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16 December 2020
Menifee Woman Pleads Guilty to Federal Criminal Charge for Fraudulently Obtaining over $500,000 in COVID-19 Jobless ReliefRead the Press Release
LOS ANGELES – A Riverside County woman pleaded guilty today to a federal criminal charge for fraudulently obtaining more than $500,000 in COVID-related unemployment benefits for herself.
Cara Marie Kirk-Connell, 32, of Menifee, pleaded guilty to a single-count information charging her with use of an unauthorized access device.
According to her plea agreement, from May to October 2020, Kirk-Connell knowingly used approximately 50 unauthorized access devices. Specifically, she used stolen personal identifiable information, such as dates of birth and Social Security numbers, to apply for unemployment insurance benefits in the names of other people.
Based upon Kirk-Connell’s false and fraudulent applications, she obtained from the California Employment Development Department (EDD) multiple debit cards that contained more than $500,000 in COVID-related unemployment benefits to which she was not entitled, the plea agreement states.
Kirk-Connell admitted she knew people who access the “dark web” to purchase stolen identities that she used to then file fraudulent claims with EDD. She further admitted to watching YouTube videos that instructed viewers on how to commit EDD fraud.
When Murietta police arrested Kirk-Connell on September 11 during a traffic stop, she possessed eight EDD debit cards in other people’s names and, the day before her arrest, Kirk-Connell used fraudulently obtained EDD debit cards to withdraw more than $1,000 in cash. When federal law enforcement arrested Kirk-Connell on October 9, she possessed in her purse four EDD debit cards in victims’ names, four additional debit cards in victims’ names in her car trunk, and approximately $10,000 in cash, according to the plea agreement.
EDD records showed that the cards and identities that Kirk-Connell possessed had been used to apply for and authorize approximately $534,149 in COVID-related unemployment benefits from California’s EDD program, of which nearly $270,000 had already been spent, according to an affidavit filed with a criminal complaint in this case.
The California EDD distributes unemployment benefits under the Coronavirus Aid, Relief, and Economic Security Act, passed by Congress in March. The CARES Act expanded unemployment benefits to cover those who were previously ineligible, including business owners, self-employed workers, and independent contractors, who were put out of business or significantly reduced their services because of the COVID-19 pandemic.
United States District Judge André Birotte Jr. has scheduled an April 9, 2021 sentencing hearing, at which time Kirk-Connell will face a statutory maximum sentence of 10 years in federal prison.
This investigation, which is a result of the Department of Justice’s National Unemployment Insurance Fraud Task Force, was conducted by the U.S. Department of Labor – Office of Inspector General, IRS Criminal Investigation, and the United States Postal Inspection Service. California EDD Criminal Investigations and the Murrieta Police Department provided substantial assistance.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Member of "Boogaloo Bois" Pleads Guilty to Conspiracy to Provide Material Support to HamasRead the Press Release
United States Attorney Erica H. MacDonald and National Security Division Assistant Attorney General John Demers today announced the guilty plea of BENJAMIN RYAN TEETER, 22, to conspiracy to provide material support and resources, namely property, services and weapons, to Hamas, a designated foreign terrorist organization. TEETER, who was charged via a superseding indictment on November 6, 2020, pleaded guilty today before Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. A sentencing date will be scheduled at a later time.
“The defendant was a self-described member of the Boogaloo Bois whose extremist ideologies had moved into the realm of violent action,” said United States Attorney Erica H. MacDonald. “I am grateful for the quick and effective action by law enforcement to keep our community safe.”
“This case highlights the real threat posed by domestic violent extremists who self-radicalize and threaten to violently attack others opposed to their views, with little or no warning,” said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. “Preventing terrorist attacks is the FBI’s number one priority and the primary mission of our Joint Terrorism Task Forces. The FBI and its task force partners will persist in using every investigative tool available to identify, assess and disrupt those willing to compromise the safety of our neighbors and communities.”
According to documents filed with the court, in late May of 2020, the FBI initiated an investigation into TEETER and co-defendant Michael Robert Solomon, two members of the “Boogaloo Bois,” and a sub-group called the “Boojahideen.” The Boogaloo Bois are a loosely-connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government.
According to TEETER’s guilty plea and documents filed with the court, in early June, the FBI received information about TEETER, Solomon, and other members of the Boogaloo Bois and the Boojahideen through a confidential human source (“CHS”), whom the defendants believed to be a member of Hamas. In audio-recorded conversations, TEETER and Solomon expressed that Hamas shares anti-U.S. government views that align with their own views. TEETER and Solomon also expressed their desire to employ themselves as “mercenaries” for Hamas to generate cash for the Boogaloo Bois/Boojahideen movement, including funding for recruitment and purchasing land for a training compound. TEETER admitted in his guilty plea that he knew Hamas was a designated foreign terrorist organization, and that the organization had engaged and was engaging in terrorist activity or terrorism.
According to TEETER’s guilty plea and documents filed with the court, throughout the summer of 2020, TEETER and co-defendant Solomon met with the CHS on multiple occasions.
On June 14, 2020 TEETER met with the CHS and proposed ways to assist Hamas including using explosives to destroy government buildings in the United States. In exchange, TEETER sought financial backing from Hamas for the Boogaloo Bois. On June 18, 2020, TEETER identified to the CHS a courthouse in northern Minnesota that TEETER and Solomon believed was a suitable target for destruction. On June 19, 2020, TEETER and Solomon met with the CHS and continued to discuss, among other topics, the plot to destroy a courthouse.
On June 28, 2020, TEETER, Solomon, and the CHS, met an undercover employee of the FBI (“UCE) that TEETER believed was a member of Hamas. During this meeting, TEETER and Solomon proposed manufacturing suppressors, untraceable firearms, and fully automatic firearms for Hamas.
On July 6, 2020, TEETER and Solomon purchased a drill press for the purpose of manufacturing suppressors for Hamas. TEETER admitted in his guilty plea that he planned to produce suppressors, some of which could be sold to others. TEETER and Solomon brought the drill press to Solomon’s home and later used the drill press to manufacture five suppressors. TEETER and Solomon delivered the five suppressors to the CHS and UCE on July 30, 2020, believing those devices would be used by Hamas. During that meeting, TEETER and Solomon agreed to manufacture additional suppressors for Hamas believing that the next batch of suppressors would be used against Israeli and United States military personnel overseas.
TEETER and Solomon again met the UCE on August 29, 2020. During this meeting TEETER and Solomon gave the UCE a 3-D printed “auto sear” believing that the auto sear would be used by Hamas to convert semi-automatic rifles into fully automatic rifles. At this time TEETER and Solomon agreed to obtain, and did obtain, another order of auto sears for the CHS and the UCE.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Phil Viti of the National Security Division's Counterterrorism Section are prosecuting the cases.
These cases fall with the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anarchist ideology.
The charges against defendant Michael Robert Solomon are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
BENJAMIN RYAN TEETER, 22
Hampstead, N.C.
Convicted:
- Conspiracy to provide material support to a designated foreign terrorist organization (Hamas), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Medical Equipment Company Handicare USA, LLC, Agrees to Pay $800,000 to Resolve False Claims Act ActionRead the Press Release
WASHINGTON – On August 17, 2020 Handicare USA (doing business as Prism Medical Services), agreed to pay the United States $800,000 to resolve allegations that it knowingly submitted false claims to the Department of Veteran Affairs (“VA”) in the performance of various contracts to install patient ceiling lifts in VA hospitals.
Handicare USA manufactures and installs patient lift and mobility systems for hospitals and rehabilitation centers. Handicare USA entered into various contracts with the VA to install patient ceiling lifts in VA hospitals and other VA medical or health care facilities. The VA contracts specifically required that all parts and products must be compliant with the Trade Agreements Act, a statute that provides that the government may acquire only products made within the United States or from “designated” countries who abide by certain trade laws with the United States. Handicare USA knew of the importance of this requirement and submitted a certification at the time of contracting that every part installed was “made in the United States,” and further submitted engineering certifications that the parts installed were from a manufacturer who manufactured and sold only American-made products.
Based on a tip from a whistleblower, an agent from the VA Office of the Inspector General inspected the patient lift systems of several VA hospitals and found that Handicare USA used inferior and cheaper parts made in China, a non-designated country, for the mounting system that secured the patient lift to the ceiling. Even more, the Office of the Inspector General learned that Handicare USA supervisors at the project sight specifically instructed personnel to install the parts so that the “Made in China” stamps on the metal parts would be against the building bulkheads or otherwise not visible for inspection.
“The VA Office of Inspector General tirelessly pursues fraud, waste, and abuse affecting VA, and will continue to work with our law enforcement partners to hold violators accountable,” said VA Inspector General Michael J. Missal. “The use of inferior products that can put veterans, staff, and visitors to VA medical facilities at risk will not be tolerated. Our nation’s veterans, families and VA staff deserve the highest standards of integrity, professionalism, and accountability from government contractors.”
“This agreement demonstrates our resolve to hold accountable any organization that mishandles federal funds intended for the benefit of our veterans. Handicare was entrusted to provide vital medical equipment of the highest quality and safety, utilizing manufacturers in the United States. That trust was violated when Handicare falsely claimed that the parts were manufactured in the United States, and instead used lower quality hardware” said Acting United States Attorney Michael R. Sherwin.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The investigation in this matter was conducted by Special Agent Christopher Holcombe of the Department of Veteran’s Affairs Office of the Inspector General and Assistant United States Attorney Darrell Valdez of the United States Attorney’s Office for the District of Columbia.
McAlester Man Sentenced to 160 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Charles P. Hendricks, age 32, of McAlester, Oklahoma, was sentenced to 160 months’ imprisonment, and 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846. The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that from in or about April, 2017, and continuing until on or about June 26, 2019, within the Eastern District of Oklahoma and elsewhere, the Defendant knowingly and intentionally combined, conspired, and agreed with others, to commit offenses against the United States in violation of Title 21, United States Code, Section 841(a)(1) & 841(b)(1)(A), by distributing 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
United States Attorney Brian J. Kuester said, “This defendant had been orchestrating the sale of methamphetamine in eastern Oklahoma for years. This sentence, which will begin when he completes his time in the Oklahoma Department of Corrections, has put an end to his business. As a result, the communities he was poisoning are safer.”
“ATF and its partners are committed to helping keep our communities safe. Our neighborhoods are now safer because Mr. Hendricks will not be able to poison it with illegal narcotics,” said ATF Special Agent in Charge Jeffrey C. Boshek II.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.Martinsburg man admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Justin Clinton, of Martinsburg West Virginia, has admitted to his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Clinton, 25, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone and Cocaine Base.” Clinton admitted to working with others to distribute Eutylone and Cocaine Base from October 2019 to April 2020 in Berkeley and Jefferson Counties.Clinton faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Martin Man Sentenced for Assault with Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Martin, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced by Judge Jeffrey L. Viken, U.S. District Court.
Jonathan Bad Wound, age 54, was sentenced on December 7, 2020, to time served, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bad Wound was indicted by a federal grand jury in June 2017. The charge related to Bad Wound and the victim engaging in a verbal argument that escalated into a physical altercation in May 2016. After throwing Bad Wound to the ground, the victim got into his truck to leave Bad Wound’s driveway. Bad Wound went to the back of his house, grabbed a rifle, loaded it, and fired three rounds at the victim’s truck. Bullet fragments landed in the victim’s back causing bodily injury.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Man from Albuquerque pleads guilty to federal drug smuggling chargesRead the Press Release
ALBUQUERQUE, N.M. – Arturo Gilberto Estrada, 22, of Albuquerque, pleaded guilty in federal court on Dec. 7 to possession with intent to distribute fentanyl and heroin.
According to his plea agreement, Estrada admitted that he tried to enter the United States at the Santa Teresa Port of Entry in Don͂a Ana County, New Mexico, on July 31 with four wrapped bundles of 3.8 kilograms of fentanyl and 1.2 kilograms of heroin hidden in the rear passenger side panel of the vehicle. Estrada intended to distribute the drugs, which he was smuggling into the United States in exchange for $10,000. U.S. Customs and Border Protection officers inspected the vehicle and located the hidden contraband.
Estrada is currently in custody awaiting sentencing. He faces a minimum of 10 years and up to life in prison.
U.S. Customs and Border Protection Office of Field Operations investigated this case. Assistant U.S. Attorney Aaron O. Jordan is prosecuting the case.
Man Charged with Second Degree Murder in Drunk Driving DeathRead the Press Release
An alleged drunk driver who struck and killed a woman in a 2019 collision was charged this week with second degree murder in Indian Country, announced U.S. Attorney Trent Shores.
According to the indictment, Hector Manuel Hernandez, 36, of Tulsa, is alleged to have hit another car, and as he fled the first accident, he hit the victim’s vehicle head on. The victim died from injuries sustained in the collision. The accident occurred on Nov. 26, 2019.
“Driving while intoxicated is both irresponsible and selfish. Far too many lives have been taken at the hands of drunk drivers. That’s why it is important to prosecute these types of cases,” said U.S. Attorney Trent Shores. “Assistant U.S. Attorney Justin Bish, a visiting attorney from Western New York, will be the lead on this case to pursue justice for the victim.”
The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
The Broken Arrow Police Department, FBI and Oklahoma State Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Justin Bish is prosecuting the case. AUSA Bish is a prosecutor from the Western District of New York. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Male Escort Pleads Guilty to Tax FraudRead the Press Release
Miami, Fl. -- A South Florida male escort who lied to the IRS about his income pled guilty today in federal court in Ft. Lauderdale to filing a false tax return.
According to court documents, 46-year-old Jami Kopacz worked as a paid escort for clients across the United States. Kopacz received payments directly from his escort clients and from a private business for whom he worked as an independent contractor. From 2015 to 2018, Kopacz used his corporation, JK Training, LLC, to receive income. Then, he filed false corporate tax returns (Forms 1120S) that substantially underreported the company’s gross receipts and total income. The understatement on JK Training’s corporate tax returns consequently passed through to Kopacz’s individual tax returns, which were also false as they underreported his total income. Kopacz caused a total tax loss of $278,325.
Kopacz’s sentencing hearing is scheduled for March 5, 2021, in Ft. Lauderdale before the Honorable U.S. District Judge Roy K. Altman. Kopacz faces up to three years in prison plus supervised release, penalties, and restitution.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
IRS-CI Miami investigated the case. Assistant U.S. Attorney Christopher Browne and Trial Attorney Grace Albinson are prosecuting it.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-60096.
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Lucchese Crime Family Soldier Admits Aggravated AssaultRead the Press Release
NEWARK, N.J. – A soldier in the Lucchese Crime Family today admitted planning and carrying out an aggravated assault on the current husband of one of the former stars of the Bravo television show “The Real Housewives of New Jersey,” U.S. Attorney Craig Carpenito announced.
John Perna, 43, of Cedar Grove, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to Count One of the indictment pending against him, charging him with committing a violent crime in aid of racketeering activity. The indictment also charges Thomas Manzo, 55, of Franklin Lakes, New Jersey.
According to documents filed in his case and his statements made in court:
In the spring of 2015, Manzo, one of the owners of the Brownstone Restaurant in Paterson, New Jersey, and the ex-husband of the Bravo star, hired Perna to assault his ex-wife’s new boyfriend (now husband) in exchange for a deeply discounted wedding reception to be held at Manzo’s upscale Passaic County venue. Perna, who is a “made man” in the Lucchese Crime Family, planned and carried out the assault on July 18, 2015, with the help of a member of his crew. Perna was armed with a “slapjack” during the assault. In exchange for committing the assault, Perna held a lavish wedding reception at Manzo’s restaurant, just one month later, for a fraction of the price he would otherwise have paid. The reception was attended by over 330 guests, many of whom were members of the Lucchese Crime Family.
The violent crime in aid of racketeering activity count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for April 28, 2021.
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 today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations in the indictment remaining against Manzo are merely accusations, and he is presumed innocent unless and until proven guilty.
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Defense counsel: Stacy Biancamano Esq., Cranford, New Jersey
Local Physician Indicted for Illegally Distributing Controlled SubstancesRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that a federal grand jury has returned an indictment charging a local physician with illegally distributing controlled substances.
Larry Clyde Daniels, 65, of Keithville, Louisiana, was charged in the indictment with 82 counts of distribution of controlled substances outside the bounds of professional medical practice. Daniels is a licensed physician in the State of Louisiana and has held himself out to be a family practice physician since approximately March 1984.
The indictment alleges that from May 2016 through September 2017, Daniels knowingly and intentionally distributed, and aided and abetted the distribution of, mixtures and substances containing detectable amounts of Buprenorphine, Clonazepam, and Adderall, without a legitimate medical purpose and outside the usual course of professional practice, on 82 occasions. These alleged instances of illegal distribution of controlled substances, and aiding and abetting of the distribution of same, form the basis of the 82-count indictment against Daniels.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Drug Enforcement Administration is conducting the investigation and Assistant U.S. Attorney Tennille M. Gilreath is prosecuting 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.
Lewis Wallach Admits to Defrauding Investors and Embezzling $26 Million from Marin Real Estate CompanyRead the Press Release
SAN FRANCISCO – Lewis Wallach pleaded guilty today in federal court to fraud charges for his role in a large-scale fraud involving the Marin County real estate company Professional Financial Investors, or PFI, announced United States Attorney David L. Anderson and Federal Bureau Investigation Special Agent in Charge Craig D. Fair. The plea was accepted by the Hon. Maxine M. Chesney, U.S. District Judge.
Wallach, 64, of Los Angeles, is the former CEO of PFI. He was charged in a criminal information filed on September 29, 2020, alleging that he and PFI’s now-deceased founder ran the company as a Ponzi scheme. The information charged Wallach with one count of wire fraud and one count of conspiracy to commit wire fraud, in a scheme to defraud and conspiracy that went back to at least 2015.
According to his plea agreement, Wallach admitted that he was hired by the founder of PFI and related entity Professional Investors Security Fund, or PISF, in 1990, and that he was later named president and CEO of PFI. Both companies were based in Novato, California. Wallach admitted that PFI and PISF investors were told that the investors’ regular interest and distribution payments would be paid from income on the residential and commercial properties owned and managed by PFI. In fact, as Wallach admitted, he knew that PFI was not profitable and that income from the properties was not sufficient to pay both interest and distributions. In fact, both Wallach and the company founder knew that PFI and PISF had to raise new investments to pay existing investors.
Wallach admitted that he lied to investors, including falsely telling investors that PFI had significant reserves to allow it to survive and expand during the economic downturn caused by the COVID 19 pandemic. He admitted that he conspired with the PFI founder to mislead investors and solicit investor funds using false statements.
Wallach also admitted that he engaged in a years-long scheme to embezzle funds from PFI and PISF in which he took more than $26 million from 2015 until June 2020, including money he used for large investments, the purchase of real estate, and payment of personal expenses.
Under a plea agreement entered by Wallach and the United States Attorney’s Office, Wallach agrees to the entry of an order by the court requiring him to pay restitution of no less than $26.7 million. Pursuant to the agreement, Wallach also agrees to continue to cooperate in the criminal investigation and to assist prosecutors with identifying, securing, and transferring any assets derived from or related to the charged offense.
Wallach was charged by information on September 29, 2020, with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. Wallach pleaded guilty to both counts.
The maximum statutory penalties for each of the two counts, wire fraud under 18 U.S.C. § 1343 and conspiracy to commit wire fraud under 18 U.S.C. § 1349, are 20 years in prison, a fine of $250,000, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Wallach is currently on pretrial release after posting a $500,000 bond. The case was set for a status hearing on March 24, 2020, at 2:15 p.m., before the Honorable Maxine M. Chesney, U.S. District Judge; no sentencing hearing has been scheduled.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the Federal Bureau of Investigation. The United States Attorney’s Office and the Federal Bureau of Investigation also thank the San Francisco Regional Office of the Securities and Exchange Commission.
Leader of Latin Kings in Massachusetts Sentenced for Drug Conspiracy ChargesRead the Press Release
BOSTON – A leader of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today for drug conspiracy charges.
Bienvenido Nunez, a/k/a “King Apache,” 33, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 18 months in prison and three years of supervised release. In October 2020, Nunez pleaded guilty to conspiracy to distribute cocaine base. Nunez was charged in December 2019, at which time he was identified as the Inca, or leader, of the Massachusetts Latin Kings.
Nunez admitted that he conspired with other Latin Kings members and leaders to possess cocaine base (also known as crack cocaine) with the intent to distribute it. In September 2019, Nunez conspired with others to obtain cocaine base from members of the Latin Kings in New Bedford for resale. On Sept. 29, 2019, Nunez was captured in a video recording in the basement of a Latin Kings trap house in New Bedford bagging about an amount of cocaine base for street-level distribution.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury in Boston returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Bienvenido Nunez is the eighth defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Worcester Police Chief Steven M. Sargent made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Leader of Rochester Area Drug Trafficking Ring Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Andres Escalera, 29, of Phelps, NY, pleaded guilty before Chief U.S. District Court Judge Frank P. Geraci, Jr. to attempted possession with intent to distribute five kilograms or more of cocaine. The charge carries a minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a $10,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that the defendant was a leader in a drug trafficking organization that distributed large quantities of cocaine, heroin, and fentanyl throughout the Western District of New York. Escalera was arrested on June 2, 2020, after attempting to purchase six kilograms of cocaine in Ontario County, and was found to be in possession of over $200,000 in cash. Simultaneously, a search warrant was executed at the defendant’s residence where law enforcement officers recovered quantities of cocaine, heroin and fentanyl, as well as drug packaging paraphernalia and cash. As part of his guilty plea, Escalera will forfeit over $574,000 in seized United States currency and a Mercedes Benz automobile.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Ontario County Sheriff’s Office, under the direction of Sheriff Kevin Henderson; and the Geneva Police Department, under the direction of Chief Michael J. Passalacqua.
Sentencing is scheduled for March 5, 2021, at 11:00 a.m. before Judge Geraci.
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Lake Traverse Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Lake Traverse, South Dakota, man has been indicted by a federal grand jury for aggravated sexual abuse of a child and sexual abuse of a minor.
Okokipe Jones, age 46, was indicted on September 1, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on December 10, 2020, and pled not guilty to the Indictment.
According to the indictment, in July 2010, Jones engaged in or attempted to engage in a sexual act with a child under 12 years of age. Then again in or about 2016, Jones engaged or attempted to engage in a sexual act with the same victim. The sexual abuse took place at a residence in Roberts County, South Dakota.
Jones faces three charges. The maximum penalties upon conviction for Counts 1 and 2 is up to life imprisonment; Count 3 carries a maximum of up to 15 years. Each count also carries a maximum $250,000 fine, or both fine and imprisonment; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 to the Federal Crime Victims Fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Jones was detained pending trial. A trial date of February 16, 2021 has been set.
Kissimmee Man Pleads Guilty to Bringing More Than $600,000 in Cash and A Handgun to Purchase Cocaine from Undercover AgentsRead the Press Release
Orlando, Florida – Jacob Luis Bonilla-Rivera (27, Kissimmee) today pleaded guilty to conspiracy to possess with the intent to distribute cocaine and possession of a firearm in furtherance of that drug conspiracy. He faces a minimum mandatory sentence of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning on September 11, 2020, Bonilla-Rivera engaged in a series of phone calls with individuals who he believed to be cocaine dealers but who were, in fact, undercover agents working on behalf of Homeland Security Investigations (HSI). These discussions culminated in an agreement for Bonilla-Rivera to purchase 20 kilograms of cocaine in Orlando. On September 16, 2020, HSI agents met with Bonilla-Rivera and a conspirator, Juan Omar Rodriguez, Jr. They showed the agents $600,000 in cash that they had transported in a hidden compartment in one of their vehicles. The agents then brought Bonilla-Rivera and Rodriguez to the 20 kilograms of cocaine they had arranged to purchase. After inspecting the cocaine, Bonilla-Rivera and Rodriguez returned to their car to retrieve the cash from the hidden compartment and were arrested. Upon searching both vehicles, agents discovered that both Bonilla-Rivera and Rodriguez had loaded firearms, along with a total of $639,325 in cash.
Juan Omar Rodriguez, Jr. is currently scheduled for trial in January 2021.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, with assistance from Seminole County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Kenyan National Indicted for Conspiring to Hijack Aircraft on Behalf of the Al Qaeda-Affiliated Terrorist Organization Al ShabaabRead the Press Release
The Department of Justice announced the unsealing of an indictment charging Cholo Abdi Abdullah with six counts of terrorism-related offenses arising from his activities as an operative of the foreign terrorist organization al Shabaab, including conspiring to hijack aircraft in order to conduct a 9/11-style attack in the United States. Abdullah was arrested in July 2019 in the Philippines on local charges, and was subsequently transferred on Dec. 15, 2020 in connection with his deportation from the Philippines to the custody of U.S. law enforcement for prosecution on the charges in the indictment. Abdullah was transported from the Philippines to the United States yesterday, and is expected to be presented today before Magistrate Judge Robert W. Lehrburger in Manhattan federal court. The case is assigned to United States District Judge Analisa Torres.
“This case, which involved a plot to use an aircraft to kill innocent victims, reminds us of the deadly threat that radical Islamic terrorists continue to pose to our nation. And it also highlights our commitment to pursue and hold accountable anybody who seeks to harm our country and our citizens. No matter where terrorists who plan to target Americans may be located, we will seek to identify them and bring them to justice,” said Assistant Attorney General for National Security John C. Demers. “We owe a debt of gratitude to the detectives, agents, analysts, and prosecutors who are responsible for this defendant’s arrest.”
“Today’s announcement shows that foreign terrorist organizations, like al Shabaab, remain determined to plot, plan, and conspire to commit terrorist acts across the globe against the United States, our interests and our foreign partners,” said FBI Assistant Director for Counterterrorism Jill Sanborn. “Let there be no doubt that the FBI and our law enforcement colleagues, and in this case specifically those in the Philippines and Kenya, will not stop in our mission to hold terrorists accountable for their actions. The charges announced today against Cholo Abdi Abdullah eerily draws parallels to the heinous attacks on this country on September 11, 2001. The FBI, along with our U.S. Government and international partners, will continue to be in lockstep against terrorism and will not allow the safety or security of the public to be threatened – no matter where in the world it may be or whomever is responsible.”
“As alleged, Cholo Abdi Abdullah, as part of a terrorist plot directed by senior al Shabaab leaders, obtained pilot training in the Philippines in preparation for seeking to hijack a commercial aircraft and crash it into a building in the United States,” said Acting Manhattan U.S. Attorney Audrey Strauss. “This chilling callback to the horrific attacks of September 11, 2001, is a stark reminder that terrorist groups like al Shabaab remain committed to killing U.S. citizens and attacking the United States. But we remain even more resolute in our dedication to investigating, preventing, and prosecuting such lethal plots, and will use every tool in our arsenal to stop those who would commit acts of terrorism at home and abroad. Thanks to the outstanding investigative work of the New York Joint Terrorism Task Force, and the FBI’s global partnerships with law enforcement agencies around the world, Abdullah’s plot was detected before he could achieve his deadly aspirations, and now he faces federal terrorism charges in a U.S. court.”
“Nearly 20 years after the 9/11 terrorist attacks, there are those who remain determined to conduct terror attacks against United States citizens. Abdullah, we allege, is one of them,” said FBI Assistant Director-in-Charge William F. Sweeney Jr. “He obtained a pilot’s license overseas, learning how to hijack an aircraft for the purpose of causing a mass-casualty incident within our borders. Fortunately, the exceptional work by the men and women assigned to the many agencies that comprise the FBI’s New York JTTF have, once again, disrupted a threat to our communities.”
“As alleged in the federal indictment against him, Cholo Abdi Abdullah had obtained pilot training and begun plotting a terrorist attack against a target in the United States,” said NYPD Commissioner Dermot Shea. “But the outstanding work of our NYPD detectives and federal agents of the FBI’s New York Joint Terrorism Task Force, along with all of our law enforcement partners, put an end to those plans and ensured that no one would be harmed.”
As alleged in the Indictment,[1] unsealed today in Manhattan federal court:
The charges in the Indictment unsealed today arise out of a coordinated scheme by the terrorist organization Harakat al-Shabaab al-Mujahideen, commonly known as “al Shabaab,” to target Americans both at home and abroad. Al Shabaab, which has sworn allegiance to al Qaeda and serves as al Qaeda’s principal wing in East Africa, is responsible for numerous deadly terrorist attacks, including attacks that have claimed American lives. Recently, al Shabaab has embarked on a string of terrorist attacks as part of an operation purportedly in response to the United States’ decision to move its embassy in Israel to Jerusalem, which the group has dubbed “Operation Jerusalem Will Never be Judaized.” In particular, these terrorist attacks perpetrated by al Shabaab include an attack on Jan. 15, 2019, at a hotel in Nairobi, Kenya, which resulted in the deaths of approximately 21 people, including a U.S. national and survivor of al Qaeda’s 9/11 attack on the World Trade Center in New York, New York; a Sept. 30, 2019, attack on a U.S. military facility in Somalia; and a Jan. 5, 2020, attack on another U.S. facility in Kenya, in which three Americans were killed.
As alleged in the Indictment, Abdullah was an al Shabaab operative who participated in a plot to hijack commercial aircraft and crash them into a building in the United States. Beginning in 2016, at the direction of a senior al Shabaab commander who was responsible for, among other things, planning the 2019 Nairobi hotel attack, Abdullah traveled to the Philippines and enrolled in a flight school there (the “Flight School”), for the purpose of obtaining training for carrying out the 9/11-style attack. Between 2017 and 2019, Abdullah attended the Flight School on various occasions and obtained pilot’s training, ultimately completing the tests necessary to obtain his pilot’s license.
While Abdullah was obtaining pilot training at the Flight School, he also conducted research into the means and methods to hijack a commercial airliner to conduct the planned attack, including security on commercial airliners and how to breach a cockpit door from the outside, information about the tallest building in a major U.S. city, and information about how to obtain a U.S. visa.
Thanks to the extraordinary work of the FBI, law enforcement authorities foiled this plot. Abdullah has remained in custody since his arrest on the local charges in the Philippines.
Abdullah, 30, of Kenya, is charged with conspiring to provide and providing material support to a designated foreign terrorist organization (al Shabaab), conspiring to murder U.S. nationals, conspiring to commit aircraft piracy, conspiring to destroy aircraft, and conspiring to commit acts of terrorism transcending national boundaries. Abdullah faces a maximum sentence of life in prison, and a mandatory minimum sentence of 20 years in prison. The specific penalties for each of the charges is reflected in the chart below. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Assistant Attorney General Demers and Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. They also thanked the FBI Hudson Valley office and the New York State Police. Ms. Strauss also thanked the FBI Legal Attaché Offices in Nairobi, Kenya, and Manila, the Philippines; the Counterterrorism Section of the Department of Justice’s National Security Division; the Office of International Affairs of the Department of Justice’s Criminal Division; the U.S. Department of Defense; “...the Kenyan Directorate of Criminal Investigations, the Kenyan Anti-Terrorism Police Unit, the Joint Terrorism Task Force-Kenya, and the Kenyan Office of the Director of Public Prosecutions; and the Philippine National Police, Philippine Department of Justice, the Joint Terrorism Financial Investigations Group - Philippines, and Philippine Bureau of Immigration, for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton, Jr., Sidhardha Kamaraju, and Elinor Tarlow are in charge of the prosecution, with assistance from the Counterterrorism Section of the National Security Division.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein are only allegations, and every fact described should be treated as an allegation.
Kenyan National Indicted for Conspiring to Hijack Aircraft on Behalf of the Al Qaeda-Affiliated Terrorist Organization Al ShabaabRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the Police Department for the City of New York (“NYPD”), announced the unsealing of an Indictment charging CHOLO ABDI ABDULLAH with six counts of terrorism-related offenses based on his activities as an operative of the foreign terrorist organization al Shabaab, including conspiring to hijack aircraft in order to conduct a 9/11-style attack in the United States. ABDULLAH was arrested in July 2019 in the Philippines on local charges, and was subsequently transferred on December 15, 2020, in connection with his deportation from the Philippines, to the custody of U.S. law enforcement for prosecution on the charges in the Indictment. ABDULLAH was transported from the Phillippines to the United States yesterday, and is expected to be presented today before Magistrate Judge Robert W. Lehrburger in Manhattan federal court. The case is assigned to United States District Judge Analisa Torres.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Cholo Abdi Abdullah, as part of a terrorist plot directed by senior al Shabaab leaders, obtained pilot training in the Philippines in preparation for seeking to hijack a commercial aircraft and crash it into a building in the United States. This chilling callback to the horrific attacks of September 11, 2001, is a stark reminder that terrorist groups like al Shabaab remain committed to killing U.S. citizens and attacking the United States. But we remain even more resolute in our dedication to investigating, preventing, and prosecuting such lethal plots, and will use every tool in our arsenal to stop those who would commit acts of terrorism at home and abroad. Thanks to the outstanding investigative work of the New York Joint Terrorism Task Force, and the FBI’s global partnerships with law enforcement agencies around the world, Abdullah’s plot was detected before he could achieve his deadly aspirations, and now he faces federal terrorism charges in a U.S. court.”
Assistant Attorney General John C. Demers said: “This case, which involved a plot to use an aircraft to kill innocent victims, reminds us of the deadly threat that radical Islamic terrorists continue to pose to our nation. And it also highlights our commitment to pursue and hold accountable anybody who seeks to harm our country and our citizens. No matter where terrorists who plan to target Americans may be located, we will seek to identify them and bring them to justice. We owe a debt of gratitude to the agents, detectives, analysts, and prosecutors who are responsible for this defendant’s arrest.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Nearly 20 years after the 9/11 terrorist attacks, there are those who remain determined to conduct terror attacks against United States citizens. Abdullah, we allege, is one of them. He obtained a pilot’s license overseas, learning how to hijack an aircraft for the purpose of causing a mass-casualty incident within our borders. Fortunately, the exceptional work by the men and women assigned to the many agencies that comprise the FBI’s New York JTTF have, once again, disrupted a threat to our communities.”
NYPD Commissioner Dermot Shea said: “As alleged in the federal indictment against him, Cholo Abdi Abdullah had obtained pilot training and begun plotting a terrorist attack against a target in the United States. But the outstanding work of our NYPD detectives and federal agents of the FBI’s New York Joint Terrorism Task Force, along with all of our law enforcement partners, put an end to those plans and ensured that no one would be harmed.”
As alleged in the Indictment,[1] unsealed today in Manhattan federal court:
The charges in the Indictment unsealed today arise out of a coordinated scheme by the terrorist organization Harakat al-Shabaab al-Mujahideen, commonly known as “al Shabaab,” to target Americans both at home and abroad. Al Shabaab, which has sworn allegiance to al Qaeda and serves as al Qaeda’s principal wing in East Africa, is responsible for numerous deadly terrorist attacks, including attacks that have claimed American lives. Recently, al Shabaab has embarked on a string of terrorist attacks as part of an operation purportedly in response to the United States’ decision to move its embassy in Israel to Jerusalem, which the group has dubbed “Operation Jerusalem Will Never be Judaized.” In particular, these terrorist attacks perpetrated by al Shabaab include an attack on January 15, 2019 at a hotel in Nairobi, Kenya, which resulted in the deaths of approximately 21 people, including a U.S. national and survivor of al Qaeda’s 9/11 attack on the World Trade Center in New York, New York; a September 30, 2019 attack on a U.S. military facility in Somalia; and a January 5, 2020 attack on another U.S. facility in Kenya, in which three Americans were killed.
As alleged in the Indictment, ABDULLAH was an al Shabaab operative who participated in a plot to hijack commercial aircraft and crash them into a building in the United States. Beginning in 2016, at the direction of a senior al Shabaab commander who was responsible for, among other things, planning the 2019 Nairobi hotel attack, ABDULLAH traveled to the Philippines and enrolled in a flight school there (the “Flight School”), for the purpose of obtaining training for carrying out the 9/11-style attack. Between 2017 and 2019, ABDULLAH attended the Flight School on various occasions and obtained pilot’s training, ultimately completing the tests necessary to obtain his pilot’s license.
While ABDULLAH was obtaining pilot training at the Flight School, he also conducted research into the means and methods to hijack a commercial airliner to conduct the planned attack, including security on commercial airliners and how to breach a cockpit door from the outside, information about the tallest building in a major U.S. city, and information about how to obtain a U.S. visa.
Thanks to the extraordinary work of the FBI, law enforcement authorities foiled this plot. ABDULLAH has remained in custody since his initial arrest in the Philippines.
* * *
ABDULLAH, 30, of Kenya, is charged with conspiring to provide and providing material support to a designated foreign terrorist organization (al Shabaab), conspiring to murder U.S. nationals, conspiring to commit aircraft piracy, conspiring to destroy aircraft, and conspiring to commit acts of terrorism transcending national boundaries. ABDULLAH faces a maximum sentence of life in prison, and a mandatory minimum sentence of 20 years in prison. The specific penalties for each of the charges is reflected in the chart below. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. Ms. Strauss also thanked the FBI Legal Attaché Offices in Nairobi, Kenya, and Manila, the Philippines; the FBI’s Hudson Valley Resident Agency; the New York State Police; the Counterterrorism Section of the Department of Justice’s National Security Division; the Office of International Affairs of the Department of Justice’s Criminal Division; the U.S. Department of Defense; the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya; the Office of the Director of Public Prosecutions in Kenya; the Philippine National Police; the Philippine Department of Justice; the Joint Terrorism Financial Investigations Group-Philippines; and the Philippine Bureau of Immigration, for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton, Jr., Sidhardha Kamaraju, and Elinor Tarlow are in charge of the prosecution, with assistance from Trial Attorneys Jason Denney and Rebecca Magnone of the Counterterrorism Section.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Count
Charges
Penalties
1
Conspiracy to Provide Material Support to a Foreign Terrorist Organization (18 U.S.C. § 2339B)
20 years’ imprisonment
2
Provision of Material Support to a Foreign Terrorist Organization (18 U.S.C. § 2339B)
20 years’ imprisonment
3
Conspiracy to Murder U.S. Nationals (18 U.S.C. § 2332(b))
Life imprisonment
4
Conspiracy to Commit Aircraft Piracy (49 U.S.C. § 46502)
Life imprisonment; mandatory minimum of 20 years’ imprisonment
5
Conspiracy to Destroy Aircraft (18 U.S.C. § 32(a))
20 years’ imprisonment
6
Conspiracy to Commit Acts of Terrorism Transcending National Boundaries (18 U.S.C. § 2332b)
Life imprisonment, consecutive to any other term of imprisonment imposed
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein are only allegations, and every fact described should be treated as an allegation.
Justice Department Defends Health Care Workers from Being Forced to Perform Abortions with Vermont LawsuitRead the Press Release
The Justice Department’s Civil Rights Division today filed a civil lawsuit in Vermont federal court against the University of Vermont Medical Center (UVMMC) for violating the federal anti-discrimination statute known as the “Church Amendments.” That statute prohibits health care entities like UVMMC from discriminating against health care workers who follow their conscience and refuse to perform or assist with abortions.
“No institution or person should force any health care provider to perform an abortion if doing so would violate the provider’s religious beliefs or moral convictions. This kind of indecent coercion violates everything this country stands for,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Federal law protects health care providers from having to choose between their job and participation in what they sincerely believe is the taking of an innocent human life. Coercing people to perform abortions violates the law, and the U.S. Department of Justice will not stand for this shocking and outrageous attack against the right of all people in this free country to follow their conscience.”
The United States’ complaint alleges that UVMMC violated the Church Amendments when it chose intentionally and willfully to discriminate against a nurse who plainly made her objection to participating in abortions based on her religious beliefs or moral convictions known to UVMMC. Despite knowing of her objection, UVMMC deliberately scheduled this nurse to assist with an elective abortion while deceptively misleading her to believe the procedure did not involve abortion. Once the deceived nurse entered the procedure room she learned the true nature of the procedure. After she reiterated her objection, UVMMC refused to find a non-objecting nurse to take over, effectively forcing the nurse to continue assisting in the abortion (or abandon the patient) despite her well-known religious objection. This example makes up just part of UVMMC’s ongoing pattern, practice, and policy of discriminating against health care providers who believe that the performance, or the assistance in the performance, of abortions is contrary to their religious beliefs or moral convictions.
In response to the Supreme Court’s Roe v. Wade decision in 1973, Congress nearly unanimously enacted the Church Amendments, named for Senator Frank Church of Idaho. The Church Amendments prohibit grantees of the U.S. Department of Health and Human Services (HHS) from discriminating against health care personnel who “refuse[ ] to perform or assist in the performance of [an] abortion on the grounds that his performance or assistance in the performance of the procedure or abortion would be contrary to his religious beliefs or moral convictions.” 42 U.S.C. § 300a-7(c)(1). HHS has provided such grant funding to UVMMC since 1998, including over 1.6 million dollars in FY2018-FY2020.
The case originated from an investigation by HHS. HHS’s investigation found UVMMC in violation of the Church Amendments, and referred the violation to the U.S. Department of Justice for enforcement after UVMMC refused to voluntarily correct its illegal actions.
Judge sentences St. Louis woman for her role carjacking resulting in death of Gus Gus Fun Bus OwnerRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Jana Stowers to 180 months in prison today. The 22-year-old East St. Louis, Illinois resident pleaded guilty to one count of aiding and abetting carjacking resulting in the death of Michael Arnold. Judge Perry sentenced Curtis Alford, Stowers’ co-defendant, to 20 years in prison last week.
On June 16, 2018, Stowers and Alford rushed up to two victims putting money in a parking meter. The victims were in St. Louis attending the ‘Taste of St. Louis’ event downtown. Alford sprayed the victims with pepper spray as he tried to grab their truck keys. Stowers supplied Alford with the pepper spray. While Alford struggled with both victims, he grabbed one by the hair and neck, pulling her to the sidewalk. Alford then pulled the keys from her belt loop and got in her truck. One of the victims then attempted to stop Alford as he started the engine. He shoved her out of the way and began to pull away from the curb.
Michael Arnold, who witnessed the carjacking, was in the street near the truck and taking a picture of the incident. As Alford pulled away, Arnold tried moving out of the way, but Alford drove over him, pinning Mr. Arnold under the truck. Alford then dragged Mr. Arnold across the street, jumped the curb, hit another victim who had been walking on the sidewalk, struck a fire hydrant and then sped off. Alford picked up Stowers around the corner and continued to speed away. As a group of pedestrians and two police officers gathered near the corner of Seventh Street and Chestnut, Alford sped in their direction, eventually crashing the truck. The officers and pedestrians had to scatter to avoid being hit. Officers immediately arrested Alford and Stowers. Mr. Arnold suffered multiple, severe internal injuries and died days later of these injuries. The other victims were treated at the scene for their injuries.
“Whenever we can find a federal violation, all participants in violent crime will be prosecuted to the fullest extent of the law,” said Jeff Jensen, U.S. Attorney for the Eastern District of Missouri.
The Federal Bureau of Investigation and St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Judge sentences St. Louis man for aggravated identify theftRead the Press Release
ST. LOUIS, MO – United States District Judge Stephen R. Clark sentenced Tyrelle Phillips to 24 months in prison today. The 29-year-old St. Louis, Missouri resident pleaded guilty to one count of aggravated identify theft.
On March 30, 2018, First Community Credit Union alerted one of its cardholders of potentially fraudulent activity on her credit card. Richmond Heights Police investigated and learned the cardholder’s account number had been used to buy electronic equipment valued at $1,275.64 from the Microsoft Store. Through interviews with store personnel and reviewing store surveillance, detectives identified Phillips as the individual who made the fraudulent purchase with a prepaid debit card that had a magnetic strip embedded with the credit union customer’s account number.
In a subsequent investigation, Richmond Heights Police also identified Phillips using a counterfeit card embedded with the account of another person to buy merchandise, food and gift cards from various merchants throughout the St. Louis Metropolitan area. Between March 7, 2019 and March 11, 2019, the actual fraud losses through the other person’s credit card exceeded $1,500.
Because Phillips was serving a three-year term of federal supervision after completing a 39-month term of imprisonment for engaging in similar conduct in 2014, he was also sentenced to an additional ten months of incarceration after Judge Clark revoked his earlier term of supervised release. In total, Phillips was ordered to serve a total of 34 months incarceration.
The Richmond Heights Police Department investigated this case. Assistant United States Attorney Tracy Berry is handling the case.
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Indictment Alleges Two Peoria Businessmen Embezzled Funds, Revenue Related to Pere Marquette Hotel Complex DevelopmentRead the Press Release
PEORIA, Ill. – A federal grand jury has indicted two Peoria area businessmen who led a redevelopment project to renovate the Pere Marquette Hotel and to add a Marriott Courtyard. Gary E. Matthews, 78, and Monte J. Brannan, 67, are charged with using funds provided by investors, the City of Peoria and others, and hotel revenues to enrich themselves and their other business interests from 2008 to 2018.
According to the indictment, Matthews formed GEM Hospitality LLC in 2008 to own and develop the hotel complex in downtown Peoria. GEM was managed by EM Properties, Ltd., another entity that Matthews owned. Brannan became a co-managing partner of GEM in July 2011 when Matthews sold Brannan 50 percent ownership for $1 million.
In 2008, the City of Peoria and Matthews reached a redevelopment agreement for the hotel project to include renovation of the Pere Marquette and the addition of a Pere Marquette Courtyard Marriott hotel. The Pere Marquette closed for renovation in December 2011 and reopened in June 2013. The Pere Marquette Courtyard opened in July 2014.
Funding and loans for the project, estimated at $92 million, were provided by a fund known as Indure, by the International Brotherhood of Electrical Workers and National Electrical Association Diversified Underwritten Real Estate Fund LLC; local banks; the City of Peoria; CORE Construction Services of Illinois; and, private investors. All the lending agreements, including a side letter amendment with the City of Peoria, which loaned $7 million and provided a $29 million grant to fund the project, set forth requirements that Matthews and Brannan were not allowed to take fees and revenues of the hotel development except as explicitly provided.
Marriott International managed the Pere Marquette after it opened in mid-2013 and the Courtyard after its opening in 2014. While Marriott managed the hotels, Matthews and Brannan did not have access to the hotels’ revenues. In 2014, Matthews alleged that Marriott had provided poor management and sought to change management to one of his companies. The City of Peoria rejected Matthews’ proposal, but agreed to execute a side letter amendment to loan documents to allow Matthews’ request to retain First Hospitality Group of Rosemont, Ill., to handle hotel management.
Under the side letter amendment, Matthews and Brannan were required to file monthly certificates of compliance with the various provisions, including that there be no payment of fees directly or indirectly to Matthews and Brannan. The indictment alleges that Matthews and Brannan filed only three compliance certificates which were false, and then stopped complying with the requirement to submit the compliance certificates.
Meanwhile, the indictment alleges that under First Hospitality Group management, Matthews and Brannan directed FHG to transfer monthly payments from the hotel accounts to an account they controlled. In defiance of terms of the loans, Matthews and Brannan allegedly used FHG to fraudulently obtain funds for themselves from the revenues of the hotels. At the time, Matthews and Brannan knew that FHG was unable to pay other financial obligations of the hotels, including payments to Marriott and vendors.
Financial statements provided by FHG listed the payments as monthly rent, garage rent, Marriott rewards expenses, and franchise fees. Matthews and Brannan allegedly provided these statements to others involved in the project’s financing knowing that the statements were misleading and concealed the actual diversion of the funds to Matthews and Brannan.
On or about June 30, 2016, Marriott issued a notice of default to Matthews and Brannan because of past due obligations of $1.4 million. Matthews and Brannan did not pay the past due obligations and allegedly continued to divert funds to themselves. When Marriott shut off the reservation system for the hotels, in January 2017, Matthews and Brannan made a payment to keep the reservation system active.
Following Marriott’s notice of default, Indure issued a notice of default on its delinquent loan and in February 2017, Indure filed a foreclosure action. Following the foreclosure filing, the indictment alleges that Matthews and Brannan and their related businesses named in the foreclosure filing, caused repeated delays in court proceedings, while maintaining access to the hotels’ revenues.
The indictment alleges that even though they defaulted on loans and other obligations, Matthews and Brannan continued to fraudulently transfer hotel revenues, diverting approximately $750,000 to themselves after the notice of foreclosure.
As a result of the scheme, Matthews and Brannan caused FHG to transfer approximately $13.8 million of the hotels’ revenues to the account they controlled and diverted approximately $1.6 million to themselves and their businesses.
Further, the indictment charges Brannan with three counts of concealment of bankruptcy assets after he filed for bankruptcy under Chapter 11 in April 2018. Brannan allegedly concealed a vehicle, $80,000 in cash, and omitted bank accounts, including an account for a startup known as Seduction Boutique, in which he was a shareholder and authorized signer of the account.
The U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigation Division, conducted the investigation. The bankruptcy charge resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10). Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Assistant U.S. Attorney Douglas F. McMeyer represent the government in the prosecution.
If convicted, the statutory penalty for each count of mail fraud (five counts); money laundering conspiracy (one count), and money laundering (nine counts) is up to 20 years in prison; and, money laundering (three counts) is up to 10 years in prison. Brannan faces a maximum statutory penalty for concealment of bankruptcy assets (three counts) of up to five years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Illegal alien brothers imprisoned for smuggling businessRead the Press Release
CORPUS CHRISTI, Texas – The third and final family member convicted in a large-scale alien smuggling operation has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Mexican citizen Ricardo Salazar-Mendoza, 39, pleaded guilty Nov. 12, 2019.
Today U.S. District Judge David S. Morales sentenced to him to 84 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court noted the number of aliens involved in this conspiracy and that Salazar-Mendoza brandished a firearm and involuntarily detained an alien.
Between March 2019 and August 2019, Salazar-Mendoza and his two brothers - Juan Carlos Salazar Mendoza, 38, and Alejandro Salazar-Mendoza, 43 - operated an alien smuggling organization.
Juan Carlos received aliens who had crossed the border illegally, housed them and hired drivers to get them past the checkpoint. The aliens were hidden in dangerous places such as in motorhomes or secret compartments under vehicles.
Ricardo operated at least one stash house for the organization in which aliens were housed while the brothers awaited smuggling fees and made smuggling arrangements to get the aliens through the checkpoint. During the conspiracy, Ricardo brandished a firearm and involuntarily detained at least one alien.
In total, law enforcement discovered at least 64 aliens from various countries at the Sarita Border Patrol Checkpoint. At least one was an unaccompanied minor.
Alejandro and Juan Carlos were previously sentenced to 80 and 108 months, respectively.
They all have been and remain in custody.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation in conjunction with Customs and Border Protection. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Ice Company to Plead Guilty to Longstanding Clean Air Act ViolationsRead the Press Release
PROVIDENCE – According to documents filed in U.S. District Court in Providence, an East Providence ice company is set to plead guilty to violating the Clean Air Act by repeatedly failing to implement a Risk Management Plan (RMP) to be executed in the event of an accidental release of anhydrous ammonia, an extremely hazardous substance.
According to court documents, J.P. Lillis Enterprises, Inc., D/B/A Cape Cod Ice, a cold storage warehouse and ice manufacturing facility that stores up over 10,000 pounds of anhydrous ammonia at its facility located on the banks of the Seekonk River, in an industrial area near a residential area, and in the vicinity of an elementary school, was assessed a civil penalty by the Environmental Protection Agency as far back as 2012 for failing to develop and submit an RMP, and since has been repeatedly found to contain equipment in need of repair to avoid a potential release of anhydrous ammonia.
Subsequent inspections by EPA, OSHA, and the East Providence Fire Department found the existence of corrosion on ammonia-carrying pipes and on the facility’s high- pressure ammonia receiver, the failure of corrosion-preventing insulation on the pipes, and inadequate inspection, testing, and maintenance of the ammonia piping and receiver.
United States Attorney Aaron L. Weisman and Tyler Amon, Special Agent in Charge of the Environmental Protection Agency Criminal Investigation Division Boston Area Office, announced today that Cape Cod Ice has agreed to pay a $90,000 fine; serve a term of three years federal supervised release; and will, within 90 days of sentencing, engage a qualified independent ammonia refrigeration consultant to conduct an audit that (1) evaluates Cape Cod Ice’s compliance with the Clean Air Act and address deficiencies identified by the EPA, OSHA, and East Providence Fire Department and (2) includes a required maintenance inspection program.
According to a Plea Agreement filed in this matter, Cape Cod Ice will submit to the United States Attorney’s Office and to United States Probation within 30 days of the completion of the audit an action plan to address the findings of the audit and a timeline of completion of actions to be taken by the company.
According to court documents, in 2015, Cape Cod Ice repaired the corroded receiver and certified to OSHA that it had corrected the cited violations. Cape Cod Ice provided OSHA a preventative maintenance program contract with an outside consultant as evidence of its corrective actions; that contract was never signed or implemented.
Cape Cod Ice also sent to OSHA a process hazard analysis performed by an outside consultant which contained recommendations to prevent a catastrophic ammonia release; all recommendations were not implemented.
Outside consultants also performed an audit of the RMP Program and a mechanical integrity inspection which contained recommendations; all recommendations were not implemented.
In January of 2017, EPA sent a letter to Cape Code Ice, urging Cape Cod Ice to ensure compliance with the RMP requirements. In April of 2017, EPA inspected the facility and again observed numerous violations of the RMP and PSM regulations, including the existence of corrosion on ammonia-carrying pipes and on the facility’s high-pressure ammonia receiver, and the failure of corrosion-preventing insulation on the pipes. In June of 2017, EPA also issued an Administrative Compliance Order to Cape Cod Ice.
In May of 2017, the East Providence Fire Department inspected the facility and issued a Notice of Violation finding, among other things, that ammonia piping was rusted and showed signs of excessive corrosion, with areas that had moldy insulation or no insulation; and that the ammonia receiver was corroded. The Fire Department ordered the facility to come into compliance. Cape Cod Ice has submitted reports to the East Providence Fire Department and to EPA indicating that it has taken steps to bring the facility into compliance.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Dianne Chabot, EPA Regional Criminal Enforcement Counsel.
The matter was investigated by the EPA’s Criminal Investigation Division.
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Havre man sentenced to prison for trafficking meth in Great Falls, Havre areasRead the Press Release
GREAT FALLS — A Havre man who admitted dealing methamphetamine for two years was sentenced today to 66 months in prison and five years of supervised release, Acting U.S. Attorney Leif Johnson said.
Terry Lee Wells, Jr., 34, pleaded guilty on Aug. 17 to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court documents that in December 2019, law enforcement had been receiving information about Wells’ involvement in drugs and crime around Great Falls, the Rocky Boy’s Indian Reservation and Havre and began searching for him.
Law enforcement in Havre began to review phone calls from the Hill County Jail and identified numerous inmates who had been calling Wells. Detectives learned through this information that Wells had made a quick trip from Great Falls to Seattle and back in early December.
On Dec. 19, 2019, detectives found Wells driving north from Great Falls to Havre and attempted to stop him. Wells fled and crashed his car. Officers took Wells to the Hill County Jail, where officers found a small baggie of meth.
During an interview with agents on Jan. 6, 2020, Wells admitted he had begun dealing meth in 2017 and continued dealing meth through out 2019. He also admitted he had driven to Seattle on Dec. 5, 2019 to buy meth for redistribution in Montana.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the FBI, Great Falls Police Department and the Tri-Agency Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Grafton, Wisconsin, Dentist Indicted for Health Care Fraud Scheme That Involved Purposefully Damaging Patients’ TeethRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 15, 2020, a federal grand jury indicted Scott Charmoli (age: 60) of Grafton, Wisconsin, for pursuing a health care fraud scheme that involved purposefully damaging patients’ teeth so that he could bill insurance companies for crown procedures.
According to the indictment, beginning on or about January 1, 2016, Charmoli engaged in a scheme whereby Charmoli falsely advised patients that they needed crowns, purposefully damaged the patients’ teeth during crown procedures, and subsequently submitted x-rays and photographs of the damaged teeth to insurance companies to obtain insurance coverage for the crowns. The indictment asserts that by submitting x-rays and photographs of teeth he had purposefully altered, Charmoli made materially false and fraudulent statements to insurance companies in connection with the delivery of, and payment for, health care benefits. The indictment alleges that Charmoli performed over $2,000,000 worth of crown procedures just between January 1, 2018, and August 7, 2019.
The indictment charges Charmoli with multiple counts of Health Care Fraud and False Statements Relating to Health Care Matters, in violation of 18 U.S.C. § 1347 and 18 U.S.C. § 1035. If convicted, Charmoli faces a maximum sentence of 20 years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 Special Assessment.
“The Justice Department focuses on prosecuting health care fraud not only to protect health care funds but also to protect patients who entrust their well being to providers,” said United States Attorney Krueger.
The Federal Bureau of Investigation investigated the case, which Assistant United States Attorneys Julie F. Stewart and Michael A. Carter will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Former Venezuelan National Treasurer and her Spouse Charged in Connection with International Bribery and Money Laundering SchemeRead the Press Release
Miami, Fl. -- A former Venezuelan National Treasurer and her spouse were charged in a superseding indictment for their alleged participation in a previously indicted billion-dollar currency exchange and money laundering scheme. An alleged co-conspirator was previously charged in the original indictment.
Claudia Patricia Diaz Guillen (Diaz), 47, and her spouse, Adrian Jose Velasquez Figueroa (Velasquez), 41, Venezuelan citizens who reside in Madrid, Spain, were charged in a superseding indictment filed in the Southern District of Florida with one count of conspiracy to commit money laundering and two counts of money laundering.
Raul Gorrin Belisario (Gorrin), 52, a Venezuelan billionaire businessman who owns Globovision news network, was charged by indictment in August 2018 and remains charged in the superseding indictment as a co-conspirator in the same conspiracy and money laundering counts. He is currently a fugitive residing in Venezuela.
The superseding indictment alleges that Gorrin paid millions of dollars in bribes to two former Venezuelan national treasurers, Alejandro Andrade Cedeno (Andrade) and Diaz, and to Velasquez, for the benefit of Diaz, to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government. Gorrin wired money to and for the benefit of Andrade and Diaz, including money for private jets, yachts, homes, champion horses, high-end watches and a fashion line. To conceal the bribe payments, Gorrin made payments through multiple shell companies.
Andrade, 56, a Venezuelan citizen, was previously sentenced to 10 years in prison in November 2017 for his role in the conspiracy to commit money laundering. As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office, Special Agent in Charge Peter C. Fitzhugh and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and FDIC D.C. investigated this case. Assistant U.S. Attorney Kurt Lunkenheimer, of the Southern District of Florida, and Assistant Chief Vanessa Sisti and Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff and Assistant U.S. Attorney Nalina Sombuntham, of the Southern District of Florida, are handling asset forfeiture. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 18-cr-80160.
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Former Venezuelan National Treasurer and Her Spouse Charged in Connection with International Bribery and Money Laundering SchemeRead the Press Release
A former Venezuelan National Treasurer and her spouse were charged in a superseding indictment filed Tuesday for their alleged participation in a previously indicted billion-dollar currency exchange and money laundering scheme. An alleged co-conspirator was previously charged in the original indictment.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Acting Special Agent in Charge David Magdvcz of HSI Boston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office, and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) made the announcement.
Claudia Patricia Diaz Guillen (Diaz), 47, and her spouse, Adrian Jose Velasquez Figueroa (Velasquez), 41, Venezuelan citizens who reside in Madrid, Spain, were charged in a superseding indictment filed in the Southern District of Florida with one count of conspiracy to commit money laundering and two counts of money laundering.
Raul Gorrin Belisario (Gorrin), 52, a Venezuelan billionaire businessman who owns Globovision news network, was charged by indictment in August 2018 and remains charged in the superseding indictment as a co-conspirator in the same money laundering conspiracy and money laundering counts. He is currently a fugitive residing in Venezuela.
The superseding indictment alleges that Gorrin paid millions of dollars in bribes to two former Venezuelan national treasurers, Alejandro Andrade Cedeno (Andrade) and Diaz, and to Velasquez, for the benefit of Diaz, to corruptly secure the rights to conduct foreign currency exchange transactions for the Venezuelan government at favorable rates. Gorrin wired money to and for the benefit of Andrade and Diaz, including money for private jets, yachts, homes, champion horses, high-end watches, and a fashion line.
Andrade, 56, a Venezuelan citizen, was previously sentenced to 10 years in prison in November 2018 for his role in the conspiracy to commit money laundering. As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC OIG are investigating this case. This case is being prosecuted by Assistant Chief Vanessa Sisti and Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Kurt Lunkenheimer and Nalina Sombuntham of the Southern District of Florida. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
Former Leader of New Bedford Latin Kings Chapter Sentenced for Narcotics Conspiracy ChargesRead the Press Release
BOSTON – A former leader of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today for drug conspiracy charges.
Xavier Valentin-Soto, a/k/a “King X,” 33, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 65 months in prison and three years of supervised release after pleading guilty in September 2020 to conspiracy to distribute cocaine. Valentin-Soto was charged in December 2019, while serving a related sentence in state prison. Prior to his incarceration on the state charges, Valentin-Soto was the Cacique (or second-in-command) of the New Bedford Chapter of the Latin Kings.
Valentin-Soto admitted that he conspired with other Latin Kings members and leaders to distribute cocaine and cocaine base in and around New Bedford. As Cacique, Valentin-Soto held a leadership role in the drug distribution conspiracy that the Latin Kings maintained in and around multiple trap houses throughout the north side of New Bedford.
Valentin-Soto was arrested in July 2017, when local police executed a search warrant at a Latin Kings trap house in north New Bedford and located cocaine and materials for the packaging and distribution of controlled substances. Valentin-Soto was charged in state court, but released after posting bail. While on pretrial release for the state charges, Valentin-Soto sold a total of 160 grams of cocaine powder to a cooperating witness over the course of three recorded purchases in early 2019.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Xavier Valentin-Soto is the ninth defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Employee of Colorado Non-profit Heath-care System Sentenced to More Than Seven Years in Federal Prison for Money LaunderingRead the Press Release
DENVER – U.S. Attorney Jason Dunn announced that David Paul Rietz, age 60, of Lakewood, Colorado was sentenced to serve 92 months in federal prison followed by 3 years of supervised release for conspiracy to commit money laundering. Rietz also was ordered to pay restitution of $4,197,775.83. IRS Criminal Investigation and the Federal Bureau of Investigation joined in this announcement.
According to court records, Rietz defrauded his employer, a nonprofit health-care system based in Colorado, of more than 16 million dollars. Rietz organized a scheme whereby inflated quotes for computer services were submitted through another company owned by a co-conspirator. Rietz approved these quotes, whereby millions in inflated payments were approved before the fraud was discovered. Proceeds went back Rietz and his co-conspirators through a third company, which returned profits to Rietz in the form of payments on fake contracts for goods and services, gold coins, and cashier checks
“Our office is committed to uncovering and prosecuting complex fraud schemes,” said U.S. Attorney Jason Dunn. “Through great partnerships with IRS-Criminal Investigation and the FBI, our prosecutors are unwinding tangled webs of fraud and bringing justice for Coloradan victims.”
“Honest and law-abiding citizens are fed up with those who use deceit and fraud to line their pockets with other people’s money," IRS – Criminal Investigation Special Agent in Charge Andy Tsui said. "The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel. Individuals who engage in this type of financial fraud should know they will be held accountable."
"FBI Denver works closely with our law enforcement partners to combat money laundering and white collar crimes in our community,” said FBI Denver Special Agent in Charge Michael Schneider. “The sentencing of Mr. Rietz should serve as a deterrent to those who seek to prey on innocent victims that their criminal acts will not be tolerated and they will be brought to justice. Special thanks to the IRS and U.S. Attorney’s Office for their dedication and hard work on this investigation.”
Rietz was sentenced on December 14, 2020, by United States District Court Judge R. Brooke Jackson. The sentence included enhancements for being the leader and organizer of the offense and for obstruction of justice for lying under oath in civil proceedings related to the underlying fraud. Rietz’s co-conspirators were previously sentenced. Richard Scott Cartwright was sentenced on August 6, 2019, by Judge Jackson to serve 60 months in prison and also ordered to pay restitution of $4,197,775.83, which is the same amount as Rietz. Lyle Perry, who participated in the money laundering but not the underlying fraud, was sentenced to 36 months’ imprisonment by Chief Judge Philip A. Brimmer, and ordered to pay approximately $2.6 million in restitution.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Anna Edgar.
CASE NUMBERS: 18-cr-00479 & 18-cr-00480
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Florida Escort Pleads Guilty to Underreporting IncomeRead the Press Release
WASHINGTON – A Fort Lauderdale, Florida, escort pleaded guilty today to filing a false corporate tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the Southern District of Florida, Ariana Fajardo Orshan.
According to court documents, Jami Kopacz worked as a paid escort for clients across the United States. Kopacz received payments directly from his escort clients, and also from a private business for whom he worked as an independent contractor. From 2015 to 2018, Kopacz used his corporation, JK Training, LLC, to receive income, and then filed false corporate tax returns (Forms 1120S) that substantially underreported the company’s gross receipts and total income. The understatement on JK Training’s corporate tax return was consequently passed through to Kopacz’s individual tax returns, which were also false as they underreported his total income. Kopacz caused a total tax loss of $278,325.
Magistrate Judge Patrick M. Hunt accepted Kopacz’s plea today. Sentencing is schedule before U.S. District Judge Roy K. Altman on March 5, 2021. Kopacz faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, monetary penalties, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Christopher Browne and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Court Orders North Carolina Pharmacy, Pharmacy Owner, and Pharmacist-in-Charge to Pay More Than $1 Million and Stop Dispensing OpioidsRead the Press Release
A federal court in the Eastern District of North Carolina entered a consent judgment and injunction requiring a North Carolina pharmacy, Seashore Drugs Inc., its owner, John D. Waggett, and its pharmacist-in-charge, Billy W. King II, to pay $1,050,000.00 in civil penalties and to cease dispensing opioids or other controlled substances, the Department of Justice announced.
The consent order resolves a complaint filed by the United States alleging that Seashore Drugs, Waggett, and King repeatedly filled prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act. The United States alleged that, for years, defendants ignored well-known “red flags” of drug diversion and drug-seeking behavior when filling prescriptions for controlled substances. These prescriptions often involved well-known, highly addictive, and highly abused painkillers such as oxycodone, hydrocodone, and methadone, along with other “potentiator” drugs — drugs that heighten the euphoric effects of opioids, like carisoprodol (i.e., Soma) and alprazolam (i.e., Xanax).
“The Department of Justice continues to use all tools at its disposal to combat the opioid crisis,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Reports indicate that COVID-19 has exacerbated many of the opioid crisis’s underlying causes. As a result, the Civil Division, DEA, and other law enforcement partners have redoubled efforts to ensure that pharmacies that fail to uphold their obligation to dispense controlled substances lawfully are held accountable.”
“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina. “As the last line of defense between these dangerously addictive substances and our communities, pharmacists and pharmacies play a critical role in stemming the tide of the opioid epidemic. Seashore, Waggett, and King ignored that responsibility and, instead, made matters worse. Today’s order demonstrates our office’s continued, unwavering commitment to hold responsible all who had a role to play in this crisis — from distributors, to prescribers, to the pharmacies who ultimately put the pills in patients’ hands.”
“These pharmacists abandoned their code of ethics,” said Robert J. Murphy, Special Agent in Charge of the DEA. “If diversion of controlled substances is suspected, pharmacists must investigate and resolve any red flags before filling a prescription. These steps are necessary to comply with the law and to protect patient health. We will not hesitate to use all federal resources necessary to ensure that members of the health care industry follow the law.”
As alleged in the complaint, which included several patient examples, many prescriptions raised multiple red flags, but Seashore Drugs, Waggett, and King failed to take the required steps to resolve those red flags and ensure the prescriptions’ legitimacy before filling them. The red flags allegedly ignored by Seashore Drugs, Waggett, and King were numerous and included, among others:
- Combinations of controlled substances that were highly unlikely to serve a legitimate medical purpose and/or were known “cocktails” favored by drug abusers, including numerous “cocktails” written by a physician whose prescribing privileges ultimately were suspended by the North Carolina Medical Board for improper opioid prescribing;
- Extremely high doses of opioids dispensed for years on end, including high-dose opioid prescriptions written by a prescriber located in another state hundreds of miles away and written for members of the same family; and
- Repeated early fills of prescriptions allowing individuals, over time, to receive many extra doses of opioids and other controlled substances.
As set forth in the complaint, this conduct led Seashore to develop a reputation in the local pharmacy community as a place that filled prescriptions other pharmacies refused. And within the pharmacy, it is alleged that King often filled prescriptions for customers his own pharmacists, no longer on shift, previously refused to fill. Seashore staff even reported to King that individuals were exchanging recently dispensed drugs on the bench outside the pharmacy, but King took no action. Multiple customers who filled opioid prescriptions at Seashore died from prescription-drug overdoses within days after Seashore dispensed their pills.
The defendants have not admitted the allegations in the complaint, but the parties agreed to resolve the case without further litigation. The court adopted the parties’ agreement and entered a consent order that, among other things:
- Permanently prohibits Waggett from dispensing opioids or other controlled substances;
- Prohibits King from dispensing Schedule II controlled substances, including most opioids, for 180 days and then requires King to submit to further DEA monitoring for 3 years; and
- Permanently prohibits Waggett and King from serving as a manager, owner, operator, or pharmacist-in-charge of any entity, including a pharmacy, that administers, dispenses, or distributes controlled substances.
Trial Attorney James W. Harlow of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys C. Michael Anderson and John E. Harris of the U.S. Attorney’s Office for the Eastern District of North Carolina represented the United States. The Greensboro Resident Office of the Drug Enforcement Administration investigated the case. Additional investigatory assistance was provided by the U.S. Department of Health and Human Services’ Office of Inspector General and the North Carolina Board of Pharmacy.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Enemy Swim Man Sentenced to 30 Months in Federal Prison for Transfer of Obscene Material to a MinorRead the Press Release
United States Attorney Ron Parsons announced that an Enemy Swim, South Dakota, man was sentenced in federal court on December 14, 2020, for transferring obscene material to a minor. The sentence was imposed by United States District Judge Karen E. Schreier.
Francis Scott Cadotte, age 40, was sentenced to 30 months of imprisonment, to be followed by 3 years of supervised release. Cadotte was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, between May 2018 and March 2019, Cadotte knowingly used a social media platform on a computer connected to the internet and a mobile phone to transfer and attempt to transfer obscene matter to another individual who was 14 years old. At the time of the transfer, Cadotte knew the nature of the content of the material, specifically discussing sexual acts that he wanted to perform on the minor, knowing that the minor was 14 years old.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Cadotte was remanded to custody to serve his sentence.
Eleven indicted in wide-ranging conspiracy trafficking heroin, cocaine, and methamphetamine in multi-state areaRead the Press Release
Seattle – Eleven people have been indicted by a grand jury sitting in the Western District of Washington for a multi-state drug trafficking conspiracy, announced U.S. Attorney Brian T. Moran. One of those indicted is a rap artist from Snohomish County, Washington, who discusses his drug trafficking activity in a documentary video. All of those in custody today will appear in U.S. District Court in Western Washington.
“This drug trafficking group continued to bring large loads of drugs up to Western Washington even after law enforcement seized nearly 50 pounds of methamphetamine from one carload,” said U.S. Attorney Moran. “This investigation uncovered threats of violence and retaliation which made it critical that law enforcement move now on this drug ring.”
“Overdose deaths attributed to fentanyl and methamphetamine continue to rise at an alarming rate in the Puget Sound region,” stated DEA Special Agent in Charge Frank Tarentino. “It is critically essential that we continue to focus our efforts against these violent criminal organizations most responsible for injecting these dangerous drugs into our communities.”
According to the indictment, the conspirators distributed large amounts of methamphetamine, heroin, and cocaine, smuggling the drugs into the U.S. from Mexico and then transporting them up the west coast for distribution in Pierce, King, and Snohomish Counties. Two of the defendants were also charged with conspiracy to commit money laundering for their activities with the drug proceeds.
Those indicted include:
CESAR VALDEZ-SANUDO, 35, of Arlington, Washington
OMAR VAZQUEZ-LIMON, 36, of Kent, Washington
AARON ALARCON-CASTANEDA (aka SOBRINO), 35, of Chino, California
JOSE LUIS ARREDONDO-VALDEZ (aka PRIMO), 25, of Lake Stevens, Washington
YVETTE Y. OLGUIN, 37, of Everett, Washington
FAUSTO PAZ (aka GORDITO), 38, of Ontario, California
GABRIEL VAZQUEZ-RUIZ, 34, of Bothell, Washington.
STEVEN R. DELVECCHIO, 63, of Snohomish, Washington
TRACY HAWKINS, 53, of Gold Bar, Washington
WAYNE A. J. FRISBY (aka MAC WAYNE), 36, of Snohomish County, Washington
KEITH A. SILVERSON, 36 of Tacoma, Washington
Since the wiretap investigation began, law enforcement has seized large amounts of drugs including a 49-pound load of methamphetamine that was coming to Washington State from California. Today alone law enforcement seized 18 pounds of heroin, 25 pounds of methamphetamine, as many as 15,000 fentanyl pills, more than $150,000 in cash drug proceeds and 23 firearms.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was conducted by the U.S. Drug Enforcement Administration (DEA) Tacoma Residence Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Tacoma Police Department, Snohomish Regional Drug Task Force (SRDTF), the Skagit County Sheriff's Office, the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Internal Revenue Service (IRS). In addition these law enforcement agencies assisted with the arrests and search warrants executed today: DEA Seattle Special Response Team, Seattle Field Division Office Groups, DEA Bellingham Resident Office, DEA Yakima Resident Office, DEA Spokane Division Office, DEA Riverside Resident Office, Riverside Sheriff's Department, Valley Narcotics Enforcement Team, Pierce County SWAT, Joint Narcotics Enforcement Team, Bremerton Special Operations Group, Washington State Patrol SWAT, Everett Police Department, Everett Police Department Violet Offender Task Force, Internal Revenue Service, Snohomish County SWAT and TNET, which is comprised of Lakewood, Puyallup, Auburn, and Kent Police Departments, the Pierce County Sheriff's Office, and the Washington State Department of Corrections. The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA) and the DEA Special Operations Division.
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and Marci Ellsworth.
valdez-sanudo_et_al_indictment.pdfEight East Bay Residents Charged with Crimes Related to Drug Distribution SchemeRead the Press Release
SAN FRANCISCO – A federal grand jury indicted seven East Bay residents, charging them with crimes related to a scheme to supply drug users and dealers in San Francisco’s Tenderloin District with narcotics, including fentanyl and heroin, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Homeland Security Investigations (HSI) NorCal Special Agent in Charge Tatum King, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. In a press conference earlier today, U.S. Attorney Anderson announced the indictment and announced that charges were filed in a related criminal complaint against an eighth defendant.
The seven indicted defendants are Emilson Jonathan Cruz Mayorquin, aka “Playboy” (Cruz), 23; Leydis Yaneth Cruz (Leydis), 42; Ivan Mauro Mayorquin (Mayorquin), 35; Pamela Carrero aka “Nicole,” aka “Kendra,” 20; Ana Maldonado, 22; Adonis Torres, 33; and Mayer Benegas-Medina, 27. According to the indictment, from at least July to December 2020, the defendants conspired to distribute fentanyl. Court documents describe how defendants were members of a drug trafficking organization (DTO) being run primarily by Cruz and his mother, Leydis. Cruz and Leydis allegedly worked with other associates including Cruz’s significant other (Maldonado); Cruz’s sister (Carrero) and her significant other (Torres); and another family member (Mayorquin) to engage in street level drug sales and to supply narcotics for resale to multiple local narcotics re-distributors. The defendants allegedly lived in the East Bay, but routinely traveled to the Tenderloin to sell drugs, primarily fentanyl, on the streets of San Francisco.
“Parents and children who are sheltering in place against the Covid virus find it impossible to leave their own homes because of open-air drug use and drug trafficking by people who have come to the Tenderloin from outside the neighborhood,” said U.S. Attorney Anderson. “No neighborhood should be designated a law-free zone where dangerous drugs can be bought and sold with impunity.”
“The Federal Initiative in the Tenderloin began more than a year ago with a focus on eradicating the open air drug markets operating in the area with impunity. This case is another example that our sustained efforts are making a difference and we do not intend to take our foot off the gas,” stated DEA Special Agent in Charge Daniel C. Comeaux. “The people who live and work in this community deserve a neighborhood in which the rule of law prevails.”
“Fentanyl and heroin are a scourge on our nation, poisoning and killing our family and friends. The trail of destruction in human lives and community blight inevitably leads to the doorsteps of the criminals illegally trafficking these narcotics. Anyone involved in destroying lives just to make an illicit profit by selling drugs in Northern California will not remain free,” said Special Agent in Charge King. “Homeland Security Investigations Special Agents worked closely with our partners at the DEA, FBI, U.S. Customs and Border Protection, San Francisco Police Department, and San Ramon Police Department to disrupt and take down this criminal enterprise. Through U.S. Attorney Anderson’s Federal Initiative for the Tenderloin, HSI agents will continue leading and supporting this and other federal criminal investigations in the region.”
In court documents, the government has alleged that multiple members of the DTO sold a variety of drugs—including powder fentanyl, counterfeit pharmaceutical pills containing fentanyl, and heroin—to a DEA agent acting in an undercover capacity. The documents describe how members of the DTO often referred to the diverse types of fentanyl being sold by their various colors, such as blue, pink, and yellow. Further, the government has alleged that members of the DTO communicated by cell phone to discuss all aspects of running the drug business, including the availability of the various types of fentanyl, the public demand for different varieties of drugs, and the price at which drugs could be sold. They even discussed how they could grow their drug business (e.g., “the gram customers recommended other good customers who got more.”) The members of the organization also discussed the presence of police in the Tenderloin, the amounts of each type of fentanyl they had available for sale, and, on at least one occasion, whether another member of the organization could travel to San Francisco to bring a particular variety of fentanyl that another member forgot on his commute from the East Bay.
Papers filed in the case also describe the dangers of fentanyl in stark terms. Fentanyl is about 50 times stronger than heroin and about 100 times stronger than morphine. Further, according to the Centers of Disease Control and Prevention, two out of three of the 46,802 opioid overdose deaths in 2018 involved synthetic opioids such as fentanyl. In addition, the San Francisco Office of the Medical Examiner published data indicating that approximately 300 people in city of San Francisco died between January and August 2020 due to accidental overdoses from fentanyl. According to the DEA, two milligrams of fentanyl can be a fatal dose. In this case, the DTO allegedly sold approximately $45,000 worth of drugs to an undercover agent, including over 200 grams of powder fentanyl.
Court documents describe how federal investigators used a variety of tools including physical surveillance, undercover purchases, and interception of communications on cell phones used by Cruz, Leydis, and Carrero, to further the investigation. In one example of an October 2020 cell phone exchange between Mayorquin and Cruz, Mayorquin reported that another individual wanted to work for Cruz as a street-level dealer. Cruz responded that he could keep the person busy. During the same call, Cruz asked Mayorquin to lend him (Cruz) an ounce of yellow fentanyl for resale.
Court documents also describe how Mayer Benegas-Medina was arrested as part of the law enforcement operation that led to the indictment. Benegas was arrested in the Oakland residence where Ivan Mauro Mayorquin also was arrested. The indictment alleges Benegas used a cellular telephone to facilitate drug transactions.
In addition to the seven defendants in the indictment, Gustabo Alfonso Ramos, 22, was arrested in Oakland and charged in connection with a drug sale that occurred near the corner of Franklin Street and Golden Gate Avenue in San Francisco. According to the complaint, on October 8, 2020, Ramos distributed approximately four ounces of fentanyl in exchange for $4,000.
In sum, the defendants are charged with the crimes and face maximum penalties as indicted in the chart below:
Charges
Statute
Defendant(s)
Maximum Penalties
(per count)
Conspiracy to Distribute and Possess with Intent to Distribute Fentanyl
21 U.S.C.
§§ 846, 841(a)(1) and (b)(1)(C)
All defendants
except Gustabo Alfonso Ramos
20 years in prison and a $1,000,000 fine
Distribution of Fentanyl
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Pamela Carrero (5 counts)
Leydis Yaneth Cruz
20 years in prison and a $1,000,000 fine
Distribution of 40 Grams or More of Fentanyl
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
Pamela Carrero
Leydis Yaneth Cruz
40 years in prison (maximum), a minimum of 5 years in prison, and a $5,000,000 fine
Distribution of 100 Grams or More of Heroin
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
Emilson Jonathan Cruz Mayorquin
40 years in prison (maximum), a minimum of 5 years in prison, and a $5,000,000 fine
Illegal Use of a Communication Facility
21 U.S.C. § 843(b)
Mayer Benegas-Medina
4 years in prison and a
$250,000 fine
Distribution of Fentanyl
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C)
Gustabo Ramos
20 years in prison and a $1,000,000 fine
An indictment and a criminal complaint merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. The court may order additional terms of supervised release and restitution, if appropriate; 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 the imposition of a sentence, 18 U.S.C. § 3553.
The defendants are scheduled for court appearances as follows:
Defendant
Next Court Date
Emilson Cruz Mayorquin
December 21, 2020, at 10:30 a.m.
Leydis Yaneth Cruz
December 18, 2020, at 10:30 a.m.
Pamela Carrero
December 18, 2020, at 10:30 a.m.
Ivan Mauro Cruz Mayorquin
December 21, 2020, at 10:30 a.m.
Ana Maldonado
December 22, 2020, at 10:30 a.m.
Adonis Torres
December 17, 2020, at 10:30 a.m.
Mayer Benegas-Medina
December 17, 2020, at 10:30 a.m.
Gustabo Ramos
December 22, 2020 at 10:30 a.m.
The case is being prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF) of the United States Attorney’s Office for the Northern District of California. The investigation of this case was conducted by the DEA, HSI, the FBI, U.S. Customs and Border Patrol, the San Francisco Police Department, and the San Ramon Police Department.
This investigation and prosecution is part of OCDETF, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Drug Dealer Sentenced for Role in Fatal Fentanyl OverdoseRead the Press Release
ALEXANDRIA, Va. – A Clifton man was sentenced today to 28 months in prison for brokering a drug deal that resulted in a fatal overdose on fentanyl, a dangerous and potent synthetic opioid.
According to court documents, Tyler Lee Huston, 28, was a distributor of heroin and fentanyl, and had at least six customers in Northern Virginia. He bought drugs, both for redistribution and for personal use, from Peter Romm, a drug dealer in Reston. Huston profited by redistributing drugs from Romm at a markup. Huston also received free heroin or fentanyl from Romm for introducing customers to Romm and brokering drug transactions.
One such customer was N.G. On the night of Oct. 7, 2019, N.G. picked up Huston and drove to Romm’s residence, where Huston bought fentanyl from Romm to give to N.G. and to use himself. Later that night, N.G. consumed the fentanyl and fatally overdosed. The cause of N.G.’s death was ruled to be acute fentanyl poisoning.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Katherine E. Rumbaugh and Special Assistant U.S. Attorney Karolina Klyuchnikova prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-95.
Dominican National Sentenced for Drug TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for heroin trafficking.
Alexander Martinez-Peguero, 38, who previously resided in Lawrence, was sentenced by U.S. District Court Judge Allison D. Burroughs to 30 months in prison and two years of supervised release. In January 2020, he pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin. In January 2019, Alexander was charged along with his brother, Angel Martinez-Peguero, 28, who pleaded guilty and is scheduled to be sentenced on Jan. 14, 2021.
On Dec. 20, 2018, investigators seized nearly one kilogram of heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest. During a search of the Martinez-Peguero brother’s residence agents seized over $15,000 cash and $17,000 worth of jewelry.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Admits to Scheme to Defraud Individuals Seeking CitizenshipRead the Press Release
PROVIDENCE – A Central Falls resident, who immigrated to the United States from the Dominican Republic, has pleaded guilty in U.S. District Court in Providence to charges he defrauded people who had recently immigrated from the Dominican Republic by pocketing fees he told them that they had to pay when submitting their naturalization applications. He knew that their fees were waived but lied to them to take their money.
Bienvenido “Alex” Peralta Martinez, 30, admitted that he falsely told people who sought his assistance in the preparation and submission of naturalization applications that he was required to submit a fee along with the application when, in fact, he typed and signed his victims’ names on a form requesting that the fees be waived.
Peralta Martinez admitted that he demanded that payment for the fee be made in the form of money orders. The victims paid Martinez for the preparation of their naturalization applications, and then Martinez stole money from them by pocketing the proceeds of those money orders.
Appearing before U.S. District Court William E. Smith, Peralta Martinez pleaded guilty to three counts of mail fraud and three counts of aggravated identity theft, announced United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge David Magdycz.
Peralta Martinez is scheduled to be sentenced on March 12, 2021.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by Homeland Security Investigations.
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Coffee County Man Sentenced to 63 Months for Possessing an Explosive DeviceRead the Press Release
Montgomery, Alabama – On Tuesday, December 15, 2020, Mitchell Byron Doster, a 44-year-old resident of Jack, Alabama, was sentenced to 63 months in prison for possession of an explosive device, announced United States Attorney Louis V. Franklin, Sr. In addition to his prison sentence, Doster was ordered to serve three years of supervised release. There is no parole in the federal system.
This case began in early 2019 when detectives from the Dale County and Barbour County Sheriff’s Offices were investigating a homicide. Investigators developed Doster as a possible suspect in the crime and eventually charged him with murder. On March 18, 2019, based on information obtained during the investigation, deputies retrieved a backpack and a duffel bag from a residence that they believed contained evidence in their murder case. When investigators searched the duffel bag, they discovered an improvised explosive device built from a modified training grenade that had been wrapped with metal shrapnel secured in place with tape. Local investigators requested assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to analyze the device. The ATF lab discovered a fingerprint on the tape used to make the bomb belonging to Bobby Wayne Williams, who was an acquaintance of Doster.
Both men were charged with possessing the explosive device and later pleaded guilty. Williams, who was also charged with being a felon in possession of a handgun from a previous encounter, was sentenced in May of this year to 63 months in prison. A final resolution of Doster’s state charges are pending.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Barbour County Sheriff’s Office, and the Dale County Sheriff’s Office, with assistance from the Montgomery County Sheriff’s Office. Assistant United States Attorney Russell Duraski prosecuted the case.
Chicago Man Sentenced to More Than Four Years in Federal Prison for Illegally Possessing Loaded Gun on Southwest SideRead the Press Release
CHICAGO — A Chicago man has been sentenced to more than four years in federal prison for illegally possessing a loaded semi-automatic handgun in the city’s Chicago Lawn neighborhood.
LASHON NORFLEET, 43, illegally possessed the firearm in the 7100 block of South Albany Avenue on the evening of March 20, 2018. Chicago Police officers pulled over Norfleet’s vehicle because it had inoperable brake lights. Norfleet was unable to provide a valid driver’s license, and during further questioning the officers discovered the loaded gun in his waistband.
Norfleet had previously been convicted of multiple felonies, including two firearm-related offenses, and was not legally allowed to possess the gun.
Norfleet pleaded guilty last year to the federal charge of illegal possession of a firearm. U.S. District Judge Manish S. Shah on Tuesday imposed a 54-month prison sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance. The government was represented by Assistant U.S. Attorney Kalia Coleman.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Charlotte Man Is Charged for COVID-19 Relief Loan FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte returned a criminal indictment today charging Bryon Jones, 55, of Charlotte, with submitting a fraudulent loan application for COVID-19 economic assistance that resulted in the disbursement of $142,900 in federal emergency relief funds.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, joins U.S. Attorney Murray in making today’s announcement.
“At a time our nation is grappling with the effects of the coronavirus pandemic and businesses are struggling to cope with the impact of COVID, swindlers are seizing the opportunity to pilfer federal economic relief programs to line their own pockets,” said U.S. Attorney Murray. “My office is working hard to ferret out criminals who try to exploit the pandemic and steal funds intended for the economic recovery of businesses and communities across the Western District.”
“The United States Postal Inspection Service is committed to combatting fraud and the illegal use of our nation’s mail system,” said Inspector in Charge Coke. “During this tragic pandemic, our nation has shown great resolve and resiliency, evidenced by the majority of its great citizens. Unfortunately, we have also seen those that look to take advantage of these situations by fraudulently obtaining funds meant to help keep many of the small businesses in our local communities afloat. The United States Postal Inspection Service will use every resource available to bring justice to those that would take advantage of this pandemic for personal gain.”
According to allegations contained in the indictment, beginning in April 2020, Jones engaged in a scheme to fraudulently obtain disaster-related loan benefits in the form of an Economic Injury Disaster Loan (EIDL) sponsored by the United States Small Business Administration (SBA). This SBA program, expanded under the CARES Act, is designed to provide support for small businesses to remedy economic harm caused by the COVID-19 outbreak.
The indictment alleges that on or about April 16, 2020, Jones filed articles of incorporation in Delaware for Ramses Air Freight & Transport Inc. (“Ramses”), and listed his Charlotte home address as the business’s principal office. The indictment further alleges that Jones, who at the time was on federal supervised release for a previous felony conviction, submitted a loan application that contained false statements and misrepresentations regarding the company’s revenues, costs, and employees and his prior criminal record. The indictment also alleges that, as a result of the fraudulent application, Jones obtained $142,900 in proceeds in June and July 2020, which he used for personal and other unauthorized purposes.
A federal arrest warrant for Jones has been issued. He is charged with one count of wire fraud in relation to a disaster benefit, which carries a maximum prison term of 30 years and a $1,000,000 fine, one count of false statements to the SBA, which carries a maximum prison term of 30 years and a $1,000,000 fine, and one count of engaging in monetary transactions in criminally derived property, which carries a maximum prison term of 10 years.
The charges in the indictments are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the investigating efforts of the U.S. Postal Inspection Service.
Assistant United States Attorney Graham Billings, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Department of Justice and U.S. Attorney’s Offices across the country remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
California Woman Is 63rd Defendant Charged in Nationwide Telemarketing SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging CAROL ANN OLBERG, 46, with three counts wire fraud and violating the Senior Citizens Against Marketing Scams Act of 1994 (the “SCAMS Act”). OLBERG is the 63rd defendant charged to date as part of a nationwide telemarketing scheme that targeted elderly and vulnerable victims. OLBERG will make her initial appearance in U.S. District Court at a later date.
According to allegations in the indictments and documents filed with the court, from 2013 through 2020, OLBERG owned and operated Sun Coast Readers LLC, a California-based company involved in fraudulent magazine sales. OLBERG ran Sun Coast Readers from her home in Winchester, California. As part of the fraud scheme, OLBERG obtained lists of consumers who had active and ongoing magazine subscriptions through other companies. OLBERG knew that many of the consumers on these lists were elderly or otherwise susceptible to fraudulent and deceptive sales tactics. OLBERG used the information on these lists to fraudulently pose as the victim-consumers’ existing magazine provider, calling about an existing subscription. Using a series of knowing and deliberate lies and misrepresentations OLBERG signed the victim-consumers up for expensive magazine subscriptions or falsely claimed to be calling with an offer to renew the victim-consumer’s existing magazine subscription, often at a reduced cost. In reality, OLBERG and her company had no existing relationship with most of the victim-consumers and OLBERG was not calling about an existing magazine subscription. Instead she was calling to defraud them by tricking them into unwittingly signing up for entirely new magazine subscriptions.
According to allegations in the indictment and documents filed with the court, OLBERG also defrauded victim-consumers who had been previously defrauded by multiple magazine companies. These victim-consumers had been “sold” magazine subscriptions they did not want and did not knowingly sign up for. The victim-consumers were being billed by multiple other magazine sales companies—as many as a dozen magazine companies at a time. Many of these victim-consumers were elderly and otherwise vulnerable. They were desperate to cancel their magazines. As part of the fraud scheme, when victim-consumers said they did not want the magazines they were already receiving, OLBERG used a fraudulent “cancellation” pitch in which she fraudulently claimed that the victim-consumers owed a large outstanding balance for existing magazine subscriptions with their company. OLBERG then fraudulently offered to pay off that balance in exchange for a large lump-sum payment. In reality, the customers did not owe OLBERG or her company any money and OLBERG simply stole the money. During the course of the scheme, OLBERG defrauded more than 3,000 victims across the United States. Between 2013 and 2020, she received approximately $1.4 million from victims of her scheme.
This indictment is related to the cases United States v. Rahm, et al., 20-cr-232; United States v. Timmerman et al., 20-cr-233; United States v. Mathias et al., 20-cr-231; United States v. Dahl, 18-cr-305 and United States v. Oelrich, 20-cr-128.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, and Melinda A. Williams are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
CAROL ANN OLBERG, 46
Winchester, Cali.
Charges:
- Wire fraud, 3 counts
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California Man Sentenced to 53 Months for Illegally Possessing FirearmsRead the Press Release
ABINGDON, Va.- A California man, who had been on the run from law enforcement for five years before being found illegally possessing firearms last February, was sentenced this week to 53 months in federal prison, Acting United States Attorney Daniel P. Bubar announced today.
Zeafree Zekkariyas, 30, a.k.a. Jorden Johnson, pleaded guilty in August 2020 to one count of illegal possession of a firearm by a convicted felon.
According to court documents, on February 18, 2019 law enforcement was engaged in a manhunt for a suspect in an attempted-murder case not involving Zekkariyas. As part of that manhunt, officers conducted surveillance on an apartment in Bluefield, Virginia. Late on the night of February 18, 2020, an investigator with the Bluefield Police Department observed a male, who fit the description of the wanted suspect, exiting the apartment.
The man, later identified as Zekkariyas, left the scene in an unlicensed vehicle with no headlights. The investigator followed the car, found it parked at another resident, and knocked on the door. Once located inside, Zekkariyas admitted to law enforcement that the vehicle outside the residence was his, that he had driven there, and that he was wanted on an outstanding warrant. Zekkariyas, a felon, was taken into custody at that time on the outstanding warrant.
Officers obtained a search warrant for the car. Inside they recovered a .40 caliber magazine, a box of .410 shells, a .410 shotgun, a stolen AR15 rifle, AR15 ammunition, and other rounds of ammunition.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, the Bluefield Police Department, and the Virginia State Police. Assistant United States Attorneys Cagle Juhan and Whit D. Pierce prosecuted the case for the United States.
California Man Sentenced to 102 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Saul Carrasco, age 36, of Simi Valley, California, was sentenced to 102 months’ imprisonment on December 15, 2020, by U.S. District Court Judge Malachy E. Mannion, for conspiring to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, Carrasco previously pleaded guilty to participating in the conspiracy during July through November 2018. Carrasco admitted that he agreed with others to transport the heroin from California to Carbon County, Pennsylvania. Law enforcement officers seized two kilograms of heroin, which is approximately equivalent to 80,000 individual retail bags of heroin, from a vehicle Carrasco was traveling in.
The leader of the California based drug trafficking operation, Crispin Fernandez, another California resident, was previously sentenced to 13 years’ imprisonment. Judge Mannion also ordered Carrasco to serve five years on supervised release following his prison sentence.
The case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police and the Illinois State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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CBL/BFL Member Going to Prison for Violent AssaultRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Kareem Pryor, 30, of Buffalo, who was convicted of assault with a dangerous weapon in aid of racketeering, and possession with intent to distribute methamphetamine, was sentenced to serve 41 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Paul C. Parisi and Seth T. Molisani, who handled the case, stated that the defendant was a member of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operated primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other drugs. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
On June 19, 2019, Pryor met up with Victim 1 on Genesee Street in Cheektowaga, while a co-defendant waited down the street. The co-defendant accused Victim 1 of killing a CBL/BFL member. The defendant and co-defendant then began punching Victim 1 and stomping Victim 1’s upper body and head onto the pavement. Pryor and the co-defendant then ran away. As a result of the assault, Victim 1 was treated at a hospital for a fractured shoulder bone and concussion. On September 12, 2019, the defendant possessed over 20 grams of methamphetamine pills in his apartment with the intent to distribute them.
Pryor is one of 16 members and associates of the CBL/BFL Gang charged in this investigation. He is the 14th to be sentenced.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief Mark Packard; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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Buffalo Man Who Took Part in Drug-Related Murder Going to Prison for 20 Years for Drug TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Taire Chaney, 28, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute cocaine and crack cocaine, was sentenced to serve 20 years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between 2008 and March 9, 2012, the defendant conspired with co-conspirator Tyshawn Bradley and others to sell cocaine and crack cocaine in and around the Perry Housing Projects in the City of Buffalo. The defendant admitted that Brad Daniels was murdered in 2012 as a result of this conspiracy.
Specifically, the evidence developed in the investigation revealed that in the summer of 2010, Chaney and Bradley perceived that a rival drug dealer was encroaching on their territory as the rival began selling crack cocaine in the Perry Projects. Bradley confronted that rival over territorial dispute. On July 29, 2010, an associate of Bradley was shot and killed on Perry Street, and Bradley believed that the death was the result of the feud with the rival drug dealer. In the following months, Chaney, Bradley, and another co-conspirator followed and shot at the rival drug dealer. On February 29, 2012, they saw the rival drug dealer riding in a Cadillac Escalade, which was driven by Brad Daniels. Chaney, Bradley and the co-conspirator followed the Escalade as it dropped off the rival drug dealer and continued driving. After the Escalade stopped on Bardol Street in Buffalo, Chaney, Bradley and the co-conspirator approached the car. Chaney shot a .45 caliber handgun multiple times through the driver’s side of the Escalade, while Bradley shot a .45 caliber handgun multiple times through the rear and passenger side of the Escalade. The co-conspirator discharged a 9mm semi-automatic handgun through the rear of the Escalade. Daniels, who was driving the Escalade, suffered three gunshot wounds, and died. The investigation determined that one of the shots fired by Chaney resulted in Daniels death.
Chaney was previously convicted of manslaughter in the death of Anthony Pitts in New York State Court in 2012 and sentenced to serve 25 years in prison. He will serve his federal sentence following the completion of his state sentence. Tyshawn Bradley was previously convicted and sentenced to serve 30 years in prison.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Bryan County man sentenced to federal prison for attempted coercion of a child for sexual activityRead the Press Release
SAVANNAH, GA: A Bryan County man who admitted attempting to coerce a child into sexual activity has been sentenced to 15 years in federal prison.
Michael Wilson, 38, of Richmond Hill, Ga., was sentenced to 180 months in prison by U.S. District Court Judge William T. Moore Jr. after pleading guilty to Attempted Coercion of a Minor to Engage in Sexual Activity, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Wilson also is required to pay $100,000 each to two minor victims in restitution, and after completion of his prison term will be required to serve 15 years of supervised release and to register as a sex offender.
There is no parole in the federal system.
Wilson’s wife, Lori Wilson, a/k/a “Loretta Lightningbolt,” 35, of Richmond Hill, Ga., previously was sentenced to 70 months in prison after pleading guilty to Tampering with a Victim or Witness. While Michael Wilson was under investigation, Lori Wilson tried to persuade a victim to recant accusations that he attempted to coerce the minor to engage in illegal sexual activity from 2017 through early 2019.
“Victimization of vulnerable children rightly deserves harsh penalties, and we applaud our law enforcement partners for their difficult work in bringing this despicable pair to justice,” said U.S. Attorney Christine. “These horrific crimes have earned a significant sentence.”
Michael Wilson, an active duty member of the military, also is charged with seven violations of the Uniform Code of Military Justice, Article 120(b), Rape and Sexual Assault of a Child. These charges are pending and relate to multiple minor victims.
“This sentence wraps up a traumatic chapter in a young child’s life after being taken advantage of by an adult,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No matter how severe the sentence it will never wipe away the scars left on this innocent child, but it will hopefully send a deterrent message to anyone contemplating similar predatory activity.”
“This prison sentence punishes Wilson for his conduct and serves as a clear warning to those considering similar abhorrent conduct that Army CID, and our federal law enforcement partners will fully investigate such allegations and seek incarceration and restitution,” said Chris Grey, spokesman for Army Criminal Investigation Command.
The cases are being investigated by the FBI and by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorneys Katelyn Semales and Jennifer G. Solari.
Boston Man Arrested on Federal Child Pornography ChargeRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with a child pornography offense.
Paul Fest, 50, was charged by criminal complaint with one count of possession of child pornography. Following an initial appearance yesterday before U.S. Magistrate Judge Donald L. Cabell, Fest was detained pending a probable cause and detention hearing scheduled for Dec. 18, 2020.
According to the charging documents, agents executed a search warrant at Fest’s Beacon Hill residence yesterday morning and seized a computer and multiple external storage devices. During the preliminary on-scene review of one thumb drive, nearly 100 videos of child pornography were discovered.
Due to his prior felony conviction, Fest faces a mandatory minimum sentence of 10 years and up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Charles Dell’Anno of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bergen County Man Admits Stealing Reimbursement Checks from Medical PracticeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted stealing health insurance reimbursement checks from a Hudson County medical practice for over four years, U.S. Attorney Craig Carpenito announced.
Nuno Fernandez, 38, of Wyckoff, New Jersey, pleaded guilty by videoconference before Senior U.S. District Judge Stanley R. Chesler to an information charging him with five counts of wire fraud.
According to documents filed in the case and statements made in court:
Fernandez was the office manager for a medical practice in North Bergen, New Jersey, where he handled and reconciled reimbursement checks that the practice received from health care benefit programs for medical services it provided. Starting in April 2012, Fernandez began stealing some of the checks by endorsing them in his own name and depositing them into his personal bank account using an application on his mobile telephone. No one at the medical practice authorized Fernandez to deposit the checks into his personal bank account. Fernandez continued to steal checks from the practice until March 2016. In total, Fernandez stole over $840,000.
Fernandez faces a maximum potential penalty of 20 years in prison on each count and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for April 20, 2021.
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 today’s guilty plea. He also thanked the Department of Labor—Office of the Inspector General and the National Insurance Crime Bureau for its assistance with the case.
The government is represented by Senior Trial Counsel Jason S. Gould of the Health Care Fraud Unit in Newark.
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Defense Counsel: Joseph Benedict Esq., New Brunswick, New Jersey
Bergen County Man Admits Stealing Millions of Dollars from Lenders and Corporations in Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he defrauded lenders and corporations of $4.9 million by impersonating two bank executives interested in funding syndicated loans for global companies, U.S. Attorney Craig Carpenito announced.
Matthew O’Callaghan, 43, of Upper Saddle River, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of wire fraud.According to the documents filed in this case and statements made in court:
From 2016 through 2019, O’Callaghan defrauded at least two global financial services groups and four global companies of millions of dollars by deceiving them into believing that “Bank A” was agreeing to commit funds to revolving credit facilities. He contacted the victim-lenders and victim-companies using the aliases “Edward Tierney” and “Michael Nash,” whom he falsely represented were executives at Bank A. O’Callaghan induced the victim-lenders and victim-companies into agreeing to pay Bank A to take on a commitment to fund revolving credit facilities.
O’Callaghan submitted numerous fraudulent documents to the victim-lenders and victim-companies that were designed to deceive them into believing that Nash and Tierney were legitimate representatives of Bank A, when in fact they were not. Specifically, O’Callaghan created email addresses to resemble legitimate Bank A email addresses, false email signature blocks for Tierney and Nash that bore the Bank A logo and listed the business address for Bank A, fraudulent wiring instructions bearing Bank A’s logo and address, and a tax form bearing a tax identification number for Bank A.
O’Callaghan directed the victim-lenders and victim-companies to wire funds to a bank account at Bank A that O’Callaghan controlled and then converted the money for personal expenses, the purchase of an automobile, gambling, travel, and payments to a private club.
The wire fraud charge to which O’Callaghan pleaded guilty carries a maximum of 20 years in prison and a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 28, 2021.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 inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Ricardo Solano Jr. Esq., Newark