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28 August 2020
Illegal Alien Caught Trafficking Eight Kilograms of Mexican Heroin Is Sentenced to 10 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. ordered Ramiro Garcia-Valdivia, 33, of Mexico, to serve 10 years in prison and five years of supervised release for drug trafficking and immigration violations, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to court documents and court proceedings, in 2019, Garcia-Valdivia was working for the CJNG Mexican Cartel, and was responsible for trafficking multiple kilograms of heroin into Western North Carolina. On October 1, 2019, law enforcement arrested Garcia-Valdivia in Gastonia, North Carolina. Over the course of the arrest, law enforcement recovered more than eight kilograms of heroin wrapped in bundles, hidden in Garcia-Valdivia’s Ford Explorer vehicle. Court records show that Garcia-Valdivia intended to deliver these narcotics to other co-conspirators. According to court records, Garcia-Valdivia, who was in the country illegally after being previously deported, engaged in drug trafficking activities while there was an outstanding immigration order for his deportation from the United States.
“Garcia-Valdivia violated our nation’s drug and immigration laws, and trafficked large quantities of heroin, a poisonous substance that shatters our communities and causes thousands of overdose deaths in our country. The lengthy sentence imposed by the Court is appropriate for Garcia-Valdivia’s harmful criminal conduct,” said U.S. Attorney Murray.
On March 10, 2020, Garcia-Valdivia pleaded guilty to drug trafficking conspiracy, possession with intent to distribute heroin, and illegal reentry by an aggravated felon. Garcia-Valdivia is in federal custody, and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The investigation was led by ICE’s Homeland Security Investigations, the North Carolina Highway Patrol, and the Gaston County Police Department.
Assistant U.S. Attorneys Sanjeev Bhasker and Kenneth Smith, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Honduran Man Sentenced to 72 Months for Drug ConspiracyRead the Press Release
United States Attorney Joe Kelly announced that Jhonny Traviezo-Velasque, 25, of Honduras, was sentenced on August 27, 2020, by Senior United States Judge Laurie Smith Camp for conspiracy to possess with intent to distribute fifty grams or more of pure methamphetamine. Traviezo-Velasque received a sentence of 72 months with a two-year term of supervised release to follow. However, once Traviezo-Velasque serves his sentence, he will be deported. There is no parole in the federal system.
On September 27, 2018, the narcotics unit with the Omaha Police Department utilized a confidential informant to purchase 782 grams of pure methamphetamine from Traviezo-Valesque. On April 3, 2019, OPD officers conducted a traffic stop of Traviezo-Velasque, and located 10.3 grams of methamphetamine. A search warrant was executed on the same day for Traviezo-Velasque’s residence, resulting in an additional 142 grams of methamphetamine being located.
This case was investigated by the Omaha Police Department and Drug Enforcement Administration.
Herbalife Nutrition Ltd. Agrees to Pay over $122 Million to Resolve FCPA CaseRead the Press Release
Herbalife Nutrition Ltd. (Herbalife), a U.S.-based publicly traded global nutrition company, has agreed to pay total penalties of more than $122 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA). The resolution arises out of Herbalife’s scheme to falsify books and records and provide corrupt payments and benefits to Chinese government officials for the purpose of obtaining, retaining, and increasing Herbalife’s business in China. This includes a criminal penalty of over $55 million and approximately $67 million to be paid to the U.S. Securities and Exchange Commission (SEC) in a related matter.
Herbalife entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of New York in connection with a criminal information filed today in the Southern District of New York charging Herbalife with one count of conspiracy to violate the books and records provision of the FCPA.
“By engaging in a decade-long scheme to falsify its books and records to conceal corrupt and other improper payments to Chinese officials and state-owned entities, Herbalife misrepresented important information made available to investors,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The integrity of our financial markets depends on the timely and accurate disclosure of material information about companies’ operations. Today’s resolution reflects the department’s ongoing commitment to combating international corruption and ensuring that investors can trust the accuracy of the financial statements of publicly traded companies.”
“As admitted in the deferred prosecution agreement entered into today, Herbalife approved the extensive and systematic corrupt payments to Chinese government officials over a 10-year period to promote and expand Herbalife’s business in China,” said Acting U.S. Attorney Audrey Strauss of the Southern District of New York. “Moreover, in an effort to conceal this widespread corruption scheme, Herbalife maintained false accounting records to mischaracterize these improper payments as permissible business expenses. In addition to admitting its criminal conduct, Herbalife has agreed to pay combined penalties of more than $123 million. This case signifies this Office’s commitment to ensuring that companies operating in the United States do not gain an unfair advantage through corruption and illegal bribes of foreign officials.”
According to its admissions, between 2007 and 2016, Herbalife knowingly and willfully conspired with others in a scheme to falsify its books and records and provide corrupt payments and benefits to Chinese government officials. Herbalife carried out the scheme for the purpose of obtaining, retaining, and increasing Herbalife’s business in China by, among other things, (1) obtaining and retaining certain direct selling licenses for its wholly-owned subsidiaries in China (Herbalife China); (2) improperly influencing certain Chinese governmental investigations into Herbalife China’s compliance with Chinese laws; and (3) improperly influencing certain Chinese state-owned and state-controlled media for the purpose of removing negative media reports about Herbalife China.
For example, in late 2006 through early 2007, during the time period that Herbalife China’s application for its first direct selling license was pending, Herbalife China provided corrupt payments and benefits to Chinese government officials, including government officials responsible for awarding that direct selling license, and falsely recorded and booked those corrupt expenses. Around the same time period, an officer and high-level executive of Herbalife suggested to a high-level executive of Herbalife China that Herbalife China personnel falsify expense reimbursement documents in connection with entertainment of Chinese government officials.
Thereafter, Herbalife continued to provide improper payments and benefits to Chinese government officials. Herbalife also continued to falsely record certain improper payments and benefits as “travel and entertainment expenses” and to maintain false Sarbanes-Oxley sub-certification letters in Herbalife’s books, records, and accounts.
As part of the agreement, Herbalife agreed to continue to cooperate with the U.S. government in any ongoing or future criminal investigations concerning Herbalife, its executives, employees, or agents. In addition, under the agreement, Herbalife agreed to enhance its compliance program and to report to the government on the implementation of its enhanced compliance program.
The government reached this resolution with Herbalife based on a number of factors, including the failure to timely disclose the conduct that triggered the investigation; the nature and seriousness of the offense, which spanned approximately a decade and involved high level employees; the lack of an effective compliance program at the time of the misconduct; and credit for the company’s cooperation. Herbalife also engaged in remedial measures, including terminating and disciplining individuals who orchestrated the misconduct, adopting heightened controls and anti-corruption protocols, and significantly increasing the resources devoted to compliance.
The criminal monetary penalty for Herbalife reflects a 25 percent reduction off the bottom of the U.S. Sentencing Guidelines fine range because of Herbalife’s full cooperation with the government’s investigation.
In a related matter with the SEC, Herbalife agreed to pay the SEC disgorgement and prejudgment interest totaling approximately $67 million.
The FBI’s New York Field Office investigated the case. Trial Attorney Jason Manning of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Joshua A. Naftalis and Scott A. Hartman of the U.S. Attorney’s Office for the Southern District of New York are prosecuting the case.
The department appreciates the significant cooperation provided by the SEC in this case. The Justice Department’s Office of International Affairs provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
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.
Herbalife Agrees to Pay $123 Million to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York (“SDNY”), and Acting Assistant Attorney General Brian C. Rabbitt of the Criminal Division of the United States Department of Justice (“DOJ”) announced today the filing of criminal charges against HERBALIFE NUTRITION, LTD. (“HERBALIFE”), a multinational corporation headquartered in Los Angeles, for conspiring to violate the books and records provisions of the Foreign Corrupt Practices Act (“FCPA”). The charges arise out of a decade-long scheme by HERBALIFE to falsify books and records and provide corrupt payments and benefits to Chinese government officials for the purpose of obtaining, retaining, and increasing HERBALIFE’s business in China. In connection with the filed charges, SDNY and DOJ entered into a deferred prosecution agreement (“DPA”) with HERBALIFE. Pursuant to the DPA, HERBALIFE admitted to participating in the charged conspiracy and will pay a criminal fine of $55,743,093.
Acting U.S. Attorney Audrey Strauss said: “As admitted in the deferred prosecution agreement entered into today, Herbalife approved the extensive and systematic corrupt payments to Chinese government officials over a 10-year period to promote and expand Herbalife’s business in China. Moreover, in an effort to conceal this widespread corruption scheme, Herbalife maintained false accounting records to mischaracterize these improper payments as permissible business expenses. In addition to admitting its criminal conduct, Herbalife has agreed to pay combined penalties of more than $123 million. This case signifies this Office’s commitment to ensuring that companies operating in the U.S. do not gain an unfair advantage through corruption and illegal bribes of foreign officials.”
Acting Assistant Attorney General Brian C. Rabbitt said: “By engaging in a decade-long scheme to falsify its books and records to conceal corrupt and other improper expenditures, Herbalife misrepresented the information available to investors. Today’s resolution reflects the department’s ongoing commitment to combating corruption and ensuring that investors can trust the accuracy of the financial statements of publicly traded companies.”
According to the allegations contained in the criminal Information, which was filed today in Manhattan federal court, the statement of facts set forth in the DPA, and other publicly available information:
HERBALIFE conducts business operations in China through a group of wholly owned subsidiaries based in China (collectively, “Herbalife China”). By 2016, Herbalife China was responsible for approximately $860 million, or approximately 20 percent, of HERBALIFE’s worldwide annual net sales, which exceeded $4 billion. In China, to engage in direct selling – selling a company’s products through independent sales representatives – Chinese law required a company to obtain a direct selling license from national authorities as well as local authorities for each province in which a company intended to engage in direct selling. From March 2007 through 2016, Herbalife China obtained licenses to engage in direct sales in 28 provinces.
Yanliang Li, a/k/a “Jerry Li,” was the director of sales and/or sales vice president at Herbalife China from in or about 2004 through in or about December 2007, and then the managing director of Herbalife China from in or about December 2007 through in or about April 2017. From in or about December 2012 through in or about February 2017, Li also held the title of senior vice president at HERBALIFE. Hongwei Yang, a/k/a “Mary Yang,” was a high-level executive at Herbalife China and the head of external affairs from in or about 2006 through in or about April 2017.
Beginning in or about at least 2007 through in or about 2016, HERBALIFE, through Li, Yang, and others, engaged in a scheme to falsify books and records and provide corrupt payments and benefits to Chinese government officials, including officials of Chinese government agencies and a state-owned media outlet, for the purpose of obtaining, retaining, and increasing HERBALIFE’s business in China by, among other things, (1) obtaining and retaining certain of Herbalife China’s direct selling licenses; (2) improperly influencing certain Chinese governmental investigations into Herbalife China’s compliance with Chinese laws applicable to its business; and (3) improperly influencing certain Chinese state-owned and state-controlled media for the purpose of removing negative media reports about Herbalife China.
During the course of the scheme, in order to conceal these improper payments and benefits, HERBALIFE, through Li, Yang, and others, knowingly and willfully conspired and agreed with others to maintain false accounting records that did not accurately and fairly reflect the transactions and dispositions of HERBALIFE’s assets, by, among other things, falsely recording certain improper payments and benefits as “travel and entertainment expenses” and maintaining false Sarbanes Oxley sub-certification letters in HERBALIFE’s books, records, and accounts.
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In a related matter with the Securities and Exchange Commission (“SEC”), HERBALIFE agreed to pay to the SEC disgorgement and prejudgment interest totaling approximately $67,313,497.
In November 2019, the Government unsealed related criminal charges against Li and Yang, both of whom remain at large. See United States v. Li and Yang, 19 Cr. 760 (VSB).
Ms. Strauss praised the outstanding work of the Federal Bureau of Investigation and the U.S. Department Justice’s Office of International Affairs of the Department’s Criminal Division, and also thanked the SEC for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the FCPA Unit of the Fraud Section of DOJ’s Criminal Division. Assistant United States Attorneys Joshua A. Naftalis and Scott A. Hartman, and Trial Attorney Jason Manning of the FCPA Unit, are in charge of the prosecution.
Haverhill Man Charged with Conspiracy to Distribute FentanylRead the Press Release
BOSTON – A Haverhill man was arrested and charged with conspiracy to distribute fentanyl.
Sergio Garcia, 36, was indicted on one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. Following an initial appearance yesterday in federal court in Boston, Garcia was detained pending a detention hearing scheduled for Sept. 1, 2020.
According to the indictment, Garcia was in possession of 400 grams or more of fentanyl in Boston and Haverhill from April 20, 2020 to April 23, 2020.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 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 Lelling; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service’s Boston Field Office; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement. The Haverhill Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Philip C. Cheng 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.
Harrison County Man Pleads Guilty to Firearms OffenseRead the Press Release
Gulfport, Mississippi – Casey Lee Gilmer, 34, of Harrison County, Mississippi pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr. to being an unlawful user of a controlled substance in possession of firearms, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”).
In September 2019, Gilmer took ten (10) firearms from a residence where he was working. Gilmer then pawned the firearms at multiple pawnshops located along the Mississippi Gulf Coast in order to feed his drug addiction. After the firearms were reported stolen, law enforcement officials were able to identify Gilmer, locate the firearms, and successfully return the firearms to their original owner.
This case was investigated by Special Agents of the ATF and the Jackson County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Jonathan Buckner.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States after Being Deported TwiceRead the Press Release
A man who illegally returned to the United States after being deported two times was sentenced today to six months in federal prison.
Jacinto Chavez-Brito, age 31, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a guilty plea today to one count of illegal reentry into the United States.
At the guilty plea, Chavez-Brito admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Chavez-Brito was first deported in August 2007. He was also deported in July 2014 following a conviction in the District of New Mexico for illegal reentry. Chavez-Brito most recently came to the attention of immigration agents following his arrest on March 8, 2020, in Linn County, Iowa, on state charges that were later dismissed.
Chavez-Brito was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Chavez-Brito was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Chavez-Brito is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-33.
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Franklin County Man Sentenced on Felon in Possession of a Firearm and Conspiring to Possess with Intent to Distribute Methamphetamine ChargesRead the Press Release
St. Louis, MO –Joshua Matthew Spencer, 30, of Franklin County, MO, was sentenced today to ten years' imprisonment by United States District Judge John R. Ross after pleading guilty to his involvement in conspiring to distribute and possess with the intent to distribute methamphetamine and being a felon in possession of a firearm.
According to court documents, Spencer and his co-defendant Reanna Danielle Campbell were engaged in the sale of crystal methamphetamine in the St. Louis Metropolitan area, as well as in Franklin and Jefferson Counties. Investigators conducted controlled buys of methamphetamine from Campbell and Spencer in and around the area. Also during the course of the investigation, Spencer and Campbell crashed a vehicle while fleeing from police near the Interstate 44 entrance at South Elm Avenue in Webster, Missouri, and fled on foot. Two handguns were recovered by law enforcement near the scene of the crash and investigators seized five other firearms from the crashed vehicle, along with knives and additional firearms magazines and drug paraphernalia. Following the federal indictment in this case, Spencer was apprehended by the United States Marshals Service and found in position of additional narcotics and another firearm.
Co-defendant Reanna Danielle Campbell was previously sentenced to sixty-four months’ imprisonment for her role in the offenses.
The Multi-County Narcotics and Violent Crimes Enforcement Unit and the Drug Enforcement Administration investigated this case, with assistance from the Kirkwood and Webster Police Departments. Assistant United States Attorney Lisa Yemm handled this case for the U.S. Attorney’s Office.
Four Police Officers Charged with Conspiracy to Commit RobberyRead the Press Release
SAN JUAN, Puerto Rico – On August 27, 2020, a federal grand jury in the District of Puerto Rico returned an indictment against four Puerto Rico Police officers charged with conspiracy to commit robbery, conspiracy to steal and convert government property, and theft and conversion of government property, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The FBI was in charge of the investigation of the case.
The indictment alleges that beginning on a date unknown through and continuing up to December 29, 2016, in the District of Puerto Rico, the defendants, Sergeant Miguel Conde-Vellón, Luis Rodríguez-García, and Carlos Boyrie-Laboy aiding and abetting each other, conspired to commit robbery and extortion, in that the defendants agreed to, attempted, and did, unlawfully take money and property from a government confidential source, whom defendants believed to be engaged in the sale of pyrotechnics.
On December 29, 2016, defendants, Conde-Vellón, Rodríguez-García, and Boyrie-Laboy, while acting in their official capacity as PRPD officers and carrying firearms, made an unauthorized, forced entry into a residence located in the Duque Ward in Naguabo, PR, which they believed to be the stash house location utilized by the purported illegal seller of pyrotechnics. The defendants searched the residence, located and took possession of the following pyrotechnics: two (2) boxes of fireworks each containing 40 pieces of generic fireworks, two (2) boxes each containing 53 pieces of Thunder Max fireworks, one (1) box containing 18 pieces of Premiere FWK fireworks, and $2,995.00 in U.S. currency, which they believed to be proceeds of illegal activity from the person and presence, of a confidential source without lawful authority. In fact, the pyrotechnics and money stolen by the defendants was the property of the United States, with a combined value in excess of $1,000.
On or about June 15, 2017, defendants, Conde-Vellón, Rodríguez-García, Boyrie-Laboy, and Quermie Marquez-Rivera, while acting in their official capacity as PRPD officers and carrying firearms, made an unauthorized, forced entry into a residence located in the Calabazas Ward in Yabucoa, PR, which they believed to be the stash house location utilized by the purported illegal seller of stolen electronic equipment. The defendants searched the residence in order to locate and steal cash and property belonging to the purported illegal seller of electronic equipment. They found and stole two Samsung Tablets, and $6,350.00 in U.S. currency, which they believed to be proceeds of illegal activity from a confidential informant without lawful authority. In fact, the electronic equipment and money stolen by the defendants was the property of the United States, with a combined value in excess of $1,000.
In both instances, none of the defendants obtained, or attempted to obtain, a search warrant for the locations they entered to steal property and cash. After stealing the money and property, neither of the four defendants reported the search, the details of the detention, nor the seizure of the total amount of money and property to the PRPD. The defendants divided the proceeds of the robberies amongst themselves.
Assistant U.S. Attorney Marie Christine Amy is in charge of the prosecution of the case. If convicted the defendants face a sentence of up to 20 years in prison for the violation of 18 U.S.C. § 1951, up to 10 years in prison for the violation of 18 U.S.C. § 641, and up to 5 years in prison for the violation of 18 U.S.C. § 371. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Four Foreign Nationals Charged with Iran Sanctions ViolationsRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment late yesterday charging two citizens of Iran and two citizens of Indonesia with 19 counts related to exporting U.S. aircraft parts to Iran, in violation of U.S. export laws and sanctions against Iran.
“The transshipment to Iran of desired United States goods facilitates our adversary’s ability to engage in malicious and dangerous activity against the United States,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The charges against these four individuals represent the dismantling of an entire procurement network, from the brokers to the true end user. We will not tolerate individuals or business organizations that seek to harm our national security, no matter their role or where they are located in the world.”
According to the indictment, Sahebali Moulaei, 56, Mohsen Faghihi, 54, Arnold Kaunang, 26, and Alfrets Kaunang, 55, conspired to export United States-origin airplane parts to a state-owned enterprise in Iran, without receiving a license from the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC). The indictment also charges the four men with smuggling goods from the United States to Iran.
“As the true end-user of this dual-use U.S. technology, Iran's Ministry of Defense and Armed Forces Logistics sought to undermine the national security of the United States by furthering their military and civilian capabilities,” said Raymond Duda, Special Agent in Charge of the FBI’s Seattle Field Office. “The indictment of these four individuals highlights the FBI's efforts to identify and neutralize blatant attempts to circumvent U.S. sanctions against Iran at all stages of the procurement process.”
According to the indictment, since August 2015, in order to evade United States sanctions against Iran, the defendants used third countries and front companies to hide the true end user of their purchases of aircraft parts from United States companies. Faghihi, a procurement agent for Iran Aircraft Manufacturing Industries Company, sent purchase orders for aircraft parts of United States origin to Moulaei, the managing director of an Iranian procurement company. Moulaei solicited the Kaunangs, located in Indonesia, to supply the parts. Alfrets and Arnold Kaunang, a father-son duo who own an Indonesian company that supplies aircraft parts, then placed orders from Indonesia with numerous United States companies for aircraft parts and other goods that neither Faghihi nor Moulaei could have purchased directly. Upon receipt in Indonesia of the aircraft parts from United States companies, the Kaunangs then would arrange for the transshipment of the items to Moulaei in Iran. Moulaei would pay the Kaunangs from a company of his located in Malaysia, and then bill Faghihi in Iran.
The defendants are each charged with one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), nine counts of violations of IEEPA, and nine counts of smuggling goods from the United States. If convicted, each of the four defendants face a maximum penalty of 20 years in prison for each of the IEEPA violations and a maximum penalty of 10 years in prison for each of the smuggling offenses. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Duda, Special Agent in Charge of the FBI’s Seattle Field Office, made the announcement. Assistant U.S. Attorney Gordon D. Kromberg and Special Assistant U.S. Attorney Rachael C. Tucker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-204.
Former Office Manager Pleads Guilty and is Sentenced for Stealing Approximately $420,000 in Company FundsRead the Press Release
St. Louis, MO –Tammy Fox, 49, of Carrolton, Illinois, was sentenced today to twenty months’ imprisonment by United States District Court Judge Audrey Fleissig after pleading guilty to 2 counts of wire fraud related to her former position as Office Manager of Explosive Professionals Midwest, Incorporated, also known as ExPro Midwest. Fox was also ordered to make restitution to the victim company in the amount of $402,213.76.
According to the Indictment and Plea Agreement, Fox served as the Office Manager for ExPro Midwest in St. Louis County, Missouri. From January, 2011 through February, 2018 Fox schemed to steal approximately $420,000 from the company. During that time, Fox issued approximately 215 unauthorized ExPro Midwest checks to herself, which she deposited into her personal bank account. Fox forged the signature of one of the owners of ExPro Midwest to those unauthorized checks. Fox spent the stolen funds on personal items and services such as clothing, automobile payments, rent payments, as well as making numerous cash withdrawals. Fox also issued unauthorized ExPro Midwest company checks to a close personal friend, and deposited those checks into her personal bank account as well. Fox also used the ExPro Midwest corporate credit card to make unauthorized purchases of personal items, such as airline tickets, general retail items, clothing, and sporting goods. As Office Manager, Fox caused the company to pay the monthly ExPro Midwest corporate credit card bills, knowing that her unauthorized personal charges were contained in the billings. In order to conceal her fraud scheme, Fox altered the company’s internal financial records, which she then sent to the company’s outside accountants. Altogether, Fox’s fraud scheme netted her approximately $420,000 in funds stolen from ExPro Midwest.
The Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.
Former Baltimore DPW Supervisor Pleads Guilty to Extortion for Accepting Cash Payments and Causing Private Work to be Performed at Night by DPW EmployeesRead the Press Release
Baltimore, Maryland – Ronald M. Smith, age 46, of Elkton, Maryland, a former Baltimore Department of Public Works (“DPW”) supervisor pleaded guilty on August 27, 2020, to the federal charge of extortion under color of official right for misuse of his authority as a public employee. Smith admitted that he accepted cash payments for work he caused DPW crews to perform for private businesses.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in 2014 and 2015, Smith was an employee of the Department of Public Works in Baltimore City ("DPW"). Smith was a supervisor in the Water and Waste Management Division ("WWMD"), and his supervisory responsibilities included receiving work orders, dispatching work crews and supervising the crews on jobsites. He supervised a crew of approximately eight employees. Smith generally worked the night shift—from midnight to 8 a.m. and, though he was not a licensed plumber, was responsible for responding to, overseeing and performing service repairs to City water ways, pipes, taps, connections, valves and water mains.
From 2014 through 2015, DPW was not responsible for installation of new or upgraded water service from Baltimore City's water main to the water meter vault of a house or a commercial property. If a property owner or developer was installing new or upgraded service to a property, the property owner/developer was required to hire a bonded utilities contractor, chosen from a list approved by Baltimore City DPW, to tap into the City's water main and connect from the water main to the property. The contractor was required to create a water meter vault in which a water meter could be installed to measure water usage for billing to the address. The property owner/developer, or the utilities contractor hired by the owner/developer, was also required to submit an Application for the Temporary Use of Right of Way to the Department of Transportation’s (DOT) Right of Way Permits Section, whenever the utilities contractor needed to "cut" into a street or alley to access the water main in connection with the installation of new or upgraded water service, and pay a fee of $300 for traffic control. The contractor also had to pay a 9% inspection fee for City costs before work could proceed. After the contractor completed the installation of the service, the contractor was required to repair the street cut. If the work extended overnight, the contractor was required to install and bolt down a steel plate over the excavation and place asphalt around the edges of the plate to secure it.
In 2014 and 2015, Philip Michael Loverde was a licensed plumber in the State of Maryland and one of the owners of All Service Plumbing and Drain Cleaning (“ASPDC” or “All Service”). ASPDC provided plumbing services in the Baltimore area. Loverde and ASPDC were not bonded approved utilities contractors permitted to tap into Baltimore City's water mains.
Sometime in late 2014 or in 2015, a contractor in the Baltimore area was building four new row houses. DPW was not required to install the new water or sewer utilities. Loverde was contracted for All Service to perform the plumbing work inside his properties. Loverde mentioned that he had a "utilities contractor," Smith, who could install the water and sewer services for the new construction. Smith was not a bonded approved utilities contractor and was neither a licensed contractor nor a licensed plumber. Smith obtained no permits for the work or for the street cut. Rather, Smith had DPW employees come to the site with Baltimore City equipment to break the street pavement for the new utilities, causing a large hole in the street and installing two water lines from the public water main to the new vaults. The DPW employees constructed two vaults which would accommodate two water meters each and installed a "jumper" so that from each vault, two lines ran from the vault to the houses. The crews also installed one sewer line per house which ran to the sewer line in the street. Loverde’s contract for the utility work and the interior plumbing for all four houses totaled $92,000. Of this amount, Loverde paid Smith approximately $10,000 for the installation of water and sewer services.
From May through October 2015, Smith was paid $12,500 for new water services to be installed at five row houses that were being re-developed. Without permits or paid traffic fees, Smith caused DPW work crews using DPW equipment to break the pavement, dig the holes, connect the pipe from the water main to the vault and from the vault to the house. Loverde was not involved.
In 2015, TRF Development Partners ("TRF"), a non-profit corporation based in Philadelphia, Pennsylvania, was active in renovating certain sections of East Baltimore. TRF had contracted with the East Baltimore Redevelopment Association to perform an historical rehabilitation of residential properties in east Baltimore. A supervisor for TRF contracted with All Service for plumbing work at the residences. In the 1200 block of Gay Street, water and sewer services connected to their respective lines from the back of the properties to a water main and sewer line buried underneath the alley behind the houses. TRF paved over the back yards of the houses before new water and sewer services had been installed.
Beginning sometime in 2015, Loverde agreed with Smith and an employee of TRF, that Smith would handle the connection of service from the City's water main to the water meter vault and then from the vault to the inside of the property for the residential and commercial properties on Preston and Gay Streets and perform similar utilities work for the sewer line. The new lines would run from the front of the houses to connect with a water main and a sewer line in the street; the pre-existing water and sewer lines ran from the back of the properties to the alley and would not be used because of the already completed paving.
TRF had retained the front wall of the properties but had gutted them completely and rebuilt them. Loverde's company was to be responsible for installing all interior plumbing and fixtures and connecting to the water supply lines and sewer lines that Smith had run into the property for the houses on Preston and Gay Street.
At the request of a TRF employee, Loverde agreed to include in his invoicing the charges for Smith to create the new water and sewer services for the properties. Loverde agreed to cash the checks from TRF made payable to All Service and to provide the cash to Smith. Loverde knew that Smith was not a bonded approved utilities contractor but intended to divert City employees, equipment and material to perform the work and to pocket the cash funneled through him by TRF.
Smith caused DPW work crews to cut the street on Preston and Gay Streets and connect the water and sewer services from the water main or sewer to the house for many addresses. Smith charged $1600 per address for water and sewer installation, for a total of $14,400, without permits or traffic fees. Smith caused a DPW crew with a heavy equipment operator to come to North Gay Street at night to cut the pavement, dig into the street and install the new water lines and sewer. Because the crew worked at night and in haste, the work was badly done, and North Gay Street began to collapse. The crew had to return at night to finish the street patching job. Smith also charged TRF $17,500 for the installation of a new dedicated water line for a commercial property at 1759 East Preston Street to provide water to a required fire sprinkler system. Smith installed the new water line with DPW crews, and Loverde cashed the TRF check and paid Smith.
Smith met a developer who was tearing down a church at the corner of Elwood and East Baltimore Street. The developer was rehabbing one row house and building 3 new row houses on the foundation of the old church. He agreed with Smith that Smith would install new water service for the three new row houses by connecting to the water main on East Baltimore and the water main on Elwood. They also agreed that Smith could install three new sewer connections to the sewer line that ran down the alley behind the church. Once again, Smith used DPW crews and equipment to perform this work, obtained no permits, paid no traffic fees, and paid no inspection fees. Smith was paid approximately $10,000 in cash for this work. Loverde was not involved.
In all, Smith admitted that he received at least $64,000 for the work performed by DPW crews. Loverde pled guilty to his role in the extortion scheme on January 22, 2020.
Smith faces a maximum sentence of 20 years imprisonment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Catherine C. Blake has not yet scheduled sentencing dates for Smith or Loverde.
United States Attorney Robert K. Hur commended the FBI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joyce McDonald, who is prosecuting the case.
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Five Individuals Indicted for Fentanyl and Heroin Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on Eric Hill, age 31, of Plymouth, Candacelee Ellis, age 34, of Plymouth, PA, Thomas Evanchik, age 40, of Kingston, PA, Casey VanGorder, age 25, of Wilkes-Barre, PA, and Casey Read, age 37, of Wilkes-Barre, PA, were indicted on August 11, 2020, by a federal grand jury for drug trafficking. The case was unsealed following the arrest of defendants.
According to United States Attorney David J. Freed, the indictment alleges that defendants conspired to distribute more than 400 grams of fentanyl and additional amounts of heroin in the Luzerne County area between January 2017 and the present.
The matter was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
Under federal law, the drug trafficking offense carries a mandatory minimum sentence of ten years in prison, up to a maximum sentence of life in prison, 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.
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Federal Jury Convicts Lewiston Drug Trafficker on Six ChargesRead the Press Release
COEUR D'ALENE – Christopher William Bounds, 37, of Lind, Washington, was convicted by a federal jury in Coeur d'Alene on six federal drug and firearms charges, U.S. Attorney Bart M. Davis announced today. The jury found Bounds guilty of:
- Conspiracy to distribute methamphetamine and heroin;
- Possession with intent to distribute methamphetamine;
- Possession with intent to distribute heroin;
- Unlawful possession of a firearm by a felon;
- Unlawful possession of a firearm by a drug addict; and
- Possession of a firearm in furtherance of drug trafficking.
During the four day trial, the jury heard evidence that on August 15, 2018, Quad Cities Drug Task Force detectives were conducting surveillance on Bounds who had just brought a load of methamphetamine and heroin from Washington. During their surveillance, detectives observed Bounds make a hand to hand drug transaction. Bounds’ vehicle was pulled over, just outside Lewiston, by a Nez Perce County Sheriff’s Deputy assisting the task force. Officers searched Bounds’ vehicle and seized two pounds of pure methamphetamine, 490 grams of heroin, and sixteen firearms. Testimony at trial showed that the drugs were valued at over $32,000. Bounds’ cell phone was also seized and searched. Communications showed that Bounds was tied into drug traffickers also under federal indictment in the Eastern District of Washington.
Bounds faces a sentence of 15 years to life in federal prison, and up to a $20,000,000 fine, for the drug trafficking charges. He faces a maximum sentence of 10 years in prison, and up to a $250,000 fine for unlawfully possessing firearms. A five year consecutive sentence must also be imposed for his possession of firearms in furtherance of drug trafficking.
Sentencing is set for November 17, 2020, before U.S. District Judge David C. Nye, at the federal courthouse in Coeur d'Alene.
Multiple law enforcement agencies contributed to the prosecution of this case including the Lewiston Police Department, Nez Perce County Sheriff’s Office, Clarkston Police Department, Whitman County Sheriff’s Office, and Federal Bureau of Investigation, who are all part of the Quad Cities Drug Task Force, as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration, who are not part of the task force but participate with it on a regular basis. The Quad Cities Drug Task Force is a multi-jurisdictional group of law enforcement officers working together to target drug trafficking in Lewiston and Moscow, Idaho, and Clarkston and Pullman, Washington.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state 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. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
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Federal Criminal Probe into Failure of Chicago Bank Adds New Charges and Four Former Employees as DefendantsRead the Press Release
CHICAGO — An ongoing federal criminal investigation into the failure of a Chicago bank has resulted in charges against four new defendants, all of whom worked for the bank.
Washington Federal Bank for Savings was shut down in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. Last year, two Illinois attorneys – bank customer ROBERT M. KOWALSKI and his sister, JAN R. KOWALSKI – were indicted for allegedly defrauding Robert Kowalski’s creditors and the trustee in his bankruptcy case by concealing cash and property belonging to Robert Kowalski’s bankruptcy estate. A second superseding indictment returned Thursday renewed the bankruptcy fraud charges against the Kowalskis and added four former Washington Federal employees to the case. The new indictment also identified the primary creditor victim of the bankruptcy fraud as the Federal Deposit Insurance Corporation. The employees allegedly conspired with Robert Kowalski and higher-ranking bank officials to embezzle at least $29 million in bank funds in the years preceding the closure. The employees and the higher-ranking officials allegedly transferred the money to Robert Kowalski and others, often without any documentation, and falsified bank records to conceal the embezzlement from the OCC and the FDIC, the latter having become the receiver of the bank and provider of approximately $90 million to make account holders whole.
The new indictment charges Robert Kowalski, 58, of Chicago, with conspiracy to commit embezzlement and falsify bank records. Also charged in the conspiracy are the four former bank employees: ROSALLIE C. CORVITE, 45, of Chicago, who served as Chief Financial Officer and Treasurer; JANE V. IRIONDO, formerly known as Jane V. Tran, 39, of Boise, Idaho, who served as Corporate Secretary; ALICIA MANDUJANO, 49, of Chicago, who worked as a loan servicer; and CATHY M. TORRES, 39, of Chicago, who worked as a loan officer. The four employees also face individual counts of falsifying bank records. In addition to renewing the bankruptcy fraud charges against Robert Kowalski and Jan Kowalski, 56, of LaGrange, the new indictment also adds several tax counts against Robert Kowalski for allegedly failing to file income tax returns and filing false personal and corporate returns for various years.
Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Kathy A. Enstrom, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Assistant Inspector for Investigations Sally Luttrell of the Department of the Treasury, Office of Inspector General; Joseph M. Ferguson, City of Chicago Inspector General; and Elissa Rhee-Lee, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, and Jeremy Daniel.
The criminal investigation remains ongoing.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Dothan Man Sentenced to 70 Months in Prison Following Federal Drug ConvictionRead the Press Release
Montgomery, Alabama – On Thursday, August 27, 2020, Dotavious Antwann Robinson, a 28-year-old from Dothan, Alabama, was sentenced to 70 months in prison after pleading guilty to possession of methamphetamine with the intent to distribute, announced United States Attorney Louis V. Franklin, Sr. Robinson was also ordered to serve five years of supervised release after he completes his prison sentence. There is no parole in the federal system.
According to court records and statements made in open court, on April 18, 2017, the Dothan Police Department was responding to a disturbance call. When officers arrived, they encountered a vehicle with Robinson sitting in the backseat. As they approached the vehicle, Robinson fled the scene but left behind a handgun and a black suitcase containing methamphetamine, among other drugs. Approximately three weeks later, law enforcement arrested Robinson and he was found to be in possession of more illegal narcotics. He pleaded guilty to possession of methamphetamine with intent to distribute in May 2020.
The Dothan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorneys Brandon Bates, Megan Kirkpatrick, and Bradley Bodiford prosecuted the case.
Dominican Brothers Indicted for Fentanyl ConspiracyRead the Press Release
BOSTON – Two brothers from the Dominican Republic who lived in Lawrence were indicted yesterday in federal court in Boston on fentanyl distribution charges.
Guillermo Aybar-Guerrero, 28, and Luis Aybar-Guerrero, 24, were indicted on one count of conspiring to distribute and to possess with intent to distribute fentanyl and one count of possession with intent to distribute fentanyl. The defendants were previously charged in criminal complaints and arrested in June 2020.
According to charging documents, investigators conducted controlled purchases of fentanyl from Guillermo on June 10 and 17, 2020. On June 25, 2020, investigators set up a third controlled purchase, at which time Guillermo was arrested in possession of approximately 30 grams of suspected fentanyl. It is alleged that Guillermo retrieved these 30 grams of fentanyl from his brother, Luis. A search of Luis’ residence resulted in the seizure of an additional 263 grams of fentanyl as well as a scale, baggies and other drug-distribution paraphernalia.
The charge of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, and possession with intent to distribute of 40 grams or more of fentanyl carry a mandatory minimum sentence of five years and a maximum of 40 years in prison; at least four years of supervised release and a fine of $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. The case is being prosecuted by Lelling’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Sentenced to 102 Months in Federal Prison for Firearm Trafficking Conspiracy and Shooting of a JuvenileRead the Press Release
WASHINGTON – Jonathan Webb, 22, of Washington, D.C., was sentenced today to 102 months in federal prison in connection with a long term firearm trafficking investigation and a shooting in Southeast Washington, D.C. that left one juvenile severely injured announced Acting U.S. Attorney Michael R. Sherwin, Ashan Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD),
On July 10, 2019, Webb pleaded guilty to Conspiracy to Engage in the Trafficking of Firearms and Aggravated Assault While Armed before United States District Court Judge Amit Mehta.
Today’s sentence is the result of an investigation by ATF, MPD, and the Virginia State Police into a firearms trafficking ring based out of Washington, D.C. in which members of the conspiracy were traveling to Virginia to illegally purchase firearms before filing-off the serial numbers and reselling them in the District of Columbia and Maryland.
According to the court documents, on June 27, 2018, Webb traveled with two co-conspirators to a firearms store in Virginia in order to acquire a firearm. Webb entered the firearm store, inspected firearms, and soon thereafter, handed money to a co-conspirator who agreed to purchase the firearm on his behalf. After purchasing the firearm, the three conspirators traveled back to Washington, D.C. where they filed-off the serial number for the firearm and Webb took possession of the firearm. Webb’s co-conspirators purchased approximately 31 firearms during the course of this conspiracy. Webb assisted the co-conspirators in finding buyers for some of their firearms. On at least one occasion, Webb and other members of the conspiracy posed for photographs while holding firearms and filmed a music video using firearms purchased during the course of this conspiracy.
In court papers referencing the Aggravated Assault While Armed, on October 8, 2018, Webb saw a juvenile walking on the sidewalk down the 3200 block of Stanton Road SE in Washington, D.C. As the juvenile continued walking further down Stanton Road, Webb emerged from between two houses, immediately drew his firearm and fired multiple bullets at the juvenile, striking him multiple times. As a result of the shooting, the juvenile suffered a pelvic fracture, a left arm fracture, right thigh fracture, and a spinal injury that caused paralysis.
This case was investigated by ATF and MPD with the assistance of the Virginia State Police. It was prosecuted by Assistant U.S. Attorneys Kevin L. Rosenberg of the Violent Crime and Narcotics Trafficking Section and Emile Thompson of the Homicide Section of the U.S. Attorney’s Office for the District of Columbia.
Dennis Port Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Dennis Port man pleaded guilty yesterday to charges of receipt and possession of child pornography.
Sean Gleason, 36, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 18, 2020. On Sept. 10, 2019, Gleason was arrested and charged by criminal complaint and has been in custody since.
Following an investigation into the use of a messaging application in the exchange of child pornography, a federal search warrant executed on Sept. 10, 2019 at a residence in Dennis Port revealed hundreds of images of child pornography on Gleason’s cell phone. A full forensic review of the phone revealed at least 498 images and at least one video of child pornography. The cache of child pornography included images depicting the abuse of infants, toddlers and prepubescent minors.
The charges of receipt and possession of child pornography each carry a sentence of up to 20 years in prison, and the charge of receipt of child pornography carries a mandatory minimum sentence of five years in prison. Both charges provide for a mandatory minimum of five years and up to a lifetime 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 Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Davenport Man Found Guilty by Jury of Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA- On Wednesday, August 26, 2020, a federal jury found Darvill Jimmy Joseph Bragg, age 25, of Davenport, guilty of the offense of felon in possession of a firearm.
The trial began on August 24, 2020. The Government presented witnesses who testified about a shooting involving Bragg that occurred at approximately 8:00 p.m. on October 25, 2019 in the parking lot of an apartment building in Davenport. Government witnesses also testified about a traffic stop, approximately three hours after the shooting, of a vehicle in which Bragg was the front seat passenger. The stop occurred near the same parking lot where the shooting occurred.
During the stop, Davenport Police Officers recovered a Taurus Judge, .45 caliber revolver in the front passenger door bin of the vehicle.
Sentencing is scheduled for January 15, 2021, at 9:30 a.m., at the Federal Courthouse in Davenport. If the Court determines Bragg is subject to the provisions of Title 18, United States Code, Section 924(e) (the Armed Career Criminal Act), he faces a mandatory minimum sentence of 15 years and up to life in prison.
In 2011, in Rock Island (Illinois) Circuit Court, Bragg was convicted of two armed robberies, Class X felonies, both of which involved the use of a firearm. In 2015, in Scott County (Iowa) District Court, Bragg was convicted of Willful Injury, a Class C felony, for an incident in which he shot and injured another man.
This investigation was conducted by the Davenport Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Given 5 Year Sentence for Being in Possession of a FirearmRead the Press Release
Memphis, TN – Christopher Tomlinson, 32, has been sentenced to 63 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on March 16, 2018, Memphis Police Department officers were on routine patrol at Rayburn Street and East Waldorf Avenue, when they observed a red Honda Accord parked more than twelve inches from the curb facing southbound with the driver’s side door fully open on to traffic. Tomlinson quickly exited the vehicle, and officers exited their squad car and told Tomlinson to stop while identifying themselves as police officers. Tomlinson did not stop; he fled on foot.
Officers observed Tomlinson holding a black and green gun in his right hand as they continued to give verbal commands to drop the gun and to stop. Officers located and detained Tomlinson behind a house on Patton Street. While searching Tomlinson, he attempted to pull away and run from the officers.
Later, an anonymous citizen advised law enforcement that Tomlinson threw something in the window of an abandoned house on Patton Street. Officers looked through the window of the house and observed a black and green gun, covered in mud, laying on the floor. Officers recovered a Springfield Armory 9mm caliber pistol. The gun was loaded with one live round in the chamber. Also recovered from the Honda Accord was a clear plastic baggy containing a green leafy substance and two scales from the front passenger seat. The green leafy substance tested positive for 0.8 grams of a total gross weight for marijuana.
On the morning of March 2, 2020, the day his jury trial was to begin, the defendant pled guilty to being a convicted felon in possession of a firearm. As a result of his prior felony convictions, including aggravated robbery and felon in possession of a firearm, Tomlinson is prohibited by federal law from possession of firearms or ammunition. Further, Tomlinson was on supervised release status at the time of this new federal firearms offense.
On August 27, 2020, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Tomlinson to 63 months imprisonment followed by two years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and this defendant continued to possess a firearm despite his prior violent felony conviction history and supervised release status. This gun-toter has clearly not learned his lesson, and will now be rightly punished and removed from our streets for 5 years."
The Memphis Police Department and Project Safe Neighborhoods Task Force investigated this case. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Justice 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.
Assistant U.S. Attorney Wendy K. Cornejo and Special Assistant U.S. Attorney Joseph Griffith prosecuted this case on behalf of the government.
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Connecticut Contractor Charged with Paying BribesRead the Press Release
BOSTON – A Connecticut man was charged in connection with paying bribes to receive contracts for work at three collegiate institutions, including one located in Massachusetts.
Stephen Dinapoli, 40, of Wilton, Conn., was indicted on one count of conspiracy and two counts of bribery concerning programs receiving federal funds. Dinapoli was arraigned in federal court in Springfield this afternoon.
According to the indictment, Dinapoli was the principal of Big East Environmental, an environmental consulting firm, from 2013 to 2019. Floyd Young held positions involving facility maintenance at three collegiate institutions, including one located in Massachusetts. It is alleged that Young steered contracts for construction, repair, maintenance, and other work for the collegiate institutions to favored contractors, including Dinapoli, who paid him bribes, typically in the amount of 15% of the contract. Dinapoli allegedly paid bribes to Young in cash during face-to-face meetings. In addition, as Dinapoli received payment for work done at the collegiate institution, he paid Young bribes on a periodic basis.
Young was previously charged with conspiracy to receive bribes by agent of organization receiving federal funds, and is scheduled to plead guilty on Aug. 31, 2020.
On the charge of conspiracy, Dinapoli faces 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. For each count of paying bribes, Dinapoli faces a sentence of up to 10 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.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chinese National Charged with Destroying Hard Drive During FBI Investigation into the Possible Transfer of Sensitive Software to ChinaRead the Press Release
UPDATEPursuant to a motion by the government, the case against defendant Guan Lei described in the news release below was dismissed by the court on July 26,2021.
LOS ANGELES – A Chinese national and researcher at the University of California, Los Angeles has been arrested on federal charges of destroying evidence to obstruct an FBI investigation after he was observed throwing a damaged hard drive into a dumpster outside his apartment, the Justice Department announced today
Guan Lei, 29, of Alhambra, was arrested pursuant to a one-count criminal complaint unsealed this afternoon during his initial appearance in United States District Court.
The criminal complaint alleges that Guan, who was in the U.S. on a J-1 non-immigrant visa, threw a damaged hard drive into a trash dumpster near his residence on July 25. The FBI recovered the damaged hard drive after Guan was not allowed to board a flight to China and after Guan refused the FBI’s request to examine his computer. The affidavit in support of the complaint notes that the internal hard drive “was irreparably damaged and that all previous data associated with the hard drive appears to have been removed deliberately and by force.”
According to the complaint, Guan is being investigated for possibly transferring sensitive U.S. software or technical data to China’s National University of Defense Technology (NUDT) and falsely denying his association with the Chinese military – the People’s Liberation Army – in connection with his 2018 visa application and in interviews with federal law enforcement. Guan later admitted that he had participated in military training and wore military uniforms while at NUDT. One of Guan’s NUDT faculty advisors in China was also a lieutenant general in the PLA who developed computers used by the PLA General Staff Department, the PLA General Armament Department, Air Force, military weather forecasts, and nuclear technology. NUDT is “suspected of procuring U.S.-origin items to develop supercomputers with nuclear explosive applications” and has been placed on the Department of Commerce’s Entity List for nuclear nonproliferation reasons, according to the affidavit.
In addition to destroying the hard drive, the complaint alleges that Guan concealed digital storage devices from investigators and falsely told federal officials that he had not had any contact with the Chinese consulate during his nearly two-year stay in the U.S.
During his initial appearance this afternoon, Guan was ordered detained by a United States Magistrate Judge, who scheduled an arraignment for September 17.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The felony offense of destruction of evidence carries a statutory maximum sentence of 20 years in federal prison.
This case is being investigated by the FBI, Homeland Security Investigations, and U.S. Customs and Border Protection. The U.S. Department of State’s Diplomatic Security Service has provided substantial assistance during the investigation.
This case is being prosecuted by Assistant United States Attorneys Will Rollins and George Pence of the Terrorism and Export Crimes Section.
Chinese National Charged with Destroying Hard Drive During FBI Investigation into the Possible Transfer of Sensitive Software to ChinaRead the Press Release
UPDATE
The government dismissed all charges alleged in the indictment described in the press release below.
A Chinese national and researcher at the University of California, Los Angeles has been arrested on federal charges of destroying evidence to obstruct an FBI investigation after he was observed throwing a damaged hard drive into a dumpster outside his apartment, the Justice Department announced today.
Guan Lei, 29, of Alhambra, was arrested pursuant to a one-count criminal complaint unsealed this afternoon during his initial appearance in United States District Court.
The criminal complaint alleges that Guan, who was in the U.S. on a J-1 non-immigrant visa, threw a damaged hard drive into a trash dumpster near his residence on July 25. The FBI recovered the damaged hard drive after Guan was not allowed to board a flight to China and after Guan refused the FBI’s request to examine his computer. The affidavit in support of the complaint notes that the internal hard drive “was irreparably damaged and that all previous data associated with the hard drive appears to have been removed deliberately and by force.”
According to the complaint, Guan is being investigated for possibly transferring sensitive U.S. software or technical data to China’s National University of Defense Technology (NUDT) and falsely denying his association with the Chinese military – the People’s Liberation Army – in connection with his 2018 visa application and in interviews with federal law enforcement. Guan later admitted that he had participated in military training and wore military uniforms while at NUDT. One of Guan’s NUDT faculty advisors in China was also a lieutenant general in the PLA who developed computers used by the PLA General Staff Department, the PLA General Armament Department, Air Force, military weather forecasts, and nuclear technology. NUDT is “suspected of procuring U.S.-origin items to develop supercomputers with nuclear explosive applications” and has been placed on the Department of Commerce’s Entity List for nuclear nonproliferation reasons, according to the affidavit.
In addition to destroying the hard drive, the complaint alleges that Guan concealed digital storage devices from investigators and falsely told federal officials that he had not had any contact with the Chinese consulate during his nearly two-year stay in the U.S.
During his initial appearance this afternoon, Guan was ordered detained by a United States Magistrate Judge, who scheduled an arraignment for Sept. 17, 2020 .
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The felony offense of destruction of evidence carries a statutory maximum sentence of 20 years in federal prison.
This case is being investigated by the FBI, Homeland Security Investigations, and U.S. Customs and Border Protection. The U.S. Department of State’s Diplomatic Security Service has provided substantial assistance during the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Will Rollins and George Pence of the Terrorism and Export Crimes Section.
Broken Arrow Woman Sentenced for Wire Fraud and Filing a False Tax ReturnRead the Press Release
A Broken Arrow woman was sentenced today in U.S. District Court for stealing $654,579 from her employer. Brandy Okey, 40, previously pleaded guilty to wire fraud and to signing a false tax return in March 2020.
Chief U.S. District Judge John E. Dowdell sentenced Okey to 41 months in federal prison to be followed by three years of supervised release. The Court further ordered the defendant pay $654,579 in restitution.
“Brandy Okey fraudulently pocketed more than $650,000 as chief financial officer when she embezzled from the Tulsa County Public Facilities Authority box office sales at Expo Square. Because of her greed, she now gets to spend more than three years in federal prison and pay back the ill-gotten funds to her employer,” said U.S. Attorney Trent Shores. “White collar criminals don’t get a pass for the financial fraud they inflict on businesses. Like all criminals, they will be met by a federal prosecutor to bring them to account for their crimes.”
In her position with Tulsa County Public Facilities Authority, Okey was responsible for accounting and financial management. Okey admitted that she used her access to the Expo Square box office cash collections to take cash funds. She then deposited a portion of the embezzled cash funds into personal bank accounts for her own use. Okey further used a portion of the cash funds to directly pay for personal expenses without depositing the funds. In order to conceal her scheme, Okey shredded the original deposit slips or prepared new slips showing a lower deposit amount. To further hide her scheme, Okey admitted that she did not accurately record box office collections on TCPFA financial statements. The fraudulent statements were emailed to the company’s Board of Directors.
Okey also admitted that she made and signed a false tax return for the year 2017 when she knowingly failed to report approximately $294,450 of income acquired through the scheme that year.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case.
Bristow Man Charged with the Murder of His DaughterRead the Press Release
Adam Raymond Mason, 29, of Bristow, was charged today by criminal complaint with first degree murder in Indian Country following the death of his daughter, announced U.S. Attorney Trent Shores. 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.
“The United States filed charges today alleging that a father punched, drowned, burned, and murdered his five-year-old daughter in Indian Country. This is heartbreaking. The alleged victim was set to start kindergarten next week,” said U.S. Attorney Trent Shores. “Now, it is time for our criminal justice system to go to work. The FBI, ATF, Creek County Sheriff’s Office, and Muscogee (Creek) Nation Lighthorse Tribal Police will continue their joint investigation. By rule, the United States Attorney’s Office will present this matter to a federal Grand Jury for their consideration as to whether probable cause exists to return an indictment. If so, then Assistant U.S. Attorney Ryan Roberts and I will prosecute the case to the fullest extent of the law and seek to prove to a jury the defendant’s guilt beyond a reasonable doubt. In the meantime, my team of victim specialists will work closely with the surviving family to ensure they are connected with appropriate resources as this case proceeds in federal court.”
According to court documents filed by an FBI agent, Mason, allegedly murdered his daughter on or about Aug. 25 and Aug. 26, 2020. The victim’s mother last spoke to her daughter the evening of Aug. 25 and became concerned about her daughter’s welfare when Mason allegedly refused to let her speak with her child on Aug. 26. Creek County deputies responded to 38187 West 311th St. South to check on the welfare of the girl and found the burned body of a child. Deputies took Mason into custody after they located him one mile west of his residence in Bristow.
A Muscogee (Creek) Nation Lightehorse investigator and the FBI agent interviewed Mason at the Creek County Sheriff’s Office where the defendant allegedly told the two that he believed his daughter was controlled by witchcraft. According to the affidavit, Mason then told investigators that he punched the victim, drowned her, then took her to a creek bed where he set her body on fire. Mason and his daughter are members of the Muscogee (Creek) Nation.
Mason was taken into custody by the U.S. Marshals Service and is expected to make an initial appearance today at 2 pm in U.S. District Court.
The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Muscogee (Creek) Nation Lighthorse Tribal Police, and the Creek County Sheriff’s Office are conducting the investigation. U.S. Attorney Trent Shores and Assistant U.S. Attorney Ryan Roberts are prosecuting the case.
Bluefield Doctor Pleads Guilty to MisbrandingRead the Press Release
ABINGDON, Va. – Phillip Peterson, a family medicine physician in Bluefield Virginia, pleaded guilty this week in U.S. District Court in Abingdon to misbranding for a two-year pattern of prescribing Schedule II controlled substances to patients to what his office staff called “back door patients.” United States Attorney Thomas T. Cullen announced the guilty plea.
Peterson, 64, pleaded guilty earlier this week to a misdemeanor charge of misbranding. A drug is deemed misbranded if it is caused to be dispensed without a valid prescription. A prescription issued outside the usual course of professional practice is not valid. As part of his plea agreement, Peterson will serve one to three months in prison.
According to court documents, between December 2014 and January 2016, Peterson was a family medicine physician at Bluefield Family Medicine in Bluefield, Va. During this time, Peterson saw patients who did not check in with the receptionist and rather entered through the side door. Office staff called these patients “back door patients.” These patients came through the side door to pick-up Schedule II controlled substances prescriptions, which they had received from Peterson for years. These “back door patients” were not actually examined by Dr. Peterson each time they picked up prescriptions and did not pay for office visits.
Evidence showed that each of the prescriptions listed for the “back door patients” was issued outside the usual course of professional practice.
Dr. Peterson also had at least one patient who brought lists of prescriptions to the front desk of Bluefield Family Medicine for the receptionist to give to Dr. Peterson or his nurse. Dr. Peterson authorized those prescriptions, including prescriptions for Schedule II controlled substances, on occasion without the patient actually being seen or evaluated by Dr. Peterson. Evidence showed that these prescriptions were issued outside the usual course of professional practice.
The investigation of the case was conducted by Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorneys Lena Busscher, Whit D. Pierce and Randy Ramseyer are prosecuting the case for the United States.
Billings leader of large methamphetamine organization sentenced to eight years in prisonRead the Press Release
BILLINGS — A Billings woman who admitted heading a large methamphetamine distribution ring after investigators seized six pounds of the drug at her home and another location was sentenced today to eight years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Jamie Juwann Ady, 42, also known as Jamie Ady Alatorre, pleaded guilty in October to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court documents that in November 2018, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force identified a large-scale meth trafficking organization that was bringing meth into Montana. Ady headed this organization and worked with other co-conspirators.
Agents executed a search warrant on Ady's residence and a secondary location in Laurel where Ady stored some of the drugs and seized approximately six pounds of meth. Ady admitted in an interview to being a meth distributor and said that she and another person had just returned from Las Vegas and Phoenix where they picked up four bundles of meth, each containing about 1.5 pounds, from a source. Six pounds of meth is the equivalent of about 21,744 doses.
Assistant U.S. Attorney Colin Rubich investigated the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI Western Transnational Organized Crime Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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American Man Indicted on Charges of Exploiting Children in LaosRead the Press Release
An American man was indicted today in connection with exploiting teenage boys in Laos.
Michael Sebastian, 52, was indicted on three counts of engaging in illicit sexual conduct in foreign places and three counts of sex trafficking of children. Sebastian was charged by criminal complaint and arrested on July 7, 2020 in Lynn, Massachusetts. Sebastian was released on conditions including home incarceration in Ashby following a detention hearing on July 31, 2020.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office made the announcement.
According to the charging documents, Sebastian was living in Laos, where he taught English to Laotian youth. During at least the past two years, Sebastian provided housing to at least three boys, aged 13 to 18, to whom he taught English. In lieu of paying rent to live with him, Sebastian allegedly allowed the boys to pay off their rent by performing chores. According to the charging documents, these chores included giving Sebastian massages – which, in turn, included masturbating Sebastian.
The FBI’s Washington D.C. Field Office and the Bangkok, Thailand Field Office provided assistance with the investigation. Trial Attorney Leslie Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Anne Paruti, U.S. Attorney Lelling’s Project Safe Childhood Coordinator, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
American Man Indicted on Charges of Exploiting Children in LaosRead the Press Release
BOSTON – An American man was indicted yesterday in connection with exploiting teenage boys in Laos.
Michael Sebastian, 52, was indicted on three counts of engaging in illicit sexual conduct in foreign places and three counts of sex trafficking of children. Sebastian was charged by criminal complaint and arrested on July 7, 2020 in Lynn. Sebastian was released on conditions including home incarceration at a residence in Ashby following a detention hearing on July 31, 2020.
According to the charging documents, Sebastian was living in Laos, where he taught English to Laotian youth. During at least the past two years, Sebastian provided housing to at least three boys, aged 13-18, to whom he taught English. In lieu of paying rent to live with him, Sebastian allegedly allowed the boys to pay off their rent by performing chores. According to the charging documents, these chores included giving Sebastian massages – which, in turn, included masturbating Sebastian.
The charge of engaging in illicit sexual conduct in foreign places provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000. The charge of sex trafficking of children provides for a mandatory minimum sentence of 10 years (and 15 years where the minor victim is under 14 years of age) and up to life in prison, five 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; Acting Assistant Attorney General for the Justice Department’s Criminal Division Brian C. Rabbitt; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. The FBI’s Washington DC Field Office and the Bangkok, Thailand Field Office provided assistance with the investigation. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood coordinator, and Leslie Fisher, a Trial Attorney in the Justice Department’s Child Exploitation and Obscenity Section, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Announces Extradition of British Citizen for Operating an International Money Laundering and Fraud NetworkRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that HABEEB AUDU, a/k/a “Dickson,” a dual citizen of the United Kingdom and Nigeria, was extradited today from the United Kingdom. AUDU was charged with participation in a series of fraud schemes from at least in or about 2013 until at least April 2019, involving the theft and laundering of more than $2 million. AUDU was arrested in London, England, on June 26, 2019, on a provisional arrest warrant, and is the fourth defendant charged in this case. AUDU is expected to be presented on Monday, August 31, before U.S. Magistrate Judge James L. Cott. AUDU’s case is assigned to U.S. District Judge Katherine Polk Failla.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Habeeb Audu played a key role in an international fraud conspiracy that victimized businesses and individuals by using stolen identities and social engineering to access victims’ bank accounts, and by engaging in business email compromise schemes. Thanks to the FBI and our international partners, including the Italian National Police, Audu is now in U.S. custody and facing charges in this District.”
FBI Assistant Director William F. Sweeney Jr. said: “Today’s indictment outlines the alleged fraudulent conduct of Habeeb Audu and other conspirators who, over the course of nearly six years, robbed the bank accounts of both individuals and businesses here in the United States, sometimes from locations nearly halfway across the world. Using traditional spoofing techniques and business email compromise schemes, these crimes collectively brought in more than $2 million in proceeds. While today’s charges bring about a victory in this case, let it be a warning to the public to remain extra vigilant with respect to their personal and professional finances. The market is unfortunately rife with this type of crime.”
According to the allegations in the Indictment unsealed today[1]:
From at least 2013 through in or about 2018, AUDU and various other conspirators (collectively, the “Conspirators”), located in countries including the United States, Canada, Italy, the United Kingdom, and the United Arab Emirates, were involved in a scheme to fraudulently access individuals’ and corporations’ bank accounts and to conduct financial transactions using those bank accounts without the knowledge or authority of the accounts’ legitimate owners (the “Bank Scheme”). As part of the Bank Scheme, the Conspirators placed thousands of calls to various United States banks, holding themselves out as legitimate accountholders of particular targeted bank accounts and using the stolen personal identifying information belonging to those accountholders. Using a particular telephone number “spoofing” service, and voice-altering technology, the Conspirators would deceive bank representatives into believing that the Conspirators were actual accountholders. In so doing, they convinced multiple U.S. banks to, among other things: move money from a victim’s savings account to the victim’s checking account (so that the Conspirators could more easily access the funds and conduct unauthorized transactions); falsely note on the account that the accountholder was traveling abroad (making the bank less likely to void suspicious international transactions made by the Conspirators); have “replacement” credit cards mailed to international addresses controlled by the Conspirators (whereupon the Conspirators could use them to make unauthorized purchases); and authorize foreign purchases made by the Conspirators.
AUDU, from at least December 2018 through April 2019, was also involved in separate schemes to defraud United States-based businesses and banks by means of business email compromise schemes (the “BEC Fraud Schemes”). For example, AUDU defrauded an Ohio-based restaurant chain (the “Restaurant Victim”) into wiring nearly $2 million to a bank account controlled by AUDU’s co-conspirators (the “AUDU Account”). He did so by tricking the Restaurant Victim into believing that one of its legitimate vendors had changed bank accounts to the AUDU Account, such that payments for the vendor’s services were made to the AUDU Account. These funds were thereafter quickly withdrawn from the AUDU Account and dispersed to other accounts controlled by AUDU and his co-conspirators.
Thereafter, in connection with an FBI undercover operation, AUDU and others each agreed, for a substantial fee, to launder moneys that they believed to be fraud proceeds, through bank accounts controlled by AUDU and his co-conspirators. In doing so, AUDU and his co-conspirators agreed to conceal the nature of those purportedly fraudulent proceeds.
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AUDU, 53, of the United Kingdom and Nigeria, is charged with one count of conspiracy to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; four counts of conspiracy to commit money laundering and money laundering, each of which carries a maximum of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, to be served consecutively to any other sentence. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Other defendants charged in this case include Abdulai Kennedy Saaka, a/k/a “Kenny,” of Atlanta, Georgia, who pled guilty to one count of money laundering conspiracy in January 2020; Alade Kazeem Sodiq, a/k/a “Eluku,” a citizen of the United Arab Emirates, whose case remains pending; and Dominic Francis Labiran, a citizen of the United Kingdom, who remains at large.
Ms. Strauss praised the outstanding investigative work of the FBI. She also thanked United States Customs and Border Protection, Italian judicial law enforcement authorities, including the Prosecutor of the Republic of Naples and the Servizio Centrale Operativo of the Italian National Police, the Metropolitan Police Service, London, United Kingdom, and the United Kingdom’s Crown Prosecution Service for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from the United Kingdom.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
27 August 2020
Whiting Mayor Charged with Wire and Tax Fraud and Enters into Agreement to Plead GuiltyRead the Press Release
HAMMOND – Joseph Stahura, age 64, of Whiting, Indiana, was charged with wire fraud and filing a false income tax return, announced U.S. Attorney Thomas L. Kirsch II. He has entered into a plea agreement indicating his intent to plead guilty to both charges. His wife, Diane Stahura, age 64, also of Whiting, Indiana entered into a deferred prosecution agreement wherein she acknowledges that the Government has sufficient evidence to charge her with wire fraud.
United States Attorney Thomas L. Kirsch II said,
“Today’s charges and guilty plea are another black eye for Northwest Indiana. Mr. Stahura, an elected official for over 35 years, illegally used his campaign funds for personal activities and expenditures and lied about it on his publically filed campaign reports and tax returns. He knew his conduct was illegal, yet he persisted in it for over 5 years.
“My office has a long history of aggressively pursuing public corruption cases on behalf of the honest citizens of our community. That will continue as long as I am US Attorney. While most elected officials serve the public professionally and honestly, some do not. Those who seek illegal personal gain by virtue of their public office will be held accountable.
“If you have information concerning corrupt public officials, I encourage you to call my office or the FBI.”
According to documents in the case, Mr. Stahura, the Mayor of Whiting, Indiana since 2004, and his wife used his campaign fund for personal expenditures, like gambling, credit card debt and providing financial support to an adult daughter. Mr. Stahura has been the Mayor of Whiting since 2004 and prior to that he served as a Whiting City Councilman for 20 years. He was also the Chairman and Treasurer of his campaign committee entitled “Committee to Elect Joe Stahura” (“Committee”).
From February 2014 through 2019, Mr. and Mrs. Stahura used approximately $255,000 of funds from the “Committee” for personal purposes, while disguising the activity by filing campaign reports with false and misleading information and by omitting material information from the reports. To further defraud, they sought donations from individuals and entities, and held fund raising events to raise money for the “Committee”. Mrs. Stahura transferred money from the “Committee’s” bank account to the Stahuras’ personal bank account, which were then used the funds to pay personal bills, provide support for their daughter and gamble at casinos. To further the scheme, on multiple occasions between 2014 and 2019, Joe Stahura filed false and misleading campaign finance reports with the Board of Elections which omitted information about the personal use of the campaign funds that had been occurring from 2014 through November 2019.
In April 2019, Mr. Stahura filed a false tax return. He falsely listed his gross income, not accounting for the amount stolen from the Campaign Account in 2018 which was approximately $51,480. Additionally, on his campaign finance report he overstated the “loan repayment amount” to his campaign by approximately $40,000.
Indiana campaign finance law restricted the use of money contributed to a campaign committee. Candidates could use committee money to pay expenses reasonably related to a campaign for political office, continuing political activity, and activity related to service in elected office. Candidates could not use committee money for a primarily personal purpose or commingle personal funds with campaign funds. Indiana campaign finance law also required campaign committees to regularly file public reports using a state form containing instructions including “WARNING: Using campaign funds for primarily personal purposes is prohibited.” Reports had to itemize each expenditure above $100, name the recipient and state a purpose. These reports provided citizens with a record of the expenditure of campaign funds, provided donors with a measure of accountability regarding the funds, and assisted voters in making informed decisions at the polls.
Mr. Stahura entered into a plea agreement, which has been filed with the court, to resolve the criminal charges. If this signed plea agreement is accepted by the court, the length of sentence and amount of restitution will be determined by the court at a sentencing hearing after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
“Public corruption continues to be a high priority for IRS Criminal Investigation”, stated Special Agent in Charge Kathy A. Enstrom of the IRS Criminal Investigation, Chicago Field Office. “Public officials stealing campaign funds for personal purposes is an unacceptable practice and IRS Criminal Investigation will be there to uncover the fraud and tax evasion in order to bring the dishonest officials to justice.”
“Public corruption is the top criminal investigative priority for the FBI. The American people and the FBI do not tolerate public officials who use their position for private gain. Public corruption erodes the trust constituents put in their elected officials and undermines the integrity of government,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “The FBI and our partner law enforcement agencies will continue our mission to root out fraud and corruption in all forms and serve our communities."
This case is being investigated by the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation, both members of the US Attorney’s Public Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorneys Philip Benson and Gary Bell.
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Westville Woman Ordered to Pay $708,971.93 in RestitutionRead the Press Release
HAMMOND-Debra McCall, 46, of Westville, Indiana was sentenced by U.S. District Court Judge Theresa L. Springmann upon her guilty plea to bank fraud and filing a false tax return, announced U.S. Attorney Kirsch.
McCall was sentenced to 27 months in prison, 2 years of supervised release to include 6 months of home confinement and ordered to pay $708,971.93 in restitution.
“Ms. McCall took advantage of her employer’s trust for her own selfishness,” said United States Attorney Thomas L. Kirsch II. “Many small businesses operate on a thin margin and pilfering money from employers could cause severe financial issues, disrupting the lives of many who rely on those businesses for their livelihoods. My Office and our federal partners take these crimes seriously and will continue to prosecute schemes like these throughout the District.”
According to documents in the case, McCall, while employed as a bookkeeper for a small local sales company, used her position of trust to steal more than $700,000 from her employer during a three year period. She devised and executed a scheme to embezzle money from her employer’s accounts by using her knowledge of the bookkeeping and accounting software. She created and printed checks drawn on the company’s accounts. She made the checks payable to her boyfriend and forged the manager’s signature on each check. She then canceled the checks in the accounting system and balanced the company’s books by incorporating the amounts she took into other entries to avoid detection. McCall admitted that she stole the money and gambled it away.
“As we often see in embezzlement cases, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm”, stated Special Agent in Charge Kathy A. Enstrom of the IRS Criminal Investigation, Chicago Field Office. "We would like the taxpayers to take notice that today’s 27-month sentence of Debra McCall resulted in serious prison time because she misused her position of trust at her company by embezzling company funds and failing to report the funds on her income tax return.”
“Ms. McCall thought she could use her position of trust in the office and her access to company funds for her own personal benefit. But, instead, her greed and self-interest means she is headed to prison for her crime,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “The FBI and our law enforcement partners will continue to aggressively investigate those who abuse their positions and hold them accountable.”
This case is the result of the investigative efforts of the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Alexandra McTague.
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Waterloo Man to Spend Seven Years in Prison for Possessing a Sawed-Off Shotgun after Multiple Felony ConvictionsRead the Press Release
A man who possessed a sawed-off shotgun was sentenced today to seven years in federal prison.
Levi Farren Miller, age 30, from Waterloo, Iowa, received the prison term after a January 7, 2020 guilty plea to being a felon in possession of a firearm.
Evidence at sentencing hearing showed that Miller displayed a sawed-off shotgun while in a heated disagreement with a neighbor regarding the neighbor moving Miller’s items off the neighbor’s porch. Miller, a white male, used racially charged language during the confrontation. Miller had previously been convicted of multiple felonies, including burglary twice, theft twice, attempted burglary, and conspiracy to manufacture methamphetamine.
Miller was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Miller was sentenced to 84 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Miller is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-02031.
Follow us on Twitter @USAO_NDIA.
Vienna Man Pleads Guilty to Tax FraudRead the Press Release
Defendant fraudulently obtained over $267,000 by underreporting his income to the IRS
CHARLESTON, W.Va. – Timothy Nolan, 58, of Vienna, pled guilty to the felony offense of tax fraud, announced United States Attorney Mike Stuart. Nolan faces up to three years in prison, a $250,000 fine and one year of supervised release when he is sentenced on November 23, 2020. He also will be subject to an order of restitution for $267,786.42, with the final determination to be made by the court at sentencing.
“Nolan schemed and defrauded the IRS for several years to the tune of more than $267,000,” said United States Attorney Mike Stuart. “Up to three years in a federal prison, a $250,000 fine and full restitution of nearly $268,000. Tax obligations are not voluntary. No one likes paying taxes but tax payments are not optional.”
Nolan admitted that he would underreport his income on his personal income taxes. Specifically, in 2015, he reported to the IRS he had a taxable income of $17,788 when he actually had a taxable income of over $200,000. When Nolan fraudulently reported his income, he verified through a written declaration that was filed under the penalty of perjury that the return was accurate. Nolan significantly underreported his personal income for the tax years 2013 through 2016, and signed declarations to the IRS to that effect. Nolan also underpaid his employment taxes (Form 941) for his employees from 2013 through 2017 and did not pay workers compensation premiums for unreported and underreported wages. Nolan admitted the total amount of income wrongfully withheld was $267,778.42.
The investigation was conducted by the Department of the Treasury, the Internal Revenue Service-Criminal Investigation (IRS-CI), the United States Department of Justice Tax Division and the West Virginia Office of the Insurance Commissioner.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes 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. 2:20-cr-00136.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Uxbridge Doctor Pleads Guilty to Conspiring to Distribute AdderallRead the Press Release
BOSTON – An Uxbridge doctor pleaded guilty yesterday to conspiring to prescribe an amphetamine for reasons other than legitimate medical purposes.
Leslie Caraceni M.D., 58, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 15, 2020.
Caraceni was indicted in November 2018 with Rene Ruliera, 52, of Southborough, who pleaded guilty in August 2019 and is scheduled to be sentenced on Sept. 8, 2020. Co-conspirator Meghan Giacomuzzi, 37, of Whitinsville, pleaded guilty in February 2019 and is scheduled to be sentenced on Nov. 17, 2020.
Between March 2016 and February 2018, Caraceni, Ruliera and Giacomuzzi conspired to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice. Caraceni hired both Ruliera and Giacomuzzi to work at her medical practice in Framingham and later in Whitinsville, and enlisted both in a conspiracy to sell and distribute Adderall to individuals who had not been medically examined or given a clinical diagnosis to warrant a prescription. Office visitors met with either Ruliera or Giacomuzzi, discussed their desired prescription, paid for their office visit and left with a signed prescription for Adderall. Office visits lasted just minutes and each such visit cost approximately $200, payable in cash or through a credit card or debit card. Caraceni collected the cash from the office or received funds through deposits to her bank account.
Caraceni provided Ruliera and Giacomuzzi with blank prescription pads and explained how to fill out prescriptions for sale. Electronic communications between Caraceni, Ruliera and Giacomuzzi documented Caraceni’s knowledge of the prescriptions written by Ruliera and Giacomuzzi, the number of office visitors seen in her absence and the profits resulting from their sale of prescriptions to those visitors. Between November 2015 and July 2018, records from the Massachusetts Prescription Monitoring Program show that well over 1,500 prescriptions for Adderall—amounting to over 110,000 pills—were filled in Massachusetts based on Caraceni’s prescriptions.
Each charge provides a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Kenneth Paulhus made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Upshur County man admits to making a bombRead the Press Release
ELKINS, WEST VIRGINIA – William John Clark, of Buckhannon, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Clark, age 62, pled guilty to one count of “Making a Destructive Device.” Clark admitted to making an explosive bomb, which wasn’t registered as required by law. The crime occurred in March 2020 in Upshur County.
Clark faces at up to 10 years of incarceration and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Upshur County Sheriff’s Office investigated.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information, please see https://www.justice.gov/projectguardian.
U.S. Magistrate Judge Michael John Aloi presided.
United States Settles Suit Against Two Additional Responsible Parties for the Release of Mercury in the Village of Rye BrookRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against CYTEC INDUSTRIES, INC. (“Cytec”) and KEYSPAN GAS EAST CORPORATION d/b/a NATIONAL GRID (“National Grid”) (collectively, the “Defendants”), and has simultaneously filed a consent decree settling the lawsuit. In the complaint, brought pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601-9675 (“CERCLA”) – commonly known as the Superfund statute – the United States alleged that the Defendants arranged for the disposal or treatment of mercury by Port Refinery, Inc. (“Port Refinery”), a mercury refining business in the Village of Rye Brook, New York, which led to releases of mercury into the environment. Through the lawsuit, EPA sought to collect the costs that it has incurred since April 2004 in connection with its clean-up of mercury at the Port Refinery Superfund Site (the “Site”) in the Village of Rye Brook in Westchester County, New York. The consent decree, which provides for a combined payment of $142,653 by the Defendants, has been lodged with the District Court for a period of at least 30 days, after which it will be submitted for the Court’s approval.
Acting United States Attorney Audrey Strauss said: “Both Cytec and National Grid contributed to contamination in a residential community by arranging for the treatment or disposal of toxic mercury, and now they are each paying a share of the costs they have imposed on the community. This Office will continue to hold responsible parties accountable for their share of the costs at the Site.”
Regional Administrator Peter D. Lopez said: “These companies sent mercury-containing materials to this site where they were improperly handled, resulting in mercury being released into the environment and putting people in the area at risk. Thankfully, EPA was able to take action to address the risk, and this settlement holds the companies accountable, ensuring that taxpayers don’t bear the full burden of the cleanup at this site.”
As alleged in the complaint filed yesterday in White Plains federal District Court, each of the Defendants arranged for the sale and transport of used or scrap mercury, or mercury-containing products, directly or indirectly to Port Refinery. Port Refinery then processed these materials as part of a mercury refining business it operated out of a residence in Rye Brook, New York. Port Refinery’s treatment and processing of the scrap mercury sent by the Defendants and other parties led to extensive releases of mercury, a hazardous substance, requiring two separate clean-up actions by EPA. In connection with the second clean-up, which began in 2004, EPA has incurred costs at the Site for a variety of investigative and removal activities, including, among other things, excavating and disposing of more than 9,300 tons of mercury-contaminated soil from the Site.
In the consent decree filed yesterday, the Defendants admit and accept responsibility for the following:
- EPA has determined that from the 1970s through the early 1990s, Port Refinery engaged in, among other things, the business of mercury reclaiming, refining, and processing.
- Port Refinery operated in the Village of Rye Brook out of a two-story garage bordered by private residences on its south, east, and west sides.
- EPA has determined that Port Refinery took virtually no environmental precautions or safety measures during its mercury refinement process.
- EPA has determined that Port Refinery released a significant amount of mercury into the environment, contaminating the Site.
- EPA has determined that mercury from the Defendants’ mercury-containing products was comingled at the Site and contributed to the mercury released into the environment.
- Defendants delivered materials containing scrap mercury to Port Refinery during its period of operations.
Pursuant to the consent decree, the Defendants will pay a total of $142,653 in costs incurred by EPA, consisting of $93,076 to be paid by Cytec, and $49,577 to be paid by National Grid.
* * *
This lawsuit is the United States’ fifth lawsuit against responsible parties to recover clean-up costs for the second clean-up at the Site. Prior to this settlement, the United States had recovered $827,229 from other responsible parties. The United States is continuing to pursue its claims against additional potentially responsible parties.
The consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval, to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Anthony J. Sun is in charge of the case.
United States Files Complaint to Forfeit 280 Cryptocurrency Accounts Tied to Hacks of Two Exchanges by North Korean ActorsRead the Press Release
The Justice Department today filed a civil forfeiture complaint detailing two hacks of virtual currency exchanges by North Korean actors. These actors stole millions of dollars’ worth of cryptocurrency and ultimately laundered the funds through Chinese over-the-counter (OTC) cryptocurrency traders. The complaint follows related criminal and civil actions announced in March 2020 pertaining to the theft of $250 million in cryptocurrency through other exchange hacks by North Korean actors.
“Today’s action publicly exposes the ongoing connections between North Korea’s cyber-hacking program and a Chinese cryptocurrency money laundering network,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This case underscores the department’s ongoing commitment to counter the threat presented by North Korean cyber hackers by exposing their criminal networks and tracing and seizing their ill-gotten gains.”
“Today, prosecutors and investigators have once again exemplified our commitment to attribute national security cyber threats, to impose costs on these actors, and bring some measure of relief to victims of malicious cyber activities,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “Although North Korea is unlikely to stop trying to pillage the international financial sector to fund a failed economic and political regime, actions like those today send a powerful message to the private sector and foreign governments regarding the benefits of working with us to counter this threat.”
“As part of our commitment to safeguarding national security, this office has been at the forefront of targeting North Korea’s criminal attacks on the financial system,” said Acting U.S. Attorney Michael R. Sherwin of the District of Columbia. “This complaint reveals the incredible skill of our Cryptocurrency Strike Force in tracing and seizing virtual currency, which criminals previously thought to be impossible.”
“Despite the highly sophisticated laundering techniques used, IRS-CI’s Cybercrimes Unit was able to successfully trace stolen funds directly back to North Korean actors,” said Don Fort, Chief of IRS Criminal Investigation (IRS-CI). “IRS-CI will continue to collaborate with its law enforcement partners to combat foreign and domestic operations that threaten the United States financial system and national security.”
“FBI efforts to stop the flow of threat finance around the world are central to our strategy to address transnational crime,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “This strategy is strengthened by the skills and expertise we continue to develop in virtual asset investigations such as this, which enable the FBI and our partners to identify and seize illicit assets.”
“As North Korea becomes bolder and more desperate in their efforts to steal money using sophisticated money laundering techniques, HSI will continue to apply pressure by exposing their fraudulent transactions,” said Special Agent in Charge Steven Cagen of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Denver. “We are committed to safeguarding the interest of the United States against the criminal elements in North Korea to protect the integrity of the cyber financial system.”
“At U.S. Cyber Command, we leverage a persistent engagement approach to challenge our adversaries’ actions in cyberspace,” said Brigadier General Joe Hartman, Commander of the Cyber National Mission Force. “This includes disrupting North Korean efforts to illicitly generate revenue. Department of Defense cyber operations do not occur in isolation. Persistent engagement includes acting through cyber-enabled operations as much as it does sharing information with our interagency partners to do the same.”
“Today’s complaint demonstrates that North Korean actors cannot hide their crimes within the anonymity of the internet. International cryptocurrency laundering schemes undermine the integrity of our financial systems at a global level, and we will use every tool in our arsenal to investigate and disrupt these crimes,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to impose risks and consequences on criminals who seek to undermine our national security interests.”
The forfeiture complaint filed today details two related hacks of virtual currency exchanges.
As alleged in the complaint, in July 2019, a virtual currency exchange was hacked by an actor tied to North Korea. The hacker allegedly stole over $272,000 worth of alternative cryptocurrencies and tokens, including Proton Tokens, PlayGame tokens, and IHT Real Estate Protocol tokens. Over the subsequent months, the funds were laundered through several intermediary addresses and other virtual currency exchanges. In many instances, the actor converted the cryptocurrency into BTC, Tether, or other forms of cryptocurrency – a process known as “chain hopping” – in order to obfuscate the transaction path. As detailed in the pleadings, law enforcement was nonetheless able to trace the funds, despite the sophisticated laundering techniques used.
As also alleged in the pleadings, in September 2019, a U.S.-based company was hacked in a related incident. The North Korea-associated hacker gained access to the company’s virtual currency wallets, funds held by the company on other platforms, and funds held by the company’s partners. The hacker stole nearly $2.5 million and laundered it through over 100 accounts at another virtual currency exchange.
The funds from both of the above hacks, as well as hacks previously detailed in a March 2020 forfeiture action (1:20-cv-00606-TJK), were all allegedly laundered by the same group of Chinese OTC actors. The infrastructure and communication accounts used to further the intrusions and fund transfers were also tied to North Korea.
The claims made in this complaint are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
The investigation was conducted by IRS-CI’s Washington, D.C. Cyber Crimes Unit, the FBI’s Chicago and Atlanta Field Offices, and HSI’s Colorado Springs Office with additional support from the FBI’s San Francisco Field Office. Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Zia M. Faruqui, Jessi Camille Brooks, and Christopher Brown are prosecuting the case, with assistance from Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
Support to this effort was provided by FBI’s San Francisco Field Office and the U.S. Attorney’s Office of the Northern District of Georgia.
Support to this effort was also provided by United States Cyber Command. More information about the command’s efforts to combat North Korean and other malware activity can be found on Twitter and VirusTotal.
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.
United States Files Complaint to Forfeit 280 Cryptocurrency Accounts Tied to Hacks of Two Exchanges by North Korean ActorsRead the Press Release
WASHINGTON – The Justice Department today filed a civil forfeiture complaint detailing two hacks of virtual currency exchanges by North Korean actors. These actors stole millions of dollars’ worth of cryptocurrency and ultimately laundered the funds through Chinese over-the-counter (OTC) cryptocurrency traders. The complaint follows related criminal and civil actions announced in March 2020 pertaining to the theft of $250 million in cryptocurrency through other exchange hacks by North Korean actors.
“As part of our commitment to safeguarding national security, this office has been at the forefront of targeting North Korea’s criminal attacks on the financial system,” said Acting U.S. Attorney Michael R. Sherwin of the District of Columbia. “This complaint reveals the incredible skill of our Cryptocurrency Strike Force in tracing and seizing virtual currency, which criminals previously thought to be impossible.”
“Today’s action publicly exposes the ongoing connections between North Korea’s cyber-hacking program and a Chinese cryptocurrency money laundering network,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This case underscores the department’s ongoing commitment to counter the threat presented by North Korean cyber hackers by exposing their criminal networks and tracing and seizing their ill-gotten gains.”
“Today, prosecutors and investigators have once again exemplified our commitment to attribute national security cyber threats, to impose costs on these actors, and bring some measure of relief to victims of malicious cyber activities,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “Although North Korea is unlikely to stop trying to pillage the international financial sector to fund a failed economic and political regime, actions like those today send a powerful message to the private sector and foreign governments regarding the benefits of working with us to counter this threat.”
“Despite the highly sophisticated laundering techniques used, IRS-CI’s Cybercrimes Unit was able to successfully trace stolen funds directly back to North Korean actors,” said Don Fort, Chief of IRS Criminal Investigation (IRS-CI). “IRS-CI will continue to collaborate with its law enforcement partners to combat foreign and domestic operations that threaten the United States financial system and national security.”
“FBI efforts to stop the flow of threat finance around the world are central to our strategy to address transnational crime,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “This strategy is strengthened by the skills and expertise we continue to develop in virtual asset investigations such as this, which enable the FBI and our partners to identify and seize illicit assets.”
“As North Korea becomes bolder and more desperate in their efforts to steal money using sophisticated money laundering techniques, HSI will continue to apply pressure by exposing their fraudulent transactions,” said Special Agent in Charge Steven Cagen of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Denver. “We are committed to safeguarding the interest of the United States against the criminal elements in North Korea to protect the integrity of the cyber financial system.”
“At U.S. Cyber Command, we leverage a persistent engagement approach to challenge our adversaries’ actions in cyberspace,” said Brigadier General Joe Hartman, Commander of the Cyber National Mission Force. “This includes disrupting North Korean efforts to illicitly generate revenue. Department of Defense cyber operations do not occur in isolation. Persistent engagement includes acting through cyber-enabled operations as much as it does sharing information with our interagency partners to do the same.”
"Today’s complaint demonstrates that North Korean actors cannot hide their crimes within the anonymity of the internet. International cryptocurrency laundering schemes undermine the integrity of our financial systems at a global level, and we will use every tool in our arsenal to investigate and disrupt these crimes," said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to impose risks and consequences on criminals who seek to undermine our national security interests.”
The forfeiture complaint filed today details two related hacks of virtual currency exchanges.
As alleged in the complaint, in July 2019, a virtual currency exchange was hacked by an actor tied to North Korea. The hacker allegedly stole over $272,000 worth of alternative cryptocurrencies and tokens, including Proton Tokens, PlayGame tokens, and IHT Real Estate Protocol tokens. Over the subsequent months, the funds were laundered through several intermediary addresses and other virtual currency exchanges. In many instances, the actor converted the cryptocurrency into BTC, Tether, or other forms of cryptocurrency – a process known as “chain hopping” – in order to obfuscate the transaction path. As detailed in the pleadings, law enforcement was nonetheless able to trace the funds, despite the sophisticated laundering techniques used.
As also alleged in the pleadings, in September 2019, a U.S.-based company was hacked in a related incident. The North Korea-associated hacker gained access to the company’s virtual currency wallets, funds held by the company on other platforms, and funds held by the company’s partners. The hacker stole nearly $2.5 million and laundered it through over 100 accounts at another virtual currency exchange.
The funds from both of the above hacks, as well as hacks previously detailed in a March 2020 forfeiture action (1:20-cv-00606-TJK), were all allegedly laundered by the same group of Chinese OTC actors. The infrastructure and communication accounts used to further the intrusions and fund transfers were also tied to North Korea.
The claims made in this complaint are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
The investigation was conducted by IRS-CI’s Washington, D.C. Cyber Crimes Unit, the FBI’s Chicago and Atlanta Field Offices, and HSI’s Colorado Springs Office with additional support from the FBI’s San Francisco Field Office. Assistant U.S. Attorneys Zia M. Faruqui, Jessi Camille Brooks, and Christopher Brown, with assistance from Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Support to this effort was provided by FBI’s San Francisco Field Office and the U.S. Attorney’s Office of the Northern District of Georgia.
Support to this effort was also provided by United States Cyber Command. More information about the command’s efforts to combat North Korean and other malware activity can be found on Twitter and VirusTotal.
U.S. Marshals searching for 6 Ohio residents in a drug conspiracy involving heroin, fentanyl, “crack” cocaine, and meth in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – The U.S. Marshals are searching for six individuals who are wanted in a drug conspiracy operation that spanned Ohio and West Virginia, U.S. Attorney Bill Powell announced.
The Marshals are asking for information leading to the arrests of:
• Dominique Revell Dungey, also known as “Murda,” 28, of Martins Ferry, Ohio
• Tyrone Majette, also known as “Rullo” and “Marlo,” 24, of Martins Ferry, Ohio
• Sihrahn Major, II, also known as “Black,” 24, of Columbus, Ohio
• Antonio Mario Hall, 28, of Cleveland, Ohio
• Damion Jontaz Pippens, also known as “Dolla” and “DJ,” 36, of Euclid, Ohio
• Joseph Garth, also known as “Nephew,” 23, of Bellaire, OhioThe six men are facing charges in a drug distribution operation that sold cocaine base, also known as “crack,” heroin, methamphetamine, including “ice,” and fentanyl in Ohio County and elsewhere from February 2019 to August 2020. In some instances, the sale of the drugs took place near protected locations such as North Park Apartments, Riverview Towers, Luau Manor, Madison Elementary School, Jensen Playground, Belle Isle Playground, Elks Playground, Bridge Park Playground, West Virginia Northern Community College, Wheeling Central Catholic High School, and Wheeling University.
Anyone with information is asked to contact the U.S. Marshal Service at 304-232-2980.
There are 20 others charged in this case. See the release issued on August 6, 2020: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Wrigley Announces String of Violent Gang Members Indicted on Federal Robbery ChargesRead the Press Release
FARGO - United States Attorney Drew Wrigley announced that a federal grand jury has indicted Abbot William Aho, a/k/a Boogie, age 26, Fergus Falls, MN, for Conspiracy to commit Robbery; Robbery; Use of a Firearm in Relation to a Crime of Violence; Conspiracy to Possess a Controlled Substance with Intent to Distribute, and Distribution of a Controlled Substances; Continuing Criminal Enterprise; and Aiding and Abetting.
The Indictment was unsealed today, and alleges that from January 2019 through May 2019, Abbot Aho, led a criminal gang known as the "Slither Gang," members of which conspired with Aho and other individuals to target robbery victims who were themselves alleged drug traffickers in North Dakota, Minnesota, and elsewhere. The Indictment further alleges that Abbot Aho and the co-conspirator gang members carried out a string of robberies by threats of violence, the infliction of violence, and the brandishing of firearms and other dangerous weapons. Abbot Aho and the co-conspirators often resorted to home invasions or setting up victims to meet at a public place, and then robbed them of drugs, money, firearms and personal property, later selling the drugs they stole.
"While the victims in this string of violent attacks and robberies were often criminals themselves, this law enforcement initiative is a critically important component of our push to identify, prosecute and incarcerate the most violent criminals operating in North Dakota and the region," said United States Attorney Drew Wrigley, "and we are dramatically increasing federal robbery prosecutions as a result of these focused efforts."
In addition to numerous similar though unrelated federal prosecutions across the state as a part of this initiative, several of Aho’s co-conspirators have also been indicted in North Dakota and are awaiting trial:
• Sarah Ann Carlson, age 21, Minneapolis, MN: Indicted on charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; and Aiding and Abetting
• Jared Christopher Kaul, age 21, Fridley, MN: Indicted on charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Conspiracy to Possess with Intent to Distribute; and Distribute Controlled Substances
• Josiah Thomas Aguilar, age 21, Dilworth, MN: Indicted on charges of Conspiracy to Interfere with Commerce by Threats and Violence – Hobbs Act Robbery; Interference with Commerce by Threats and Violence – Hobbs Act Robbery; Use of a Firearm During and in Relation to a Crime of Violence; Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances; and Aiding and Abetting
Grand jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Fergus Falls MN Police Department; and the Ottertail County States Attorney’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Chris C. Myers assigned to the case.
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Two charged with conspiracy to transport illegal aliens appear in federal courtRead the Press Release
ALBUQUERQUE, N.M. – Christian Barron, 32, and Rosa Briones, 29, both U.S. citizens, have been charged in a criminal complaint with conspiracy to transport illegal aliens. The defendants made an initial appearance in federal court on Aug. 21 and a bond hearing Aug. 24.
According to the complaint, on August 12, 2020, agents from Santa Teresa Border Patrol Station patrolling New Mexico Highway 9 observed a sedan leaving an area near the exact location where other agents had just discovered multiple individuals entering the United States illegally. While conducted an immigration stop, agents discovered that the driver, along with his passenger, had picked up eight individuals who had just entered the country. One person was concealed in the trunk of the car with no water or ventilation, wearing a thermal hoodie as temperatures reached 104 degrees.
With the exceptions of Barron and Briones, everyone in the car was determined to be in the country illegally.
A criminal complaint is only an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Barron and Briones face up to 10 years in prison.
This case was investigated by the U.S. Border Patrol. Assistant U.S. Attorney Matthew Ramirez is prosecuting the case.
Tuscaloosa Man Sentenced to More Than 21 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Tuscaloosa resident and six-time convicted felon to prison for possessing a pistol during a 2018 shooting at an intersection on Skyland Boulevard in Tuscaloosa, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Toby Taylor.
Chief U.S. District Judge L. Scott Coogler sentenced LARRY LEON BRYANT, 34, to 262 months in prison on one-count of being a felon in possession of a firearm under the Armed Career Criminal Act. A jury convicted Bryant after a two-day trial in October of 2019.
“Bryant’s lengthy sentence was driven by his extensive criminal history that included multiple drug distribution convictions,” Escalona said. “We continue to focus our prosecutions on felons who arm themselves, especially those who use firearms to continue their criminal activity.”
“Removing the criminal element that uses a firearm to facilitate violent crimes is a priority of ATF,” ATF Acting Special Agent in Charge, Toby Taylor said. “This focused investigation of an individual with an extensive criminal history will have a lasting impact within this community.”
On December 13, 2018, Bryant’s SUV was stolen from his driveway. Later that day, Bryant and his brother located the SUV on East Skyland Boulevard. Bryant stopped behind the SUV at a red light, and Bryant’s brother pulled in front of the SUV. Traffic camera video showed that the brother fired a shot into the windshield and then met Bryant at the driver’s side door. Shots were then fired into the driver’s side of the SUV.
Tuscaloosa police arrested both men at the scene and collected two pistols. A subsequent examination of the SUV, the pistols, and expended bullets and shell casings determined that multiple pistols had been fired with rounds entering not only through the windshield but also through the driver’s window and the rear tailgate doors. The driver of the SUV, a juvenile, was struck in the head but survived.
ATF investigated the case along with the Tuscaloosa Violent Crimes Unit. Assistant U.S. Attorneys Alan Baty and Brittney Bucak prosecuted the case.
Trenton Man Sentenced to 10 Years in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 120 months in prison for his role in a large drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced.
Davias Taylor, a/k/a “Vicey,” 28, of Trenton, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Chief Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In October 2018, Taylor and 25 other members of a drug trafficking conspiracy operating in Trenton were charged with conspiracy to distribute heroin. On Feb. 27, 2020, a grand jury returned a 10-count second superseding indictment charging Jerome Roberts, a/k/a “Righteous,” a/k/a “Lee”; David Antonio, a/k/a “Papi,” a/k/a “Pop,” a/k/a a/k/a “Santiago Ramirez”; Timothy Wimbush, a/k/a “Young Money”; Taquan Williams, a/k/a “Trip”; Jubri West; Dennis Cheston Jr., a/k/a “Beans”; and Wayne K. Bush with various crimes relating to the drug-trafficking conspiracy, as well as firearms offenses. To date, 23 defendants have pleaded guilty in connection with their participation in the conspiracy.
From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and that sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendants Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, to whom they referred as “Papi.” The investigation revealed that during the conspiracy, Davias Taylor met David Antonio and introduced him to his conspirators, Jakir Taylor and Jerome Roberts, so that Antonio could supply the conspiracy with significant quantities of heroin. Davias Taylor himself also obtained and redistributed significant quantities of heroin for profit.
In addition to the prison term, Davias Taylor was sentenced five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s sentencing. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case.
The government is represented by J. Brendan Day, Attorney-in-Charge of the U.S. Attorney’s Office’s Trenton Office, and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. 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.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Three KC Men Charged in Armed Carjacking That Resulted in Police Pursuit, Fatal CollisionRead the Press Release
KANSAS CITY, Mo. – Three Kansas City, Missouri, men have been charged in federal court for their roles in an armed carjacking Monday night that led to a high-speed chase and a collision that killed another motorist.
Derrell M. Wade, also known as Derrelle, 19, Curtis R. Daniels, 18, and Michael A. Brown, 18, were charged in a two-count complaint filed in the U.S. District Court in Kansas City, Mo., on Wednesday, Aug. 26. They remain in federal custody pending a detention hearing, which has not yet been scheduled.
The federal criminal complaint charges each of the defendants with participating in a carjacking that occurred on Monday, Aug. 24. The complaint also charges Wade with brandishing a firearm during a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, Wade pointed a gun at the victim, identified in court documents as “T.R.,” as he was walking away from his parked vehicle, a gold 2007 Prius, at approximately 10:35 p.m. on Monday, Aug. 24. Wade allegedly pressed the barrel of his gun against T.R.’s forehead, and demanded, “give me your keys.” Another person took T.R.’s cell phone from his hand. T.R. was repeatedly struck in the back with an unknown object by a third person, and told to stay on his knees. The three men then fled in T.R.’s vehicle, the affidavit says.
T.R. immediately contacted law enforcement, and used his wife’s cell phone to track his stolen cell phone, using the Find My Phone app. Police officers saw the stolen Prius driving southbound on Lister Avenue, passing over the main thoroughfare of East 23rd Street, at about 11:09 p.m. Officers pulled behind the vehicle, which the affidavit says was being driven by Wade, and the vehicle accelerated a high rate of speed away from the officers. Officers activated their emergency equipment and initiated a pursuit of the vehicle.
According to the affidavit, Wade drove at speeds up to 75 miles per hour and ran several stop signs during the pursuit. When Wade ran the stop sign at 23rd Street and Lawn Avenue, the Prius collided with another vehicle. This collision resulted in the fatality of an occupant from that vehicle.
Wade left the driver’s seat and attempted to run away. Wade, who appeared to be limping, fell to the ground. As he was falling, the affidavit says, he pulled a loaded Smith and Wesson 9mm semi-automatic handgun from his waistband and threw it in the grass.
Brown got out of the passenger side rear door of the Prius and began running toward Elmwood Avenue. He was found hiding near a grill in a residential backyard and arrested.
Daniels, who was sitting in the front passenger seat of the Prius, was arrested without incident.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Three Indicted in Conspiracy to Illegally Acquire Firearms for a FelonRead the Press Release
ERIE, Pa. – A former resident of Jamestown, New York and two residents of Erie, Pennsylvania have been indicted by a federal grand jury in Erie on a charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The five-count Indictment named Michael Deniro Hackett, 41, Kathryn Nicole Shaw, 23, and Treasure Ann Gray, 40, as defendants.
According to the Indictment presented to the court, from March 9, 2020, to July 21, 2020, the defendants conspired to violate federal straw purchase laws and acquired firearms for Hackett who was prohibited from possessing firearms based on prior criminal convictions.
The law provides for a maximum total sentence of 45 years in prison, a fine of $1,250,000, or both for Hackett and a maximum total sentence of 15 years in prison, a fine of $500,000, or both defendant Shaw and Gray. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Conewango Police Department, and Homeland Security Investigations conducted the investigation leading to the Indictment in this case. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Fugitive ApprehendedRead the Press Release
PHOENIX, Ariz. – Kevin Scott Wynn, 59, of Scottsdale, Arizona, was apprehended last week by the United States Marshals Service after failing to appear for his scheduled sentencing.
A Phoenix jury convicted Wynn on December 5, 2019 of one felony count of tax evasion and three misdemeanor counts of failure to file a tax return. Before trial, Wynn had been on pretrial release, but subject to a curfew and electronic monitoring.
After his conviction, Wynn was released pending sentencing, but required to follow a curfew and wear an ankle monitor. In April 2020, Wynn filed a motion with the court, requesting to lift those restrictions on his release. The District Court sided with the government and refused to modify the conditions of Wynn’s release.
On June 30, approximately four weeks before his scheduled sentencing date, Wynn cut off his ankle monitor, and left it on the ground outside his office. United States Pretrial Services received a tamper alert, sought a warrant, and alerted law enforcement. Over the course of the next 53 days, the United States Marshals Service, with assistance from Internal Revenue Service – Criminal Investigations, the Coast Guard, Customs and Border Protection, Immigration and Customs Enforcement, and Mexican law enforcement authorities worked together to trace Wynn’s movements, contacts, and money. In particular, in the months before he fled – and at a time when he was asserting in court filings that he intended to pay his past due tax obligations – Wynn withdrew more than one million dollars in cash from his business bank accounts.
Mexican law enforcement authorities apprehended Wynn in the wealthy Polanco neighborhood of Mexico City on Friday, August 21, and deported him to Houston the following day. At the time he was apprehended, Wynn had in his possession a Mexican voter identification card with his photograph and another person’s name.
Wynn currently remains in the custody of the Marshals Service following an initial appearance in Houston on August 24. He will be transported back to Arizona for a sentencing hearing currently scheduled for September 28. At sentencing, Wynn faces a maximum sentence of 96 months in prison, in addition to a restitution order of up to $765,429.22 to account for past due taxes, penalties, and interest.
“I applaud the tireless work of the United States Marshal Service and all of our law enforcement partners to ensure Wynn was caught and that he will face justice for his crimes,” said United States Attorney Michael Bailey.
“Wynn spent a lot of time and money preparing for his life as an international fugitive,” said United States Marshal David Gonzalez. “Unfortunately for him, his life on the run was for only 53 days. My special thanks to our partners in the Republic of Mexico for their assistance in the capture of Wynn.”
“IRS-CI thanks the U.S. Marshal and his staff for the apprehension of this fugitive,” said Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation. “Their efforts will ensure that Mr. Wynn is held accountable for his tax crimes.”
Internal Revenue Service – Criminal Investigations conducted the underlying investigation, and the United States Marshals Service led the fugitive apprehension efforts. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-18-1649-PHX-SMB
RELEASE NUMBER: 2020-070_WynnSouth Kingstown Man Ordered to Home Confinement on Child Pornography ChargesRead the Press Release
PROVIDENCE – A 25-year-old South Kingstown man was arrested today and ordered to home confinement following an initial appearance in U.S. District Court in Providence on federal child pornography charges.
It is alleged in court documents that William Schock shared a sexually explicit image of a prepubescent female with others, using an online social media app. It is alleged that Schock also downloaded and stored video files depicting child pornography.
According to court documents, Homeland Security Investigations (HSI) agents in Ottawa provided information to HSI agents in Providence of an IP address that was used to upload an image of child pornography. HSI Providence agents determined that the IP address allegedly belonged to a subscriber in South Kingstown, and that at least two accounts allowing access to the social media app used to upload child pornography were allegedly accessed from that IP address.
Earlier today, HSI agents, assisted by the Rhode Island State Police and members of the Internet Crimes Against Children Task Force, executed a court-authorized search of Schock’s residence. An on-scene forensic preview of Schock’s cell phone allegedly revealed a password protected app for file storage that, once accessed, revealed numerous videos that depict child pornography.
Schock appeared before U.S. District Court Magistrate Judge Patricia A. Sullivan, charged by way of a federal criminal complaint with distribution of child pornography and possession of child pornography, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge Michael S. Shea, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Schock was released to home confinement with electronic GPS monitoring.
According to court documents, William Schock was arrested by Rhode Island State Police in 2015 and charged with indecent solicitation of a child. In 2016, Schock pleaded guilty to two counts of cyberstalking.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Distribution of child pornography is punishable by statutory penalties of 5-20 years in federal prison and 5 years to lifetime supervised release. Possession of child pornography is punishable by up to 20 years imprisonment followed by 5 years to lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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South Bend, Indiana Man Sentenced to 57 Months in PrisonRead the Press Release
SOUTH BEND –Geneco Glover, 39, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty for mail fraud and aggravated identity theft, announced U.S. Attorney Kirsch.
Glover was sentenced to 57 months in prison and 2 years of supervised release, and ordered to pay $162,465.85 in restitution.
According to documents in this case, from at least January 2006 to February 2020, Glover defrauded more than 50 individual victims after obtaining their personal information and either adding himself as an authorized user on the victims’ credit card accounts or opening additional credit card accounts in the victims’ names. After gaining access to the victims’ accounts, Glover would change the mailing addresses for these accounts to mailing addresses under his control in order to receive credit cards mailed to the victims. Glover stole at least $160,000 from his victims. After being charged, Glover initially agreed to self-surrender in November 2018. Instead of turning himself in, he spent the next 15 months fleeing from law enforcement, but was finally captured in February 2020.
This case was investigated by the United States Postal Inspection Service; Elkhart County Sheriff’s Department; Mishawaka Police Department; South Bend Police Department; Parma Heights Police Department (Ohio); and Middleburg Heights Police Department (Ohio). The case was handled by Assistant U.S. Attorney Luke N. Reilander.
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