to defraud victims throughout the United States. U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.
In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL. Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts and call center operations instructions. The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud and debt collection fraud.
A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers. Another stated Patel was arrested in India in 2016, but then paid a bribe and was released. Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him.
Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme. Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018 after Patel flew there from India.
“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”
“Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the support of our law enforcement partners.”
“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG). “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”
The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be removed based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. Charges remain pending for other India-based defendants. They are presumed innocent unless and until convicted through due process of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.
Also providing significant support during the course of the investigation and prosecutions related to this scheme were the Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; Secret Service; Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central and Northern Districts of California, District of Colorado, Northern and Middle Districts of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs provided significant support to the prosecution.
Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case along with Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section. Kaitlin Gonzalez of HRSP was the paralegal for this case.
Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
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
Owner and Operator of India-Based Call Centers Sentenced to Prison for Scamming U.S. Victims out of Millions of DollarsRead the Press Release
An Indian national was sentenced today to 20 years in prison followed by three years of supervised release in the Southern District of Texas for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.
Hitesh Madhubhai Patel, aka Hitesh Hinglaj, 44, of Ahmedabad, India, was sentenced by U.S. District Judge David Hittner for the charges of wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering, and impersonation of a federal officer or employee. Patel was also ordered to pay restitution of $8, 970,396 to identified victims of his crimes.
“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes. Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”
“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task. Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison. His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”
“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”
“Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the support of our law enforcement partners.”
“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG). “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”
According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams designed to defraud victims throughout the United States. U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.
In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL. Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts, and call center operations instructions. The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud, and debt collection fraud.
A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers. Another co-defendant stated that Patel was arrested in India in 2016, but then paid a bribe and was released. Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him.
Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme. Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018, after Patel flew there from India.
The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be deported based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. Charges remain pending for other India-based defendants. They are presumed innocent unless and until convicted through due process of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.
Also providing significant support during the course of the investigation and prosecutions related to this scheme were: the Ft. Bend, Texas, County Sheriff’s Department; the Hoffman Estates, Illinois, Police Department; the Leonia, New Jersey, Police Department; the Naperville, Illinois, Police Department; the San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; the U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada, and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs, provided significant support to the prosecution.
Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
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.
Operation Shutdown Corner Update: Two More Defendants Sentenced for Federal Drug CrimesRead the Press Release
California Meth Dealer Sentenced to 12 Years in Prison
BECKLEY, W.Va. – United States Attorney Mike Stuart today announced that two more defendants were sentenced for their participation in an extensive drug trafficking organization (DTO) operating between California and the Southern District of West Virginia. Victoria Hamilton, 35, of Beckley, was sentenced to 30 months in prison for conspiring to distribute 50 grams or more of a substance containing methamphetamine and a quantity of heroin. Terrion Borja, 28, of San Diego, California, was sentenced to 144 months in prison for conspiring to distribute 500 grams or more of a substance containing methamphetamine. Hamilton and Borja were two of 17 defendants charged as a result of a long-term investigation, known as “Operation Shutdown Corner,” of a multi-state DTO.
“Southern West Virginia is no doubt safer as a result of the takedown of this DTO,” said United States Attorney Mike Stuart. “This drug network was distributing a significant amount of illegal drugs in our communities. Borja alone admitted to sending six pounds of meth from California to members of the DTO in West Virginia. He’ll now be spending the next 12 years in federal prison.”
Hamilton previously admitted that between June 2018, and September 17, 2019, she worked with other members of a DTO operating in Raleigh County, West Virginia, and elsewhere, to distribute methamphetamine and heroin. During this time period, Hamilton admitted to receiving quantities of methamphetamine and heroin from other members of the DTO. She further admitted that the other members knew it was her plan and purpose to re-distribute these drugs in the Southern District of West Virginia. More specifically she admitted that during this time period, law enforcement agents intercepted telephone conversations and text messages regarding drug activity between her and other members of the DTO. These conversations revealed that the defendant was obtaining drugs in quantities from a few grams to approximately one-half ounce at a time. These conversations also revealed it was her plan to re-distribute these controlled substances to others in Raleigh County.
Borja also previously admitted his involvement in the DTO. Borja admitted that between June 2018, and September 17, 2019, he participated in the same DTO operating between the Southern District of West Virginia and California by providing methamphetamine to other members of the DTO. At his plea hearing, Borja admitted that he accomplished this by sending large quantities of methamphetamine from California to the Southern District of West Virginia. More specifically, Borja admitted to using common carriers to send approximately six pounds of methamphetamine to other members of the organization in West Virginia knowing it was the plan and purpose of the DTO to re-distribute those drugs in West Virginia. Two of the packages the defendant sent from California were intercepted by law enforcement officers. One package was sent to Bluefield, Mercer County, and contained approximately four pounds of methamphetamine. The second package was also sent to Bluefield but was intercepted during a traffic stop of another member of the DTO in Raleigh County. When the defendant was arrested in California, law enforcement officers found shipping receipts containing the same tracking numbers of at least one of the packages Borja sent from California to West Virginia.
Stuart commended the investigative efforts of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Department, the Beckley Police Department, and the West Virginia State Police.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. United States District Judge Frank W. Volk imposed the sentences.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00227.
Follow us on Twitter: SDWVNews and USAttyStuart
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North Suburban Man Sentenced to a Year in Federal Prison for Illegal Sports Bookmaking and Tax OffensesRead the Press Release
CHICAGO — A north suburban man was sentenced today to a year in federal prison for operating an illegal sports bookmaking business and filing false income tax returns.
DOMENIC POETA, 63, of Highland Park, unlawfully operated a business that provided sports betting and wagering services, both domestically and abroad. From 2012 to 2017, Poeta obtained more than $3.7 million from the operation of his bookmaking business. Poeta failed to report his receipt of this income in the federal and state tax returns that he filed for each of those years, resulting in a federal and state tax loss of approximately $1,486,363.
Poeta pleaded guilty earlier this year to one count of transmission of wagering information and one count of filing a false tax return. U.S. District Judge Matthew F. Kennelly imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera Cantu, Acting Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and John Crawford, Special Agent-in-Charge of the Chicago Regional Office of the Federal Deposit Insurance Corporation, Office of Inspector General. The government is represented by Assistant U.S. Attorney Patrick King.
New Indictment in RICO Case Against Former L.A. City Councilman Jose Huizar Adds 5 Defendants, Including a Former Deputy MayorRead the Press Release
FIRST SUPERSEDING INDICTMENTLOS ANGELES – In a superseding indictment unsealed today that adds new details to the criminal case alleging a widespread corruption scheme led by former Los Angeles City Councilman Jose Huizar, a federal grand jury has added five defendants, including former Los Angeles Deputy Mayor Raymond Chan, to the racketeering case that accuses Huizar and his close associates of illegally obtaining financial benefits from developers who, in exchange, sought favorable treatment on pending real estate development projects.
After being arrested in June pursuant to a criminal complaint, Huizar, 52, of Boyle Heights, was charged in July in a 34-count indictment that alleged a conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act in which Huizar agreed to accept at least $1.5 million in illicit financial benefits. That racketeering charge alleged 402 overt acts that Huizar and his co-conspirators committed to further their criminal enterprise, including bribery, honest services fraud, and money laundering. The 41-count superseding indictment unsealed today adds 50 overt acts to the RICO conspiracy count. The racketeering charge now also charges Chan, who formerly was the general manager of the Los Angeles Department of Building and Safety and, more recently, was the city’s deputy mayor of economic development.
The five new defendants in the superseding indictment are:
- Raymond She Wah Chan, also known as “She Wah Kwong,” 64, of Monterey Park, identified in previous court filings as “Individual 1,” who is charged with RICO conspiracy, bribery, honest services fraud and lying to federal agents;
- Wei Huang, 55, a resident of Shenzhen, China, who also maintains a residence in San Marino, previously identified in court documents as “Chairman E,” who is the billionaire chairman and president of a global development company headquartered in China, and who faces charges of bribery, honest services fraud and Travel Act violations;
- Shen Zhen New World I, LLC, one of Huang’s U.S.-based companies, which acquired the L.A. Grand Hotel Downtown in 2011 for $90 million and planned to redevelop it into a 77-story tower, and which is named in the same counts as Huang;
- Dae Yong Lee, also known as “David Lee,” 56, of Bel Air, identified in prior court filings as “Developer C,” who is a developer with multiple properties in Los Angeles, and who is charged with bribery, honest services fraud and obstruction; and
- 940 Hill, LLC, a Lee-owned company that purchased a South Hill Street property in downtown Los Angeles in 2008 for $9 million and planned to redevelop it into a mixed-use development, and which is named in the same counts as Lee.
In addition to the RICO conspiracy charge, the indictment charges 14 counts of honest services wire fraud, two counts of honest services mail fraud, four counts of traveling interstate in aid of racketeering, nine counts of bribery, five counts of money laundering, one count of structuring cash deposits to conceal bribes, one count of making a false statement to a financial institution, one count of alteration of records in a federal investigation, two counts of making false statements to federal law enforcement, and one count of tax evasion. Each of the defendants is charged in various counts. Huizar, for example, is charged in 34 of the 41 counts.
“The scope of corruption outlined in this indictment is staggering,” said United States Attorney Nick Hanna. “As the indictment alleges, Huizar, Chan and their network of associates repeatedly violated the public trust by soliciting and accepting numerous cash bribes and other financial benefits, turning Huizar’s City Council seat into a money-making criminal enterprise. Powerful developers, operating through well-connected lobbyists, eagerly participated in the schemes to get preferential treatment for their downtown projects. This detailed indictment, which lays bare these backroom deals, should prompt a serious discussion as to whether significant reforms are warranted in Los Angeles city government.”
“The charges announced today allege wholesale corruption and outline the way in which Huizar and Chan brokered their powerful positions to gain personally, politically and financially by selling to the highest bidders in a stunning betrayal of the Angelenos they swore an oath to serve,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I’m proud of the investigators and prosecutors who investigated this case and methodically uncovered – then dismantled – abject corruption in one of America’s largest cities, with the shared goal of restoring trust in city government.”
The indictment alleges that Huizar and Chan operated the “CD-14 Enterprise,” named for City Council District 14, which Huizar represented from 2005 until this year. Other members of the conspiracy were George Esparza, Huizar’s former special assistant, and real estate development consultant George Chiang, each of whom pleaded guilty earlier this year to participating in the RICO conspiracy. The indictment adds overt acts to the RICO conspiracy alleging that CD-14 Enterprise members illegally solicited political contributions by foreign nationals to help maintain the enterprise’s political power.
Among the numerous other corruption allegations, the indictment charges that Huizar illegally accepted more than $800,000 in benefits from Huang, mainly during luxury-laden gambling trips. In addition, at Huizar’s and Chan’s request, and after Huizar had helped save Chan’s city position by helping to prevent a planned merger that would have eliminated Chan’s department, Huang also provided $600,000 in collateral to fund a settlement of a sexual harassment lawsuit filed against Huizar by a former CD-14 staffer, allegations that threatened his 2015 re-election campaign, according to the indictment. At the time he provided these benefits, Huang was planning to redevelop the L.A. Grand Hotel into the tallest tower west of the Mississippi, which would require city approvals and Huizar’s help. When Chan was later interviewed by FBI agents about the lawsuit settlement, he allegedly lied about his participation in this secret payment arrangement and about his knowledge of Huang’s “asks” of Huizar.
Chan is also charged with multiple counts of bribery and honest services fraud for agreeing to accept, while he was deputy mayor, more than $100,000 from Chiang for official acts to benefit a project by Chinese developer Shenzhen Hazens. Additionally, Chan is charged with facilitating a bribe agreement in which a Hazens domestic subsidiary, Jia Yuan USA Co., Inc., would make a $100,000 campaign contribution to a Huizar relative running for the CD-14 seat in exchange for Huizar’s votes to approve the project. Last month, Jia Yuan, which was seeking to redevelop the Los Angeles Luxe City Center Hotel, paid $1,050,000 to resolve the government’s investigation into its conduct related to this case, which included bribery and illegal campaign contributions. Jia Yuan entered into a non-prosecution agreement, agreed to cooperate with the government’s investigation, and admitted to providing benefits to Huizar and his associates before Huizar voted to approve the Luxe Hotel project when the matter came before the city’s Planning and Land Use Management Committee, which Huizar chaired, and the City Council.
The indictment further alleges that Lee provided $500,000 in cash for Huizar and Esparza in exchange for Huizar’s help in resolving a labor organization appeal on the 940 Hill development project. Court documents allege that Lee provided bags of cash to Justin Jangwoo Kim, a Huizar fundraiser, to deliver to Huizar and Esparza. Kim admitted to facilitating the bribe from Lee and pleaded guilty to a federal bribery offense. Lee and 940 Hill are also charged with falsifying accounting and tax records to cover up the bribe.
Huizar pleaded not guilty in August to the charges in the initial indictment. He is expected to be arraigned on the superseding indictment on December 7.
Chan and Lee have been directed to surrender to federal authorities. Chan and Lee are expected to be arraigned on the superseding indictment Tuesday afternoon in United States District Court in downtown Los Angeles.
940 Hill has been issued a summons to appear in United States District Court on Tuesday. Shen Zhen New World I has been issued a summons to appear December 7. Huang and his counsel have been notified that Huang has been named in the superseding indictment and that the United States government has issued a warrant for his arrest.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The RICO conspiracy, honest services fraud, obstruction, and money laundering charges each carry a statutory maximum sentence of 20 years in federal prison. The charge of making false statements to a financial institution has a statutory maximum sentence of 30 years in prison. The bribery charges each carry a statutory maximum sentence of 10 years in federal prison. The charges of tax evasion, structuring, making false statements to law enforcement, and interstate travel in aid of racketeering have five-year maximum prison sentences.
Huizar is currently scheduled to go on trial on June 22.
With the charges against Chan, Huang and Lee, a total of nine individuals have been charged as a result of Operation “Casino Loyale,” the ongoing corruption investigation into Los Angeles City Hall being conducted by the FBI and the United States Attorney’s Office. Shen Zhen New World I and 940 Hill are the first corporate entities to be formally charged.
In addition to Esparza, Chiang and Kim, Morris Goldman, a longtime City Hall lobbyist, pleaded guilty to participating in a bribery scheme in which a developer agreed to make political donations in exchange for Huizar’s support of a project in the city’s Arts District. Goldman is scheduled to be sentenced on August 23. Esparza is scheduled to be sentenced on February 8, and sentencing hearings for Chiang and Kim are scheduled for February 22.
Former Los Angeles City Councilman Mitchell Englander pleaded guilty in July to charges of scheming to falsify material facts related to trips he took to Las Vegas and Palm Springs, during which he accepted cash and other benefits from a businessperson. Englander’s sentencing hearing is scheduled for January 25.
The cases against Huizar, Chan and their associates in the CD-14 Enterprise are being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Veronica Dragalin and Melissa Mills, also of the Public Corruption and Civil Rights Section.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
NYC Restaurateur Sentenced to Two Years in Prison for Tax Evasion SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that ADEL KELLEL, owner of Raffles Bistro, formerly a restaurant located in New York City, was sentenced in Manhattan federal court to two years in prison for perpetrating a tax evasion scheme. KELLEL previously pled guilty before U.S. Magistrate Judge Gabriel W. Gorenstein to one count of tax evasion for the calendar years 2011 through 2015. U.S. District Judge Paul G. Gardephe, who accepted KELLEL’s guilty plea, imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “Adel Kellel cooked his books to conceal income from the IRS and his own accountants. He spent the ill-gotten gains on personal luxuries like a Mercedes, a Porsche, and a Maserati. Now he will spend two years in federal prison.”
According to the allegations contained in the Information to which KELLEL pled guilty, court filings, and statements made in public court proceedings:
In 2011, KELLEL was the President and a 45 percent owner of K&H Restaurant, Inc. (“K&H”), which operated Raffles Bistro (“Raffles”), a restaurant then located in a hotel (the “Hotel”) in Manhattan. From 2012 through 2015, KELLEL was the 100 percent owner of K&H. The gross receipts of K&H consisted primarily of: (a) credit card payments by Raffles’ customers; (b) cash payments by Raffles’ customers; and (c) check payments by the Hotel for various services that Raffles provided to hotel guests and patrons, including room service, banquets, and catering.
KELLEL perpetrated a scheme to evade income taxes by diverting and failing to report to the Internal Revenue Service (“IRS”) a substantial portion of K&H’s gross receipts for the calendar years 2011 through 2015. As part of his tax evasion scheme, KELLEL diverted over 150 Hotel checks, totaling over $2.1 million in gross receipts, which he hid from his accountants and the IRS. KELLEL concealed these receipts – representing approximately 43 percent of this particular revenue stream for the restaurant – by depositing them into more than a dozen bank accounts that KELLEL did not disclose to his accountants. KELLEL also diverted cash income received from Raffles’ customers, a portion of which he deposited into personal bank accounts or spent directly on personal expenses, without disclosing it to his accountants or paying taxes on it.
KELLEL used the diverted income for various personal expenses, including overseas transfers; condominium fees; rent for a high-end Manhattan apartment; college tuition payments from his children; shopping at luxury retailers, such as Hugo Boss and Saks Fifth Avenue; payments for luxury cars manufactured by Mercedes, Porsche, and Maserati; and payments for domestic and international travel.
By fraudulently concealing from his accountants a substantial portion of K&H’s gross receipts, KELLEL caused K&H’s corporate income tax returns and KELLEL’s own individual income tax returns for the calendar years 2011 through 2015 to be materially false. As a result of his conduct, KELLEL admitted to causing a combined tax loss of at least $771,195 to the IRS and the New York State Department of Taxation and Finance (“NYSDTF”).
* * *
In addition to the prison term, Judge Gardephe ordered KELLEL, 63, of New Hyde Park, New York, to pay restitution to the IRS in the amount of $613,478, and to pay restitution to NYSDTF in the amount of $157,717. KELLEL was also ordered to serve three years of supervised release.
Ms. Strauss praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case. Ms. Strauss also thanked the U.S. Department of Justice’s Tax Division for its significant assistance in the investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Olga I. Zverovich and Special Assistant U.S. Attorney Jorge Almonte of the Department of Justice’s Tax Division are in charge of the prosecution.
Myrtle Beach Man Sentenced to Twelve Years in Federal Prison for Distributing HeroinRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Marcus Dwayne Grissett, 37, of Myrtle Beach, was sentenced to 12 years in federal prison after pleading guilty to possessing with intent to distribute and distributing heroin.
Evidence presented to the court showed that on March 28, 2019, officers from the Myrtle Beach Police Department Street Crimes Unit used a confidential informant to make a controlled drug purchase from Grissett. After being provided with police funds to make the purchase, the informant traveled to a parking lot and waited for Grissett’s arrival. After a short phone conversation with the informant, Grissett arrived and entered the informant’s vehicle. The informant then exchanged police funds for a tan powdery substance in a plastic bag and a tan powdery substance in 60 individually packaged wax slips, all of which were later confirmed by a chemist to contain heroin.
Chief United States District Judge R. Bryan Harwell sentenced Grissett to 144 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department Street Crimes Unit.
This case was prosecuted as part of the joint federal, state, and local 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.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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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.
Mounds Man Pleads Guilty to Assault Resulting in Serious Bodily Injury in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alexander Harrison, age 23, of Mounds, Oklahoma entered a guilty plea to Assault Resulting In Serious Bodily Injury In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(6), 2, 1151 and 1153, punishable by up to 10 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about September 29, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did assault G.W. resulting in serious bodily injury.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Benjamin D. Traster represented the United States.
Minnesota Man Sentenced to 78 Months for Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jermaine Stapleton, 37, Eagan, Minnesota was sentenced on November 24 by U.S. District Judge William M. Conley to 78 months in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine. This prison term will be followed by 4 years of supervised release. Stapleton pleaded guilty to this charge on September 3, 2020.
On February 25, 2020, law enforcement officers conducted surveillance on a local methamphetamine dealer, Travis Hanson. He was observed driving with his girlfriend, Ashley Speicher, from their hotel in Menomonie, Wisconsin to meet with Hanson’s drug source, Jermaine Stapleton, in St. Paul, Minnesota. Hanson and Speicher returned to Menomonie with Stapleton following in a separate vehicle. They were all taken into custody upon arrival back in Menomonie. Law enforcement searched Stapleton’s car and located 236 grams of methamphetamine, 11.5 grams of heroin, small amounts of crack cocaine and marijuana, as well as a digital scale and baggies. Officers located a drug ledger in Speicher’s purse.
In an interview with law enforcement, Stapleton admitted to bringing a half pound of methamphetamine from Minnesota to Wisconsin which he intended to deliver to Hanson. In a separate interview, Hanson admitted to being involved in drug trafficking and selling large quantities of methamphetamine. He further admitted to travelling to St. Paul on February 25, 2020 to meet Stapleton to pick up methamphetamine and heroin. He was supposed to help Stapleton sell the methamphetamine and heroin in Wisconsin.
Hanson pleaded guilty to conspiring to distribute 50 grams or more of methamphetamine and was sentenced to 10 years in federal prison by Judge Conley on September 25, 2020. Speicher pleaded guilty for her role in the conspiracy and was sentenced to 42 months in federal prison by Judge Conley on October 28, 2020.
The charge against Stapleton was the result of an investigation conducted by the West Central Drug Task Force, Chippewa County, Dunn County, and Eau Claire County Sheriff’s Departments, Chippewa Falls, Eau Claire, and Menomonie Police Departments, Drug Enforcement Administration, and Dunn County District Attorney’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson.
Mexican Meth Trafficker Sentenced After Drugs and Thousands in Drug Proceeds are RecoveredRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Joseph F. Bataillon sentenced Raymundo Hernandez-Rubio today to 132 months in federal prison. There is no parole in the federal system. Hernandez-Rubio will serve a 5-year term of supervised release following his release from the Bureau of Prisons. Hernandez-Rubio will be deported from the United States to Mexico after serving his prison term.
Hernandez-Rubio, 35, was convicted of conspiracy to distribute and possess with intent to distribute methamphetamine. In October of 2019, investigators with the Drug Enforcement Administration (DEA) identified Hernandez-Rubio when he delivered approximately $90,000 of suspected drug proceeds to a DEA undercover agent.
The investigation revealed that on the morning of December 6, 2019, Hernandez-Rubio departed Omaha and traveled to Chicago, where he made several stops before heading back to Omaha. On the morning of December 7, 2019, a Nebraska State Patrol trooper stopped Hernandez-Rubio as he returned to Omaha. Investigators searched his SUV, recovering approximately 15 pounds of methamphetamine that was concealed within a spare tire in the cargo area of the SUV.
Investigators searched Hernandez-Rubio’s residence later that day, where they recovered drug ledgers, a handgun, and more than $130,000 of drug proceeds hidden under the bed in the master bedroom. The drug proceeds will be forfeited to the United States. A closer inspection of the ledgers recovered from his home revealed that Hernandez-Rubio was responsible for handling hundreds of pounds of methamphetamine and thousands of dollars of drug proceeds for a Mexico-based drug trafficking organization.
The case was primarily investigated by the Drug Enforcement Administration, the Nebraska State Patrol, and the Federal Bureau of Investigation Safe Streets Task Force.
Meth Trafficker Sentenced to 10 Years in PrisonRead the Press Release
PROVIDENCE – A Providence woman described in court as a “major pipeline” for trafficking methamphetamine into Rhode Island was sentenced today to 10 years in federal prison.
Alexa Samoiloff, 51, who was serving a Rhode Island state probation sentence for drug trafficking at the time of her arrest by the FBI Safe Streets Task Force on methamphetamine trafficking charges in October 2019, previously admitted to the court that she facilitated drug deals from, among other places, her apartment and from motel rooms. She often provided instructions using an encrypted app to others working at her direction. Payments for meth in furtherance of the conspiracy were often sent to her via Walmart/MoneyGram wire transfers.
During their investigation, the Safe Streets Task Force conducted nine undercover purchases from members of the conspiracy of between 7 and 46 grams of methamphetamine, also known as “ice,” that proved to be at least 90% pure.
On October 18, 2019, members of the Safe Streets Task Force conducted a search of Samoiloff’s residence and seized approximately 31 grams of crystal meth, 5 digital scales, an ammunition container with 109 rounds of 9mm ammunition, 10 knives, 3 swords, a crossbow, multiple cell phones, hypodermic needles, and various items used in the packaging and distribution of methamphetamine.
Appearing before U.S. District Court Chief Judge John J. McConnell, Jr., on September 9, 2020, Samoiloff pleaded guilty to conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute 5 grams or more of methamphetamine; and three counts of distribution of 5 grams or more of methamphetamine, aiding and abetting.
At today’s sentencing hearing, Chief Judge John J. McConnell, Jr., sentenced Samoiloff to 120 months in federal prison to be followed by five years’ supervised release, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Two other individuals involved in this conspiracy to distribute methamphetamine are awaiting sentencing. Steven Robinson, 48, of Providence, pleaded guilty on March 11, 2020, and Jacob Abbruzzese, 46, of Cranston, pleaded guilty on July 23, 2020, to conspiracy with intent to distribute methamphetamine.
The cases are being prosecuted by Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
The FBI Safe Streets Task Force consists of agents and law enforcement officers from the FBI, Rhode Island State Police, the Providence, Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, the Rhode Island National Guard, and the U.S. Marshals Service.
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Members of Drug Trafficking Organization Indicted for Conspiracy to Distribute FentanylRead the Press Release
A federal grand jury in Chattanooga, Tennessee returned a two-count indictment on November 24, 2020 against James J. Martin, Lee Antonio Clements Jr., and Ricky Harper, all of Chattanooga, for conspiracy to distribute fentanyl.
The indictment alleges that from May to October 2020, in the Eastern District of Tennessee, the defendants, James J. Martin, aka “Fat Deuce”; Lee Antonio Clements Jr., aka “Tone G,” aka “Tone G Da Boss,” aka “Tone”; Ricky Harper; and others known and unknown to the grand jury, conspired to distribute 400 grams or more of a mixture and substance containing fentanyl, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A). Fentanyl is a powerful synthetic opioid that is highly addictive.
Martin is also charged with being a felon in possession of a firearm, in violation of Title 18 United States Code, Section 922(g)(1).
If convicted of the drug conspiracy charge, Martin, Clements, and Harper each face a term of 10 years to life in prison, supervised release for five years, and a fine of up to $10,000,000. Additionally, Martin faces a term of imprisonment of up to 10 years in prison, supervised release for three years, and a fine of up to $250,000 if he is convicted of the firearms charge.
This indictment is the result of an investigation by the United States Drug Enforcement Administration Chattanooga Resident Office, United States Postal Inspection Service, Tennessee Bureau of Investigation, Chattanooga Police Department, Hamilton County Sheriff’s Office, and Bradley County Sheriff’s Office. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation.
Special Assistant United States Attorney Kevin T. Brown will represent the United States. Brown is employed by the City of Chattanooga and assigned to the United States Attorney’s Office to prosecute gang-related crime in federal court.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his/her guilt has been proven beyond a reasonable doubt.
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Los Angeles Woman Sentenced to 29 Months for Cocaine and Money Laundering ConspiracyRead the Press Release
LEXINGTON, Ky. – A Los Angeles woman, Nancy Santos, 30, was sentenced in federal court last week, to 29 months in prison, before U.S. District Judge Claria Horn Boom, for conspiracy to distribute five kilograms or more of cocaine and conspiracy to launder money.
According to her plea agreement, Santos admitted that she conspired with others to distribute more than five kilograms of cocaine in Lexington. Santos admitted that her role in the conspiracy was to transport loads of Cocaine, from locations in Colorado, to Lexington. Santos was not involved in the later, street-level distribution; but her other conspirators, Alberto Santos and another conspirator, were responsible for that distribution. The drug proceeds were collected by Adalberto Santos and another conspirator, who would load it into hidden compartments of vehicles. Santos would then transport the vehicles to Colorado.
Santos pleaded guilty in June 2020. Her co-conspirator was sentenced earlier this year. Adalberto Santos was sentenced in October 2020, receiving 162 months.
Under federal law, Santos and her co-conspirators must serve 85 percent of their prison sentences. Upon her release, Santos will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J.T. Scott, Special Agent in Charge, DEA Louisville Field Division; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the sentence.
The investigation was conducted by DEA and IRS. The United States was represented by Assistant U.S. Attorney Todd Bradbury.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
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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Local man who attempted to orchestrate $51 million fraud scheme sent to prisonRead the Press Release
HOUSTON – A 47-year-old Houstonian is now behind bars for his conviction of wire fraud, announced U.S. Attorney Ryan K. Patrick.
John Wesley Sarpy pleaded guilty Dec. 17, 2018.
Today, U.S. District Judge Vanessa D. Gilmore ordered him to serve a 135-month sentence to be immediately followed by three years of supervised release. He was also ordered to pay a $5,000 fine. At the hearing, the court noted that not only did he attempt to commit fraud while out on bond, he also obstructed justice when he cut off his GPS ankle monitor prior to sentencing. In handing down the sentence, Judge Gilmore noted his criminal history of committing fraud and the sophisticated nature of this offense.
“Sarpy, a recidivist fraudster, repeatedly tried to obtain multi-million dollar loans using falsified documents,” said Special Agent in Charge Perrye K. Turner of the FBI. “While the fruit of his perseverance didn't result in obtaining any money, our case agents feared that at some point he would successfully get funded with a multi-million dollar payday, all based on fraud. Our agents were determined to make sure that didn't happen, and they stopped Sarpy in his tracks.”
Sarpy knowingly submitted fraudulent documents in an attempt to obtain multimillion-dollar loans from various lending institutions. During the scheme, Sarpy incorporated several different companies to perpetuate his fraud including Sarpy Investment Corporation and Legacy International Production & Exploration Corporation. Some of the false documents he submitted included financial audit opinions for Sarpy Investment Corporation which purported to be from the auditing firms KPMG, BDO and PricewaterhouseCoopers. However, the investigation revealed Sarpy was not a client of any of these companies and all the financials he submitted in support of all the loans were forged and fictitious.
On four separate occasions in 2018, Sarpy submitted such false audit reports with forged signatures and false financials to four different institutions in failed attempts to secure approximately $51 million in loans.
Sarpy was previously released on bond but violated his conditions of release when he cut off his GPS monitor and fled. Law enforcement later found him in the Northern District of Texas and took him into custody where he remains pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady prosecuted the case.
Lehigh Valley Attorney Sentenced for Orchestrating $2.7 Million Ponzi Scheme That Targeted His Own Clients to Invest in Fake Business OpportunitiesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Todd H. Lahr, 60, of Nazareth, PA, was sentenced to six and one half years in prison, three years of supervised release, and ordered to pay $2,106,918 in restitution by United States District Court Judge Edward G. Smith for orchestrating a $2.7 million Ponzi scheme and securities fraud that targeted his own law clients, and involved the fraudulent sale of the securities of two entities, THL Holdings, LLC and Ferran Global Holdings, Inc.
Lahr, an attorney licensed to practice law in Pennsylvania and the District of Columbia, and with offices in Allentown, pleaded guilty in April 2020 to one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud. In furtherance of his fraudulent schemes, the defendant solicited investments from his clients, telling them that their money would be used for a variety of business opportunities which were, in fact, nonexistent (like mining operations in Papua New Guinea, the acquisition of the shares of a penny stock, and property leases in Spain and England). In reality, the money was used for Lahr’s personal expenses and to make Ponzi-scheme payments to prior investors. Among these personal expenses were his home mortgage, his child’s school tuition, utility bills, and other personal debt. Total investor losses are estimated to be over $2.7 million.
Even after he was caught, Lahr continued his deception by lying in sworn testimony before the U.S. Securities and Exchange Commission (SEC). In this testimony, Lahr denied writing checks to his personal accounts when, in fact, he had written at least 25 separate checks to himself over a three-year period.
Last month, the SEC filed a parallel civil enforcement action to the criminal charges listed above, in the Eastern District of Pennsylvania, based on the same course of conduct. In this SEC civil case, the court has entered judgment against Lahr, ordering injunctive relief and disgorgement and prejudgment interest.
“Lahr took advantage of the very people he had an obligation to represent in good faith: his own clients,” said First Assistant U.S. Attorney Williams. “Stealing millions of dollars from people paying him for a professional services, legal counsel and expert judgment is reprehensible. My Office will continue to aggressively pursue securities and other financial frauds, particularly when perpetrated by lawyers and other professionals who are obligated to respect the law and protect their clients.”
“Todd Lahr’s clients trusted him,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Lahr knew that and used it to his devious advantage, selling them on bogus investment opportunities and pocketing those funds. After years of living off of other people’s money, he’s finally being held accountable. The FBI will continue to shut down crooks like this, to help find justice for their victims and prevent anyone else from being harmed.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi and Trial Attorney Philip B. Trout of the U.S. Department of Justice, Criminal Division, Fraud Section. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.
Lead Defendant Pleads Guilty in Long Island Federal Court to Transnational Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Ajay Sharma, a citizen of India and the director and owner of APS Technology, a telemarketing call center located in New Delhi, pleaded guilty via videoconference to conspiracy to commit wire fraud in connection with a fraudulent scheme directed at thousands of individuals in the United States. Today’s proceeding took place before United States Magistrate Judge A. Kathleen Tomlinson. When sentenced, Sharma faces up to 20 years in prison, as well as forfeiture of $1,005,421 and a fine of up to $2,500,000. Sharma has been detained since his arrest in October 2018.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“Ajay Sharma and his crew perpetrated a sprawling, transnational fraud scheme that preyed on unsuspecting victims’ fears that they were running afoul of the law,” stated Acting United States Attorney DuCharme. “This case makes clear that U.S. law enforcement will not stop at our borders to locate and vigorously prosecute criminals, whether foreign or domestic, who cause financial harm to others in the United States.”
Mr. DuCharme thanked the Internal Revenue Service-Criminal Investigation, Treasury Inspector General for Tax Administration, New York City Police Department and Garden City Police Department for their invaluable assistance with the case.
As alleged in the indictment and other court filings and proceedings, Sharma was a leader and organizer of the fraud scheme. Between January 2018 and September 2018, operating from call centers in India, the defendants targeted victims in the United States and falsely claimed to be employees of the Internal Revenue Service, the Social Security Administration or the Drug Enforcement Administration. The victims were informed that they owed a sum of money to the United States government or one of its agencies and that they would be arrested if the debts were not promptly paid. After the victims wired payments to bank accounts that the defendants had opened in the names of inactive and shell corporations to receive the fraud proceeds, the funds were withdrawn and laundered through additional bank accounts. The scheme is estimated to have netted over $2 million from victims across the United States.
Four of Sharma’s co-conspirators previously pleaded guilty, and two are scheduled for trial in February 2021 before United States District Judge Sandra J. Feuerstein.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Diane Leonardo are in charge of the prosecution.
The Defendant:
AJAY SHARMA
Age: 44
Mumbai, IndiaE.D.N.Y. Docket No. 19-CR-024
Defendants Who Have Previously Pleaded Guilty:
ANKUR SHARMA
Age: 25
Bellerose, New YorkHARPREET SINGH
Age: 33
Queens Village, New YorkE.D.N.Y. Docket No. 19-CR-024
JAMAL ZAFAR
Age: 48
Huntington, New YorkARMUGHANUL ASAR
Age: 68
College Point, New YorkE.D.N.Y. Docket No. 19-CR-385 (SJF)
Kinston Man Arrested on Federal Charges for Carjacking and Firearm OffensesRead the Press Release
RALEIGH, N.C. – A Kinston man was arrested today on charges of carjacking and firearm offenses in relation to a shooting that occurred on November 19, 2020 in Kinston, NC.
According to court documents, law enforcement officers responded to a domestic violence disturbance call at a residence. When officers arrived, Robert Lee Strother, 30, turned around, opened fire, striking one officer in the neck. The round shot at the officer proceeded through another occupied residence. The following day, Strother shot an individual then carjacked their vehicle at gunpoint. The vehicle was later recovered but Strother remained at large. On November 21, law enforcement received a tip concerning Strother’s location. They responded to that location and urged Strother to surrender. Strother exchanged gunfire with law enforcement where he was shot several times. Strother was found to have an AR rifle along with several rounds of ammunition.
Strother is charged with carjacking, possession of a firearm in furtherance of a federal crime of violence and possession of a firearm by a convicted felon and faces a maximum penalty of life in prison if convicted.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. Alcohol, Tobacco, and Firearms, Lenoir County, Craven County, and the US Marshals are investigating the case and Assistant U.S. Attorney Brandon Boykin is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.4:20-MJ-1237-KS.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
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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.
Joseph Bryan Robertson Sentenced to 27 Years for Distribution of MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On November 24, 2020, Joseph Bryan Robertson, aka “Chief,” 52, of Elizabethton, Tennessee was sentenced to 324 months imprisonment by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Robertson pleaded guilty to an indictment charging him with conspiracy to distribute 50 grams or more of methamphetamine. Robertson was sentenced to serve 324 months (27 years) in prison, followed by five years’ supervised release.
A joint investigation of the Carter County Sheriff’s Office, Washington County Sheriff’s Office, Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Federal Bureau of Investigation (FBI), uncovered a large group of individuals, led by Robertson, who were obtaining large quantities of crystal methamphetamine from sources in Atlanta and Knoxville and distributing it in northeast Tennessee. Robertson ruled the group through fear and violence. Robertson directed multiple kidnappings and violent assaults of individuals that owed drug debts to the organization. Multiple individuals were held captive at gunpoint, tied up, kicked, and beaten with fists and clubs, resulting in serious injuries.
Robertson was previously sentenced, in 2006, to serve a 78-month sentence in federal prison, also for the distribution of methamphetamine.
This case is part of an Organized Crime Drug Enforcement Task Force was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Assistant U.S. Attorney J. Gregory Bowman represented the United States.
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Independence Man Pleads Guilty to Illegal Firearm Used in ShootingRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to illegally possessing a firearm that was used to shoot another man in the leg, using the victim’s own illegally-possessed firearm.
William D. Fullbright, 29, pleaded guilty before U.S. Magistrate Judge Lajuana M. Counts to being a felon in possession of a firearm.
By pleading guilty today, Fullbright admitted that he possessed a loaded Ruger 9mm pistol, which belonged to Colby Srite, 30, of Independence, and was used to shoot Srite in the leg. When Independence police officers responded to a residence in the 3600 block of N. Pleasant Street on Sept. 3, 2019, there was a brief standoff with the officers, which ended when Srite came running up the stairs from the basement having been shot in the leg and yelling, “He’s got a gun!” Fullbright attempted to escape through a downstairs door and fled on foot with an officer in pursuit. During the pursuit, Fullbright jumped over a fence and discarded the firearm along the fence line. As the officer searched for Fullbright, he heard a cell phone ringing near the fence line and found Fullbright attempting to hide. Fullbright was taken into custody and later showed officers where the pistol had been discarded.
Srite pleaded guilty in a separate case on Sept. 17, 2020, to being a felon in possession of a firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Fullbright has prior felony convictions for unlawful use of a weapon and burglary. Srite has a prior felony conviction for possession of a controlled substance.
Under federal statutes, Fullbright and Srite each are subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Special Assistant U.S. Attorney Caleb J. Aponte, who is a cross-designated prosecutor from the Missouri Attorney General’s office as part of the Safer Streets Initiative to combat violent crime. They were investigated by the Independence, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Huntington Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart today announced that Derrick Pritchett, 37, of Huntington, pled guilty to an indictment charging him with possession with intent to distribute heroin and marijuana.
“Pritchett had approximately 17 grams of heroin and 56 grams of marijuana in his car,” said United States Attorney Mike Stuart. “Another Huntington drug dealer is snared in Operation Synthetic Opioid Surge.”
Pritchett admitted that on December 5, 2019, Troopers with the West Virginia State Police searched his vehicle located on Artisan Avenue in Huntington. Troopers located approximately 17 grams of heroin and 56 grams of marijuana.
Pritchett faces up to 20 years in federal prison when he is sentenced on March 1, 2021.
The West Virginia State Police conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
The case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00034.
Follow us on Twitter: SDWVNews and USAttyStuart
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Huntington Man Pleads Guilty to Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart today announced that Kelly Ray Ingels, Sr., 46, of Huntington, pled guilty to possession with intent to distribute methamphetamine, being a prohibited person in possession of a firearm, and transfer of a firearm to a juvenile.
“Ingels is a meth dealer and addict who sold a gun to a juvenile,” said United States Attorney Mike Stuart. “I commend our law enforcement partners for their excellent work in this case. Ingels now faces a lengthy prison sentence for his crimes.”
On May 20, 2020, Ingels sold a firearm to a juvenile for cash and marijuana over Facebook Messenger. Due to a subsequent investigation involving the firearm, officers obtained a search warrant for Ingels’ residence at 920½ 23rd Street in Huntington. In the residence, officers located approximately 11 grams of methamphetamine as well as digital scales. In a Mirandized interview, Ingels admitted to possessing the methamphetamine to sell it, that he was addicted to methamphetamine at the time he possessed the gun, and that he sold the gun to the juvenile.
Ingels faces up to 31 years in prison when sentenced on March 1, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00140.
Follow us on Twitter: SDWVNews and USAttyStuart
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Houston man gets huge sentence for sex trafficking minorsRead the Press Release
HOUSTON – A 25 year-old resident of Houston has been ordered to federal prison after he threatened two young girls and required them to engage in commercial sex, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury deliberated for one hour before returning a guilty verdict against Romello Lee following less than three days of trial on March 6. He was convicted on one count of trafficking a minor for commercial sex and one count of trafficking a minor by force for commercial sex.
Today, U.S. District Judge David Hittner sentenced Lee to serve a total of 480 months in federal prison. He was further ordered to pay restitution to known victims and will serve the rest of his life on supervised released following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.
“Too many of our children are falling victims to sex trafficking and predators like Romello Lee,” said Special Agent in Charge Perrye K. Turner of the FBI. “We hope today's sentence sends a strong message to those who continue to exploit our youth, but we also hope it sheds promise to sex trafficking victims waiting to be rescued.”
During the trial, the jury heard Lee used Backpage.com, a defunct solicitation website, to advertise the sexual services of two minor victims, ages 14 and 16.
From July 2017 to March 2018, Lee harbored, advertised and profited from commercial sex acts of the 16-year-old minor victim. He required her to earn a quota of up to $500 per night and would threaten and beat her if she disobeyed him.
A second victim was held against her will and required to engage in sexual acts by threats of violence and coercion.
Jurors heard from the second victim as well as another adult victim he managed. They testified as to the consequences if they were to escape and how they were expected to be branded with a tattoo of his name or rap label.
The jury also saw numerous Backpage ads Lee posted as well as Instagram posts and text messages between him and the minor victim, detailing his control of her dates, her nightly quota and her beatings.
Law enforcement ultimately arrested Lee in a sting operation with one of the minors at a hotel in northwest Houston.
Lee 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 Texas Department of Public Safety, Houston Police Department and FBI conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA).
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard D. Hanes and Heather Winter prosecuted the case.
Hacker Collective Member Who Made Online Threats Against Schools and Airline Sentenced to Nearly 8 Years in Federal PrisonRead the Press Release
LOS ANGELES – A North Carolina man who engaged in a series of cyber and swatting attacks, including sending bogus threats of shootings and bombings to schools in the United States and United Kingdom, was sentenced today to 95 months in federal prison.
Timothy Dalton Vaughn, 22, whose online aliases included “WantedbyFeds” and “Hacker_R_US,” of Winston-Salem, North Carolina, was sentenced by United States District Judge Otis D. Wright II.
Vaughn pleaded guilty in November 2019 to one count of conspiracy to convey threats to injure, convey false information concerning use of explosive device, and intentionally damage a computer; one count of computer hacking; and one count of possession of child pornography.
Judge Wright sentenced Vaughn to prison terms of 95 months for the child pornography possession charge and 60 months for each of the other charges. The terms are to be served concurrently.
Vaughn was a member of the “Apophis Squad,” a worldwide collective of computer hackers and swatters. The collective caused disruptions by making threatening phone calls, sending bogus reports of violent school attacks via email, and launching distributed denial-of-service (DDoS) attacks on websites.
Vaughn and others sent emails to at least 86 school districts threatening armed students and explosives. The threatened attacks included the imminent detonation of a bomb made with ammonium nitrate and fuel oil, rocket-propelled grenade heads placed under school buses, and the placement of land mines on sports fields.
In another instance, Vaughn and others called in a false hijacking report related to a flight traveling from London to San Francisco, claiming that four men with weapons and explosives had hijacked the plane.
In early 2018, Vaughn demanded 1.5 bitcoin (then worth approximately $20,000) from a Long Beach company, to prevent denial-of-service attacks on its website. When the company refused to pay, he launched a DDoS attack that disabled the company’s website.
Vaughn also possessed nearly 200 sexually explicit images and videos depicting children, including at least one toddler.
This matter was investigated by the FBI with assistance provided by the United States Secret Service as part of the Electronic Crimes Task Force.
This case was prosecuted by Assistant United States Attorney Julia S. Choe of the Cyber and Intellectual Property Crimes Section.
Gorham Man Pleads Guilty to Receiving and Possessing Child PornographyRead the Press Release
PORTLAND, Maine: A Gorham man pleaded guilty today in federal court in Portland to receiving and possessing child pornography, U.S. Attorney Halsey B. Frank announced.
According to court records, in May 2018, investigators with the Gorham Police Department executed a search warrant at the home of Carl Loomis, 64. Loomis admitted to investigators that he had child pornography images on his phone and that he had sent images to others using chat sites. A later review of Loomis’s iPhone revealed that in February 2018, he had received child pornography images on the chat application Kik. His iPhone and a thumb drive found in his home contained large numbers of images depicting minors engaged in sexually explicit conduct.
Loomis faces no less than five years and up to 20 years in prison on the receipt charge, and up to 20 years in prison on the possession charge. He faces a fine of up to $250,000 on each charge. He also faces a term of supervised release following his release from prison of no less than 5 years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Gorham Police Department and Homeland Security Investigations investigated the case.
General Manager of San Francisco Public Utilities Commission Charged with Honest Services Wire Fraud for Taking Bribes in Public Bidding ProcessRead the Press Release
SAN FRANCISCO – Harlan Kelly, the General Manager of the San Francisco Public Utilities Commission (SF PUC), has been charged in a federal criminal complaint with honest services wire fraud, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The complaint alleges that Kelly, 58, of San Francisco, engaged in a long-running bribery scheme and corrupt partnership with Walter Wong, a San Francisco construction company executive and permit expediting consultant who ran or controlled multiple entities doing business with the City of San Francisco. The complaint alleges that as part of the scheme, Wong provided items of value to Kelly in exchange for official acts by Kelly that benefited or attempted to benefit Wong’s business ventures.
“Public officials owe their honest services to the people of San Francisco,” said U.S. Attorney Anderson. “Bribery scams undermine our faith in City government. Our investigation into City Hall corruption will continue.”
“The allegations against Harlan Kelly and the nine other individuals charged in this case are extremely troubling. The citizens of San Francisco deserve nothing less than transparency, honesty, and integrity from their city officials. However, through the course of this ongoing investigation, the FBI has uncovered a pattern of criminal activity committed by those in positions of trust,” said FBI Special Agent in Charge Craig D. Fair. “The FBI is surging our resources in this investigation, and we urge anyone with information on this matter, or any other suspected public corruption, to come forward and contact the FBI.”
The complaint alleges that Kelly, appointed in 2012 to be the SF PUC’s General Manager by Mayor Ed Lee, developed an extensive relationship with Wong that involved coded text messages, multiple international trips paid for or subsidized by Wong, cash exchanges, free meals, and even personal car service provided by Wong or by Wong’s employees to Kelly. One example in the complaint alleges that Wong paid travel and expenses for Kelly and his family during a March 2016 vacation that the Kelly family took to Hong Kong and China. The complaint alleges Wong paid for hotel expenses and incidentals such as meal and jewelry purchases. The complaint also alleges that Kelly’s airfare was purchased with a credit card to create a record of the expense, but the airfare was later reimbursed by Wong with cash deposited into Kelly’s bank account. The complaint further alleges that Kelly acknowledged the gifts he received from Wong in China using an encrypted messaging application, writing to Wong: “Thank you for the best family vacation ever! A little something for everyone!”
The complaint further alleges that during this same time Wong was seeking a multi-million dollar contract from the SF PUC for Green Source Trading, LLC, a company Wong ran through his son, to convert thousands of San Francisco city streetlights to smart LED technology. Shortly after the bidding for that contract ended, the complaint alleges Wong performed extensive repair work on Kelly’s personal residence, provided to Kelly at a substantial discount.
As part of Wong’s agreement with the government, he pleaded guilty to conspiracies to commit honest services fraud and money laundering and is now providing information to the government. According to the complaint, Wong provided evidence that he gave these benefits to Kelly because of Kelly’s position at the PUC, and Wong expected that Kelly would in return use his official position to benefit Wong’s business ventures, including helping Wong’s attempts to win business from the PUC to convert streetlights to LED. The complaint alleges Kelly and Wong repeatedly communicated about the project before it was bid, and during the bid process Kelly provided Wong with confidential non-public information, including documents containing inside information that were hand-delivered to Wong. Kelly engineered at least one delay in the process, the complaint alleges, to benefit Wong. These acts gave Wong an unfair competitive advantage in the bid process, though in the end Wong withdrew his bid due to multiple contract changes.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Kelly is charged with one count of honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346. If convicted of this count, he faces a maximum penalty of 20 years in prison and a fine of $250,000, or not more than the greater of twice the gross gain or twice the gross loss. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
Kelly is out of custody and is expected to make his initial appearance in federal court in San Francisco on December 8, 2020, before U.S. Magistrate Judge Laurel Beeler.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The case is being investigated by the FBI and IRS Criminal Investigation.
Former Youth Pastor Pleads Guilty to Transporting Minors for Sexual ActivityRead the Press Release
LITTLE ROCK – A former Little Rock youth pastor pleaded guilty today to transporting minors across state lines for the purpose of unlawful sexual activity. Robert Shiflet, 50, now of Denton, Texas, entered his guilty plea earlier today before United States District Judge Lee P. Rudofsky. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, announced today’s guilty plea
Shiflet pleaded guilty to two separate instances of criminal conduct. One of these accounts began in 1996, when Shiflet met a 14-year-old girl in the youth group he pastored in Denton, Texas. Shiflet frequently made inappropriate comments to the minor and often told her he loved her. In May of 1997, when the minor was 15 years old, Shiflet led an eighth grade camping trip to the Buffalo National River in Arkansas. Shiflet was able to isolate the minor away from the group and then sexually assaulted her. He told her not to tell anyone.
Another minor reported that in 2002, when Shiflet was her youth pastor at a Little Rock church, Shiflet engaged in inappropriate sexual contact with her when she was 16 years old. Shiflet had sex with the minor multiple times during 2002-2003, when Shiflet was 32. In the summer of 2002, the youth group attended an event in Panama City, Florida. On that trip, Shiflet asked the minor to ride on the charter bus with him instead of riding on another bus with her friends. On the bus ride, he sexually assaulted the minor.
“This defendant took advantage of his position of trust as a mentor to young people and instead used his power to isolate and sexually abuse them,” stated U.S. Attorney Hiland. “This predatory behavior is never acceptable, but it is particularly disturbing when the offender is a youth pastor. Our office will continue to aggressively pursue those who commit these deplorable crimes.”
Shiflet was indicted in June 2020 with three counts of transportation of a minor to engage in illegal sexual activity and one count of coercion of a minor to engage in sexual activity. In exchange for his guilty plea, the remaining charges were dismissed.
Judge Rudofsky will sentence Shiflet at a later date. Transportation of a minor to engage in illegal sexual activity is punishable by not more than 15 years imprisonment and not more than three years of supervised release. The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kristin Bryant.
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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
Twitter:
@EDARNEWS
Former Prosecutor and Police Chief Sentenced for Framing Their Relative with a Crime to Conceal Their Own FraudRead 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 – November 30, 2020
HONOLULU, Hawaii – Former prosecutor Katherine Kealoha and former police chief Louis Kealoha were sentenced during separate hearings in federal court today to 13 years and seven years in prison, respectively, following a number of convictions, including conspiring to frame a relative with a crime to conceal their own fraud.
Chief U.S. District Judge J. Michael Seabright of the District of Hawaii also ordered the Kealohas to pay $454,984.78 and $237,698.56, respectively, in restitution to their victims, and ordered forfeiture of 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 was ordered to report to prison on April 12, 2021.
Judge Seabright rebuked the Kealohas for their “grotesque deprivation of civil rights,” which “staggered the community in many ways” and had “truly shaken confidence in our governing institutions.” He further remarked that “the Kealohas used their power to nurture, feed, and conceal their corrupt activity.”
The sentences imposed today mark the end of a series of criminal cases against the Kealohas. In June 2019, after six weeks of trial and one day of deliberation, a federal jury in Honolulu convicted the Honolulu power couple and Honolulu police officers Derek Hahn and Minh-Hung “Bobby” 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 Kealohas used their considerable power, including commandeering the Honolulu Police Department’s elite Criminal Intelligence Unit, to frame Gerard with stealing their mailbox. To accomplish this, the conspirators prepped the 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.
The Kealohas’ motive for framing Gerard was to discredit and intimidate him after he accused Katherine Kealoha of fraud. Trial evidence established that Katherine stole over $200,000 from him and Katherine’s elderly grandmother, Florence Puana. Acting as her grandmother’s “attorney,” Katherine convinced Florence—who was 89 years old at the time—to place a reverse mortgage on Florence’s family home. Katherine promised Florence that she would pay off the reverse mortgage after using some of the proceeds to consolidate the Kealohas’ debt. Instead, unbeknownst to Florence, Katherine funneled the reverse mortgage proceeds into a bank account that Katherine controlled. And within seven months, the Kealohas drained the account dry—spending over $148,000 on various personal expenses, including 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. In the meantime, Katherine made no payments on the reverse mortgage, allowed the balance to balloon out of control, and diverted mortgage statements away from Florence’s mailbox to keep Florence from finding out. Once Florence did find out—almost a year and a half later—she was forced to sell her family home.
After they learned of the missing money and ballooning mortgage, Florence and Gerard confronted Katherine Kealoha about her actions. Katherine responded indignantly, threatening in a letter to seek “the highest form of legal retribution against ANYONE and EVERYONE who has written or verbally uttered those LIES about me!” True to her word, after Florence and Gerard filed a civil lawsuit against her, Katherine attempted to have Florence declared legally incompetent, and Katherine and her co-conspirators had Gerard arrested for a crime he did not commit. At Gerard’s theft trial, Louis Kealoha testified falsely that Gerard was the person displayed taking the mailbox in the grainy surveillance video. “That’s what makes this case so shocking: this could not have succeeded but for you and your position,” Judge Seabright told Louis Kealoha.
“Today, after years of manipulating the levers of justice to shroud their own crimes, justice was delivered to two corrupt public officials,” said U.S. Attorney Robert Brewer. “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. If not for the initial dogged investigation by former First Assistant Federal Defender Alexander Silvert, who brought this matter to the attention of federal authorities, followed by incredible work by FBI agents and prosecutors Michael Wheat, Joseph Orabona, Janaki Chopra and Colin McDonald, the Kealohas would still be manipulating justice, not meeting it.”
“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.”
Today’s sentences also accounted for separate crimes committed by the Kealohas. In October 2019, Katherine pleaded guilty to misprision of a felony after using her position of authority within the city prosecutor’s office to actively conceal the drug distribution activities of her brother, Rudolph B. Puana, an anesthesiologist in Hawaii. In her plea agreement, Katherine admitted she arranged to have herself assigned as the prosecutor overseeing the investigation of her brother’s co-conspirators and that she cultivated a close relationship with one co-conspirator—a defendant Katherine was then prosecuting—to reduce the likelihood that the individual would reveal Rudolph Puana’s role in the drug conspiracy. “I always got ur back, I love you and will protect you always!!!” read one private text message Katherine sent to the defendant she was prosecuting. “GO TEAM!!! Can’t wait for this s*** to be over,” read another, to which the defendant replied, “Ditto[.] Then we’re free[.]”
Finally, in October 2019, the Kealohas pleaded guilty to bank fraud. As part of their pleas, the Kealohas admitted that between January 1, 2009 and December 31, 2014, they spent more than $591,000 derived from stolen funds or loan proceeds obtained through fraud. Their bank fraud scheme included falsely claiming assets that belonged to others (including money belonging to children over whom Katherine had been appointed guardian), falsely inflating their monthly income, and falsely denying derogatory information on their credit. To legitimize their denial of poor credit, the Kealohas submitted a forged police report in loan applications that purported to document Katherine’s false claims of identity theft. The act of forging the police officer’s signature on the report was itself identity theft, for which Katherine pleaded guilty. Katherine further admitted using an alias “Alison Lee Wong” to facilitate the bank fraud. This alias also played a role in Gerard Puana’s claims of fraud. As evidence at trial established, in 2009, Katherine used the “Wong” alias to notarize and create a fraudulent trust in Gerard’s name. And in 2008, under the customer name “Kathryn Aloha,” Katherine ordered a notary seal for “Alison Lee Wong” from the American Association of Notaries and had it mailed to the State of Hawaii’s Office of Environmental Quality Control, where Katherine served as Director. As Judge Seabright stated today, Katherine “perverted justice over and over and over and over again.”
The Kealohas’ co-conspirators, Derek Wayne Hahn and Bobby Nguyen, are scheduled to be sentenced on December 1, 2020 for their involvement in framing Gerard Puana. Katherine Kealoha’s brother, Rudolph B. Puana, is currently facing drug distribution and firearm charges, and is scheduled for trial in April 2021.
DEFENDANTS
Katherine P. Kealoha Age: 50 Honolulu, Hawaii
Louis M. Kealoha Age: 60 Honolulu, Hawaii
SUMMARY OF CONVICTIONS
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;
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
AGENCY
Federal Bureau of Investigation
Honolulu, Portland, and San Diego Divisions
Florida man sentenced to more than 7 years for role in methamphetamine distribution operations in Harrison, Marion, and Monongalia CountiesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Juwan Floyd, of Tallahassee, Florida, was sentenced today to 87 months of incarceration for distributing methamphetamine, U.S. Attorney Bill Powell announced.
Floyd, age 28, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine” in June 2019. Floyd admitted to working with another to distribute methamphetamine in November 2017 in Harrison County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
This effort 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.
U.S. District Judge Thomas S. Kleeh presided.
Florida Man Sentenced to 21 Months for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Matthew Handley, 38, formerly of Elberta, Alabama, was sentenced Friday in federal court on a charge of failure to register as a convicted sex offender. Handley pled guilty to the charge in August of 2020.
According to court documents filed in connection with his guilty plea, Handley was previously convicted in Cullman County Circuit Court of Indecent Exposure. He was sentenced to 24 months of probation and required by the State of Alabama to register as a sex offender quarterly for life. From 2014 until 2019, Handley was a resident of Baldwin County. In November 2019 Handley failed to update his quarterly registration with the Baldwin County Sheriff’s Office, which prompted an investigation. BCSO issued warrants for Handley’s arrest in December 2019. On February 20, 2020, Handley was arrested by the Pasco County Sheriff’s Office in Florida. Florida Department of Law Enforcement officials searched their system and reported that Handley never registered as a sex offender in Florida. Handley had previously been convicted of Failure to Register in 2015.
United States District Court Chief Judge Kristi DuBose imposed a sentence of 21 months imprisonment. The judge ordered that Handley to serve a five-year term of supervised release beginning upon his discharge from prison. Upon his release from prison, Handley will be required to engage in drug treatment, mental health treatment, and to have no contact with minors. Judge DuBose ordered that Felder pay $100 in special assessments.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc
The case was investigated by the Baldwin County Sheriff’s Office and the United States Marshal’s Service. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Kacey Chappelear.
Five Arrested for Drug DistributionRead the Press Release
ALBANY, NEW YORK – Garrick Bailey, age 29, Chavon Sutton, age 30, Timothy Kingsland, age 56, and Tracey Kingsland, age 48, all of Schenectady, New York, and Christina Altieri, age 46, of Clifton Park, New York, were arrested last week and charged by criminal complaint with drug crimes. Sutton is charged with distributing cocaine base (a/k/a crack cocaine) and heroin. The other four defendants are charged with distributing cocaine base. The alleged conduct occurred between September 15 and November 17, 2020.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. Devito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty. The defendants initially appeared in court on November 24, 2020 before United States Magistrate Judge Daniel J. Stewart. Following detention hearings, Bailey and Sutton were ordered detained pending trial, and Timothy Kingsland, Tracey Kingsland and Christina Altieri were ordered released on conditions.
If convicted, Bailey faces at least 10 years and up to life in prison, and a term of post-release supervision of at least 8 years and up to life. The remaining defendants each face sentences of at least 5 years and up to 40 years in prison, and a term of post-release supervision of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The arrests and investigation are the culmination of a multi-agency investigation conducted by the ATF, the New York State Police, the Schenectady Police Department, the Albany Police Department, the Albany County Sheriff’s Office, the Rotterdam Police Department, and the United States Marshals Service.
The cases are being prosecuted by Assistant U.S. Attorney Robert A. Sharpe.
Felon Pleads Guilty to Possessing a FirearmRead the Press Release
HUNTINGTON, W.Va. - United States Attorney Mike Stuart today announced that Kevin Holmes, Jr., 31, of Huntington, pled guilty to being a felon in possession of a firearm.
On December 22, 2019, an officer with the Huntington Police Department pulled a vehicle over around the intersection of 20th Street and 6th Avenue in Huntington. Holmes was the only person in the vehicle. After determining there were warrants for his arrest, the officer asked Holmes to get out of the vehicle. After a brief foot pursuit, the officer arrested Holmes. While conducting an inventory search of the vehicle, officers found a loaded .357 Magnum revolver. Holmes was prohibited from possessing a firearm under federal law because of a 2015 conviction in Kentucky for trafficking a controlled substance, fleeing police, and wanton endangerment.
Holmes faces up to 10 years in prison when he is sentenced on March 8, 2021.
The Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
This case was prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00017.
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Exeter Woman Admits to Lying on Firearm Purchase FormRead the Press Release
PROVIDENCE – An Exeter woman today admitted to a federal court judge that she lied on a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) form and a State of Rhode Island state application while attempting to purchase a firearm from a federally licensed firearm dealer.
Nicole Marie Brassell, 41, admitted that in January 2018, she intentionally misrepresented that she lived at a West Warwick address when, in fact, she lived at a residence in Exeter. An ATF investigation determined that Brassell had been evicted from her West Warwick residence in August 2017. Provision of truthful and accurate information on gun acquisition papers, much of which is used in the background check process, is required.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Brassell pleaded guilty to false statement during purchase of firearms, announced United States Attorney Aaron L. Weisman and Kelly D. Brady, Special Agent in Charge of the Boston Field Division of ATF.
Brassell is scheduled to be sentenced on February 16, 2021.
False statement during purchase of firearms is punishable by statutory penalties of up to ten years in federal prison, three years’ supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Essex County Woman Charged with Wire Fraud ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman was charged with defrauding elderly victims through a lottery scam in which victims were falsely told that they had won large sums of money, U.S. Attorney Craig Carpenito announced today.
Shanile Lyle, 27, of Orange, New Jersey, was arrested today and charged by complaint with one count of conspiracy to commit wire fraud. She appeared by videoconference before U.S. Magistrate Judge Michael A. Hammer and was released on $200,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2018, several elderly victims received telephone calls alerting them that they had won large sums of money and various other prizes. The victims were informed that they would have to pay taxes on these winnings and, as a result, sent numerous checks totaling at least $675,000 to Lyle and her conspirators. Lyle deposited these funds into back accounts she controlled and transferred portions of the money to her conspirators.
The count of conspiracy to commit wire fraud carries a maximum of penalty of 20 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrimes Unit in Newark.
Elder abuse is a serious crime against some of our nation’s most vulnerable citizens and is one of the Department of Justice’s key priorities. In 2018, the Department ordered each of the 94 U.S. Attorneys’ offices to appoint an Elder Justice Coordinator tasked with fulfilling the Elder Abuse Prevention and Prosecution Act (EAPPA) of 2017’s mandate of: serving as the legal counsel for the federal judicial district on matters relating to elder abuse; prosecuting, or assisting in the prosecution of, elder abuse cases; conducting public outreach and awareness activities relating to elder abuse; and ensuring the collection of data required to be collected under the EAPPA.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Essex County Man Sentenced to 12 Years in Prison for Participation in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 144 months in prison for his role as a member of a heroin trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Raheem Tarry, 34, of Newark, previously pleaded guilty by video conference before U.S. District Judge Susan D. Wigenton to two counts of a third superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of heroin and possession of heroin with intent to distribute. Judge Wigenton imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Tarry and others were members of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, specifically, at Hayes Street and 14th Avenue in the area of the New Community Corporation housing development (NCC). The organization is comprised of members of the Brick City Brim set of the Bloods street gang.
The investigation revealed that in addition to selling narcotics, members of the organization alerted each other to police and rival gang member or drug dealer presence within NCC; shared narcotics supply, narcotics proceeds, and customers; and raised bail money for each other following arrests. Members of the organization have also engaged in violence and been the subject of violence in connection with their narcotics trafficking activities.
Between March and August 2018, Tarry and 27 other individuals were charged by criminal complaint with conspiracy to distribute heroin and cocaine base; one individual also was charged with firearms offenses relating to his drug trafficking. On Aug. 20, 2019, a grand jury returned a 22-count third superseding indictment charging Tarry and four other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses; the alleged leader of the organization also was charged with participating in a continuing criminal enterprise. The charges in the complaint and third superseding indictment remain pending as to several of the defendants and one is charged in a separate indictment. They are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Wigenton sentenced Tarry to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to today’s sentencing. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, the New Jersey State Parole Commission, and the U.S. Marshals Service for their assistance.
The case was investigated as part of the Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city 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 U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office in Newark.
Defendant Convicted at Trial in Massive Drug Trafficking Conspiracy Sentenced to Twelve YearsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Malik Martin a/k/a “Leek”, 37, of Philadelphia, PA was sentenced to 12 years in prison and five years of supervised release by United States Senior District Court Judge R. Barclay Surrick for his role in an extensive, national drug trafficking conspiracy.
Martin was convicted after a four week trial in October 2018 of conspiracy to distribute 1,000 kilograms of more of marijuana and conspiracy to commit money laundering. Martin and his co-conspirators were part of a long-running drug-trafficking organization which distributed thousands of kilograms of marijuana, and then laundered the drug proceeds. The organization used tractor-trailer drivers to transport bulk quantities of marijuana from Arizona, California, and Texas to the East Coast, for distribution in the greater Philadelphia area. Martin worked closely with the head of the organization to bring money out to the West Coast, coordinate the purchase of the marijuana while there, and load the delivery of marijuana to the East Coast.
“Martin and his co-conspirators shipped tons of drugs from one end of this country to the other for decades,” said First Assistant U.S. Attorney Williams. “The sentence handed down today demonstrates our office’s commitment to taking down criminal organizations in order to keep our communities safe from the scourge of drug trafficking.”
“Malik Martin took part in a cross-country conspiracy that saw thousands of pounds of marijuana trucked here to Philadelphia,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI will continue to investigate and disrupt sprawling drug trafficking operations like this, as we work to take illegal drugs off the street and make this city safer.”
The case was investigated by the FBI, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Correctional Officer Sentenced to 27 Months in Federal Prison for Prison Corruption Racketeering Charge Related to Maryland Correctional Institute JessupRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Correctional Officer Janel Griffin, age 41, of Baltimore, to 27 months in federal prison, followed by three years of supervised release, for a federal racketeering charge related to her participation in a scheme to smuggle contraband into the Maryland Correctional Institute Jessup (MCIJ), including narcotics, unauthorized flash drives, tobacco, and cell phones.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
“This prosecution demonstrates that we will not tolerate employees in positions of trust violating their oaths. Janel Griffin will now serve more than two years in federal prison—where there is no parole, ever. Federal, state, and local officials will continue to work together to root out corrupt employees and others who undermine the administration of justice at our prisons,” said U.S. Attorney Robert K. Hur.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
According to her plea agreement, Griffin smuggled contraband into MCIJ for at least inmate Corey Alston, including narcotics and tobacco. At Alston’s direction, Griffin met with co-conspirator facilitators, including Tyirisha Johnson, to receive contraband as well as bribe payments. Recorded jail calls between Alston and others confirm that between April 16 and August 14, 2017, Griffin met with Johnson or facilitator Ashley Alston on at least six occasions to obtain contraband and at least $2,800 in bribe payments. Griffin smuggled the contraband, including Suboxone and Percocet, into MCIJ.
Inmate Corey Alston previously pleaded guilty, admitting that he was a leader in the racketeering conspiracy. As detailed in the plea agreement, Alston conspired with four outside facilitators—Tryishia Johnson, Jamia Lawson, his sister, Ashley Alston, and his father, Aldon Alston—who obtained and packaged contraband, met with the correctional officers and employees to provide contraband and bribe payments, and managed the proceeds of illegal contraband sales for Alston. According to his plea agreement, Griffin and another MCIJ employee brought the contraband into the prison for Alston, in exchange for bribe payments, and Alston conspired with another inmate, Schvel Mack, to sell the contraband to other inmates. Alston was overheard by law enforcement on a series of recorded calls arranging for contraband to be smuggled into MCIJ and arranging payment for the contraband and for bribes.
In addition to Janel Griffin and Corey Alston, 12 other defendants—six outside facilitators, three prison employees, and three inmates—have pleaded guilty to their roles in the conspiracy, including Schvel Mack, Tyrishia Johnson, Jamia Lawson, Ashley Alston, and Aldon Alston. Twelve defendants are awaiting sentencing and five defendants are pending trial.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of 77 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center. DPSCS staff initiated the MCIJ investigation and have been full partners in this investigation.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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Columbia Man Sentenced to over 10 Years in Federal Prison for Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Trent Jerrod Daniels, 33, of Columbia, was sentenced to over 10 years in federal prison after pleading guilty to possession with intent to distribute marijuana and being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on May 8, 2018, deputies with the Richland County Sheriff’s Department were conducting surveillance on Abbott Road after receiving information about drug dealing in the area. Deputies observed what they believed to be drug deals between an individual in a vehicle and others in the roadway. Thereafter, deputies attempted a traffic stop on the driver of the vehicle, who was later identified as Daniels. A high-speed chase ensued, and officers saw Daniels throwing a bag out of the car window. Ultimately, the vehicle was stopped on Shop Road and South Beltline Boulevard. Deputies recovered the bag and found inside a loaded Hi-Point .380 caliber handgun, marijuana, and digital scales. A small quantity of crack cocaine was found in the vehicle, and counterfeit money was found in Daniels’ pocket. Daniels admitted to distributing marijuana and crack cocaine earlier on Abbott Road and to throwing the bag containing the marijuana and loaded gun out of the car during the chase. Daniels also admitted to purchasing the firearm off the street as he knew he was prohibited from possessing one.
Daniels, who was on state parole at the time of the instant offense, is prohibited under federal law from possessing firearms and ammunition based upon prior state convictions for burglary 2nd degree (two separate counts), use of a motor vehicle without the owner’s permission, grand larceny (two separate counts), strong arm robbery, and distribution of crack cocaine.
United States District Judge J. Michelle Childs sentenced Daniels to 130 months in federal prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
A ballistics analysis through National Integrated Ballistic Information Network (NIBIN) revealed that the Hi-Point .380 caliber handgun was linked to shell casings recovered at an unsolved December 2017 burglary in Richland County. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin .
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. This case was prosecuted as part of the joint federal, state, and local 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. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the prosecution.
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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.
Colombian Foreign National Pleads Guilty to Federal Drug Trafficking Charges for His Role in International Cocaine Importation ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Gustavo Adolfo Pareja, 26, of Cali, Colombia, pled guilty today to conspiracy to import 50 kilograms of cocaine for distribution in the United States. Pareja was extradited from Colombia to the Northern District of Florida last month, following an extensive investigation by the Drug Enforcement Administration. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the guilty plea.
“There is no better example of North Florida law enforcers uniting against drug traffickers than this case,” said U.S. Attorney Keefe. “Local, state and federal law enforcement agencies worked tirelessly to investigate and prosecute all of the conspirators attempting to flood North Florida communities with large amounts of cocaine for personal profit. Pareja’s extradition and holding him accountable here in the United States sends a clear message that if you traffic drugs in our District, we will come for you no matter how far away you are.”
By pleading guilty to the two federal drug trafficking conspiracy charges, Pareja admits he was involved in an international conspiracy with co-defendants Daniel Gould and Henry Royer. Pareja awaited international extradition for over a year before Colombian authorities surrendered him to the United States Marshals Service in October 2020, to be returned to the United States to face the charges filed against him.
Between January and August 2018, in the Northern District of Florida and in the country of Colombia, former Master Sergeant Daniel Gould of the United States Army and Henry Royer, formerly of the United States Army and Army National Guard, conspired to distribute large amounts of cocaine, knowing it would be unlawfully imported into the United States.
The conspiracy began in early 2018 when Gould and Royer initially imported 10 kilograms of cocaine into the United States. Royer traveled to Colombia with U.S. currency to use as payment. Gould placed the cocaine in a gutted punching bag and had the package transported to Bogota to be placed on a United States military aircraft. A few days later, the cocaine-filled punching bag arrived at Duke Field, which is an auxiliary airfield of Eglin Air Force Base. Gould and Royer distributed the 10 kilograms of cocaine in Northwest Florida.
Gould and Royer then reinvested the money from the first load of cocaine into a second load of 40 kilograms of cocaine. Gould placed approximately $65,000 in cash on a United States military cargo aircraft destined for Colombia as funds for the next purchase. In early August 2018, Gould and Royer returned to Colombia and provided the money to Pareja, their supplier, in exchange for the 40 kilograms of cocaine. Gould and Royer loaded the cocaine into two gutted punching bags, and coordinated transport to the embassy before flying back to the United States. Suspicion was aroused at the embassy when packages were x-rayed, revealing cocaine within gutted out punching bags.
On August 13, 2018, when the cocaine was seized at the embassy, Gould had already returned home and was awaiting its arrival. The 40 kilograms of cocaine would have an estimated value in excess of $1 million in the Northern District of Florida. Gould and Royer have also pled guilty to their involvement in the criminal activity and are serving sentences in federal prison.
DEA’s Miami Field Division Special Agent in Charge Keith Weis was pleased with the development, adding, “Pareja’s admission of guilt is proof that the hard work done investigating his drug trafficking crimes by our national and international law enforcement partners was extremely successful.”
Pareja faces a mandatory minimum sentence of 10 years up to life in federal prison. His sentencing hearing is scheduled for January 28, 2021, at 10:30 a.m., before Senior United States District Judge Roger Vinson in Pensacola.
This case resulted from an investigation by the Drug Enforcement Administration and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Colombia. Assistant United States Attorney David L. Goldberg is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - ParejaChambersburg Man Sentenced to 20 Years’ Imprisonment for Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian A. Salvado, age 46, of Chambersburg, Pennsylvania, was sentenced on November 25, 2020, to 20 years’ imprisonment followed by 15 years of supervised release by Senior U.S. District Court Judge Sylvia H. Rambo, for exploitation of minors.
According to United States Attorney David J. Freed, between 2016 and 2107, Salvado used a dating site and his cellular telephone to communicate online and via text message with 11 minor victims for the purpose of producing child pornography.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Captain of Vessel Pleads Guilty to Smuggling $287,660 into St. Thomas Following High-Speed Chase and Apprehension Near Savana IslandRead the Press Release
St. Thomas, USVI – Arioc Diaz Melendez, resident of Puerto Rico, appeared before United States Magistrate Judge Ruth Miller in the District Court and entered a guilty plea to the charge of concealing $287,660.00 in U.S. currency while onboard a vessel outfitted for smuggling in violation of Title 46, United States Code, Section 70503(a)(3).
According to court documents, on September 30, 2019, at approximately 2:00 A.M., Customs and Border Protection (CBP) Marine Unit agents identified a boat traveling without navigational lights north of Savana Island. CBP agents pulled their vessel alongside the 24-foot yola-type vessel that was operating without lights. CBP agents activated their police blue lights and discharged a flare, in an effort to convince the other vessel to yield. When CBP agents attempted to initiate a stop, the other vessel did not yield but instead increased speed. The CBP agents shot one round into one of the engines of the other vessel at which point the vessel decreased speed and stopped. The passenger threw a duffel bag overboard. The bag was recovered by CBP agents and later found to contain $287,660.00 in U.S. currency and a Glock firearm. After CBP agents disabled one of the boat’s motor, they boarded the vessel, and apprehended the captain, who was later identified as Arioc Diaz Melendez, and the passenger, later identified as Jose Carlos Diaz Melendez, of the vessel.
The passenger is expected to plead guilty at a future date.
This case was investigated by the Department of Homeland Security Investigations and Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Juan Albino.
Bay Area Man Pleads Guilty to Central Valley-Based Marijuana Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Tien Van Phan, 56, of the San Jose area, pleaded guilty today to conspiring to distribute and possess with intent to distribute marijuana that was shipped from Fresno to Kansas City, Missouri, U.S. Attorney McGregor W. Scott announced.
According to court documents, agents intercepted calls between co-defendants Elias Zambrano Jr., of Fresno; Tan Minh Vo, of San Jose; Halen Steven Patrick Frazier, of Kingsville, Missouri; and David Agustus McGowan, of Kansas City, Missouri, regarding the coordination of the shipment of approximately 92 pounds of marijuana to Frazier in Kansas City. On Nov. 9, 2018, law enforcement agents saw Phan load two suitcases into Frazier’s vehicle in Kansas City. After conducting a traffic stop, 92 pounds of marijuana was seized from Frazier’s vehicle.
Phan is scheduled for sentencing on Feb. 22, 2021. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Frazier previously entered a guilty plea to the drug conspiracy and was sentenced to two years and three months in prison. Patrick Maldonado, of Madera, and Zambrano, who also face charges relating to the cocaine and firearms, along with Vo, are scheduled for a status conference in federal court in Fresno on Dec. 14. As to these defendants, the charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force consisting of agents from the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Sheriff’s Offices of Tulare, Kings, and Fresno Counties, the Fresno Police Department, the Arizona Department of Health, and the Kansas City Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Aryan Brotherhood Associate Pleads Guilty to a Racketeering Conspiracy that Directed Murders and Other Violent Crimes from Inside California PrisonsRead the Press Release
SACRAMENTO, Calif. — One of 16 members and associates of the Aryan Brotherhood (AB), a prison-based gang, charged in 2019 for organized criminal activity inside and outside of California’s prisons has pleaded guilty today, U.S. Attorney McGregor W. Scott announced.
Samuel Keeton, 41, of Menifee, an AB gang associate, pleaded guilty to conspiracy to participate in a racketeering enterprise (known as the “RICO” statute) and to conspiracy to distribute heroin and methamphetamine.
According to court documents, between 2011 and 2016, AB members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. From their shared cell in California State Prison (CSP) Sacramento, Ronald Yandell and William Sylvester oversaw a significant heroin and methamphetamine trafficking operation using smuggled-in cellphones to communicate with AB members and associates.
In June 2019, sixteen defendants were indicted on federal racketeering and other charges. The allegations include murders, drug trafficking and other violent crimes. Nine of the defendants were inmates in California prisons and six of those were serving life sentences for murder.
According to the plea agreement, between March 2016 and at least October 2016, Keeton knowingly associated with the AB and knew that this group regularly engaged in a pattern of racketeering activity that included murder, assault, conspiracy to commit murder, and drug trafficking. For his part, Keeton assisted the AB by picking up and distributing methamphetamine and heroin on behalf of AB members Yandell, Sylvester, and Travis Burhop. Keeton also delivered drug proceeds to AB associates outside of prison. During the RICO conspiracy, Yandell, Sylvester, and Burhop were all incarcerated within the California prison system, and Keeton communicated with them over contraband cellphones.
As part of his guilty plea, Keeton admitted that he knew that Yandell and Sylvester were AB members based upon his discussions with them during 2016, including the crimes that he was asked to commit and that he agreed to commit, such as assisting in smuggling cellphones, drugs, and other contraband into prison. As part of the RICO conspiracy, on July 11, 2016, Keeton transported and delivered at least 100 grams of heroin from Southern California to Jeanna Quesenberry in Sacramento on behalf of Yandell and the AB. On Aug. 11, 2016, Keeton participated in a plot to smuggle methamphetamine and other contraband into CSP Sacramento for Sylvester with the agreement and assistance of Kevin MacNamara, a licensed California lawyer living in Southern California. Keeton also collected AB drug money on Aug. 12, 2016.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office.
Keeton is scheduled for a hearing regarding sentencing before U.S. District Judge Kimberly J. Mueller on March 29, 2021. Keeton faces a maximum statutory penalty of life in prison and a fine up to $10 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges against the other defendants are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 www.justice.gov/OCDETF.
Akron Man Sentenced to More than Five Years in Prison for Role in Multi-State Methamphetamine ConspiracyRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart today announced that Lennie T. Whisenant, Jr., 26, of Akron, Ohio, was sentenced to 63 months in federal prison for conspiracy to distribute 500 grams or more of methamphetamine.
“Whisenant was dealing meth in Huntington and Charleston and is now headed to federal prison,” said United States Attorney Mike Stuart. “As long as out of state drug dealers keep peddling their poisons in this District, they will be prosecuted.”
Whisenant previously pled guilty and admitted that during the months of April and May of 2019, he participated in a conspiracy with multiple individuals to distribute methamphetamine in the Southern District of West Virginia. During the conspiracy, Whisenant and others utilized a residence located at 1235 25th Street in Huntington to store methamphetamine after it was shipped from the Akron area. Whisenant and others then conducted distributions of the methamphetamine to various customers in the Huntington and Charleston areas. Whisenant also reported back to sources in Akron regarding amounts of methamphetamine that had been sold and amounts that remained in Huntington. As part of his plea, Whisenant admitted that he was responsible for distributing up to 1.5 kilograms of methamphetamine during the conspiracy.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00245.
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Acting Manhattan U.S. Attorney Announces Extradition of Co-Founder of Global Cryptocurrency Ponzi SchemeRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that GUTEMBERG DOS SANTOS, a citizen of Brazil and the United States, was extradited from Panama on November 25. DOS SANTOS is charged by indictment with co-defendants Pablo Renato Rodriguez, Scott Hughes, Cecilia Millan, Karina Chairez, and Jackie Aguilar for their roles in an internationally coordinated fraud and money laundering ring involved in defrauding individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company. DOS SANTOS was arrested on August 18, 2020, in Panama City, Panama, and will be presented later today before U.S. Magistrate Judge Katharine H. Parker. Rodriguez, Hughes, Millan, and Aguilar were arrested in the United States on August 18, 2020, and Chairez was arrested in the United States on October 20, 2020. The case has been assigned to U.S. District Judge George B. Daniels.
Acting United States Attorney Audrey Strauss said: “As alleged, Gutemberg Dos Santos played a key role in an international investment scam that promised extraordinary rates of return on phantom investments in cryptocurrencies, defrauding victims of tens of millions of dollars. Thanks to HSI, Dos Santos is now in U.S. custody.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “The extradition of Dos Santos reflects the determination of agents from HSI New York’s El Dorado Financial Crimes Task Force to dismantle global criminal organizations, wherever the investigation takes us. Utilizing our broad authorities and network of law enforcement partners, HSI will continue to hunt those who allegedly prey upon innocent citizens for financial gain.”
According to the allegations in the Superseding Indictments: [1]
Rodriguez, DOS SANTOS, Hughes, Millan, Chairez, and Aguilar participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). Beginning in late 2015, AirBit Club, through its founders, Rodriguez and DOS SANTOS, as well as its promoters (the “Promoters”), including Millan, Chairez, and Aguilar, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.
Rodriguez, DOS SANTOS, Hughes, Millan, Chairez, and Aguilar traveled throughout the United States, and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false: No Bitcoin mining or trading on behalf of Victims in fact took place. Instead, Rodriguez, DOS SANTOS, Millan, Chairez, and Aguilar enriched themselves, and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims.
Hughes, an attorney licensed to practice law in California, had previously represented Rodriguez and DOS SANTOS in a Securities and Exchange Commission (“SEC”) investigation related to another investment scheme known as Vizinova before aiding Rodriguez and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet.
In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In one instance, Aguilar told one Victim of the AirBit Club Scheme who was complaining about her inability to withdraw AirBit Club returns that she should “bring new blood” into the AirBit Club Scheme in order to receive her returns.
In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the Airbit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).”
Rodriguez, DOS SANTOS, Hughes, Chairez, and Millan sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by Hughes (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of Hughes’s law practice’s client funds. Instead, the Hughes Trust Account was used by Rodriguez, DOS SANTOS, Hughes, and Millan to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, Hughes directed Victim funds to the personal expenses of Rodriguez, DOS SANTOS, Millan, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme. In total, the defendants laundered at least $20 million in proceeds of the Scheme through these various methods.
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DOS SANTOS, 45, of Panama City, Panama, is charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering. The wire fraud conspiracy and money laundering conspiracy charges each carry a maximum term of 20 years in prison, and the bank fraud conspiracy charge carries a maximum term of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force, HSI Panama, the HSI Panama City Transnational Criminal Investigative Unit, and HSI New Orleans. Ms. Strauss further thanked the attorneys and investigators at the SEC whose expertise and diligence were integral to the development of this investigation.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Cecilia E. Vogel, and Elizabeth A. Espinosa 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 Superseding Indictments and the description of the Superseding Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Friday 27 November 2020
Previously-Removed Dominican National Sentenced to Federal Prison for Illegal Re-Entry into the United StatesRead the Press Release
St. Thomas, USVI – Jose Fatima Rosario-Remigio was sentenced Wednesday on his conviction for illegal re-entry into the United States, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Robert Molloy sentenced Rosario-Remigio to 24 months imprisonment and a $100 special assessment.
According to court documents, Rosario-Remigio is a national of the Dominican Republic who entered the United States without inspection at a place not designated as a point of entry. On October 1, 2019, Rosario-Remigio traveled on a vessel from the British Virgin Islands to St. John, United States Virgin Islands. He then traveled from a beach on St. John to the ferry terminal, where he boarded a ferry traveling to St. Thomas. Rosario-Remigio was previously convicted for the criminal sale of cocaine in New York, and he had been removed from the United States on May 7, 2019.
This case was investigated by Virgin Islands Port Authority, Homeland Security Investigations, and Customs and Border Protection. It was prosecuted by Assistant United States Attorney Adam Sleeper.
More than 700 Members of Transnational Organized Crime Groups Arrested in Central America in U.S. Assisted OperationRead the Press Release
Today, senior law enforcement officials from the United States, El Salvador, Guatemala and Honduras announced criminal charges in Central America against more than 700 members of transnational criminal organizations, primarily MS-13 and 18th Street gangs, which resulted from a one-week coordinated law enforcement action under Operation Regional Shield (ORS).
ORS began in 2017 and is a Justice Department-led initiative to combat transnational organized crime that brings together gang prosecutors and investigators from El Salvador, Guatemala, Honduras, Mexico and the United States. Through quarterly meetings, this group has coordinated multi-country investigations and simultaneous takedowns throughout the region.
Authorities also announced the arrest of 36 individuals in El Salvador and Honduras involved in human smuggling networks that span Central America and the United States. Among those arrested in Honduras, include one police commissioner, one police deputy inspector, and three law enforcement agents. All arrestees were charged with human smuggling, money laundering and illegal association to commit a crime. The charges were announced by U.S. Attorney General William P. Barr, Attorney General Raul Melara of El Salvador, Attorney General María Consuelo Porras Argueta of Guatemala, and the Attorney General of Honduras, Oscar Fernando Chinchilla, through the Public Ministry’s Press Office.
“The U.S. Department of Justice and our law enforcement partners in Central America are committed to continued collaboration in locating and arresting gang members and associates engaged in transnational crimes,” said U.S. Attorney General Barr. “Our countries are made safer by working together to protect national security and to ensure public safety in our neighborhoods.”
In 2017, the U.S. Attorney General, together with the Attorneys General of the three Central American countries, committed to combatting transnational organized crime and reducing illegal migration to the United States through increased cooperation and capacity building of law enforcement partners. These efforts have led to the following results this week:
Prosecutors in El Salvador filed criminal charges against 1,152 members of organized crime groups in the country, primarily MS-13 and 18th Street Gangs. Within hours, the National Civil Police had captured 572 of the defendants for charges involving terrorism, murder, extortion, kidnapping, vehicle theft, robbery, conspiracy, narcotics trafficking, money laundering, weapons violations, human trafficking and human smuggling. Prosecutors and the Police also seized assets from these organized crime groups for forfeiture purposes.
In Guatemala, the Anti-Extortions Prosecution Office, the Prosecutor’s Office against Transnational Crimes, the Special Unit against Transnational Gangs, and police officers executed 80 search warrants, arrested 40 individuals, and served 29 arrest warrants against individuals already in custody, all of who are members of the 18th Street gang and MS-13. Authorities seized drugs and a firearm, and filed charges for extortion, illicit association, conspiracy to commit murder, and extortive obstruction. This investigation involves four transportation companies as victims of extortion in the amount of $54,523.
In Honduras, ORS joint operation took place in different phases during a one-week period resulted in the arrest of over 75 MS-13 and 18th Street gang members and five police officers and the execution of over 10 search warrants. Illegal firearms, cellular phones, drugs and money were seized. The arrestees were charged with illicit association, murder and conspiracy to commit murder, extortion and drug trafficking.
On February 9, President Donald J. Trump issued an Executive Order on Enforcing Federal Law with Respect to Transnational Criminal Organizations and Preventing International Trafficking to dismantle and eradicate transnational criminal organizations threatening the safety of our communities. Pursuant to that order, the U.S. Department of Justice has made dismantling transnational human smuggling networks and gangs, including MS-13, a top priority.
Regional Shield anti-gang efforts have led to charges against more than 11,000 gang members since 2017, including gang leaders nationwide. Many of these indictments included the seizure of gang assets including firearms and money. Also, during that time, more than a dozen smuggling/trafficking structures were dismantled. The capacity-building efforts in Central America of the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) have played a key role in bringing together the Attorneys General from El Salvador, Guatemala, and Honduras to form the regional operations targeting MS-13, 18th Street, and other gangs, as well as human smuggling transnational organizations. Additionally, as a result of OPDAT’s capacity building efforts, the Justice Department’s partners in Central America have strengthened cooperation and developed the skills, tools, and techniques to maximize results against all forms of transnational organized crime impacting the region and the United States.
“Since 2017, we have taken a joint and coordinated approach as northern triangle countries with our strategic partner, the United States of America,” said Attorney General Raul Melara of El Salvador. “To give our Salvadoran people a response and ensure that criminals face justice, we have strengthened the work of our Specialized Prosecution Units to be more effective in combating organized crime and terrorist organizations. I am committed as Attorney General to continuing this coordinated effort. We will only eradicate transnational organized crime by combining efforts as a region and by continuing to work together.”
“As Attorney General of the Republic and Chief of the Public Ministry, I reaffirm my commitment to the fight against transnational organized crime, one of the main goals of my administration,” said Attorney General María Consuelo Porras Argueta of Guatemala. “To this end, we have increased efforts to provide an effective response to the population through the creation of the Prosecutor’s Office against Transnational Crimes, the Special Unit against Transnational Gangs, the Special Unit against Crimes in Airports and Airfields, the signing of the statement of the Advisory Group of General Prosecutors of the Northern Triangle, which I have the honor to preside; among other strategic actions to combat transnational organized crime with frontal actions against drug trafficking, gangs, organized crime and smuggling of migrants.”
“I consider that, due to the regional threat posed by these transnational crimes, equal interagency and regional efforts should come into effect,” said Attorney General Oscar Fernando Chinchilla of Honduras. “Only by joining forces, the damaging consequences produced by these criminal organizations could be neutralized.”
In El Salvador, Guatemala, and Honduras, the investigations into transnational criminal organizations is being handled by regional gang prosecutors who receive State Department-funded training and mentoring from the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and OPDAT. With support from State Department’s Bureau of International Narcotics and Law Enforcement, prosecutors from OPDAT helped establish task forces in the region and work with FBI’s local Transnational Anti-Gang (TAG) units, as well as HSI’s Transnational Criminal Investigative Units (TCIUs). These efforts have helped Central American partners convict thousands of criminals, seize over $1 billion in illicit assets, and coordinate dozens of transnational investigations with their U.S. counterparts.
Law enforcement agencies involved in this latest sixth ORS operation included El Salvador’s Fiscalia General de la Republica (FGR) and the Policia Nacional Civil (PNC); Honduras Policía Nacional, la Dirección Nacional de Servicios Especiales de Investigación (DNSEI), Agencia Técnica de Investigaciones Criminales (ATIC), and Fuerza Nacional Anti Maras y Pandillas (FNAMP) and Guatemala’s Prosecutor’s Office against Transnational Crimes, National Civil Police, Special National Division of Criminal Investigation, National Civil Police’s Anti-Gang Unit, Public Ministry, Anti-Extortions Prosecution Office, and the Special Unit against Transnational Gangs.
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.
Photo courtesy of El Salvador Attorney General’s Office. Salvadoran Police arrest multiple gang members in Operation Regional Shield. Photo courtesy of El Salvador Attorney General’s Office. Salvadoran authorities seize cash from gang members which they will forfeit as proceeds of criminal activities. Photo courtesy of El Salvador Attorney General’s Office. Members of the 18th Street gang are arrested in Operation Regional Shield.