Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 31 August 2020
Lexington Man Sentenced to 140 Months for Armed Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky. - A Lexington, Ky., man, Tyzon Zavonne Edwards, 22, was sentenced in federal court on Monday, to 140 months in prison, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute 40 grams of or more of fentanyl and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, on October 1, 2019, law enforcement conducted a traffic stop and identified Edwards, who had a warrant out for his arrest, as a passenger. The vehicle fled from police, eventually stopping to allow Edwards to get out and flee on foot. Edwards admitted that while running from police, he hid a bag containing 91.5 grams of fentanyl and a loaded .40 caliber pistol, in a recycling bin. Edwards further admitted that he knowingly possessed the fentanyl with intent of distributing it to others and that he possessed the firearm in furtherance of his drug trafficking.
Edwards pleaded guilty in May 2020.
“Armed drug traffickers like Tyzon Edwards present a real danger to the community, especially when they flee from the police while in possession of more than 90 grams of deadly fentanyl and a loaded pistol,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “In coordination with our federal, state, and local law enforcement partners, we will continue to prosecute cases like this, in our efforts to reduce violent crime and hold dangerous offenders accountable for their conduct.”
Edwards was also ordered to pay a $2,000 fine. Under federal law, Edwards must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was directed by ATF, and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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.
— END —
Las Vegas Man Sentenced for Setting Two Fires at the Drew Las Vegas That Resulted in Millions of Dollars in DamageRead the Press Release
LAS VEGAS, Nev. – Andrew Joseph Sanders, 28, of Las Vegas, was sentenced on Friday, August 28, by Chief U.S. District Judge Miranda Du to five years in federal prison for lighting two separate fires at The Drew Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to court documents, on March 1, 2018, Sanders trespassed onto the property of The Drew Las Vegas, a resort and casino that was under construction. While on the property, Sanders recorded himself on his cell phone and also narrated. In one video, Sanders stated: “and I lit a fire to this [expletive]. I’m just bored, you know?”
Sanders set two separate fires inside a building, approximately 200 yards apart from one another. After setting the fires and while attempting to flee, Sanders “squared off” in a fighting stance with two firefighters who responded from the Clark County Fire Department. The firefighters had to subdue Sanders and convince him to stop fighting. As a result, those two firefighters were delayed in supplying water to their colleagues inside the building. The fires set by Sanders caused millions of dollars in damage.
Sanders pleaded guilty to one count of arson in October 2019. In addition to the term of imprisonment, he was sentenced to three years of supervised release. The court will determine defendant’s obligation to pay restitution and any amount owing at a later date.
The case is a product of an investigation by the ATF and Clark County Fire Department. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
Anonymous tips may be submitted to ATF through the ReportIt mobile app or by calling the ATF Tip Line at 1-888-ATF-TIPS.
###
Kittery Man Pleads Guilty to Federal Interstate Domestic Violence ChargesRead the Press Release
PORTLAND, Maine: A Kittery man pleaded guilty today in federal court in Portland to two counts of interstate travel to violate a protection order, U.S. Attorney Halsey B. Frank announced.
According to court documents, in April 2016, Nelson Jean Dion, 53, who resided in Maine, was arrested for felony aggravated assault involving his former live-in girlfriend, who was by then living in a domestic violence shelter in Portsmouth, New Hampshire. A few days later, Dion was released on bail and was subject to a protection order that prohibited his contact with his former girlfriend.
Between April and June 2016, Dion traveled from Maine to New Hampshire, and then from New Hampshire to Maine, to have contact with the girlfriend in violation of the protection order. On June 30, 2016, the girlfriend jumped from the Piscataqua River Bridge on Interstate 95 and died the next day.
Dion faces up to five years in prison and a fine of up to $250,000 on each charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Kittery, Berwick, and Eliot, Maine Police Departments; the York County District Attorney’s Office; the Portsmouth, New Hampshire Police Department; and the FBI investigated 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.
Illegal Alien Pleads Guilty to Fraud Regarding Identification DocumentsRead the Press Release
Gulfport, Miss. – Darling Antonio Ordenana-Rosales, 24, an illegal alien from Nicaragua, pled guilty today before U.S. District Judge Sul Ozerden to the crime of fraud regarding visas, permits, or other immigration document, announced U.S. Attorney Mike Hurst and Gilbert Trill, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans.
On July 23, 2020, a U.S. Customs and Border Protection (CBP) Special Agent, who also is a Task Force Agent for Homeland Security Investigations (HSI), encountered Ordenana-Rosales working for a contractor at the Mississippi State Port at Gulfport. The federal agent was accompanied by another HSI Task Force Officer who also is a Harrison County Sheriff’s Office Deputy. It was determined that Ordenana-Rosales was fraudulently working under the name and Social Security Number of a U.S. Citizen from Puerto Rico.
With assistance from the contractor and the Port of Gulfport, HSI obtained a copy of the I-9 form and documents used by Ordenana-Rosales to gain employment. The I-9 form contained copies of a Social Security card and a Louisiana identification card. Both documents were found to be fraudulent. Ordenana-Rosales was arrested, and it was learned that he had illegally entered the U.S.
Ordenana-Rosales is scheduled to be sentenced on December 3, 2020 at 9:30 a.m. He faces a maximum sentence of 10 years in federal prison, followed by 3 years of supervised release and up to a $250,000 fine.
U.S. Attorney Hurst commended the work and coordination of Homeland Security Investigations, Customs and Border Protection, the Harrison County Sheriff’s Office and the Port of Gulfport. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Head of New York Medical Clinics Sentenced to 156 Months in Prison for Multimillion-Dollar Money Laundering and Health Care Kickbacks SchemeRead the Press Release
Update: This sentencing was vacated. The defendant was resentenced on April 17, 2024, to nine years in prison and ordered to pay $39 million in restitution.
A Brooklyn man was sentenced to 156 months in prison today for his role in a vast multimillion-dollar health care kickback and money laundering conspiracy, the Department of Justice announced today.
Aleksandr Pikus, 45, of Brooklyn, New York, was sentenced by U.S. District Judge Ann M. Donnelly of the Eastern District of New York. Judge Donnelly also ordered Pikus to pay $39.4 million in restitution and to forfeit $2,614,233. On Nov. 15, 2019, after a two-week trial, Pikus was convicted by a jury of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to pay and receive health care kickbacks and one count of conspiracy to defraud the United States by obstructing the IRS.
“For nearly a decade, Aleksandr Pikus stole millions of dollars from the federal Medicare and Medicaid programs in a major healthcare kickback, money laundering and tax fraud scheme,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This significant sentence holds Pikus accountable for his leadership role in this scheme and reflects the Department’s commitment to protecting our valuable federal healthcare programs and their beneficiaries from this kind of fraud.”
“The defendant’s key role in an elaborate scheme to steal and conceal tens of millions of dollars from the Medicare and Medicaid programs, was staggering in scope and deserving of the significant punishment he received today,” stated Acting U.S. Attorney DuCharme. “This office takes very seriously its obligation to protect government funds that provide vital medical coverage counted upon by individuals and families who qualify because of their low income, disability or advanced years.”
“Pikus was the kingpin running a massive money laundering and kickback health care fraud syndicate,” said Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Now, like others who plot to steal from government health programs, he is paying a heavy price for his crimes. Along with our law enforcement partners, we will continue to root out individuals who steal vital taxpayer-provided health funds.”
“The defendant’s greed and desire for money drove him to perpetrate crimes against our healthcare system and prey upon the vulnerable in our society.,” stated IRS-CI Special Agent in Charge Larsen. “Justice has been served and IRS-CI will continue to work alongside our counterparts to uncover these schemes to hold these criminals accountable for their actions.”
According to evidence presented at trial, Pikus and his co-conspirators perpetrated a scheme through a series of medical clinics in Brooklyn and Queens over the course of nearly a decade, which clinics employed doctors, physical and occupational therapists, and other medical professionals who were enrolled in the Medicare and Medicaid programs. In return for illegal kickbacks, Pikus referred beneficiaries to these health care providers, who submitted claims to the Medicare and Medicaid programs.
Pikus and his co-conspirators then laundered a substantial portion of the proceeds of these claims through companies he controlled, including by cashing checks at several New York City check-cashing businesses. Pikus then failed to report that cash income to the IRS. Instead, Pikus used the cash to enrich himself and others and to pay kickbacks to patient recruiters, who, in turn, paid beneficiaries to receive treatment at the medical clinics. The evidence further established that Pikus and his co-conspirators used sham shell companies and fake invoices to conceal their illegal activities.
More than 25 other individuals have pleaded guilty to or been convicted of participating in the scheme, including physicians, physical and occupational therapists, ambulette drivers, and the owners of several of the shell companies used to launder the stolen money.
This case was investigated by the HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Assistant Chief A. Brendan Stewart and Trial Attorneys Sarah Wilson Rocha and Andrew Estes of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Hawaii Businesswoman Pleads Guilty to Facilitating Back-Channel Lobbying Campaign to Drop 1MDB Investigation and Remove a Foreign National to ChinaRead the Press Release
An American businesswoman with international ties pleaded guilty today for her role in facilitating an unregistered lobbying campaign of the Administration of the President of the United States and the U.S. Department of Justice on behalf of foreign principals in exchange for millions of dollars.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Assistant Attorney General John C. Demers of the Justice Department’s National Security Division, U.S. Attorney Kenji M. Price of the District of Hawaii, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, and Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General (OIG) made the announcement.
Nickie Mali Lum Davis, 45, of Honolulu, Hawaii, pleaded guilty before U.S. District Judge Leslie E. Kobayashi to one count of aiding and abetting violation of the Foreign Agents Registration Act.
“In exchange for millions of dollars, Nickie Davis and others covertly sought to do the bidding of a foreign government and a foreign principal by attempting to influence senior U.S. government officials regarding a pending Department of Justice investigation and the extradition of a foreign national,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Though Ms. Davis’s efforts were unsuccessful, this case demonstrates how foreign governments seek to advance their agendas in the United States by hiding behind politically influential proxies. Such conduct poses a serious threat to our national security and undermines the integrity of our democracy. The failure to disclose these relationships harms both the American people and government officials by preventing them from accounting for and evaluating the true source of and motivation for foreign lobbying efforts.”
“As this prosecution makes clear, those who line their pockets by facilitating a foreign national’s campaign to lobby our nation’s leaders will not hide under a cloak of anonymity,” said U.S. Attorney Kenji M. Price of the District of Hawaii. “Through our investigations and prosecutions, we will uncover your criminal conduct and hold you accountable.”
“Lum Davis, along with her coconspirators, attempted to influence the Department of Justice’s independence on behalf of a foreign country in exchange for millions of dollars. The OIG worked diligently with the FBI on this matter in order to protect the department’s integrity,“ Keith A. Bonanno, Special Agent in Charge of the DOJ OIG Cyber Investigations Office.
According to admissions made in connection with her plea, Lum Davis admitted that, between March 2017 and January 2018, she and others — including a prominent official of a national political party with ties to the administration — agreed to lobby the President of the United States, the Attorney General, and other high level officials in the administration and the Justice Department to drop civil forfeiture proceedings and a criminal investigation into the embezzlement of billions of dollars from 1Malaysia Development Berhad (1MDB), a strategic investment and development company wholly owned by the Government of Malaysia.
For their efforts, Lum Davis and others were paid millions of dollars by Foreign National A, an alleged architect of the 1MDB scheme. Lum Davis and others also agreed to lobby the Administration and Justice Department on behalf of Foreign National A and People’s Republic of China (PRC) Minister A, to arrange for the removal and return of PRC National A — a dissident of the PRC living in the United States. Lum Davis and others concealed from the officials whom they lobbied that they were working on behalf of Foreign National A and Foreign Minister A and were being paid millions of dollars by Foreign National A with the expectation of tens of millions more in success fees. The lobbying campaigns were ultimately unsuccessful.
Among other actions, Lum Davis and her confederates tried to arrange meetings for PRC Minister A with the Attorney General, the Secretary of Homeland Security, and other high-level officials during the PRC Minister’s visit to the United States in May 2017; provided talking points to the Secretary of State referencing the 1MDB investigation in advance of a meeting between the Secretary of State and the Malaysian Prime Minister in August 2017; and pushed the White House Chief of Staff for a meeting and golf game between the President and the Malaysian Prime Minister to allow the Malaysian Prime Minister to raise resolution of the 1MDB investigation. Lum Davis was paid at least $3 million for her role in the scheme, which she has agreed to forfeit as part of her plea agreement. The national political party official was paid at least $9 million.
George Higginbotham previously pleaded guilty for his role in the scheme on Nov. 30, 2018, in U.S. District Court for the District of Columbia.
Sentencing for Lum Davis will be set on a date to be determined.
The Honolulu and Los Angeles Field Divisions of the FBI and Justice Department-OIG investigated the case. Principal Deputy Chief John D. Keller, Deputy Director of Election Crimes Sean F. Mulryne, and Trial Attorneys Nicole R. Lockhart and James C. Mann of the Criminal Division’s Public Integrity Section (PIN), and Assistant U.S. Attorney Ken Sorenson of the District of Hawaii are prosecuting the case. Former PIN Trial Attorney Ryan Ellersick also provided significant assistance in the investigation.
Galeton Man Sentenced to 20 Years’ Imprisonment for Distributing Fentanyl Resulting in Serious Bodily InjuryRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 27, 2020, David Piaquadio, age 63, of Galeton, Pennsylvania, was sentenced by U.S. District Court Judge Christopher C. Conner to 20 years’ imprisonment following his conviction for conspiracy to distribute Oxycodone, Fentanyl and Heroin, distribution of Oxycodone and Fentanyl, and attempted distribution of Oxycodone.
According to U.S. Attorney David J. Freed, on March 12, 2015, Piaquadio delivered Fentanyl to an individual who overdosed after using the drug. The overdose victim was found by his mother unconscious with a syringe stuck in his right arm in close proximity to a metal spoon containing Fentanyl residue that was distributed by Piaquadio.
Piaquadio admitted that he and his girlfriend, who is now deceased, sold between 100 to 120 Oxycodone tablets and one or two Fentanyl patches per month. On the morning of March 12, 2015, the day he delivered Fentanyl to the overdose victim, Piaquadio filled a prescription for 150 Oxycodone tablets and 10 Fentanyl patches.
The federal investigation was conducted by the Office of Inspector General, U.S. Department of Health and Human Services, the Pennsylvania State Police, with the assistance of the Galeton Borough Police Department and the Potter County District Attorney’s Office. Assistant United States Attorneys Geoffrey W. MacArthur and George J. Rocktashel prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of Heroin and Opioids like Fentanyl and Oxycodone. Led by the United States Attorney’s Office, the Heroin Initiative targets Opioid 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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a 20-year mandatory minimum sentence because the drug offense resulted in serious bodily injury, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Former Putnam County EMT Pleads Guilty to Stealing Controlled SubstancesRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man pled guilty today to stealing fentanyl and morphine, announced United States Attorney Mike Stuart. Kelly Keene, 49, entered a guilty plea to obtaining controlled substances by fraud and deception.
“Narcotics housed in EMT trucks are there for a purpose – to treat victims of trauma or acute illness while they are being transported to a medical facility,” said United States Attorney Mike Stuart. “Keene abused his position to steal fentanyl and morphine – narcotics needed for critical care – for his own use. It is unconscionable conduct by any measure.”
Keene admitted that while he was employed as a Putnam County Emergency Medical Technician (EMT) in May 2019 he took vials of fentanyl and morphine from the narcotics safes located on the EMS trucks. He admitted to taking the controlled substances when he was not authorized to do so. He further admitted to stealing these substances for his own use.
Keene faces up to four years in prison when he is sentenced on December 7, 2020.
The Drug Enforcement Administration (DEA) and the Putnam County Sheriff’s Department conducted the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00135.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Former PG&E Employee Pleads Guilty to over $1.4M Fraud ConspiracyRead the Press Release
SACRAMENTO, Calif. — A former PG&E employee pleaded guilty today to one count of conspiracy to commit honest services wire fraud and admitted to receiving kickback payments from a Stockton transportation company owned by his cousin, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, Ronald S. Schoenfeld, 65, of Goodyear, Arizona, formerly of Dublin, California, while employed at Pacific Gas and Electric Company, conspired to obtain contracts from PG&E for his cousin’s transportation business in exchange for kickbacks from that business worth approximately 2.5% of the value of the contracts. Schoenfeld concealed from PG&E his familial relationship with his co-conspirator from PG&E, provided confidential information to his co-conspirator, and, at times, directly intervened in the consideration of contracts between PG&E and his co-conspirator’s business, all contrary to PG&E’s policies.
From March 2007 through February 2015, PG&E paid at least $82.1 million to the business operated by Schoenfeld’s cousin for services it provided pursuant to PG&E contracts. During the same period, Schoenfeld’s co-conspirator paid him at least $1,476,000 in kickbacks for his role in the conspiracy.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys André M. Espinosa, Amy S. Hitchcock, and Tanya B. Syed are prosecuting the case.
Schoenfeld is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on November 16, 2020. Schoenfeld faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Marion County physician sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eugenio Menez, a former physician of Fairmont, West Virginia, was sentenced today to 48 months in prison following a drug charge, U.S. Attorney Bill Powell announced.
Menez, age 69, pled guilty to a one-count information in March 2020 charging him with “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” Menez admitted to illegally distributing oxycodone in September 2015 in Marion County.
Menez was a family physician who practiced in Marion County. He distributed controlled substances outside the course of professional medical practice by writing prescriptions for several female patients in exchange for sexual favors. Even though the female patients had medical appointments, those visits involved sexual acts, and Menez did not conduct medical exams of those patients. The appointments would be scheduled either early in the morning at his office before his staff reported or at his residence. The patients believed they would have been denied their prescriptions if they did not consent to the sexual acts. The patients’ accounts were corroborated by numerous video recordings produced by Menez.
Menez has surrendered his medical license, as well as his DEA registration, which permitted him to write prescriptions.
Mezen was also ordered to pay a $25,000 fine.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration investigated.
U.S. District Judge Thomas S. Kleeh presided.
Former KC Fire Captain Pleads Guilty to Illegally Selling Firearms to FelonsRead the Press Release
KANSAS CITY, Mo. – A former captain in the Kansas City, Missouri, Fire Department pleaded guilty in federal court today to charges related to illegally selling 77 firearms over a five-year period, and to selling firearms to convicted felons.
“Our gun laws exist to make it hard for violent criminals to obtain the tools of their trade,” Garrison said. “Felons, illegal aliens, domestic abusers, drug users, and other prohibited persons cannot purchase or possess firearms — unless someone breaks the law to put guns in their hands. These criminals may not pull the trigger, but they profit by making violent crime possible in our neighborhoods.”
James Samuels, 54, of Kansas City, Mo., pleaded guilty before U.S. District Judge Gary A. Fenner to one count of conspiracy to make false statements during the purchase of firearms, one count of engaging in the business of dealing firearms without a license, four counts of selling firearms and ammunition to persons prohibited by law from possessing them, and one count of possessing an unregistered firearm. Samuels, who has been in federal custody without bond since his arrest on Oct. 4, 2018, remains in federal custody until his sentencing hearing, which has not yet been scheduled.
By pleading guilty today, Samuels admitted that he purchased 77 firearms from November 2013 to August 2018. Of those 77 firearms, 57 were Jimenez pistols. Samuels transferred 47 of those 77 firearms to third parties (including 43 Jimenez pistols). During this time, Samuels was not a licensed dealer of firearms.
Samuels also admitted that 10 to 20 of those firearms were sold to persons who were forbidden by law from possessing them. Samuels bought the firearms at a low price and sold them for a $40 to $50 profit.
Samuels conspired with others to make false statements to federally licensed firearms dealers by misrepresenting the identity of the actual buyer of firearms. Samuels purchased firearms then transferred ownership to another person, who later reported the firearms had been stolen.
Samuels was arrested on Oct. 4, 2018, following an undercover operation in which he sold an Armscor of the Philippines .38-caliber revolver to a confidential informant whom he knew to be a felon. Law enforcement officers executed a search warrant at Samuels’s residence the same day and seized 28 firearms (including 22 handguns, five rifles and one shotgun). Among the firearms seized was a Glock .40-caliber pistol with a TAC Isran GLR 440 stock installed, which was not registered to Samuels, and a Colt .45-caliber pistol, which had been reported stolen. In addition to the firearms, officers seized approximately 12,000 rounds of assorted ammunition, as well as firearm parts and accessories.
The Oct. 4, 2018, transaction is one of four instances cited in today’s plea agreement in which the same confidential informant, whom Samuels knew was a felon and thus prohibited from possessing firearms and ammunition, purchased a firearm and ammunition from Samuels. In each of those four instances, Samuels accompanied the confidential informant and an undercover federal agent to a licensed firearms dealer, where the undercover agent completed the paperwork for the straw purchase of the firearm on behalf of the confidential informant. In each instance, the straw purchase was at the direction of Samuels.
Under the terms of today’s plea agreement, Samuels acknowledges that he has the ability to pay a fine and agrees that $11,282 seized by law enforcement officers during the execution of the search warrant at his residence will be applied to any fine imposed by the court.
Under federal statutes, Samuels is subject to a sentence of up to 60 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.Florida Man Sentenced for Racially-Motivated Interference with Election in Charlottesville, Virginia and for Cyberstalking in FloridaRead the Press Release
Daniel McMahon, 32, was sentenced today in federal court in the Western District of Virginia to 41 months of imprisonment for threatening an African-American Charlottesville City Council candidate because of his race and because he was running for office, and for cyberstalking a separate victim through Facebook messenger, the Justice Department announced today. Following his term of incarceration, McMahon will be placed on three years of supervised release, during which time he will be prohibited from using internet-capable devices without prior court approval.
“Americans have the right to run for office in this country without facing racially-bigoted threats of violence,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Furthermore, no American should have to live with hateful threats of sexual violence for opposing white nationalism. The Justice Department will continue vigorously to prosecute anyone who attempts to infringe on these civil rights and thereby undermine our democracy.”
“The hallmark of our Nation’s democracy is the right to peacefully protest and engage in an effective exchange of ideas via the political process,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “When either of these rights are infringed, and individuals are targeted, intimidated, or threatened because of their race/ethnicity or beliefs, the cornerstone of our system is put at risk. Today’s sentence demonstrates our intent to work together to preserve our Nation’s founding principles and ensure that all citizens are protected under the law.”
“This defendant weaponized social media to threaten and intimidate his perceived political enemies and propagate a violent white-supremacist ideology,” said U.S. Attorney Thomas T. Cullen of the Western District of Virginia. “Because his online activity crossed the boundary between protected First Amendment expression and unlawful threats and harassment, he will spend considerable time in federal prison.”
“The FBI applauds the sentencing in this case and remains steadfast in its commitment to protecting the civil rights of all Americans,” said Special Agent in Charge David W. Archey of the FBI’s Richmond Division. “We also commend the courage of the victims who come forward to report these threats. We are grateful for our partners with the Department of Justice, the FBI Tampa Division and the U.S. Attorney's Offices in Virginia and Florida for their support during this investigation.”
On April 30, 2020, the defendant pled guilty to one count of racially-motivated threats to interfere with an election, and one count of cyberstalking. At the plea hearing, the defendant admitted that he uses the online pseudonyms “Jack Corbin,” “Pale Horse,” “Restore Silent Sam,” and “Dakota Stone,” to promote white supremacy and white nationalist ideology, and to express support for racially-motivated violence. The defendant admitted that in January 2019, upon learning that D.G., an African-American resident of Charlottesville, Virginia, planned to announce his candidacy for city council, the defendant used his Jack Corbin account on the social media platform Gab to threaten violence against D.G. because of D.G.’s race and because D.G. was running for office. The defendant admitted that his posts used racial slurs and invoked long-standing racial stereotypes, and that he intended for D.G. to understand his posts as threats to his safety.
In addition, the defendant admitted to using his “Restore Silent Sam” Facebook account to cyberstalk a person identified in court documents as Victim 2. In connection with this charge, the defendant admitted that he used Facebook to send Victim 2 numerous intimidating and threatening messages that placed Victim 2 in reasonable fear of harm to Victim 2’s minor child. The defendant acknowledged that Victim 2 has been active in countering white nationalist rallies in her community. The defendant admitted that, because of Victim 2’s activism, he began an online campaign to intimidate her and to extort information from her about her fellow activists. This included sending Victim 2 numerous messages over the course of twelve days in which he threatened to sexually assault Victim 2’s minor daughter, who has autism. The defendant admitted that, at around the same time that he sent these messages, he also used the internet to conduct searches relating to sexual contact with girls who have autism. The defendant admitted that his messages reasonably caused Victim 2 serious emotional distress and fear for Victim 2’s child’s safety.
This case was investigated by the FBI and was prosecuted by U.S. Attorney Thomas T. Cullen of the Western District of Virginia; Assistant U.S. Attorney Christopher Kavanaugh of the Western District of Virginia; Assistant U.S. Attorney Daniel George of the Middle District of Florida; and Trial Attorney Risa Berkower of the U.S. Department of Justice’s Civil Rights Division.
Florida Man Sentenced for Racially-Motivated Interference with Election in Charlottesville, Virginia and for Cyberstalking in FloridaRead the Press Release
CHARLOTTESVILLE, VIRGINIA – Daniel McMahon, 32, was sentenced today in federal court in the Western District of Virginia to 41 months of imprisonment for threatening an African-American Charlottesville City Council candidate because of his race and because he was running for office, and for cyberstalking a separate victim through Facebook messenger, the Justice Department announced today. Following his term of incarceration, McMahon will be placed on three years of supervised release, during which time he will be prohibited from using internet-capable devices without prior court approval.
“Americans have the right to run for office in this country without facing racially-bigoted threats of violence,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Furthermore, no American should have to live with hateful threats of sexual violence for opposing white nationalism. The Justice Department will continue vigorously to prosecute anyone who attempts to infringe on these civil rights and thereby undermine our democracy.”
“The hallmark of our Nation’s democracy is the right to peacefully protest and engage in an effective exchange of ideas via the political process,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “When either of these rights are infringed, and individuals are targeted, intimidated, or threatened because of their race/ethnicity or beliefs, the cornerstone of our system is put at risk. Today’s sentence demonstrates our intent to work together to preserve our Nation’s founding principles and ensure that all citizens are protected under the law.”
“This defendant weaponized social media to threaten and intimidate his perceived political enemies and propagate a violent white-supremacist ideology,” said U.S. Attorney Thomas T. Cullen of the Western District of Virginia. “Because his online activity crossed the boundary between protected First Amendment expression and unlawful threats and harassment, he will spend considerable time in federal prison.”
“The FBI applauds the sentencing in this case and remains steadfast in its commitment to protecting the civil rights of all Americans,” said Special Agent in Charge David W. Archey of the FBI’s Richmond Division. “We also commend the courage of the victims who come forward to report these threats. We are grateful for our partners with the Department of Justice, the FBI Tampa Division and the U.S. Attorney's Offices in Virginia and Florida for their support during this investigation.”
On April 30, 2020, the defendant pled guilty to one count of racially-motivated threats to interfere with an election, and one count of cyberstalking. At the plea hearing, the defendant admitted that he uses the online pseudonyms “Jack Corbin,” “Pale Horse,” “Restore Silent Sam,” and “Dakota Stone,” to promote white supremacy and white nationalist ideology, and to express support for racially-motivated violence. The defendant admitted that in January 2019, upon learning that D.G., an African-American resident of Charlottesville, Virginia, planned to announce his candidacy for city council, the defendant used his Jack Corbin account on the social media platform Gab to threaten violence against D.G. because of D.G.’s race and because D.G. was running for office. The defendant admitted that his posts used racial slurs and invoked long-standing racial stereotypes, and that he intended for D.G. to understand his posts as threats to his safety.
In addition, the defendant admitted to using his “Restore Silent Sam” Facebook account to cyberstalk a person identified in court documents as Victim 2. In connection with this charge, the defendant admitted that he used Facebook to send Victim 2 numerous intimidating and threatening messages that placed Victim 2 in reasonable fear of harm to Victim 2’s minor child. The defendant acknowledged that Victim 2 has been active in countering white nationalist rallies in her community. The defendant admitted that, because of Victim 2’s activism, he began an online campaign to intimidate her and to extort information from her about her fellow activists. This included sending Victim 2 numerous messages over the course of twelve days in which he threatened to sexually assault Victim 2’s minor daughter, who has autism. The defendant admitted that, at around the same time that he sent these messages, he also used the internet to conduct searches relating to sexual contact with girls who have autism. The defendant admitted that his messages reasonably caused Victim 2 serious emotional distress and fear for Victim 2’s child’s safety.
This case was investigated by the FBI and was prosecuted by U.S. Attorney Thomas T. Cullen of the Western District of Virginia; Assistant U.S. Attorney Christopher Kavanaugh of the Western District of Virginia; Assistant U.S. Attorney Daniel George of the Middle District of Florida; and Trial Attorney Risa Berkower of the U.S. Department of Justice’s Civil Rights Division.
Federal Texarkana Correctional Officer and Inmate Guilty of Bribery ConspiracyRead the Press Release
TEXARKANA, Texas – A 55-year-old Titus County, Texas, man and a 54-year-old federal inmate have pleaded guilty to a bribery conspiracy in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
James Thompson pleaded guilty on August 5, 2020, to conspiring to commit bribery before U.S. Magistrate Judge Caroline M. Craven. In his plea agreement, Thompson agreed to forfeit $17,200.00 in United States currency and cash proceeds from his scheme.
Gilbert Gomez pleaded guilty on August 31, 2020, to conspiring to commit bribery before U.S. Magistrate Judge Caroline M. Craven. In his plea agreement, Gomez agreed to forfeit $15,000.00 in United States currency and cash proceeds from his scheme.
According to information presented in court, beginning before August 2019 and continuing through January 2020, Thompson, a federal correctional officer, and Gomez, a federal inmate, engaged in a scheme to smuggle contraband into the Federal Correctional Institution located in Texarkana, Texas. During the scheme, Thompson received cash bribe payments and prison contraband at a post office box under the alias of “Bobby Brown.” Using his own prerogative, Thompson then smuggled the contraband into FCI Texarkana when he entered the facility to go to work. Gomez coordinated the scheme from inside the institution, where he arraigned cash bribe payments and delivered the smuggled contraband to other inmates. Thompson and Gomez received more than $30,000.00 total for smuggling contraband into FCI Texarkana.
Under federal statutes, Thompson and Gomez face up to 5 years in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of a presentence investigations by the U.S. Probation Office.
This case is being investigated by the Dallas Field Office of the U.S. Department of Justice, Office of the Inspector General and the Fort Worth Division of the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Detroit man pled guilty to a federal drug charge today, announced United States Attorney Mike Stuart. Kwaine Brengettcy, 34, pled guilty to possession with intent to distribute methamphetamine.
“100% pure meth-- this Detroit drug dealer was bringing 100% pure meth into Beckley and distributing it. This may be the most powerful and potent meth that has been identified in the district. It cannot get more powerful,” said United States Attorney Mike Stuart. “Compare the potency of today’s meth with the meth of just a few short years ago. Today’s meth is potent and powerful- 100% pure in this case- but the meth that wreaked havoc on our communities 10 or 15 years ago was comparatively weak at 15-25% purity and that weaker meth did plenty of damage to our communities and families. This meth is exponentially stronger. With poison peddlers like Brengettcy coming into our communities, it’s of no surprise that meth-related overdose deaths are on the rise in the Mountain State. With every successful prosecution of a drug dealer, we’re taking back our streets and fighting for the families who have lost loved ones to overdose.”
On February 28, 2020, law enforcement officers executed a search warrant on a residence in Beckley. As the officers entered, they observed Brengettcy jump up and flee to the back room. They later located 21 grams of methamphetamine inside his jacket pocket. Brengettcy also had rented a hotel room nearby, which also was searched by law enforcement. Inside, they discovered $10,576 in U.S. currency. Some of the bills in that sum of cash were marked as being used in previous controlled drug buys by law enforcement.
Brengettcy was interviewed and admitted to bringing methamphetamine from Detroit to Beckley, and that he had been selling methamphetamine in the area for at least four months prior to his arrest. The methamphetamine that was recovered was sent to a Department of Homeland Security laboratory, where it was tested and proved to be 100% pure methamphetamine.
Brengettcy faces up to 20 years in prison when he is sentenced on December 14, 2020.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Beckley Raleigh County Drug and Violent Crime Unit. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00067.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Delaware Man Who Sold Heroin Laced with Furanyl Fentanyl Sentenced to over 8 Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – Cornelius Riley, 44, of Dover, was sentenced on August 26 to 100 months in federal prison for distributing and possessing with the intent to distribute heroin, after being convicted by a jury in May of 2019.
In January of 2018, Defendant sold an ounce of heroin to an undercover officer. The Defendant then made arrangements to sell an additional 4.5 ounces of heroin to the same undercover officer later that week. On the day of the sale, Defendant was arrested at the agreed-upon place, at the agreed-upon time, and with the agreed-upon amount of heroin in the back of his car. Forensic chemical analysis of the substance showed that the heroin was mixed with a deadly fentanyl analogue, furanyl fentanyl.
“The Court’s sentence reflects the seriousness of Mr. Riley’s actions and the harm he posed to society,” said U.S. Attorney Weiss. “Riley was responsible for injecting a large amount of heroin into the Delaware community. His crime was made more dangerous by the fact that the heroin Riley sold was laced with a deadly fentanyl analogue. We will continue to aggressively investigate and prosecute drug dealers, and those who are responsible for selling this poison to the community should expect to face serious punishment.”
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after sentencing by U.S. District Judge Richard G. Andrews. Assistant U.S. Attorneys Laura D. Hatcher and Daniel Logan prosecuted the case, which was investigated by the Drug Enforcement Administration.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Connecticut Man Pleads Guilty to Receiving Bribes from ContractorsRead the Press Release
BOSTON – A Connecticut man who held positions involving facility maintenance at three collegiate institutions pleaded guilty today in connection with receiving bribes in exchange for directing contracts to favored contractors.
Floyd Young, 50, of Shelton, Conn., pleaded guilty to one count of conspiracy and three counts of bribery concerning programs receiving federal funds. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 1, 2021. In March 2019, Young was charged by criminal complaint and arrested.
Young held positions involving facility maintenance at three collegiate institutions, including one located in Massachusetts. Young steered contracts for construction, repair, maintenance, and other work for the collegiate institutions to favored contractors who paid him bribes, typically in the amount of 15% of the contract. The contractors inflated the amount of the invoices submitted to the collegiate institutions in order to be repaid the cost of the bribe payment made to Young. In addition, as contractors received payments for work done at the collegiate institutions, they paid Young bribes on a periodic basis. On occasion, Young and the contractors arranged for no-work invoices to be submitted to the collegiate institutions and then split the payment.
Pursuant to the plea agreement, Young has agreed to pay restitution of $919,066 – the amount he received in bribes.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
Company Pleads Guilty to Money Laundering Violation as Part of Scheme to Circumvent North Korean Sanctions and Deceive Banks, Agrees to Pay Forfeiture and FineRead the Press Release
WASHINGTON – Yang Ban Corporation, a company established in the British Virgin Islands in 2014 that operated in South East Asia pleaded guilty today to conspiring to launder monetary instruments in connection with evading sanctions on North Korea and deceiving correspondent banks into processing U.S. dollar transactions. The company will pay a financial penalty totaling $673,714.04.
In pleading guilty, Yang Ban admitted and accepted responsibility for its criminal conduct. Yang Ban also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.
“Evasion of the United States sanctions laws allows North Korea to continue its dangerous and persistent proliferation activities and to develop weapons of mass destruction,” said John C. Demers, Assistant Attorney General for National Security. “This defendant utilized dual invoicing practices and provided false statements to conceal the ultimate destination of commodities it purchased for North Korea, duping U.S. correspondent banks into processing U.S. dollar transactions that they would not otherwise have authorized. The disruption of this activity demonstrates that the Justice Department will leverage its significant investigative assets to uncover and punish North Korean efforts to engage in fraud, money laundering, and sanctions violations all to bolster its oppressive regime.”
“Yang Ban undermined the integrity of our financial system and harmed our national security by circumventing banks’ sanction and anti-money laundering filters as part of a scheme to launder funds for North Korean customers,” said Acting U.S. Attorney Sherwin. “Today’s action demonstrates this office’s commitment to find and punish companies, no matter where they are located, whose actions illegally facilitate North Korean sanctions evasion.”
“Once again, the Department of Justice has disrupted an effort by North Korea to covertly access the U.S. financial system in violation of U.S. sanctions,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “The FBI will aggressively investigate companies established for the sole purpose of evading U.S. sanctions on North Korea. The sanctity of the U.S. financial system will not be compromised.”
“Companies making deliberate efforts to launder money through the United States will be shut down,” said Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division. “I commend the hard work of the agents and analysts who investigated this case.”
“Homeland Security Investigations is committed to working with our law enforcement partners to protect the integrity of the U.S. financial system, leveraging investigative assets in our combined efforts to expose the North Korean regime’s attempt to evade U.S. sanctions,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.
U.S. sanctions and banking regulations prevented correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. According to admissions and court documents, beginning in at least February 2017 and continuing until at least May 2018, Yang Ban deceived banks in the U.S. into processing transactions for North Korean customers of Yang Ban. Yang Ban and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus. Yang Ban specifically admitted to conspiring with other, including SINSMS, a subsequently designated company, to falsify shipping records. For example, in May 2017, a North Korean co-conspirator notified Yang Ban and its co-conspirators of a company which would ship to Nampo, North Korea, but would require two separate sets of shipping documents. One set of documents would be free of any indication that the shipment was going to North Korea, and a second set of documents would contain the North Korea details for internal record keeping.
Yang Ban admitted that it was aware that it needed to distance itself from North Korean front companies in order to protect it from additional scrutiny from banks that process U.S. dollar transactions. For example, in September 2016, Yang Ban caused an employee to inform a North Korean customer that Yang Ban was unable to use a related company for further business with North Korea due to bank restrictions on such transactions
The investigation was conducted by the FBI’s Minneapolis Field Office with support from HSI’s Washington D.C. Office. Assistant U.S. Attorney Zia M. Faruqui and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick, and Records Examiner Angela De Falco.
Company Pleads Guilty to Money Laundering Violation as Part of Scheme to Circumvent North Korean Sanctions and Deceive Banks, Agrees to Pay Forfeiture and FineRead the Press Release
Yang Ban Corporation, a company established in the British Virgin Islands in 2014 that operated in South East Asia pleaded guilty today to conspiring to launder monetary instruments in connection with evading sanctions on North Korea and deceiving correspondent banks into processing U.S. dollar transactions. The company will pay a financial penalty totaling $673,714.04.
In pleading guilty, Yang Ban admitted and accepted responsibility for its criminal conduct. Yang Ban also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.
“Evasion of U.S. sanctions laws allows North Korea to continue its dangerous and persistent proliferation activities and to develop weapons of mass destruction,” said John C. Demers, Assistant Attorney General for National Security. “This defendant utilized dual invoicing practices and provided false statements to conceal the ultimate destination of commodities it purchased for North Korea, duping U.S. correspondent banks into processing U.S. dollar transactions that they would not otherwise have authorized. The disruption of this activity demonstrates that the Justice Department will leverage its significant investigative assets to uncover and punish North Korean efforts to engage in fraud, money laundering, and sanctions violations all to bolster its oppressive regime.”
“Yang Ban undermined the integrity of our financial system and harmed our national security by circumventing banks’ sanction and anti-money laundering filters as part of a scheme to launder funds for North Korean customers,” said Acting U.S. Attorney Sherwin for the District of Columbia. “Today’s action demonstrates this office’s commitment to find and punish companies, no matter where they are located, whose actions illegally facilitate North Korean sanctions evasion.”
“Once again, the Department of Justice has disrupted an effort by North Korea to covertly access the U.S. financial system in violation of U.S. sanctions,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “The FBI will aggressively investigate companies established for the sole purpose of evading U.S. sanctions on North Korea. The sanctity of the U.S. financial system will not be compromised.”
“Companies making deliberate efforts to launder money through the United States will be shut down,” said Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division. “I commend the hard work of the agents and analysts who investigated this case.”
“Homeland Security Investigations (HSI) is committed to working with our law enforcement partners to protect the integrity of the U.S. financial system, leveraging investigative assets in our combined efforts to expose the North Korean regime’s attempt to evade U.S. sanctions,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) HSI Washington, D.C.
U.S. sanctions and banking regulations prevented correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. According to admissions and court documents, beginning in at least February 2017 and continuing until at least May 2018, Yang Ban deceived banks in the U.S. into processing transactions for North Korean customers of Yang Ban. Yang Ban and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus. Yang Ban specifically admitted to conspiring with other, including SINSMS, a subsequently designated company, to falsify shipping records. For example, in May 2017, a North Korean co-conspirator notified Yang Ban and its co-conspirators of a company which would ship to Nampo, North Korea, but would require two separate sets of shipping documents. One set of documents would be free of any indication that the shipment was going to North Korea, and a second set of documents would contain the North Korea details for internal record keeping.
Yang Ban admitted that it was aware that it needed to distance itself from North Korean front companies in order to protect it from additional scrutiny from banks that process U.S. dollar transactions. For example, in September 2016, Yang Ban caused an employee to inform a North Korean customer that Yang Ban was unable to use a related company for further business with North Korea due to bank restrictions on such transactions
The investigation was conducted by the FBI’s Minneapolis Field Office with support from HSI’s Washington D.C. Office. Assistant U.S. Attorney Zia M. Faruqui and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick, and Records Examiner Angela De Falco.
Clay County Man Charged with Armed Robbery of Gas StationRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Joshua Noah Sams (20, Orange Park) with interference of interstate commerce by robbery and brandishing a firearm during a robbery. If convicted, Sams faces a maximum penalty of 20 years in federal prison for the robbery offense and a 7-year minimum mandatory penalty, up to life imprisonment, for the firearm offense. The indictment also notifies Sams that the United States intends to forfeit the alleged proceeds of the robbery.
According to the indictment, on November 12, 2019, Sams robbed a 76 Gas station at gunpoint, obtaining cash from the employee on duty. Sams is currently in federal custody in the Northern District of Florida on unrelated robbery and firearm charges.
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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clay County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Clarksville Man Who Shot at Police Officers Sentenced to 10 Years in Federal PrisonRead the Press Release
NASHVILLE, Tenn. – August 31, 2020 - Elique Camacho, 23, of Clarksville, Tennessee, was sentenced today in U.S. District Court to 10 years in prison for possessing a firearm after being convicted of a crime of domestic violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Camacho was indicted in July 2018, after an incident on June 24, 2018, where Clarksville police officers were called to the scene of a domestic assault and upon arrival, Camacho was attempting to leave the scene. As officers approached his vehicle, Camacho drove toward them and struck one of the officers with his vehicle and fled. As Clarksville officers pursued Camacho, he fired several rounds at the officers from his vehicle. One of the officers subsequently rammed and disabled Camacho’s vehicle, after which, he fled on foot and hid in a wooded area overnight, before being arrested the following day at a friend’s house. At the time of his arrest, Camacho was in possession of a 9mm handgun.
Camacho pleaded guilty in January. He had previously been convicted of domestic assault in January 2017 and was prohibited from possessing a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksville Police Department. Assistant U.S. Attorney Brooke Schiferle prosecuted the case.
# # # # #
Claremore Man Sentenced to 78 Months in Prison for Child PornographyRead the Press Release
A Claremore man was sentenced today in federal court for distribution and receipt of child pornography and for possession of child pornography, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Daniel Nathan West, 48, to 78 months in federal prison, where he will receive sex offender treatment. Judge Frizzell further ordered West to pay $12,000 in restitution to victims depicted in the videos and identified by the National Center for Missing and Exploited Children (NCMEC). Following his prison sentence, West will spend seven years on supervised release and be required to register as a sex offender.
“The sexual exploitation of children is both despicable and criminal. Victims of child pornography are exploited time and again when explicit images of them are produced, shared, and viewed on the internet. This is why the work of investigators, prosecutors and the National Center for Missing and Exploited Children is so critical,” said U.S. Attorney Trent Shores. “We will never stop our duty to identify and recover victims of sexual abuse. And we will never stop pursuing criminals like Daniel West who exploit our children. We will bring them to justice for their heinous crimes.”
In his written plea agreement, West admitted that from May 17 through Dec. 17, 2019, he knowingly possessed, received and distributed child pornography using computer devices, social media applications and the internet. The files contained images of at least one prepubescent minor and a minor who had not attained 12 years of age. On his cell phone, investigators discovered 100 video files of child sexual abuse, including the rape of infants and bestiality.
West was remanded into the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Christopher Nassar and Ryan Heatherman prosecuted the case.
Citizen of El Salvador Sentenced to 18 Months in Prison for Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARIO ANTONIO HERRERA, also known as Antonio Morales, 37, a citizen of El Salvador last residing in East Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, on March 26, 2010, Herrera was deported from the U.S. to El Salvador. Herrera’s removal followed his conviction in Manchester Superior Court in July 2008 for assault in the second degree. Herrera’s criminal history also includes Connecticut convictions for carrying a dangerous weapon, reckless endangerment, and other offenses.
On July 1, 2019, Herrera, using the name Antonio Morales, was arrested by the East Hartford Police Department and charged with disorderly conduct and interfering/resisting arrest.
Herrera has been detained since his arrest. On February 20, 2020, he pleaded guilty in federal court to one count of reentry of a removed alien.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
CDM Smith and CDM Federal Programs Agrees to $5.6 Million SettlementRead the Press Release
ALEXANDRIA, Va. – CDM Smith Inc., headquartered in Boston, and CDM Federal Programs Corporation, located in Fairfax, have agreed to pay approximately $5.6 million to settle False Claims Act allegations and other civil claims related to inaccurate certified cost or pricing data submitted to the U.S. Navy.
The United States alleged that CDM Smith and CDM Federal submitted inaccurate cost and labor hour estimates and related certifications in connection with certain task orders on a federal contract to supply architect-engineering services to Navy bases. The alleged conduct would violate the Truth in Negotiations Act, which requires contractors who are negotiating certain government contracts to submit cost and pricing data to the federal government that is truthful, accurate, and complete.
The settlement resolves a lawsuit filed by a former CDM employee under the whistleblower provision of the False Claims Act. A whistleblower suit or qui tam action under the False Claims Act is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The False Claims Act provides the whistleblowers with a share of the government’s recovery.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Naval Criminal Investigative Service.
This matter was investigated by Assistant U.S. Attorney Krista Anderson. The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 18-cv-01522.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Brooklyn Felon Arrested for Possession of Firearm and Ammunition Used in Deadly Gang-Related ShootingRead the Press Release
Stanley Elianor, a member of the Folk Nation Street gang, was arrested today in connection with an indictment returned on August 27, 2020 charging him with being a felon in possession of a firearm and ammunition while having previously been convicted of a crime punishable by a term of imprisonment exceeding one year. Elianor will be arraigned this afternoon via teleconference by United States Magistrate Judge Ramon E. Reyes, Jr.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and indictment.
“Repeat offenders who possess firearms present an extreme danger to the community as this case tragically demonstrates with the senseless killing of Carey Gabay,” stated Acting United States Attorney DuCharme. “This Office and our law enforcement partners are doing everything in our power to take guns out of the hands of violent felons as a measure to prevent the senseless loss of life.” Mr. DuCharme expressed his grateful appreciation to the Kings County District Attorney’s Office for its assistance with the investigation.
“No one should have to fear standing in a crowd at a street festival, thinking their life could be taken by a gang member's stray bullet. This brand of mayhem is often the work of convicted felons shooting guns they’re not legally allowed to possess. We are methodically going down the list of these repeat offenders, and, as today's action demonstrates, we are committed to keeping them from terrorizing our besieged neighborhoods. But we can't do it alone. We are stronger together, and we need help from the communities these felons are targeting. If you know something about any recent shooting, call us at 212-384-5000. Help us protect our city from the criminals who seem determined to destroy it,” stated FBI Assistant Director-in-Charge Sweeney.
“This kind of gun violence erodes the fabric of city life and I commend the U.S. Attorney’s office for the Eastern District of New York for bringing these significant federal charges and ensuring, along with our NYPD detectives and law enforcement partners, that a measure of justice will be served,” stated NYPD Commissioner Shea.
As set forth in the indictment and detention memorandum, in the pre-dawn hours of September 7, 2015, Elianor was attending the J’ouvert cultural festival with other Folk Nation gang members and members of the Hood Starz, a group that was allied with Folk Nation, when they engaged in a shootout with members of the rival Crips street gang outside the Ebbets Field Houses in Crown Heights. Carey Gabay, an aide to New York Governor Andrew Cuomo, was struck in the head by a stray bullet and died on September 15, 2015. During the gun battle, Elianor allegedly possessed a .45 caliber Masterpiece Arms handgun which was recovered by the NYPD. The firearm has a large capacity magazine and was loaded with 27 rounds of ammunition. Prior to possessing this firearm, Elianor had been convicted of two counts of attempted criminal possession of a weapon in New York state court in October 2009.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Elianor faces up to 10 years in prison.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Nadia E. Moore is in charge of the prosecution.
The Defendant:
STANLEY ELIANOR
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-332 (MKB)
Brockton Man Charged with Assaulting Officer with VehicleRead the Press Release
BOSTON – A Brockton man was arrested and charged in connection with assaulting an officer while fleeing a motor vehicle stop. The defendant’s vehicle allegedly dragged the officer for several feet as the defendant fled the scene, eventually crashed head-on into a guardrail on Route 24 at approximately 100 miles per hour, and ran across travel lanes of Route 24 before he was apprehended and placed under arrest.
Tykeam Jackson, 25, was arrested on Friday, Aug. 28, 2020 and charged by criminal complaint with one count of assaulting, resisting or impeding a federal officer. Following an initial appearance, Jackson was detained pending a detention hearing scheduled for Sept. 4, 2020.
As alleged in the charging documents, during the afternoon of July 27, 2020, a deputized federal law enforcement officer stopped Jackson for speeding on Route 28 in Avon and instructed Jackson to exit his vehicle. Instead, Jackson allegedly accelerated the vehicle with such force that the officer was dragged for several feet and thrown to the ground. Jackson then sped away, ignored traffic signals, and drove into oncoming traffic, eventually travelling at a speed of approximately 100 miles per hour in the breakdown lane of Route 24. After attempting to cross all three travel lanes, Jackson lost control of the vehicle and crashed head-on into the guardrail. He allegedly exited the vehicle, ran across the travel lanes of Route 24, and was almost struck several times by oncoming traffic. A Massachusetts state trooper subsequently found Jackson running into and obstructing traffic on a nearby heavily-traveled roadway and placed him under arrest.
According to court documents, Jackson is currently on probation resulting from an armed robbery conviction in Suffolk Superior Court.
For assaulting a federal officer, the charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Norfolk County District Attorney Michael Morrissey made the announcement today. The Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorneys Glenn A. MacKinlay and Sarah B. Hoefle of Lelling’s Organized Crime and Gang Unit are prosecuting 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. PSN is 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.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Spray Painting Swastikas on Federal PropertyRead the Press Release
BOSTON – A Boston man was arrested on Friday and charged in connection with spray painting swastikas on the JFK Federal Building in Boston.
Gerard Richard Lee, 70, of Boston, was charged by criminal complaint with one count of injuring or depredating government property. Lee will make an initial appearance before U.S. Magistrate Judge Judith Dein this afternoon.
According to the charging documents, on Friday, Aug. 28, 2020, a police officer observed Lee spray paint graffiti, including swastikas, on the air intake stack at the JKF Federal Building in Boston.
The charging statute provides for a sentence of up to 10 years in prison, three years 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 and Timothy Bane, Regional Director of the Department of Homeland Security’s Federal Protective Service made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baltimore Robber Sentenced to over Six Years in Federal Prison for a String of 2018 Video Game Store RobberiesRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Stewart Williams, age 37, of Baltimore, to 77 months in federal prison, followed by three years of supervised release, for a federal robbery charge in connection with a series of four robberies of video game stores committed over a 12-day period. Judge Bredar previously sentenced co-defendant Kelvin McFadden, age 27, also of Baltimore, to 51 months in prison, followed by three years of supervised release for the same charge. Williams and McFadden admitted that they brandished what appeared to be a firearm during each of the four robberies.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Interim Chief William Lowry of the Anne Arundel County Police Department.
According to their guilty pleas, between August 21, 2018 and September 1, 2018, Williams and McFadden robbed four video game stores, stealing electronic retail goods, such as video game systems, and cash. In each robbery Williams and McFadden entered the store, brandished what appeared to be a gun while accosting the victim employees, stole money from cash registers and/or safes, and forced the victim employees in the store’s “backroom” which contained the more expensive electronic goods, including video game systems, which they also stole. Each of the four robberies was captured on store security cameras.
Specifically, Williams and McFadden robbed: a store located in the 3600 block of Washington Boulevard in Halethorpe, Maryland, on August 21, 2018, stealing $874 in cash and three video game systems; a store located in the 6900 block of Security Boulevard in Baltimore City on August 25, 2018, stealing $2,839.58 in cash and three video game systems; a store locate in the 1000 block of Taylor Avenue in Towson, Maryland, on August 28, 2018, stealing $414 in cash and six video game systems; and a store located in the 6700 block of York Road in Baltimore, on September 1, 2018, stealing $968 in cash and 12 video game systems.
After the last robbery, responding police officers located McFadden’s car as he and Williams fled the scene of the robbery. Police dispatched a helicopter that was able to locate McFadden’s car and follow it. The officer in the helicopter saw Williams and McFadden stop the car near North Stricker Street in Baltimore, flee from the car, bang on the back door of an apartment, and enter the apartment. Police secured the location and knocked on the apartment door. The resident allowed the police to come inside, where police located Williams and McFadden. Search warrants were obtained for the vehicle and for the apartment. Law enforcement recovered numerous video game systems matching those that were stolen in the last robbery, hats that matched those worn by McFadden and Williams in several of the robberies as captured on the store security cameras, cash recovered inside a black trash bag, a black air pistol that matched the apparent handgun used during the four robberies, and wallets and cell phones belonging to Williams and McFadden.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Baltimore City, the Baltimore County, and the Anne Arundel County Police Departments for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr. and Clinton J. Fuchs, who prosecuted the case.
# # #
Bakersfield Resident Sentenced for Selling MethamphetamineRead the Press Release
FRESNO, Calif. — Jesus Gonzalez, 29, of Bakersfield, California was sentenced to 188 months in prison for distributing methamphetamine, in violation of 21 U.S.C. § 841, United States Attorney McGregor W. Scott announced.
According to court documents, from April to May 2019, Gonzalez distributed pound quantities of methamphetamine during separate transactions. Gonzalez pled guilty to a two-count indictment on February 20, 2020. In his written plea agreement, Gonzalez acknowledged selling five pounds of methamphetamine on April 10 and 17, 2019 and on May 3, 2019. He was detained as of the date of his guilty plea.
This case is the product of an investigation by the Homeland Security Investigations (HSI), and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
Aberdeen Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Aberdeen, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm and Possession of a Firearm by a Prohibited Person.
Juan Shaw Smith, age 28, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 28, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 26, 2020, Smith having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing he had been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful user of a controlled substance, and knowing he was an unlawful user of a controlled substance did knowingly possess a firearm, which had been shipped and transported in interstate commerce and foreign commerce.
The charges are merely accusations and Smith is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Brown County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael Elmore is prosecuting the case.
Smith was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Friday 28 August 2020
Yaser Said Family Members Charged with Concealing '10 Most Wanted' Suspect from ArrestRead the Press Release
Two relatives of Yaser Said – a capital murder suspect arrested Wednesday – have been charged with helping Mr. Said evade capture for more than 12 years, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Islam Yaser-Abdel Said, Yaser’s 32-year-old son, and Yassein Said, Yaser’s 59-year-old brother, were arrested Wednesday in Euless, Texas by the FBI’s Dallas Violent Crimes Task Force and charged via criminal complaint with concealing a person from arrest. Both made their initial appearances before U.S. Magistrate Judge Hal R. Ray in Fort Worth Friday afternoon.
Yaser Said, 63, had been a fugitive from justice since New Year’s Day 2008, when he allegedly murdered his teenage daughters, Amina and Sarah. According to law enforcement, Yaser drove them to a location in Irving and shot them to death inside his taxicab, abandoning their bodies inside the vehicle. The following day, he was charged by the state with two counts of capital murder. In Dec. 2014, Yaser was placed on the FBI’s “Ten Most Wanted” list, where he remained until his capture this week.
“For years, Islam and Yassein Said — Sarah and Amina’s own brother and uncle – allegedly harbored the girls’ killer,” said U.S. Attorney Erin Nealy Cox. “In concealing Yaser Said from arrest, not only did these men waste countless law enforcement hours in the hunt for a brutal fugitive, they also delayed justice for Sarah and Amina. Thankfully, their day of reckoning has finally arrived. We are hopeful all three arrests will bring a measure of comfort to the girls’ mother, relatives, and friends.”
“The defendants provided aid and comfort to an individual who is accused of murdering his own daughters,” said FBI Dallas Special Agent in Charge of the Dallas Field Division Matthew DeSarno. “Harboring a dangerous fugitive is unacceptable. The FBI and our law enforcement partners will pursue anyone who helps a criminal evade capture.”
According to the criminal complaint against Islam and Yassein, nine years after the murder, on Aug. 14, 2017, investigators caught a break: A maintenance worker at the Copper Canyon Apartment complex in Bedford, Texas, spotted Yaser inside a unit leased to his son, Islam.
Dispatched to repair a water leak, the maintenance worker knocked on the apartment door, but when no one answered, he used a key to unlock it. To his surprise, he found the interior deadbolt locked, indicating someone was inside the apartment. He knocked again, announcing himself as a maintenance worker. A tall, middle-aged Middle Eastern man opened the door and permitted him to make the repairs.
The maintenance worker later reported the incident to his apartment manager, who was aware of Islam’s relationship to a fugitive. The maintenance worker confirmed to his boss that the photo on Yaser Said’s wanted poster matched the man he’d seen in the apartment, and the pair immediately contacted the FBI. That same day, FBI Dallas dispatched a Violent Crimes Task Force agent to interview the maintenance worker. The agent showed him photos of Yaser’s brothers, along with Yaser himself. The maintenance worker pinpointed Yaser as the man he’d seen in the apartment.
At approximately 6:30 p.m. that evening, the same agent attempted to interview Islam, asking him for permission to search the apartment. Islam, upset, allegedly refused to cooperate. He then called placed a call, saying, “we have a problem.” AT&T records indicate Islam was in contact with his uncles.
At 1 a.m. the following morning, the FBI Dallas SWAT team executed a search warrant on Islam’s apartment. Finding the front door locked, they were forced to breach the door. They did not discover anyone inside, but observed the sliding glass patio door open. Underneath the patio, they noticed a bush with broken branches, suggesting someone had jumped off the patio and landed on the bush. Next to the flattened bush, they found a pair of eyeglasses, which they collected as evidence.
Agents also collected several pieces of evidence from inside the apartment, including several cigarette butts and a toothbrush inside a luggage bag in a closet. The FBI Laboratory in Quantico, Virginia cross-referenced DNA found on these items with DNA collected from Amina and Sarah. Analyists determined a 1 in 5.3 quintillion probably that the DNA found on the cigarette butts, eyeglasses, and toothbrush came from Amina and Sarah’s biological father: Yaser Said.
Twelve days after the raid on the apartment, on August 26, 2017, Customs and Border Patrol located Islam more than 1,000 miles away, inside a car selected for secondary screening at the U.S. Canada border. The driver of the car, Hany Medhat, told CBP agents that he and Islam had decided to take a “crazy road trip;” however, a search of his phone revealed he’d told his employer he had a “family emergency.”
Three years later, on Aug. 17, 2020, FBI agents began 24-hour surveillance of a home in Justin, Texas, purchased in the name of Dalal Said, Yassein’s daughter. They watched Islam and Yassein allegedly drive up to the home, deliver grocery bags inside, and carry trash bags back to their car.
Two days later, at 11:51 p.m. on Aug. 19, after Yassein and Islam had departed the residence, agents observed what appeared to be a shadow of a person walk across the interior of the residence in front of window twice.
On Aug. 25, agents once again observed Islam and Yassein exit the home with two bags of trash:
The agents followed the pair to a shopping center in Southlake, TX, approximately 19 miles from the house. They watched as Islam exited the vehicle, and Yassein pulled around to the side of the shopping center. Once the vehicle had pulled out of the parking lot, agents began to dig through the garbage cans on the side of the shopping center.
Inside the garbage cans, they located two bags matching the bags they’d seen the men carrying out to the car. They seized the bags and transported them back to the FBI Field Office, where they found numerous cigarette butts and other garbage.
The following day, agents executed a search warrant on the home, where they arrested Yaser Said. They arrested Yassein and Islam at a separate location in Euless, Texas.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Yassein and Islam Said are presumed innocent unless and until proven guilty in a court of law, as is Yaser Said.
If convicted, Yassein and Islam face up to five years in federal prison. Yaser, indicted by the state on capital murder charges, faces the death penalty.
The Federal Bureau of Investigation’s Dallas Field Division and the Irving Police Department conducted the investigation with the assistance of U.S. Customs & Border Patrol, the Dallas Police Department, the Garland Police department, the Grand Prairie Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Tiffany Eggers and Errin Martin are prosecuting the case.
Woman Sentenced to Six Months in Prison for Visa Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of YURIDIA HERNANDEZ LINARES, 36, to six months in prison for conspiracy to commit visa fraud. LINARES was sentenced today by Chief Judge John R. Tunheim, in U.S. District Court in Minneapolis, Minnesota. After LINARES serves her prison sentence she will be removed from the United States to Mexico.
According to LINARES’ guilty plea and documents filed with the court, between August 20, 2019, and September 30, 2019, LINARES conspired with other individuals to defraud the United States by making false statements to fraudulently obtain U Nonimmigrant Visas (“U-Visas”), for four individuals. Victims of certain criminal activities that occur in the United States may be eligible to apply for and obtain a U Visa. A victim who obtains a U Visa may subsequently apply to U.S. Citizenship and Immigration Services (USCIS) to adjust their status to become a lawful permanent resident of the United States.
According to LINARES’ guilty plea and documents filed with the court, LINARES devised and participated in a detailed scheme, whereby the four individuals each falsely reported to the Eden Prairie Police Department that they were victims of robberies committed in Eden Prairie, Minnesota. LINARES directed the individuals to file a police report stating that they were a victim of a fabricated assault, and to corroborate each other’s account of the assault. LINARES used a box cutter or other sharp object to cut the four individuals before they filed their false report with the Eden Prairie Police Department. In exchange, LINARES collected a $2,000 fee from each individual.
This case is the result of an investigation conducted by the Eden Prairie Police Department and Homeland Security Investigations.
Assistant U.S. Attorneys Angela M. Munoz and Emily A. Polachek prosecuted the case.
Defendant Information:
YURIDIA HERNANDEZ LINARES, 36
City of residence unknown
Charges:
- Conspiracy to commit visa fraud, 1 count
Sentenced:
- 6 months in prison
- Removal from the United States to Mexico following the defendant’s prison sentence
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wilmington Gang Member Receives More Than 9 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Terrance Fisher, 29, of Wilmington, was sentenced yesterday to 112 months in prison for conspiracy to distribute and possess with the intent to distribute a quantity of heroin, distribution of a quantity of heroin and possession with intent to distribute a quantity of heroin.
According to court documents, on February 19, 2019, the Federal Bureau of Investigation’s (FBI) Safe Street Task Force and the Wilmington Police Department’s Narcotics and Gang Units conducted a controlled purchase of heroin from Fisher in the area of Market Street in Wilmington. On February 20, the FBI Task Force and Wilmington Police Detectives conducted a search of a room at the Suburban Extended Stay in Wilmington associated with Fisher. Law Enforcement found a quantity of heroin in the room. Fisher was not present at the time of the search, as he was visiting his North Carolina State Probation Officer. According to law enforcement, Fisher was a gang member in Wilmington and was part of a drug trafficking organization responsible for the importation and distribution of large amounts of heroin into Wilmington.
The investigation was part of OCDETF Operation Tiny Toon Adventure. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Gang that has been involved in the distribution of large quantity of heroin into Eastern North Carolina.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI’s Safe Street Task Force, New Hanover County Sheriff’s Office, and the Wilmington Police Department’s Gang Unit investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00111-FL-1.
###
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.
Wilkes-Barre Man Sentenced to 211 Months’ Imprisonment for Firearms and Drug Trafficking OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 27, 2020, Truman Jones, age 45, of Wilkes-Barre, Pennsylvania, was sentenced to 211 months’ imprisonment and four years of supervised release by United States District Judge Malachy E. Mannion, for heroin and crack cocaine trafficking and firearms offenses.
According to U.S. Attorney David J. Freed, Jones was convicted by a jury of all counts charged in the indictment: one count of conspiring to distribute 100 grams and more of heroin and crack cocaine, seven counts of distributing and possessing with intent to distribute heroin, and one count of possessing firearms in furtherance of his drug trafficking activities.
The evidence presented at trial showed that between the summer of 2015 and February 2016, Jones worked with several other individuals to distribute hundreds of grams of heroin and crack cocaine, often mixed with other controlled substances, including fentanyl, tramadol, and cocaine, in the Wilkes-Barre area. During a search warrant executed at a drug house maintained by Jones and another member of his conspiracy, the United States seized three loaded firearms, approximately 90 grams of heroin, and over $4,600. As a felon, Jones was prohibited from possessing firearms.
At sentencing, Jones was held accountable for at least 400 grams of heroin, which is the equivalent of approximately 16,000 potentially fatal doses of heroin, and for maintaining a drug stash house used to store, package, and sell narcotics. In pronouncing the sentence, Judge Mannion also highlighted Jones’s role as the leader of his drug trafficking organization, extensive criminal history, and the presence of young children when he was caught packaging heroin during a search warrant execution.
As part of the sentence, Judge Mannion forfeited two firearms and ammunition seized from Jones, multiple electronics, and $4,642. Investigators recovered and forfeited other firearms and ammunition from other codefendants.
Jones is the last defendant to be sentenced in this investigation. Five other members of his drug ring previously were sentenced after pleading guilty:
- Davon Beckford, of Wilkes-Barre, Pennsylvania, was sentenced to time served of approximately 13 months’ imprisonment and three years of supervised release. After violating the terms of his supervised release, Beckford was sentenced to an additional 6 months’ imprisonment.
- Jaquan Henderson, of Wilkes-Barre, Pennsylvania, was sentenced to 96 months’ imprisonment and three years of supervised release.
- Stephanie Walter, of Sugar Notch, Pennsylvania, was sentenced to two years’ probation.
- Al Dunlap, of Wilkes-Barre, Pennsylvania, was sentenced to 108 months’ imprisonment and three years of supervised release.
- Na’Deardra Mayhams, of Wilkes-Barre, Pennsylvania, was sentenced to 66 months’ imprisonment and three years of supervised release.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Wilkes-Barre Police Department, the Luzerne County Drug Task Force, and the Pennsylvania State Police. Assistant United States Attorneys Phillip J. Caraballo and Jenny Roberts 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 also is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case further was 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.
# # #
Whitesburg Woman Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
LONDON, Ky. - A Whitesburg, Ky., woman, Sherry Thomas, 50, pleaded guilty on Thursday, before U.S. District Judge Claria Horn Boom, admitting to wire fraud and aggravated identity theft.
According to her plea agreement, Thomas was employed as the office manager and bookkeeper for the Carbon River Coal Corporation, from the 1980s until January 2019. While working there, rather than paying the appropriate expenses and taxes for the Corporation, Thomas engaged in a scheme to defraud the Corporation of its funds. Specifically, between July 18, 2013 and November 21, 2018, Thomas wrote 173 checks to herself, from the Corporation’s accounts, totaling $238,052.23, and deposited them into her personal account. In writing the checks, Thomas forged the signature stamp of the Vice President of the Corporation, without his permission.
Thomas was indicted in December 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the guilty plea.
The investigation was conducted by IRS Criminal Investigations and the Department of the Treasury Inspector General for Tax Administration. The United States was represented by Assistant U.S. Attorney Nick Rabold.
Thomas is scheduled to be sentenced on December 8, 2020. She faces a maximum of 20 years in prison for the wire fraud, a minimum of two years consecutive for the identity theft, and a maximum fine of $500,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
— END —
White River Junction Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONCORD - Hallet Merrick, 34, of White River Junction, pleaded guilty in federal court on Thursday to unlawfully possessing a firearm and fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 20, 2019, Lebanon Police officers made contact with Merrick and arrested him on a warrant for failing to appear in Grafton County Superior Court. During searches of his person incident to his arrest, officers discovered approximately six grams of fentanyl, which Merrick claimed was for personal use. Officers also discovered a handgun in his sweatshirt pocket. As a convicted felon, Merrick is legally prohibited from possessing firearms.
Merrick is scheduled to be sentenced on December 10, 2020.
“Federal law prohibits convicted felons from possessing firearms,” said U.S. Attorney Murray. “This restriction is intended to reduce violent crime and thereby protect the public. To accomplish this goal, we will continue to work closely with ATF as well as state and local law enforcement agencies.”
This matter was investigated by the Lebanon Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
###
Virginia Man Sentenced for $3.2 Million Romance Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Dumfries, Virginia, man has been sentenced in federal court for his role in wire fraud and money laundering conspiracies as part of a $3.2 million romance fraud scheme.
Henry N. Asomani, 35, a naturalized U.S. citizen from Ghana, was sentenced by U.S. District Judge Roseann Ketchmark on Tuesday, Aug. 25, to 10 years in federal prison without parole. The court also ordered Asomani to pay $3.2 million in restitution to his victims, and to forfeit to the government the money he profited from the scheme.
On Dec. 13, 2019, Asomani was found guilty at trial of one count of conspiracy to commit wire fraud, two counts of wire fraud, one count of conspiracy to commit money laundering, and two counts of money laundering.
Asomani was the middle man who received the proceeds of the fraud conspiracy from victims and transferred the proceeds to unknown co-conspirators. Asomani transferred the funds among various accounts; he kept a portion of the proceeds for himself, and funneled the rest of the proceeds to co-conspirators in Ghana. Asomani operated five different companies with 16 different accounts at eight different banks.
Asomani received funds sent by more than a dozen victims across the United States, including three victims in the Kansas City metropolitan area, from Sept. 15, 2015, to Oct. 17, 2017. Although bank investigators and FBI agents warned Asomani that his bank accounts were receiving the proceeds of a fraud scheme, he continued to receive the funds and simply opened new accounts when funds were frozen, or accounts were closed by the banks.
Unknown co-conspirators targeted victims through online dating websites with various romance frauds. The unknown co-conspirators impersonated individuals who were involved in businesses overseas. They convinced the victims that they needed funds to help with moving gold from a foreign country, orphanage expenses, and school and travel expenses. The co-conspirators told the victims they would share the profits when the gold was returned to the United States. In fact, none of the victims received any profit or received any gold from the co-conspirators.
According to court documents, some victims suffered substantial financial hardship as a result of the fraud scheme. Some victims lost their retirement savings and some victims were forced to declare bankruptcy. Some victims borrowed money or took cash advances from credit cards in order to send money.
The trial testimony from 13 victims established a loss of over $3.2 million. For example, one victim who resided in Lee’s Summit, Missouri, set up a profile on ChristianMingle.com following the death of her husband to brain cancer. In October 2015, an individual claiming to be “Larry B. White” initiated contact with her. Following numerous conversations by email and telephone, “White” convinced the victim to invest in a Ghana gold mine. “White” promised a 40 percent return on the investment of money. From November 2015 through January 2016, under the direction of “White,” the victim sent funds to multiple entities by check and wire totaling approximately $3,292,000. Of that amount, $2,292,000 was transferred to accounts controlled by Asomani. Asomani spent $50,000 of those proceeds to make a down payment on a 2019 silver Lexus NX300. The victim never received any money or gold profits from “White.”
Another victim, who resides in Kansas City, Missouri, met “Bradley Fischer” on ChristianMingle.com. “Fischer” convinced the victim to send funds for school expenses, travel expenses, and to start a new life in Kansas City. On July 19, 2017, the victim wired $24,000 to Asomani’s bank account. “Fischer” promised to pay the victim back when he got to Kansas City. The victims received $1,000 back from “Fischer” after she realized she was being defrauded and confronted the individual.
Other victims reside in New Jersey, Alaska, Oklahoma, Florida, Texas, Kansas, and Iowa.
Asomani wired $1,789,416 from his bank accounts in the United States to bank accounts in Ghana. He spent approximately $342,278 on auto purchases and auto- or shipping-related expenses as part of the money-laundering scheme. Asomani shipped 18 vehicles to Ghana, having a declared value of approximately $284,190.
This case was prosecuted by Assistant U.S. Attorneys Paul S. Becker and Matthew Blackwood. It was investigated by the FBI.
University of Virginia Researcher Charged with Theft of Trade Secrets and Computer IntrusionRead the Press Release
CHARLOTTESVILLE, Va. – Haizhou Hu, a Chinese national conducting research at the University of Virginia, was arrested today and charged via criminal complaint with a pair of federal crimes just days after he attempted to board a flight to China. United States Attorney Thomas T. Cullen and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division announced the arrest.
Hu, 34, is charged with accessing a computer without authorization, or exceeding authorization to obtain information from a protected computer and theft of trade secrets.
According to court documents, investigators first became aware of Hu, who is in the United States conducting research studying bio-mimics and fluid dynamics at the University of Virginia, on August 25, 2020 when he attempted to board a flight to China at Chicago’s O’Hare International Airport. A routine screening conducted by authorities revealed that Hu was alleged to be in possession of bio-inspired research simulation software code that he was not authorized to possess, and which represented the result of years of research and resources in its development by members of the University of Virginia academic community.
The investigation of the case is being conducted by the Federal Bureau of Investigation. First Assistant United States Attorney Daniel P. Bubar and Assistant United States Attorney Christopher Kavanaugh are prosecuting the case for the United States.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
United States Reaches $2.1M Settlement with Ward Transformer Company for Recoupment of Cleanup Costs at Superfund Site Near RDU International AirportRead the Press Release
United States Attorney Robert J. Higdon, Jr. and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Ward Transformer Company (Ward Transformer) requiring the company to pay $2,135,000 to the United States for hazardous substance cleanup costs at the Ward Transformer Superfund Site (Site) located near the Raleigh-Durham International Airport in Raleigh, North Carolina. The Site was listed on EPA’s National Priorities List in 2003 as a result of Ward Transformer’s spill and release of hazardous substances, including polychlorinated biphenyls (PCBs), at the Site during the manufacture and repair of transformers and other electrical equipment. The Company ceased operations in 2006. Extensive cleanup has already been completed at the Site, and this settlement recoups unreimbursed costs.
The settlement arose out of a civil condemnation action brought by Raleigh-Durham Airport Authority (RDU) against Ward Transformer to acquire the property for an RDU expansion project, RDU v. Ward Transformer, et al, Case No. 5:19-cv-304-D. The United States was named as a party to that lawsuit because of federal liens on the Site resulting from environmental cleanup costs under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), also known as the Superfund Law.
The settlement provides that $2,135,000 of the funds RDU would have paid to Ward Transformer for the property will instead be paid to EPA for unreimbursed cleanup costs. Ward Transformer agreed to reimburse EPA for these cleanup costs in exchange for a release from EPA and protection from suit by third parties.
“Ward Transformer’s environmental violations many years ago were egregious, and their impact has been significant and long-lasting – to both the environment and the American taxpayer,” said United States Attorney Robert J. Higdon, Jr. “This recovery represents an important victory for the American taxpayer, and we will continue to hold Ward Transformer and others accountable for violating federal laws that serve to protect our environment and natural resources.”
“EPA has overseen extensive cleanup work at the Ward Transformer Superfund Site, including the removal of over 420,000 tons of PCB-contaminated material in 2006 and ongoing work to cleanup the remainder of the Site,” said EPA Region 4 Administrator Mary S. Walker. “This agreement demonstrates EPA’s commitment to hold companies responsible for the costs of cleaning up contamination released into the environment.”
The United States Attorney’s Office previously brought criminal and civil actions against Ward Transformer and its owner, Robert Earl Ward, Jr. (Ward) (now deceased), for related environmental violations. Ward was criminally prosecuted for knowingly causing PCBs to be illegally dumped in violation of law, United States v. Robert Earl Ward, Jr., Case No. 5:79-cr-004-BR. Additionally, the United States obtained a civil judgment against Ward and Ward Transformer for $3,339,836 in cleanup costs, Case No. 83-63-CIV-5-BR. Subsequently, the United States brought another civil action and obtained a Consent Decree related to the Site, United States v. North Georgia Electric Membership, et al, Case No. 5:16-cv-820-FL. To date, EPA and private parties have spent over $90 million to clean up the Site.
The settlement was subject to a 30-day public comment period, which has expired, and approval by the Court.
Assistant United States Attorney Neal Fowler, EPA Associate Regional Counsel Jade Rutland, and Department of Justice Environment and Natural Resource Division Attorneys Andrew Ingersoll and Esperanza Anderson represented the United States in this civil action.
# # #
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.
U.S. Seizure of Three Websites Used by Iranian Front Company that Was Shipping Fuel on Four Tankers to VenezuelaRead the Press Release
WASHINGTON - The Justice Department today announced the seizure of three websites used by three front companies: Mobin International, Sohar Fuel, and Oman Fuel, that arranged a multimillion dollar fuel shipment by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, that was bound for Venezuela.
On July 2, 2020, the United States filed a complaint seeking to forfeit all petroleum-product cargo aboard four foreign-flagged oil tankers, including the M/T Bella with international maritime organization (IMO) number 9208124, the M/T Bering with IMO number 9149225, the M/T Pandi with IMO number 9105073, and the M/T Luna with IMO number 9208100. A seizure order for the cargo from all four vessels was issued by U.S. District Court Judge Boasberg of the U.S. District Court for the District of Columbia.
On August 14, 2020, the United States announced that it successfully executed the seizure order and confiscated the cargo from all four vessels, totaling approximately 1.116 million barrels of petroleum. With the assistance of foreign partners, this seized property is now in U.S. custody.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.
The forfeiture complaint alleged how Mohammad Madanipour used a web of front companies, including Mobin International to perpetrate this scheme. The websites for Mobin International and related front companies, Sohar Fuel, and Oman Fuel, now display the following splash page noting control by the U.S. government:
Pursuant to 18 U.S.C. § 2232, interfering with lawful execution of the United States seizure order may subject a party to criminal penalties for interfering with the jurisdiction of the U.S. District Court for District of Columbia over the petroleum cargo.
A warrant for arrest and civil forfeiture complaint are merely allegations. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
HSI’s Colorado Springs and FBI’s Minneapolis field office are investigating the case. The case is being handled by the National Security Division and the U.S. Attorney's Office for the District of Columbia. The Money Laundering and Asset Recovery Section is managing the seizure and forfeiture process. Assistant U.S Attorneys Zia M. Faruqui, Brian Hudak, Stuart Allen, and Jessi Brooks, and National Security Division Trial Attorney David Lim are litigating the case, with assistance from Paralegal Specialists Elizabeth Swienc, Legal Assistant Jessica McCormick, and Records Examiner Angela De Falco.
U.S. Seizure of Three Websites Used by Iranian Front Company that Was Shipping Fuel on Four Tankers to VenezuelaRead the Press Release
The Justice Department today announced the seizure of three websites used by three front companies: Mobin International, Sohar Fuel, and Oman Fuel, who arranged a multimillion dollar fuel shipment by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, that was bound for Venezuela.
On July 2, 2020, the United States filed a complaint seeking to forfeit all petroleum-product cargo aboard four foreign-flagged oil tankers, including the M/T Bella with international maritime organization (IMO) number 9208124, the M/T Bering with IMO number 9149225, the M/T Pandi with IMO number 9105073, and the M/T Luna with IMO number 9208100. A seizure order for the cargo from all four vessels was issued by U.S. District Court Judge Boasberg of the U.S. District Court for the District of Columbia.
On Aug. 14, 2020, the United States announced that it successfully executed the seizure order and confiscated the cargo from all four vessels, totaling approximately 1.116 million barrels of petroleum. With the assistance of foreign partners, this seized property is now in U.S. custody.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.
The forfeiture complaint alleged how Mohammad Madanipour used a web of front companies, including Mobin International to perpetrate this scheme. The websites for Mobin International and related front companies, Sohar Fuel, and Oman Fuel, now display the following splash page noting control by the U.S. government:
Pursuant to 18 U.S.C. § 2232, interfering with lawful execution of the United States seizure order may subject a party to criminal penalties for interfering with the jurisdiction of the U.S. District Court for District of Columbia over the petroleum cargo.
A warrant for arrest and civil forfeiture complaint are merely allegations. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
HSI’s Colorado Springs and FBI’s Minneapolis field office are investigating the case. The case is being handled by the National Security Division and the U.S. Attorney's Office for the District of Columbia. The Money Laundering and Asset Recovery Section is managing the seizure and forfeiture process. Assistant U.S Attorneys Zia M. Faruqui, Brian Hudak, Stuart Allen, and Jessi Brooks, and National Security Division Trial Attorney David Lim are litigating the case, with assistance from Paralegal Specialists Elizabeth Swienc, Legal Assistant Jessica McCormick, and Records Examiner Angela De Falco.
Two Men Who Allegedly Used Synthetic Identities, Existing Shell Companies, and Prior Fraud Experience to Exploit Covid-19 Relief Programs Charged in Miami Federal CourtRead the Press Release
Miami, Fl. -- Federal prosecutors have charged two Florida residents with bank fraud conspiracy for allegedly using synthetic identities to commit crimes, including defrauding banks and stealing over $3 million from Covid-19 relief programs.
Synthetic identities combine real (albeit stolen) identity information, such as stolen social security numbers, with fraudulent identity information, such as fake names and dates of birth. Criminals create these synthetic identities and use them to open fraudulent bank and credit card accounts, and to make fraudulent purchases.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General – Investigations (FDIC-OIG), Atlanta Region, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Kevin A. Kupperbusch, Special Agent in Charge, U.S. Small Business Administration, Office of Inspector General (SBA-OIG), Investigations Division, Eastern Region, Rod Owens, Special Agent in Charge, Social Security Administration, Office of the Inspector General, Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and James S. Jackson, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
According to the criminal complaint affidavit, beginning around 2017, Jean Fleuridor, 41, of Broward County, Florida and Hasan Brown, 44, of Miami-Dade County, Florida, and their co-conspirators were involved in a scheme to defraud a bank located in San Antonio, Texas. They used approximately 700 synthetic identities, in addition to stolen identities, to create bank accounts and shell companies. According to the criminal complaint, fraudulent payments were made from accounts registered to synthetic identities to accounts registered to defendants Brown and Fleuridor.
From about April through July of 2020, members of the conspiracy allegedly utilized the already-established synthetic identities and associated shell companies to fraudulently apply for assistance under the Paycheck Protection Program (PPP), a program established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to help small businesses financially survive the pandemic. According to the complaint, the defendants fraudulently sought and received over $3 million dollars in PPP relief. This money was paid to companies registered to the synthetic identities.
Defendant Fleuridor had his initial appearance on August 26, 2020, and defendant Brown had his initial appearance on August 28, 2020, both before U.S. Magistrate Judge Alicia M. Otazo-Reyes. A copy of the criminal complaint and affidavit is attached to this release.
FDIC-OIG, USSS Miami, SBA-OIG, SSA-OIG, USPIS, and TIGTA are handling the investigation. Assistant U.S. Attorney Brooke Watson, of the Southern District of Florida, is prosecuting the case. Assistant U.S. Attorney Nicole S. Grosnof, also of the Southern District of Florida, is handling asset forfeiture. Trial Attorney Louis Manzo, from the Department of Justice, Criminal Division, Assistant U.S. Attorney Lauren Elbert, of the Eastern District of New York, and Assistant U.S. Attorney Trenton Reichling, of the Middle District of Florida, provided assistance.
In March 2020, the CARES Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information appear on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 20-mj-03472-AOR.
Attachment
Criminal complaint and affidavitTwo Men Involved in Large-Scale Heroin Ring Sentenced to a Decade in Federal PrisonRead the Press Release
A Chicago man and a Cedar Rapids man who conspired with each other and others to sell heroin in Cedar Rapids were recently each sentenced to ten years in prison.
Devontae Horton, age 28, from Cedar Rapids, Iowa, received the prison sentence on August 27, 2020, after he was found guilty during a February 2020 jury trial. The jury found Horton guilty of conspiring to distribute 100 grams or more of heroin and distribution of heroin.
Sean Jarel Williams, age 31, from Chicago, Illinois, received the prison sentence today after a January 21, 2020 guilty plea to conspiracy to distribute at least 1,000 grams of heroin.
Evidence at Horton’s trial, and at both men’s sentencing hearings, showed that between approximately June 2015 and April 2019, Horton, Williams, and up to eleven others, conspired to distribute heroin in the Cedar Rapids area. The group was known as the “Ferrari” group. The members used one phone number, known as the “Ferrari phone”, to arrange and conduct heroin transactions. At times, ten to twenty people a day called the phone for the sole purpose of purchasing heroin.
In October 2018, Cedar Rapids police officers attempted to stop a vehicle occupied by Horton and another member of the Ferrari group. Horton tried to get away from police but was eventually apprehended. Officers located over $3,000 in cash in Horton’s front pocket. The cash was drug proceeds. In October 2018, Horton sold heroin directly to a confidential source. Investigators had arranged the transaction by calling the “Ferrari” phone.
Williams also used the “Ferrari” phone to arrange heroin transactions. Williams was also stopped by police in July 2017 travelling from Chicago to Cedar Rapids. At the time, Williams had approximately 350 grams of heroin in his vehicle that he intended to distribute in the Cedar Rapids area.
Bother Horton and Williams were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Each was sentenced to 120 months’ imprisonment and must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
“The ‘Ferrari’ group was a menacing source of deadly opioids in our community for far too long,” said United States Attorney Peter Deegan. “With these most recent sentencings, seven members of this criminal enterprise have now been brought to justice. This is a significant law enforcement achievement, but the battle against opioids continues. We will continue to work with our law enforcement and community partners to take the fight to the dealers and support those who struggle with addiction.”
Horton and Williams are the last of seven men who were charged together on April 24, 2019, for their role in the “Ferrari” group. The following have already been sentenced for their roles in distributing heroin for the “Ferarri” group:
Walter Malano Collins Murray, Jr., age 19, from Cedar Rapids, Iowa, was sentenced to 37 months’ imprisonment on December 30, 2019, following a guilty plea to conspiracy to distribute at least 100 grams of heroin.
Cortez Nelson, age 30, from Chicago, Illinois, was sentenced to 151 months’ imprisonment on May 20, 2020, following a guilty plea to conspiracy to distribute at least 1,000 grams of heroin.
Dewon Earl Meeks, age 30, from Cedar Rapids, Iowa, was sentenced to 71 months’ imprisonment on May 20, 2020, following a guilty plea to conspiracy to distribute at least 100 grams of heroin.
Anthony Ricks, age 31, from Chicago, was sentenced to 70 months’ imprisonment on July 10, 2020, following a guilty plea to conspiracy to distribute at least 100 grams of heroin.
Jarel Shawn Williams, age 23, from Chicago, Illinois, was sentenced to 127 months’ imprisonment on June 1, 2020, following a guilty plea to conspiracy to distribute at least 1,000 grams of heroin.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, Cedar Rapids Police Department, Marion Police Department, and the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-45.
Follow us on Twitter @USAO_NDIA.
Twenty-One Defendants Face Federal Methamphetamine and Cocaine Conspiracy ChargesRead the Press Release
Over the past two weeks, federal, state and local authorities have arrested 21 individuals in connection with a cocaine and methamphetamine trafficking operations based in the Austin area, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division.
Two federal grand jury indictments returned in Austin charge the defendants with conspiring to distribute a controlled substance. Each of the cocaine distribution conspiracies allegedly involved more than 500 grams of cocaine. The methamphetamine conspiracy allegedly involved more than 50 grams of methamphetamine.
During this investigation, authorities have seized approximately 50 kilograms of methamphetamine, four kilograms of heroin, over two kilograms of cocaine, approximately 50 pounds of marijuana, multiple firearms and more than $473,000 in assets, including over $423,000 in U.S. Currency, attributed to this organization.
The defendants include: 25-year-old Juan Miguel Campuzano-Rebollar of Austin; 39-year-old Santana Olmedo-Carbajal of Cedar Creek, TX; 52-year-old Jose Miguel Campuzano-Gonzalez of Austin; 26-year-old Saudiel Granados-Cruz of Austin; 22-year-old Narciso Osorio-Aquino of Austin; 44-year-old Martha Yanez of Elgin, TX; 21-year-old Blanca Arce-Mora of Austin; 50-year-old Jose Ramiro Castellan-Ortiz of Austin; 26-year-old Jose Cruz-Licona of Austin; 22-year-old Blanca Arteaga of Austin; 33-year-old Antonio Benitez-Ugarte of Austin; 28-year-old Iris Garcia of Austin; 33-year-old Jose Rivera-Benitez of Austin; 55-year-old Edward Keane of Perryopolis, PA; 48-year-old William Sump of Port Lavaca, TX; 59-year-old Elvis Jackson of Taylor, TX; 59-year-old Angela Eans of Bastrop, TX; 46-year-old Hulan McCoy of Bastrop; 37-year-old Christopher Henderson of Bastrop; 35-year-old Brandon Carter of Bastrop; and, 34-year-old Joshua Haywood of Austin.
“The arrests made over the last couple of weeks in Austin and the surrounding area conclude a comprehensive investigation targeting the criminal activities of a violent local street gang and their Mexican Cartel sources of supply,” said DEA Special Agent in Charge Whipple. “The DEA, along with our state and local law enforcement partners, will continue to pursue any individual or organization that threaten the well-being and stability of our communities. Nothing is more critical than the safety and security of our citizens.”
The 14 defendants charged with crimes carrying mandatory-minimum prison sentences (Campuzano-Rebollar, Olmedo-Carbajal, Campuzano-Gonzalez, Granados-Cruz, Osorio-Aquino, Yanez, Arce-Mora, Castellan-Ortiz, Cruz-Licona, Keane, Sump, McCoy, Carter and Haywood) face between five and 40 years in federal prison upon conviction. The remaining defendants face up to 20 years in federal prison upon conviction.
Jackson, Eans, McCoy, Henderson, Carter and Haywood were arrested yesterday morning on these charges. McCoy, Carter and Haywood remain in custody pending detention hearings expected to occur next week in U.S. Magistrate Court in Austin.
“With the arrest of these individuals our residents can feel safer knowing that the flow and distribution of illegal drugs in Bastrop County has been interrupted,” stated Bastrop County Sheriff Maurice Cook. “This offender roundup is a great example of when law enforcement agencies work together.”
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the DEA, FBI, Austin Police Department, Cedar Park Police Department, Texas Department of Public Safety, Hays County Sheriff’s Office, IRS-CI and the Bastrop County Sheriff’s Office. U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) assisted with the arrests. Assistant U.S. Attorneys Gabriel Cohen and Kathryn Cherry are prosecuting this case on behalf of the government.
#####
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.
Three Men Sentenced in Money Laundering, Identity Theft SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of VLADIMIR VALENTINOVICH CHEVTAYEV, 44, to 26 months in prison for conspiracy to commit money laundering. CHEVTAYEV, who was sentenced on August 25, 2020, pleaded guilty on January 25, 2019, to one count of conspiracy to commit money laundering. CHEVTAYEV is the third man to be sentenced as part of a money laundering conspiracy used to defraud financial institutions through an elaborate auto-financing scheme.
Co-defendant RUSLAN FURMAN, 45, who pleaded guilty on January 13, 2019, was sentenced on May 29, 2020 to 24 months in prison for aggravated identity theft. Co-defendant THOMAS POPLAR, 46, who pleaded guilty on October 2, 2018 to one count of conspiracy to commit money laundering, was sentenced on August 17, 2020, to 37 months in prison. All three defendants were sentenced by Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.
From 2013 through 2016, CHEVTAYEV, an officer at All Auto Care, an auto repair business located in Hopkins, Minnesota, conspired with FURMAN, POPULAR and others to defraud financial institutions out of money through an elaborate auto-financing scheme. All Auto Care had a dealership license that permitted it to buy and sell vehicles at auto auctions in the State of Minnesota. As part of the scheme, the vehicles were “sold” by CHEVTAYEV, and others through All Auto Care to a Dodge dealership located in Gurnee Illinois, where POPLAR and FURMAN worked. CHEVTAYEV, FURMAN, POPLAR and others committed the fraud by applying for fraudulent vehicle financing using deceased buyer’s names, stolen identities, or by paying people for the use of their information to buy luxury vehicles. Often times, the vehicles financed were involved in accidents, were not worth the amount financed, or did not actually exist. After receiving the loan proceeds, the conspirators made a nominal number of “lulling” payments to make the loans appear legitimate when in actuality the men laundered the funds through various bank accounts they controlled.
This case is the result of an investigation conducted by the Criminal Investigation Division of the Internal Revenue Service, the Federal Bureau of Investigation, the Plymouth, Minnesota Police Department, and the Gurnee, Illinois Police Department.
Assistant United States Attorney Julie E. Allyn prosecuted the case.
Defendant Information:
VLADIMIR VALENTINOVICH CHEVTAYEV, 44
Plymouth, Minn.
Convicted:
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 26 months in prion
- $456,157.77 in restitution (split jointly)
- 2 years supervised release
THOMAS POPLAR, 46
McHenry, Illinois
Convicted:
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 37 months in prison
- $543,973 restitution (split jointly)
- 2 year supervised release
RUSLAN FURMAN, 45
Deerfield, Illinois
Convicted:
- Aggravated Identity Theft, 1 count
Sentenced:
- 24 months in prison
- $298,644 restitution (split jointly)
- 1 year supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tennessee Man Charged with Wire FraudRead the Press Release
NEWARK, N.J. – A Tennessee man charged with two counts of wire fraud will make his initial appearance before a New Jersey judge today, U.S. Attorney Craig Carpenito.
Ketan Ghutadaria, 50, of Johnson City, Tennessee, is charged by complaint with two counts of wire fraud and is scheduled to appear by videoconference before U.S. Magistrate Judge Edward S. Kiel. Ghutadaria was arrested in Tennessee on Aug. 13, 2020, by inspectors of the U.S. Postal Inspection Service (USPIS) and appeared before U.S. Magistrate Judge Cynthia Richardson Wyrick in Greenville, Tennessee, federal court.
According to documents filed in this case and statements made in court:
From March 2018 through September 2018, Ghutadaria used a company’s bank account information to pay off his personal financial debts and without prior approval or authorization. Ghutadaria authorized companies to submit Automated Clearing House (ACH) debit transactions for bill payments, which were deducted from the victim company’s bank account in New York. During many of these transactions, Ghutadaria falsely represented that he was the authorized account holder for the victim company’s bank account. Ghutadaria used some of the fraudulently obtained funds to pay for a new 2017 Audi Q7 and a new 2017 Audi A6. Ghutadaria authorized 31 fraudulent ACH debit transactions utilizing the victim company’s bank account information.
The charge of wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine, or twice the gross pecuniary gain or loss from the offense, whichever is greater.
U.S. Attorney Carpenito credited postal inspectors from the USPIS, Newark Division, under the direction of Inspector in Charge James Buthorn; postal inspectors from the USPIS – Knoxville Domicile, Atlanta Division, under the direction of Inspector in Charge Tommy Coke; the U.S. Marshals Service from the Eastern District of Tennessee, under the direction of U.S. Marshal David Jolley; and the Hudson County Prosecutor’s Office Special Investigations Unit, under the direction of Prosecutor Esther Suarez with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Tax preparer sent to prison after causing more than $3 million in fraudulent tax returnsRead the Press Release
HOUSTON - A suburban Houston-area man has been ordered to prison following his convictions of 15 counts of fraud and tax violations, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury convicted Winfred Fields Feb. 13 following a two-week trial.
Today, U.S. District Judge Ewing Werlein Jr. handed Fields a 109-month sentence to be immediately followed by three years of supervised release.
Fields operated tax and bookkeeping businesses from an office on Richmond Avenue in Houston for many years under the business names Fields Enterprises, Your Tax Professionals and The Tax Boss.
At trial, the jury heard Fields participated in a scheme involving the submission of U.S. Individual Tax Returns on behalf of foreign people working on vessels on the Outer Continental Shelf of the United States. These crewmembers were engaged in oil and gas exploitation activities in the Gulf of Mexico.
“In order to enrich himself and line his own pockets, the defendant mislead his clients by falsely claiming an international tax treaty was justification for amending their tax returns,” said Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation’s (CI) Houston Field Office. “As shown by today’s sentencing, this type of deceit will not go unpunished. IRS-CI will continue to protect the public by pursuing unscrupulous tax return preparers.”
“Tax fraud schemes have been around for many years,” said Inspector in Charge Adrian Gonzalez of the Houston Division of the U.S. Postal Inspection Service (USPIS). “USPIS is committed to working with our law enforcement partners to ensure the U.S. Mails are not used as a tool to facilitate these fraudulent schemes. The arrest and sentencing of Winfred Fields was a direct result of the collaborative efforts between the USPIS and IRS-CI.”
At trial, the evidence showed Fields falsely claimed workers were exempt from U.S. tax under a tax treaty between the United States and the United Kingdom, Spain or New Zealand. The employing companies had previously provided to the IRS withholdings from the worker’s wages and reported the income to the IRS. However, Fields submitted amended tax returns as well as original nonresident tax forms 1040NR claiming a refund of the entirety of the amounts paid in as U.S. taxes for various tax years including 2007 through 2012.
Fields charged a fee of $2,500 for each crew member’s first return and required a $1,000 fee for each return thereafter. He required direct receipt of the refunds so he could negotiate the checks and take his fee off the top. Fields had some refund checks deposited directly into one of several bank accounts he maintained. Alternatively, he cashed the checks at a Houston check cashing business or had the checks deposited into one of several attorney trust accounts three different Houston lawyers had maintained. Fields gathered the check proceeds or deposited them into the attorney trust accounts after paying a fee to the check cashing business and the attorneys for the service of cashing the U.S. Treasury checks. Fields deposited the proceeds in one of several bank accounts he utilized during the scheme.
Fields agreed to provide the remainder of the refund proceeds to the foreign clients. He did that for a while, but ultimately stopped forwarding any money to the workers. As those individuals began contacting him to ask for updates on their refund claims, he repeatedly sent misleading and materially false responses to their questions.
The jury heard that Fields fraudulently obtained $3,097,974.19 in tax refunds from the IRS and kept approximately $1,302,271.75 for himself.
The defense attempted to convince the jury he acted in good faith and believed the wages were exempt. He also claimed he was trying to pay the crewmembers their refunds but just got behind. The jury rejected Fields’ contentions in their verdict and found him guilty as charged on all 15 counts.
Fields was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the future.
IRS - CI and USPIS conducted the investigation. Assistant U.S. Attorneys Melissa Annis and Charles Escher prosecuted this case.
Taunton Woman Indicted on Cocaine Possession ChargeRead the Press Release
BOSTON – A Taunton woman was indicted yesterday by a federal grand jury on cocaine possession charges.
Kiyanna Ambers, 42, was indicted on one count of possessing with intent to distribute 28 grams or more of cocaine base, and cocaine. Ambers was previously arrested and charged by criminal complaint with possession of cocaine on June 29, 2020.
According to charging documents, Ambers was found in possession of at least 28 grams or more of cocaine on June 29, 2020. Investigators also seized approximately $11,462 from Ambers.
The charge of possession with intent to distribute 28 grams or more of cocaine base provides for a minimum of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tacoma man charged with unlawful possession of destructive device at Capitol Hill protest that turned violentRead the Press Release
(Seattle)—A 19-year-old Tacoma man who attended a Seattle protest armed with an improvised explosive device is now charged federally, announced U.S. Attorney Brian T. Moran. SAMI C. HORNER is charged with unlawful possession of a destructive device. HORNER made his initial appearance on the charge today in U.S. District Court in Seattle.
According to the criminal complaint, on Wednesday night, August 26, 2020, HORNER was identified in a group of people that first assembled at Volunteer Park on Seattle’s Capitol Hill. As the group marched on 15th Avenue East, HORNER was observed smashing windows at a bank branch. HORNER was chased down and arrested. In his backpack law enforcement found a glass bottle with a wick, filled with flammable material. HORNER also carried two lighters, a helmet, a mask with filters, and a walkie-talkie. The glass bottle, more commonly referred to as a Molotov Cocktail, fits the legal definition of an incendiary device.
Possession of an improvised explosive device is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Thomas Woods.
Suburban Chicago Restaurateur Charged with COVID-Relief FraudRead the Press Release
CHICAGO – The owner of a restaurant in suburban Chicago has been indicted on a federal fraud charge for allegedly fraudulently obtaining more than $175,000 in a forgivable Paycheck Protection Program loan guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
MELISSA TURASKY, 43, of Lake in the Hills, Ill., was charged in an indictment returned Thursday in the Northern District of Illinois with one count of bank fraud and one count of making false statements to a financial institution. Arraignment in U.S. District Court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Christopher Diiorio, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The U.S. Small Business Administration participated in the investigation.
The government is represented by Assistant U.S. Attorney Alexandra Morgan.
“The Paycheck Protection Program was designed as a lifeline for small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to root out abuse of the important relief programs established under the CARES Act.”
The CARES Act was enacted in March to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the PPP, which allows qualifying small businesses and other organizations to receive loans with a maturity of two years and a low interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within 24 weeks of receipt and use at least 60% of the forgiven amount for payroll.
According to the indictment, Turasky owned Gifford’s Bar and Restaurant, which did business as Gifford’s Kitchen and Social, in Elgin, Ill. In early March, Gifford’s was no longer operational and had been evicted from its restaurant rental space. By the end of March, all of Gifford’s employees had been terminated, the indictment states.
Turasky applied for and obtained $176,822 in PPP funds for Gifford’s by submitting a fraudulent loan application to a bank, the indictment states. Turasky fraudulently provided figures approximating Gifford’s monthly payroll and other business expenses, to make it falsely appear that Gifford’s continued to have payroll and business operating expenses, the indictment states.
The public is reminded that an indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The bank fraud and false statement charges are each punishable by up to 30 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.