Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 18 February 2020
Maxton Woman Sentenced for Gun ChargeRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced CRYSTAL LYNN CLARK, 41, of Maxton, North Carolina to 36 months’ imprisonment, followed by 3 years’ of supervised release.
CLARK was named in an Indictment filed on July 10, 2019, charging her with possession of a firearm by a convicted felon. On November 15, 2019, CLARK pled guilty to that charge.
According to the investigation, on December 8, 2018, CLARK pawned a 9mm rifle at Universal Pawn in Maxton, North Carolina. On December 12, 2018, CLARK returned to the pawnshop and attempted to retrieve the firearm. However, she was unable to retrieve the firearm because of her status as a convicted felon. The National Instant Background Check Service (NICS) denial triggered an Alcohol, Tobacco, Firearms, and Explosives investigation which led to her arrest and prosecution.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
***
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.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted investigation of this case. Assistant United States Attorney Chad Rhoades handled the prosecution of this case for the government.
Massachusetts State Representative Charged with Embezzling Campaign Funds, Bank Fraud and Tax FraudRead the Press Release
BOSTON – Massachusetts State Representative David M. Nangle was arrested today and charged in federal court in Boston with illegally using campaign funds to pay for his personal expenses, defrauding a bank to secure loans to repay debts, and collecting income that he failed to report to the IRS.
Nangle, 59, of Lowell, was indicted on 10 counts of wire fraud, four counts of bank fraud, nine counts of making false statements to a bank and five counts of filing false tax returns. Nangle was arrested this morning and will appear in federal court in Boston this afternoon.
Nangle has been the elected member of the Massachusetts House of Representatives for the 17th Middlesex District since 1999. It is alleged that Nangle, a former House Ethics Committee Chairman, used his campaign committee’s debit card to make personal purchases, including thousands of dollars in gift cards for his personal use, among other things.
It is further alleged that Nangle, who was heavily in debt, gambled extensively at area casinos and online, and then used thousands of dollars in campaign funds to pay for various personal expenses such as dues at a local golf club, rental cars to travel to casinos, flowers for his girlfriend, gas, hotels, and restaurants. According to court documents, Nangle knew that using campaign funds for personal use was prohibited and subject to oversight by an independent state agency, and concealed his theft by filing false reports that disguised the personal nature of the spending.
From at least 2014, Nangle devised a scheme to obtain loans from a bank in order to fund his gambling activities and to repay his personal debts. Nangle allegedly did so by making false statements on loan applications, misstating his income and understating his debt.
According to the indictment, Nangle filed false tax returns for tax years 2014 to 2018 by reporting fictitious business deductions for purported “consulting” work that he did for a Billerica company. Nangle allegedly double dipped on deductible expenses arising from his work as a state legislator, fraudulently claiming thousands of dollars in false deductions for alleged charitable donations, and misleading his tax preparer.
Nangle also allegedly concealed the income he received through goods and services from business owners and other sources. This included $7,000 in kitchen and bathroom work done in Nangle’s home and $7,000 in check payments from a contractor; gambling income from a Connecticut casino; and thousands of dollars that he stole from his campaign account.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charges of bank fraud and making false statements to a bank each provide for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Dustin Chao and Kunal Pasricha of Lelling’s Criminal Division are prosecuting the case.
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.
Maryland man admits to heroin and cocaine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Antonio Thorton, of Baltimore has admitted to cocaine and heroin distribution, U.S. Attorney Bill Powell announced.
Thorton, age 29, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Thorton admitted to working with another to distribute heroin and cocaine base from February to May 2015 in Berkeley County.
Thorton faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Maryland Woman Federally Indicted for Stealing from Former EmployerRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment on February 13, 2020, charging a Baltimore, Maryland woman with one count of theft from a Wilmington company receiving federal funds.
According to the indictment, April Pritchett, 37, engaged in a scheme to defraud her former employer, referred to as Company A in the indictment, a property management and development company based in Wilmington, Delaware. Company A receives funding from the U.S. Department of Housing and Urban Development (“HUD”) Project-Based Section 8 Rental Assistance Program, which supports low-income individuals in paying rent for otherwise unaffordable housing units.
According to the indictment, Pritchett worked as a property manager for two of Company A’s properties from 2015 through mid-2019. Pritchett engaged in a scheme to defraud Company A by collecting tenant rent payments in the form of money orders and changing the payee field to reflect her own name. Pritchett then deposited over $95,000 of these money orders, meant for rent, into her personal bank account and used the stolen rent payments to fund international vacations, plastic surgery, and clothing purchases. Pritchett hid her fraud by making false statements to Company A’s management to explain mounting rent delinquencies and making false entries into Company A’s tenant management system.
Pritchett is charged with Theft from a Program Receiving Federal Funds. If convicted, Pritchett faces a maximum penalty of 10 years in prison and a $250,000 fine. 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.
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement and gave the following comment, “The defendant is charged with abusing the trust of her employer and the tenants who entrusted her with their rent payments by diverting those funds for her personal use. My office is committed to prosecuting those who defraud Delaware businesses, particularly when those businesses are themselves partially funded with taxpayer dollars designed to assist low-income citizens in securing housing.”
This case was investigated by the U.S. Department of Housing and Urban Development Office of the Inspector General and is being prosecuted by Assistant U.S. Attorneys Lesley F. Wolf and Ruth E. Mandelbaum.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Mariah Ferry and Jose Torrez plead guilty to federal charges related to the kidnapping and brutal beating of two victims suspected of stealing drugs and moneyRead the Press Release
ALBUQUERQUE, N.M. – Mariah Ferry, 21, and Jose Torrez, 47, of Albuquerque pleaded guilty in federal court in Albuquerque today on charges relating to the kidnappings and and brutal assaults of two victims suspected of stealing drugs and money from the home of co-defendant, Chase Smothermon, 32, of Albuquerque. Ferry pleaded guilty to kidnapping and conspiracy to kidnap, resulting in the death of J.S. Torrez pled guilty to conspiracy to kidnap, resulting in the death of J.S. On Jan. 24, Smothermon pleaded guilty to kidnapping and conspiracy to kidnap, resulting in the death of J.S.
A grand jury previously returned a second superseding indictment on April 24, 2018, charging these three defendants with kidnapping, kidnapping resulting in death, and conspiracy to kidnap.
According to the defendants’ plea agreements, Smothermon, Ferry, Torrez, and other co-conspirators took part in a scheme to retaliate against two victims who they believed stole marijuana from Smothermon’s home where he resided with Ferry. On Aug. 8, 2017, Torrez alerted Smothermon that one of the victims, J.S. was present at Torrez’s home. Smothermon went to Torrez’s home to retaliate against J.S. and try to get his drugs and money back. Ferry drove Smothermon to Torrez’s home where Smothermon and co-conspirators brutally beat J.S. with a baseball bat and the butt of a gun.
Smothermon and co-conspirators then put J.S. in the trunk of Ferry’s car and bound J.S.’s hands, ankles, and mouth with tape. Ferry drove Smothermon and J.S. to another co-conspirator’s home where J.S. died shortly thereafter. Ferry and Smothermon then mutilated J.S.’s body in a shed.
Later the same day, Smothermon contacted M.T. under a ruse that Smothermon wanted to buy marijuana from M.T. When M.T. arrived at Smothermon’s home, Smothermon, Ferry and others bound, gagged and assaulted M.T. for hours. After several hours, two other co-conspirators escorted a bound and badly beaten M.T. out of Smothermon’s home and drove him to another location where M.T. was held overnight before M.T. was released.
On Aug. 9, 2017, Ferry drove Smothermon and another co-conspirator to a rural area in New Mexico where they buried J.S.’s body in a shallow grave.
Ferry, Torrez, and Smothermon are in custody awaiting sentencing. They face up to life in prison for each offense. However, under the terms of their plea agreements, should the sentencing court accept their plea agreements, Smothermon will receive a sentence between 40 to 60 years, Ferry will receive a sentence between 30 to 40 years, and Torrez will receive a sentence of 14 years.
The DEA and FBI investigated this case with assistance from the Albuquerque Police Department and Second Judicial District Attorney’s Office. The Narcotics section of the U.S. Attorney’s Office is prosecuting the case.
Manhattan U.S. Attorney Announces Guilty Plea of U.S. Taxpayer in Panama Papers InvestigationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York and Brian A. Benczkowski, Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced today that HARALD JOACHIM VON DER GOLTZ, a/k/a “H.J. von der Goltz,” “Johan von der Goltz,” “Jochen von der Goltz,” “Tica,” “Tika,” pled guilty today before U.S. Magistrate Judge Barbara Moses to wire fraud, tax fraud, money laundering, false statements, and other charges. VON DER GOLTZ, a former U.S. resident and taxpayer, is charged along with Ramses Owens, Dirk Brauer, and Richard Gaffey, a/k/a “Dick Gaffey,” in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and its related entities.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Harald Joachim von der Goltz went to extraordinary lengths to circumvent U.S. tax laws in order to maintain his wealth and hide it from the IRS. Using the specialized criminal services of global law firm Mossack Fonseca, von der Goltz set up shell companies and off-shore accounts to conceal millions of dollars. Now, after years of concealment from the United States, von der Goltz has admitted guilt in a U.S. court and awaits sentencing that could result in a term in a U.S. prison.”
AAG Brian A. Benczkowski said: “Over nearly two decades, von der Goltz conspired to keep his income hidden from U.S. tax authorities and law enforcement. Today’s guilty plea demonstrates the Department’s steadfast commitment to prosecute taxpayers who use offshore structures to obscure their wealth and evade their tax obligations.”According to the allegations contained in the Indictments[1], other filings in this case, and statements during court proceedings, including VON DER GOLTZ’s guilty plea hearing:
Since at least 2000 through 2017, VON DER GOLTZ conspired with others to conceal his assets and investments, and the income generated by those assets and investments, from the Internal Revenue Service (“IRS”) through fraudulent, deceitful, and dishonest means. During all relevant times, VON DER GOLTZ was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. Nevertheless, VON DER GOLTZ evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars. VON DER GOLTZ was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca, and by Richard Gaffey, a partner at a U.S.-based accounting firm. Specifically, in furtherance of VON DER GOLTZ’s efforts to conceal his assets and income from the IRS, VON DER GOLTZ engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by VON DER GOLTZ of accounts established at overseas banks, as well as the income generated in those accounts. VON DER GOLTZ, Gaffey, and Owens also falsely claimed that VON DER GOLTZ’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike VON DER GOLTZ – was not a U.S. taxpayer.
* * *
VON DER GOLTZ, 82, a citizen of Germany and Guatemala who resided in Needham, Massachusetts, and Key Biscayne, Florida, pled guilty to one count of conspiracy to commit tax evasion, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FINCEN Reports 114, each of which carries a maximum sentence of five years in prison; and two counts of false statements, each of which carries a maximum sentence of five years in prison.
VON DER GOLTZ is scheduled to appear before Judge Richard M. Berman on February 24, 2020, at 9:30 a.m., at which time it is anticipated Judge Berman will set a sentencing date.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Gaffey is scheduled to proceed to trial on March 9, 2020, before Judge Berman.
* * *
U.S. Attorney Berman praised the outstanding investigative work of IRS - Criminal Investigation and HSI, and thanked the Justice Department’s Tax Division and the Federal Bureau of Investigation for their significant assistance in the investigation. Mr. Berman also thanked the Criminal Division’s Office of International Affairs, which provided significant assistance in securing the defendant’s extradition from the United Kingdom. He also thanked law enforcement partners in France, the United Kingdom, Panama, and Germany for their assistance in the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, working in partnership with the Money Laundering and Asset Recovery Section of the Criminal Division. Assistant United States Attorneys Eun Young Choi and Thane Rehn, along with Trial Attorneys Michael Parker and Parker Tobin of the Money Laundering and Asset Recovery Section, are in charge of the prosecution.
The charges as to Owens, Brauer, and Gaffey are merely accusations, and they are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations as to Owens, Brauer, and Gaffey, and every fact described should be treated as an allegation.
Manchester Man Sentenced to 12 Months and 1 Day for Trafficking Synthetic CannabinoidsRead the Press Release
CONCORD - Heath Palmer, 39, of Manchester, was sentenced in federal court to 12 months and 1 day of imprisonment for possessing an unlawful synthetic cannabinoid product with intent to distribute, United States Attorney Scott W. Murray announced today.
According to statements made in court, on April 18, 2019, Palmer was observed by police officers conducting hand-to-hand sales from a car. The Manchester Police stopped Palmer and he voluntarily turned over the product he was selling. Palmer claimed that the product did not contain illegal substances. Testing by the New Hampshire State Police Forensic Laboratory confirmed, however, that the product contained an illegal substance, 5F-MDMB-PICA.
On May 7, 2019, Palmer was informed by the Manchester Police that the substance he was selling was in fact illegal under federal law. Three days later, the Manchester Police observed Palmer continuing to make hand-to-hand sales from a car. The police stopped the car and seized the product that Palmer was selling. The product was again tested, and it contained the same illegal substance, 5F-MDMB-PICA.
Palmer previously pleaded guilty on October 10, 2019.
According to the DEA, synthetic cannabinoids, which commonly are referred to by names such as “Spice” or “K2,” are designer drugs that are made in laboratories. The chemicals often are sprayed onto plant substances and then smoked in order to obtain a high. These substances have severe adverse effects and have often led to overdoses. In addition to the dangers associated with the chemical substances themselves, the lack of manufacturing standards may lead to increased health risks.
The DEA issued a regulation on April 16, 2019, that made 5F-MDMB-PICA and several other synthetic cannabinoids Schedule I controlled substances. In its order, the DEA noted that this drug had been associated with over 47 overdoses in Connecticut and at least 244 overdoses in Washington, D.C. Further information is available at https://www.deadiversion.usdoj.gov/fed_regs/rules/2019/fr0416.htm and https://www.dea.gov/sites/default/files/sites/getsmartaboutdrugs.com/files/publications/DoA_2017Ed_Updated_6.16.17.pdf#page=88.
“Synthetic cannabinoids are extremely dangerous substances that can cause great physical harm,” said U.S. Attorney Murray. “Those who refer to these dangerous drugs as synthetic marijuana help to create confusion that can mislead users about the real hazards associated with these substances. Those who distribute synthetic cannabinoids are endangering public health and safety and breaking federal law. As this case shows, we will not hesitate to prosecute and incarcerate those who are profiting from selling these dangerous drugs.”
“There is a misconception that synthetic cannabinoids, known on the street as synthetic marijuana, K2, and Spice, are safe. Synthetic cannabinoids are anything but safe,” said DEA Special Agent in Charge Brian D. Boyle. “They are a toxic cocktail of lethal chemicals with serious health and safety risks. This investigation represents local, state and federal law enforcement’s efforts to combat this public threat.”
“I’m very pleased that we were able to see Palmer prosecuted,” says Manchester Chief Carlo Capano. "His repeated behavior involving the sales of 'Spice' will not be tolerated in the city. The Manchester Police Department has been dealing with 'Spice' for some time now and these cases can be very difficult. I’d like to acknowledge the outstanding job our investigators did in putting this together.”
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Seth R. Aframe.
###
Lothian, Maryland Man Pleads Guilty to Firearm Possession in Furtherance of Drug Trafficking CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Wayne Jenkins, age 41, of Lothian, Maryland, entered a guilty plea to Possession Of Firearm In Furtherance Of Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 1, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Lexington Man Sentenced to 30 Months for Possession of a Firearm by Convicted Felon and Cocaine PossessionRead the Press Release
LEXINGTON, Ky. - A Lexington man, Tevye Jones, 21, was sentenced in federal court on Tuesday to 30 months in prison, by U.S. District Judge Karen Caldwell, for possessing a firearm as convicted felon and possession of cocaine.
On August 29, 2018, Lexington Police Department was attempting to locate a known gang fugitive. An investigatory stop was conducted of a vehicle with 4 occupants, including Jones. As officers conducted a pat-down search of Jones, they discovered a Glock pistol in his left coat pocket. He also had a plastic bag containing 3.4 grams of cocaine. Jones was on parole for a state conviction for Robbery Second Degree when the offense occurred.
Jones pleaded guilty in November 2019.
Under federal law, Jones must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was directed by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —
Leaders of 59 Brims Gang Among 18 Defendants Charged in Manhattan Federal Court with Racketeering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), and Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced the unsealing of an Indictment charging 18 members of the 59 Brims gang, including the gang’s leaders, with committing various racketeering, narcotics, and firearms offenses, including murder and attempted murder.
WILLIE EVANS, a/k/a “Mills,” JAMARR SIMMONS, a/k/a “Show Off,” ALBERT SHOULDERS, a/k/a “Bundy,” RANELL SLOAN, a/k/a “Rah,” DARNELL COOPER, a/k/a “Jeez,” JOSE RODRIGUEZ, a/k/a “Meso,” SYLVESTER WINT, a/k/a “Vesta,” YONETTE RESPASS, a/k/a “Yonette Davis,” a/k/a “Star Brim,” MARKELL BOBIAN, a/k/a “Kellz,” TIMOTHY COLEMAN, a/k/a “LA,” TYRONE ERVIN, a/k/a “Shoota,” SEAN GAMBRELL, a/k/a “Kash,” DARON GOODMAN, a/k/a “Handsome,” JAVARIS JENKINS, a/k/a “JayBz,” JERLAINE LITTLE, a/k/a “Noni,” SHAMARE REID, a/k/a “Sha,” MARKQUEL SIMMONS, a/k/a “Shellz,” and TYRIQUE SNOWDEN, a/k/a “Ty,” are members of a racketeering enterprise known as the 59 Brims.
The Indictment charges WILLIE EVANS, the gang’s godfather, or highest-ranking, non-incarcerated member, and JAMARR SIMMONS, the highest-ranking member in the Bronx, with the September 28, 2019, murder of Bradford Mensah, 22, in the vicinity of Crotona Park in the Bronx, New York. JAMARR SIMMONS and DARON GOODMAN were previously charged with the January 11, 2020, murder of Jason Parris, 36, in the vicinity of East 170th Street and Webster Avenue in the Bronx, New York.
In addition to EVANS and JAMARR SIMMONS, the Indictment also charges YONETTE RESPASS, the gang’s godmother, or highest-ranking female member, with participating in the racketeering conspiracy and with ordering a slashing.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendants were responsible for brutal acts of violence – murders, attempted murders, a maiming, and robberies – in service of the 59 Brims gang. Thanks to the extraordinary work of our partners at the NYPD and HSI, the defendants, who include the leaders of the gang, now face federal charges for their crimes.”
NYPD Commissioner Dermot Shea said: “Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, continues to be one of our highest priorities. By using precision policing we are targeting the small percentage of people responsible for committing much of the violence in New York, and making the safest large city in America even safer. I’d like to thank our law enforcement partners for their efforts in helping us achieve this goal.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “The list of allegations against those arrested today includes murder, attempted murder, narcotics violations, firearms offenses, and robbery. The 59 Brims gang acts with no apparent regard for human life and today’s arrests hopefully put an end to their senseless violence. As law enforcement, we build investigations to identify not only those who carry out monstrous acts, but also to get the leaders in the organization who facilitate the horrific crimes. Today, due to the great investigative activity in this case, HSI and its partners are happy to announce that those allegedly responsible from the street level to the highest-ranking members of the 59 Brims gang are facing justice, ultimately making the community safer.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
On January 11, 2020, DARON GOODMAN and JAMARR SIMMONS shot and killed Jason Parris in the vicinity of 1441 Webster Avenue in the Bronx, and aided and abetted the same. GOODMAN and SIMMONS killed Parris in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On September 28, 2019, WILLIE EVANS and JAMARR SIMMONS shot and killed Bradford Mensah in the vicinity of Crotona Park in the Bronx, and aided and abetted the same. EVANS and SIMMONS killed Mensah in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On September 2, 2019, JAVARIS JENKINS shot at a rival gang member in the Bronx, and aided and abetted the same. JENKINS shot at the rival in part to maintain and increase his position in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On August 28, 2019, TYRIQUE SNOWDEN shot at an individual while attempting to rob the individual of narcotics and narcotics proceeds in the Bronx, and aided and abetted the same.
On August 24, 2019, SYLVESTER WINT and SHAMARE REID shot at rival gang members in the Bronx, and aided and abetted the same. WINT and REID shot at the rivals in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On August 8, 2019, JAMARR SIMMONS, ALBERT SHOULDERS, SYLVESTER WINT, YONETTE RESPASS, and SHAMARE REID maimed and assaulted an individual with a dangerous weapon, and aided and abetted the same, by slashing the individual in the face. SIMMONS, SHOULDERS, WINT, RESPASS, and REID slashed the individual in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On August 1, 2019, JAVARIS JENKINS shot at rival gang members in the Bronx, and aided and abetted the same. JENKINS shot at the rival in part to maintain and increase his position in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On May 21, 2019, JAMARR SIMMONS, TYRONE ERVIN, and SEAN GAMBRELL robbed at gunpoint individuals who were playing a dice game, and shot at the individuals while robbing them, in the vicinity of Davidson Avenue in the Bronx, and aided and abetted the same. SIMMONS, ERVIN, and GAMBRELL robbed and shot at the individuals in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On March 30, 2019, JAMARR SIMMONS and TIMOTHY COLEMAN stabbed a rival gang member in the Bronx, and aided and abetted the same. SIMMONS and COLEMAN stabbed the individual in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On December 6, 2018, JERLAINE LITTLE and others pistol-whipped an individual while robbing the individual at gunpoint in the Bronx, and aided and abetted the same. LITTLE robbed the individual in part to maintain and increase her position in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On November 29, 2018, JAMARR SIMMONS, MARKELL BOBIAN, TYRONE ERVIN, SEAN GAMBRELL, JERLAINE LITTLE, and MARKQUEL SIMMONS pistol-whipped an individual while robbing the individual at gunpoint in the Bronx, and aided and abetted the same. JAMARR SIMMONS, BOBIAN, ERVIN, GAMBRELL, LITTLE, MARKQUEL SIMMONS robbed the individual in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
Between January 2019 and September 2019, SYLVESTER WINT made the unauthorized sale of multiple firearms that had been transported in interstate commerce, including at a location in the Bronx.
* * *
EVANS, 28, SHOULDERS, 23, RODRIGUEZ, 26, BOBIAN, 22, ERVIN, 19, GAMBRELL, 22, JENKINS, 22, LITTLE, 28, REID, 18, and MARKQUEL SIMMONS, 23, were arrested today and will be presented before United States Magistrate Judge Barbara Moses. GOODMAN, 22, JAMARR SIMMONS, 33, and SNOWDEN, 20, were already in federal custody. COLEMAN, 32, is in New York City custody and will be transferred to federal custody at a later date. SLOAN, 27, COOPER, 28, and WINT, 21, have not been arrested and remain at large. RESPASS, 28, has not been arrested at this time. This case is assigned to United States District Judge George B. Daniels.
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD and HSI. Mr. Berman also praised the New York City Department of Correction, Correction Intelligence Bureau, and the Bronx County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael D. Longyear, Jacob Warren, and Adam S. Hobson 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.
COUNT
DEFENDANT(S)
MAX. TERM OF IMPRISONMENT
Count One: Conspiracy to Commit Racketeering (18 U.S.C. § 1962(d))
All defendants
Life imprisonment as to all defendants except Respass and Coleman, for whom the maximum term of imprisonment is 20 years
Count Two: Murder in Aid of Racketeering
(18 U.S.C. §§ 1959(a)(1) and 2)
Jamarr Simmons
Daron Goodman
Death or a Mandatory Minimum Sentence of Life Imprisonment
Count Three: Use of a Firearm to Commit Murder (18 U.S.C. § 924(j)(1))
Jamarr Simmons
Daron Goodman
Death or Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Four: Murder in Aid of Racketeering
(18 U.S.C. §§ 1959(a)(1) and 2)
Willie Evans
Jamarr Simmons
Death or a Mandatory Minimum Sentence of Life Imprisonment
Count Five: Use of a Firearm to Commit Murder (18 U.S.C. §§ 924(j)(1) and 2)
Willie Evans
Jamarr Simmons
Death or Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Six: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Javaris Jenkins
20 years’ imprisonment
Count Seven: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Javaris Jenkins
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Eight: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Sylvester Wint
Shamare Reid
20 years’ imprisonment
Count Nine: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Sylvester Wint
Shamare Reid
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Ten: Maiming and Assault in Aid of Racketeering (18 U.S.C. §§ 1959(a)(2), (a)(3), and 2)
Jamarr Simmons
Albert Shoulders
Sylvester Wint
Yonette Respass
Shamare Reid
30 years’ imprisonment
Count Eleven: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Javaris Jenkins
20 years’ imprisonment
Count Twelve: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Javaris Jenkins
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Thirteen: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jamarr Simmons
Tyrone Ervin
Sean Gambrell
20 years’ imprisonment
Count Fourteen: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Jamarr Simmons
Tyrone Ervin
Sean Gambrell
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Fifteen: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jamarr Simmons
Timothy Coleman
20 years’ imprisonment
Count Sixteen: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Jerlaine Little
20 years’ imprisonment
Count Seventeen: Brandishing a Firearm in Furtherance of a Crime of Violence (18 U.S.C. §§ 924(c)(1)(A)(i), (ii) and 2)
Jerlaine Little
Life imprisonment; Mandatory Minimum Sentence of 7 years
Count Eighteen: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Jamarr Simmons
Markell Bobian
Tyrone Ervin
Sean Gambrell
Jerlaine Little
Markquel Simmons
20 years’ imprisonment
Count Nineteen: Brandishing a Firearm in Furtherance of a Crime of Violence (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), and 2)
Jamarr Simmons
Markell Bobian
Tyrone Ervin
Sean Gambrell
Jerlaine Little
Markquel Simmons
Life imprisonment; Mandatory Minimum Sentence of 7 years
Count Twenty: Conspiracy to Distribute Controlled Substances (21 U.S.C. § 846)
Willie Evans
Jamarr Simmons
Albert Shoulders
Ranell Sloan
Darnell Cooper
Jose Rodriguez
Sylvester Wint
Markell Bobian
Tyrone Ervin
Sean Gambrell
Javaris Jenkins
Jerlaine Little
Shamare Reid
Markquel Simmons
Tyrique Snowden
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Twenty One: Possession of a Firearm in Furtherance of a Drug Trafficking Crime (18 U.S.C. §§ 924(c)(1)(A)(i) and 2)
Willie Evans
Jamarr Simmons
Albert Shoulders
Ranell Sloan
Darnell Cooper
Jose Rodriguez
Sylvester Wint
Markell Bobian
Tyrone Ervin
Sean Gambrell
Javaris Jenkins
Jerlaine Little
Shamare Reid
Markquel Simmons
Tyrique Snowden
Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Twenty Two: Firearms Trafficking (18 U.S.C. §§ 922(a)(1)(A) and 2)
Sylvester Wint
5 years’ imprisonment
Count Twenty Three: Attempted Robbery (18 U.S.C. §§ 1951 and 2)
Tyrique Snowden
20 years’ imprisonment
Count Twenty-Four: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2
Tyrique Snowden
Life Imprisonment; Mandatory Minimum Sentence of 10 years
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Lead Defendant in Drug Trafficking Organization Admits Role in Heroin Distribution Conspiracy; Wife Admits Obstructing JusticeRead the Press Release
TRENTON, N.J. – A Monroe County, Pennsylvania, man today admitted that he conspired to distribute more than one kilogram of heroin as part of a conspiracy responsible for distributing significant quantities of heroin and cocaine in and around the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.
Guy Jackson, 47, of Effort, Pennsylvania, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Jackson also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.
Also today, Jackson’s wife, Lashawn Mealing, 48, of Manchester, New Jersey, (formerly of Effort, Pennsylvania), pleaded guilty before Judge Martinotti to an information charging her with one count of obstructing and attempting to obstruct justice with respect to the charges against Jackson and others, while Mealing was herself on federal pretrial release in the present case.
In November 2018, Jackson, Mealing, and 13 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Mealing and Jackson are the 10th and 11th defendants to plead guilty. Defendant Deberal Rogers has been indicted.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jackson regularly obtained large quantities of heroin and cocaine for further distribution from co-defendant Gregory Gillens. The complaint alleged that Mealing also engaged in the conspiracy to distribute these narcotics. Gillens previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on June 2, 2020.
Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.
Following the filing of the complaint in November 2018, Mealing obstructed justice and attempted to do so by orchestrating, at Jackson’s request, the break-in of a rental vehicle that had been used as part of the narcotics trafficking conspiracy and the removal of evidence of the narcotics offense from the rental vehicle.
The heroin conspiracy count to which Jackson pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. If accepted by the court at the time of sentencing, Jackson’s plea agreement would result in Jackson serving a stipulated total sentence between 12 and 17½ years in prison. Sentencing is scheduled for June 23, 2020.
The obstruction of justice while on federal pretrial release count to which Mealing pleaded guilty carries a maximum potential penalty of 30 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for June 23, 2020.
Jackson has been in custody since his arrest on November 28, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Acting Special Agent in Charge Tara McMahon; the New Jersey State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining four defendants are merely accusations and they are presumed innocent unless and until proven guilty.
Defense counsel:
Jackson: Lorraine S. Gauli-Rufo Esq., Verona, New Jersey
Mealing: David E. Schafer Esq., Princeton, New JerseyJustice Department Settles with Staffing Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with Chancery Staffing Solutions LLC (Chancery Staffing), a legal staffing company headquartered in New York, New York, also known as TransPerfect Staffing Solutions (TransPerfect Staffing). The settlement is intended to resolve the Department’s claims that the staffing company violated the Immigration and Nationality Act (INA) when, at a law firm client’s directive, it screened out work authorized non-U.S. citizens and U.S. citizens with dual citizenship from a document review project without a lawful basis.
“Although there are some circumstances where it is permissible to hire only U.S. citizens, staffing agencies may only implement a client’s request to make citizenship status restrictions in hiring if required by law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with Chancery Staffing to help ensure its hiring procedures comply with the Immigration and Nationality Act’s protections against citizenship status discrimination.”
In May 2019, the Department filed a lawsuit against Chancery Staffing alleging that from at least April 4, 2017, to at least July 7, 2017, the company (operating under the TransPerfect Staffing name) restricted its recruitment and hiring of attorneys for a document review project to U.S. citizens only, and later, to U.S. citizens without dual citizenship, based on a law firm client’s directive. In a prior investigation of the law firm, the Department found that the firm’s request was based on a misunderstanding of the requirements of the International Traffic in Arms Regulations. Had Chancery Staffing independently assessed the basis for the client’s directive, this instance of citizenship status discrimination may have been avoided.
Pursuant to the settlement agreement, Chancery Staffing will pay a civil penalty of $27,000 and provide back pay to victims who are identified during the term of the settlement agreement. Additionally, Chancery Staffing will train relevant employees about the requirements of the INA’s anti-discrimination provision, and obtain supporting documentation from clients that request a citizenship status restriction when staffing a project to help ensure that any such restriction is lawful.
Under the INA, it is generally unlawful for employers to discriminate in hiring because of citizenship status unless required by a law or government contract. The Department determined that TransPerfect Staffing had no legal basis to discriminate. In light of the settlement, the parties will jointly seek to dismiss the case.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. IER will also be offering a free webinar on March 3, 2020 at 3:30 p.m. Eastern time, on how employers can avoid unlawful discrimination under the INA’s anti-discrimination provision. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Inmate at Red Onion State Prison Sentenced for Mailing Threats to Federal JudgesRead the Press Release
Abingdon, VIRGINIA – Mitchell Norbert Nicholas, 41, an inmate at Red Onion State Prison serving a life sentence for murder, was sentenced last week to an additional 72 months in federal prison for his federal conviction on charges he sent threatening letters to a pair of federal judges. United States Attorney Thomas T. Cullen made the announcement.
Following a two-day jury trial in August 2019, Nicholas was convicted of two counts of mailing threats to injure another person and two counts of threatening to murder a United States Judge with the intent to impede, intimidate, or interfere with their performance of official duties, or with the intent to retaliate against such judge on the performance of their official duties.
According to evidence presented during trial, Nicholas was serving a murder sentence at Red Onion State Prison after being found guilty of first degree murder in the Virgin Islands in 2007. While incarcerated, Nicholas mailed a letter to United States Magistrate Judge Ruth Miller in the Virgin Islands, which stated, in part, “Dear Ruth, You thought that I was a nobody. Now I must manifest my dream of your death. It is more fun when the prey knows it is being hunted. I am going to kill you! Patiently submitted, signed Mitchell N. Nicholas.”
In a second letter, mailed to United States District Court Judge Curtis Gomez of the Virgin Islands, Nicholas stated, in part, “Dear Curtis, You are a disappointment and must not be allowed to live any longer. I am going to kill you! Patiently submitted, signed Mitchell N. Nicholas.”
The investigation of the case was conducted by the United States Marshals Service. Assistant United States Attorneys Lena Busscher and Randy Ramseyer prosecuted the case for the United States.
Individual Arrested for Acting Within the U.S. on Behalf of the Russian Government Without Notifying the Attorney GeneralRead the Press Release
Hector Alejandro Cabrera Fuentes, a Mexican citizen residing in Singapore, was arrested based on a Complaint charging him with acting within the United States on behalf of a foreign government (Russia), without notifying the Attorney General, and conspiracy to do the same.
John C. Demers, Assistant Attorney General for National Security; Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; George Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office; and Diane J. Sabatino, Director of Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.
According to court documents, a Russian government official recruited Fuentes in 2019 and directed Fuentes to rent a specific property in Miami-Dade County, Florida. The Russian official told Fuentes not to rent the apartment in Fuentes’s own name and not to tell his family about their meetings. Fuentes traveled to Russia and informed the Russian government official about the arrangements. The official approved and told Fuentes to see him again on his next trip to Russia.
In February 2020, Fuentes traveled to Moscow again and met with the Russian government official. At this meeting, the Russian government official provided Fuentes with a physical description of a U.S. Government source’s vehicle and told Fuentes to locate the car, obtain the source’s vehicle license plate number, and note the physical location of the source’s vehicle. The Russian official instructed Fuentes to meet the Russian official again in April or May 2020, to inform him of the results of the search for the source’s vehicle.
Furthermore, according to court documents, Fuentes traveled to Miami on Feb. 13, 2020, from Mexico City. The next day, on February 14, Fuentes’s rental car drew the attention of a security guard where the U.S. government source resided because it entered its premises by tailgating another vehicle to gain access. When a security guard approached Fuentes’s rental car, Fuentes’s travel companion, who resides and is legally married to Fuentes in Mexico, walked away from Fuentes’s rental car to the U.S. Government source’s vehicle and took a photograph of the source’s vehicle’s license plate. When security questioned Fuentes and his travel companion on the nature of their business in the building, Fuentes provided a name of an individual whom they were purportedly visiting. Security did not recognize the person as living there and told Fuentes to leave the premises.
On the evening of February 16, 2020, Fuentes and his travel companion arrived at Miami International Airport to leave to United States, on their way to Mexico City. U.S. Customs and Border Protection inspected the phone of Fuentes’s travel companion and found a close-up image of the license plate of the U.S. Government source’s vehicle in the “recently deleted folder” of her phone. When asked about the photo, Fuentes admitted tasking his travel companion to take the photo of the vehicle’s license plate. CBP’s review of Fuentes’s phone revealed a WhatsApp message from his travel companion sent to Fuentes with the same photograph of the vehicle license plate. Fuentes admitted to law enforcement officers that he was directed by a Russian government official to conduct this operation. According to court documents, messages on Fuentes’s phone showed that the Russian official initiated and directed the meetings.
A pretrial detention hearing is set for 10:00 a.m. on Friday, February 21, 2020. Fuentes’s arraignment is set for 10:00 a.m. on March 3, 2020. Both hearings will occur in U.S. magistrate court in Miami, Florida.
Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and CBP.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorneys Thea Kendler and Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.
Huntington Man Pleads Guilty to Role in Federal Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today in federal court for his role in a conspiracy that involved large quantities of methamphetamine which were transported from Akron and sold in West Virginia, announced United States Attorney Mike Stuart. Aaron Thompson, 35, pled guilty to conspiracy to distribute 50 grams or more of methamphetamine.
“Thompson was part of a major drug network that was bringing large amounts of meth into West Virginia from Akron,” said United States Attorney Mike Stuart. “I commend our law enforcement partners for helping us close off this drug pipeline.”
Thompson admitted that between the May and September of 2019, he participated in a conspiracy with multiple individuals to distribute methamphetamine in the Huntington area. During the conspiracy, Thompson repeatedly obtained quantities of methamphetamine which were transported from Akron to Huntington. Thompson relied on multiple individuals from Akron to deliver the methamphetamine to him and Thompson would in turn distribute the methamphetamine to various customers in Huntington. Thompson admitted that he knew some of his customers intended to re-distribute the methamphetamine they were purchasing. Thompson also admitted that he was responsible for distributing up to 500 grams of methamphetamine during the conspiracy.
Thompson faces 5 to 40 years in prison when sentenced on June 1, 2020.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ona Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Houston man heads to prison for two child porn convictionsRead the Press Release
HOUSTON - A 31-year-old Houston man has been sentenced to prison for receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Jonathan Deshon Alexander pleaded guilty Aug. 12, 2019.
Today, Chief U.S. District Court Judge Lee H. Rosenthal ordered Alexander to serve 84 months in federal prison. In handing down the sentence, the court noted these are agonizing cases which involve real children who have been abused. Judge Rosenthal considered the number of years Alexander had been viewing child pornography, his willingness to get help and what was appropriate in this particular case.
Alexander had admitted to receiving and possessing child pornography for seven years. The court decided to assess Alexander’s punishment for the same amount of years he made these children victims once more. He will also serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender and must pay restitution to the victims.
In March 2017, law enforcement conducted an online session using a publicly available peer-to-peer file sharing network and located an IP address folder contained videos of child pornography. The IP address was associated with Alexander and his residence.
He admitted to downloading child pornography since approximately 2010. Forensic analysis found more than 326 videos of child pornography, including some of children under the age of five, bondage and acts of violence.
Previously released on bond, Alexander was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Zahra Jivani Fenelon prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Four Men Plead Guilty to $1 Million Card-Cracking Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Four fraudsters pleaded guilty today to their respective roles in a $1 million bank fraud conspiracy.
According to court documents, Caesar Adigwe, 32, of Charlottesville, and three Maryland men, Chea Yarl, 31, of Hyattsville, Samuel Smith, 31, of Hagerstown, and Thomas Gherense, 32, of Laurel, worked together to defraud numerous financial institutions throughout Maryland, Washington, D.C., and Virginia. From 2013 to 2019, they engaged in numerous card-cracking schemes where they deposited counterfeit checks into bank accounts belonging to third parties and then made cash withdrawals or purchased money orders with debit cards associated with the accounts. During the conspiracy, the defendants produced at least 300 counterfeit checks and opened numerous business accounts using fake IDs. Total losses amounted to at least $1 million.
Yarl pleaded guilty to one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of aggravated identity theft, and faces a mandatory minimum of two years in prison and a maximum penalty of 30 years in prison when sentenced on June 12. Smith, Adigwe, and Gherense pleaded guilty to one count of conspiracy to commit bank fraud and each face a maximum penalty of 30 years in prison. Smith and Gherense are scheduled to be sentenced on June 5. Adigwe is scheduled to be sentenced on June 19. 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; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Liam O'Grady accepted the pleas. Assistant U.S. Attorney Kellen S. Dwyer 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-046, Case No. 1:20-cr-047, Case No. 1:20-cr-048, and Case No. 1:20-cr-049.
Former U.S. Taxpayer Pleads Guilty in Panama Papers InvestigationRead the Press Release
A former U.S. resident and taxpayer who was charged along with three others in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (Mossack Fonseca), a Panamanian-based global law firm, and its related entities, pleaded guilty today to wire and tax fraud, money laundering, false statements and other charges.
Harald Joachim von der Goltz, aka “H.J von der Goltz,” “Johan von der Goltz,” “Jochen von der Goltz,” “Tica,” and “Tika,” 82, a citizen of Germany and Guatemala who last resided in Needham, Massachusetts, and Key Biscayne, Florida, pleaded guilty to one count of conspiracy to commit tax evasion, one count of wire fraud, one count of money laundering conspiracy, four counts of willful failure to file reports of foreign bank and financial accounts (Financial Crimes Enforcement Network Reports 114) and two counts of false statements.
“Over nearly two decades, von der Goltz conspired to keep his income hidden from U.S. tax authorities and law enforcement,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s guilty plea demonstrates the Department’s steadfast commitment to prosecute taxpayers who use offshore structures to obscure their wealth and evade their tax obligations.”
“Harald Joachim von der Goltz went to extraordinary lengths to circumvent U.S. tax laws in order to maintain his wealth and hide it from the IRS,” said U.S. Attorney Geoffrey S. Berman of the Southern District of New York. “Using the specialized criminal services of global law firm Mossack Fonseca, von der Goltz set up shell companies and off-shore accounts to conceal millions of dollars. Now, after years of concealment from the United States, von der Goltz has admitted guilt in a U.S. court and awaits sentencing that could result in a term in a U.S. prison.”
According to the allegations contained in the indictments, other filings in this case and statements during court proceedings, including von der Goltz’s guilty plea hearing, since at least 2000 through 2017, von der Goltz conspired with others to conceal his assets and investments, and the income generated by those assets and investments, from the IRS through fraudulent, deceitful and dishonest means.
During all relevant times, von der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. Nevertheless, von der Goltz evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars. Von der Goltz was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at the Mossack Fonseca law firm, and by Richard Gaffey, a partner at a U.S.-based accounting firm.
In furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, von der Goltz engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by von der Goltz of accounts established at overseas banks, as well as the income generated in those accounts. von der Goltz, Gaffey and Owens also falsely claimed that von der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and — unlike von der Goltz — was not a U.S. taxpayer.
Von der Goltz is scheduled to appear before U.S. District Judge Richard M. Berman on February 24, 2020.
Gaffey is scheduled to proceed to trial on March 9, 2020, before Judge Berman.
Assistant Attorney General Benczkowski praised the outstanding investigative work of IRS-Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and thanked the Justice Department’s Tax Division and the FBI for their significant assistance in the investigation. The Criminal Division’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from the United Kingdom. Assistant Attorney General Benczkowski also thanked law enforcement partners in France, the United Kingdom, and Germany for their assistance in the case.
The Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), working in partnership with the Southern District of New York’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit are handling this case. MLARS Trial Attorneys Michael Parker and Parker Tobin along with Assistant U.S. Attorneys Eun Young Choi and Thane Rehn are in charge of the prosecution.
As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations as to Owens, Brauer, and Gaffey, and every fact described should be treated as an allegation.
Former Michigan Health Care Consultant Pleads Guilty to Fraud and Tax EvasionRead the Press Release
A former health care consultant pleaded guilty today to mail fraud and tax evasion relating to her scheme to be employed under false pretenses as a highly paid health care consultant, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Sonja Emery, using several aliases including “Sonja Lee Robinson,” “Sonjalee Emery-Robinson,” and “Sonjalee Emery,” resided in Georgia, New Jersey, New York, and California. From 2011 through 2018, Emery falsely represented her professional status, educational background, and work experience to secure and maintain highly paid consulting positions in the health-care industry. She falsely claimed to have a nursing diploma from a school she never attended. She also falsely claimed to be a Registered Nurse licensed in New York, Georgia, Connecticut, and California and provided employers with licensure numbers that belonged to other people. In fact she never was a Registered Nurse. Emery also falsely told employers she had a Bachelor of Science in Nursing, a Master of Health Administration, a Master in Business Administration, and a Doctor of Philosophy from Emory University and New York University, but Emery never attended those schools or received these degrees.
As a result of these lies, from 2012 through 2018, Emery secured high-level health-care positions. She worked as a Senior Vice President for an Ann Arbor, Michigan healthcare consulting firm earning an annual salary of approximately $285,000; as a consultant for a community health system in Wisconsin earning approximately $267,000; and as a health care consultant for a Massachusetts company that paid her approximately $226,000. From 2015 until her arrest in May of 2018, Emery worked as a senior executive for a county government health services agency in California that paid her a total of approximately $960,000.
During these years, Emery either did not file or late-filed tax returns, despite owing more than $400,000 in taxes. She sought to avoid being detected by providing employers with different names and false social security numbers, by falsely instructing employers that she was “exempt” from taxes, and by supplying an employer with an identification number that did not belong to her.
U.S. District Judge Linda V. Parker scheduled sentencing for June 17, 2020. At sentencing, Emery faces a statutory maximum sentence of 20 years in prison for mail fraud and five years in prison for tax evasion. Emery also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Jeff McLellan and Jack Morgan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Cleveland Man Sentenced to More than 7 Years in Prison for 2017 Robbery and Burglary Spree in Western PA and OhioRead the Press Release
PITTSBURGH – A former resident of Cleveland, Ohio, was sentenced on charges of violating federal robbery and firearms laws, United States Attorney Scott W. Brady announced today.
United Stated District Court Judge Arthur J. Schwab sentenced Rayshawn Patterson, 21, to 87 months in prison on charges of Conspiracy to Commit Hobbs Act Robbery, Hobbs Act Robbery, Conspiracy to Steal Firearms from a Licensed Firearm Dealer, Theft from a Licensed Firearms Dealer, Possession of Stolen Firearms, and Interstate Transport of Stolen Firearms. Additionally, Rayshawn Patterson accepted responsibility for a separate robbery that occurred in Cleveland, Ohio. Patterson has been detained since his initial appearance in federal court.
According to information presented to the court, in December of 2017, Rayshawn and other conspirators from the Cleveland, Ohio area conspired to travel to rural areas of Western Pennsylvania to burglarize Federal Firearms Licensees (FFLs) and transport the stolen firearms back to Cleveland, Ohio. On December 22, 2017, Rayshawn traveled to Clarion County, Pennsylvania to attempt to locate and burglarize a gun store. However, he and his co-conspirators were unsuccessful in doing so. Prior to returning to Cleveland, Rayshawn and his co-conspirators observed a gas station with only one employee working late at night. The individuals then devised a plan to rob that gas station. Rayshawn participated in a robbery of the gas station in which the employee was threatened with violence, physically restrained and brought to another area of the store. The conspirators netted only approximately $300 dollars from the robbery before returning to Cleveland.
The next day on December 23, 2017, Rayshawn and co-conspirators returned to Western Pennsylvania and burglarized DSD Sports in Brookville, PA by smashing the front door and windows with a sledgehammer and other tools. Once inside the store, Rayshawn and co-conspirators stole approximately sixteen firearms including fourteen handguns and two assault rifles. The co-conspirators then transported the firearms back to Cleveland, Ohio. On December 29, 2017, Cleveland Police recovered two of the stolen handguns from DSD outside the home of Rayshawn and his co-conspirators. Later on January 10, 2018, agents from the Pittsburgh and Cleveland division of Bureau of Alcohol, Tobacco, Firearms and Explosives executed search warrants in Cleveland, Ohio at residences connected to Rayshawn and his co-conspirators. Agents recovered the suspected sledgehammer and other tools believed to be used in the burglary.
Co-defendant Reginald Patterson was convicted after a jury trial in October of 2019 and is pending sentencing. No sentencing date has been set by the Court.
Assistant United States Attorneys Timothy M. Lanni, Douglas Maloney and Brendan Conway are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Brookville Police Department, the Pennsylvania State Police, the Cleveland Police Department and the Cuyahoga Sheriff’s Department conducted the investigation leading to the guilty plea in this case.
The case was brought as part of Project Safe Neighborhoods. 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.
Former Alstom Executives and Marubeni Executive Charged with Bribing Indonesian OfficialsRead the Press Release
Two former executives of the Indonesian subsidiary of the French power and transportation company Alstom S.A. and a former executive of the Japanese trading company Marubeni Corporation have been charged in a superseding indictment unsealed today for their alleged participation in a scheme to pay bribes to foreign government officials in Indonesia.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge Paul D. Delacout of the FBI’s Los Angeles Office made the announcement.
Reza Moenaf, 63, the former president of Alstom’s subsidiary in Indonesia; Eko Sulianto, 63, the former director of sales of Alstom’s subsidiary in Indonesia; and Junji Kusunoki, 57, the former deputy general manager of Marubeni’s Overseas Power Project Department, were each charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and conspiracy to commit money laundering. Kusunoki was charged with six counts of violating the FCPA and four counts of money laundering, and Sulianto and Moenaf were each charged with two counts of violating the FCPA and one count of money laundering.
According to the indictment, the defendants, together with others, paid bribes to officials in Indonesia – including, among others, a high-ranking member of the Indonesian Parliament and the president of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Alstom’s subsidiaries in Connecticut and Indonesia and for Marubeni to provide power-related services for the citizens of Indonesia. To conceal the bribes, the defendants allegedly retained two so-called “consultants” purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. The indictment, however, alleges that the primary purpose for hiring the consultants was to use the consultants to pay bribes to Indonesian officials.
The first consultant retained by the defendants allegedly received hundreds of thousands of dollars in his Maryland bank account to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to court documents, emails between the defendants and their co-conspirators discussed in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project.
The superseding indictment alleges that in the fall of 2003, the defendants and their co-conspirators determined that the first consultant was not effectively bribing key officials at PLN. One email between Moenaf, Sulianto and their co-conspirators described PLN officials’ “concern that if we have won the job, whether their rewards will still be satisfactory or this agent only give them pocket money and disappear.” In another email, Moenaf asserted that the consultant “has no grip on the PLN Tender team at all” and “is more or less similar to [a] cashier which I feel we pay too much.” As a result, the co-conspirators allegedly retained a second consultant to more effectively bribe PLN officials. The defendants and their co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the alleged purpose of bribing the Indonesian officials, the indictment alleges.
An indictment is merely an accusation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charges against Moenaf, Sulianto, and Kusunoki are part of a wide-ranging investigation into alleged corrupt practices by employees of Alstom and Marubeni. Five other individuals, as well as Alstom and Marubeni, have pleaded guilty in the case so far, and Lawrence Hoskins, a former senior vice president at Alstom, was found guilty on Nov. 6, 2019, following a jury trial, of 11 counts of conspiracy, violating the FCPA, and money laundering.
The FBI’s Los Angeles Field Office is investigating the case with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The Criminal Division’s Office of International Affairs assisted in the investigation. Senior Deputy Chief Daniel S. Kahn and Assistant Chief Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut are prosecuting the case.
The department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia, Switzerland's Office of the Attorney General, as well as authorities in the United Kingdom, France, Germany, Italy, Singapore and Taiwan.
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/fcpa.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Alstom Executives and Marubeni Executive Charged with Bribing Indonesian OfficialsRead the Press Release
WASHINGTON – Two former executives of the Indonesian subsidiary of the French power and transportation company Alstom S.A. and a former executive of the Japanese trading company Marubeni Corporation have been charged in a superseding indictment unsealed today for their alleged participation in a scheme to pay bribes to foreign government officials in Indonesia.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge Paul D. Delacout of the FBI’s Los Angeles Office made the announcement.
Reza Moenaf, 63, the former president of Alstom’s subsidiary in Indonesia; Eko Sulianto, 63, the former director of sales of Alstom’s subsidiary in Indonesia; and Junji Kusunoki, 57, the former deputy general manager of Marubeni’s Overseas Power Project Department, were each charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and conspiracy to commit money laundering. Kusunoki was charged with six counts of violating the FCPA and four counts of money laundering, and Sulianto and Moenaf were each charged with two counts of violating the FCPA and one count of money laundering.
According to the indictment, the defendants, together with others, paid bribes to officials in Indonesia – including, among others, a high-ranking member of the Indonesian Parliament and the president of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Alstom’s subsidiaries in Connecticut and Indonesia and for Marubeni to provide power-related services for the citizens of Indonesia. To conceal the bribes, the defendants allegedly retained two so-called “consultants” purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. The indictment, however, alleges that the primary purpose for hiring the consultants was to use the consultants to pay bribes to Indonesian officials.
The first consultant retained by the defendants allegedly received hundreds of thousands of dollars in his Maryland bank account to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to court documents, emails between the defendants and their co-conspirators discussed in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project.
The superseding indictment alleges that in the fall of 2003, the defendants and their co-conspirators determined that the first consultant was not effectively bribing key officials at PLN. One email between Moenaf, Sulianto and their co-conspirators described PLN officials’ “concern that if we have won the job, whether their rewards will still be satisfactory or this agent only give them pocket money and disappear.” In another email, Moenaf asserted that the consultant “has no grip on the PLN Tender team at all” and “is more or less similar to [a] cashier which I feel we pay too much.” As a result, the co-conspirators allegedly retained a second consultant to more effectively bribe PLN officials. The defendants and their co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the alleged purpose of bribing the Indonesian officials, the indictment alleges.
An indictment is merely an accusation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charges against Moenaf, Sulianto, and Kusunoki are part of a wide-ranging investigation into alleged corrupt practices by employees of Alstom and Marubeni. Five other individuals, as well as Alstom and Marubeni, have pleaded guilty in the case so far, and Lawrence Hoskins, a former senior vice president at Alstom, was found guilty on Nov. 6, 2019, following a jury trial, of 11 counts of conspiracy, violating the FCPA, and money laundering.
The FBI’s Los Angeles Field Office is investigating the case with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The Criminal Division’s Office of International Affairs assisted in the investigation. Senior Deputy Chief Daniel S. Kahn and Assistant Chief Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut are prosecuting the case.
The department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia, Switzerland's Office of the Attorney General, as well as authorities in the United Kingdom, France, Germany, Italy, Singapore and Taiwan.
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/fcpa.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Felon Sentenced in Robbery that Took Place During a Law Enforcement Gun BuyRead the Press Release
United States Attorney Joe Kelly announced that Dajuan Sharron, 43, of Omaha, was sentenced today by United States District Judge Robert F. Rossiter, Jr. to 96 months’ imprisonment for Robbery of Personal Property of the United States. He will also be required to pay $1,500 in restitution to the Bureau of Alcohol, Tobacco, Firearms and Explosives and will serve 3 years of supervised release following his release from prison. There is no parole in the federal system.
The Bureau of Alcohol, Tobacco, Firearms and Explosives was using a Confidential Informant (CI) to make controlled purchases of firearms and narcotics as part of a larger operation specifically targeting members of the Trip Set and African Pride gangs. On August 7, 2018, during one of these buys, Sharron entered the CI’s vehicle and robbed the CI by concealing his hand in a bag and mimicking having a firearm. Sharron threatened to shoot the CI if he didn’t give him the money he had with him, $1,500 in ATF buy money. In addition to $1,500, Sharron took the cell phones of two suspected drug dealers who were also in the vehicle before fleeing the area on foot. The event took place in a law enforcement vehicle that was equipped with an audio and video recording system, which captured the robbery and threats made by Sharron. He was later arrested along with the other two individuals in the car on that day.
On August 28, 2019, a jury found Sharron guilty of the offense. He has prior convictions for Felon in Possession of a Firearm, 2nd Degree Assault, Felon in Possession of a Deadly Weapon, and Domestic Assault.
This case was part of a Project Safe Neighborhood initiative and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department.
Federal Inmate Sentenced for Beaumont Prison EscapeRead the Press Release
BEAUMONT, Texas – A federal inmate has been sentenced for escaping from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Victor Luis Pescador, 57, of Laredo, pleaded guilty on Nov. 21, 2019, to escape and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia Crone. This sentence will be added to the remainder of the federal sentence Pescador was serving as a result of his 2007 conviction on federal drug trafficking charges at the time of his escape from federal custody earlier this year.
According to information presented in court, on July 12, 2019, Pescador and another inmate were discovered missing from the Bureau of Prison Camp Facility in west Jefferson County. Pescador was subsequently arrested near Roma, Texas on Aug. 29, 2019.
“This is one of several inmates who have walked away in recent months from the prison camp, which is a minimum security facility for low risk inmates, usually serving the final portion of their sentences,” said United States Attorney Joseph D. Brown. “Regardless of the circumstances, they escaped from a prison facility and anyone who does so will be prosecuted, along with anyone on the outside who helps the escape.”
Pescador was sentenced to 20 years in federal prison in 2007 for possession with intent to distribute over 1000 pounds of marijuana in the Southern District of Texas.
This case was investigated by the Federal Bureau of Prisons and the United States Marshals Service and prosecuted by Assistant U.S. Attorney Joe Batte.
Federal Court in Hammond, Indiana, Enters Permanent Injunction Barring Tax Preparer from Preparing Federal Tax Returns for OthersRead the Press Release
The U.S. District Court for the Northern District of Indiana has issued an order permanently barring Daniel Bewley, a former Hobart and Lake Station, Indiana, tax preparer, from preparing federal tax returns for others, the Justice Department announced today. Bewley consented to the civil injunction order.
According to the complaint, Bewley operated a business that provided tax return preparation services under the names Bewley’s Tax Service and Forward Motion Tax Service. The complaint alleges that Bewley prepared returns that falsely understated the tax due by including false Schedules C that understated the amount of the customer’s income and false Schedules A that contained inflated deductions. The complaint further alleges that Bewley prepared approximately 1,602 tax returns for tax years 2011 through 2014, and that an IRS examination of 208 of those returns determined that 75 percent of the returns falsely understated the amount of tax due.
As set out in the complaint, on Aug. 11, 2017, Bewley pleaded guilty to one count of wire fraud and one count of filing a false tax return in connection with his tax preparation activities, for which he was sentenced to 33 months of imprisonment, and was ordered to serve three years of supervised release and to pay approximately $331,000 in restitution to the United States.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2019. Taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Court Bars Florida Tax Return Preparer and His Business from Preparing Tax ReturnsRead the Press Release
On Feb. 14, 2020, a federal court in Ocala, Florida, entered a permanent injunction against Philip Mott Harris II and his business, 24/7 Tax Services LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today. The court also ordered that Harris and 24/7 Tax Services LLC disgorge $544,874.56, representing the ill-gotten gains that they received for the preparation of tax returns. The order was signed by Judge James S. Moody of the U.S. District Court for the Middle District of Florida.
The government alleged that the defendants prepared tax returns on which the defendants fabricated businesses and related business income and expenses, claimed improper filing status, and reported false household help income. In the report and recommendation, adopted by Judge Moody, the court found that “over the course of several years, Harris and his other tax return preparers have continually filed returns misrepresenting their customers’ income, deductions, and income tax liability–and have continued to do so even after the United States filed its complaint in this action.” The court further concluded “that injunctive relief is appropriate, and that a more limited injunction will not suffice to prevent the substantial harm that Defendants would likely continue to cause if not permanently enjoined.”
“The Tax Division will use all available enforcement tools to shut down return preparers who claim improper or illegal deductions and credits for their customers,” said Principal Deputy Assistant Attorney General Richard Zuckerman.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fayetteville Gang Member Sentenced for Gun ChargeRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced DESMOND EDWARDS, 21, of Fayetteville, North Carolina to 120 months’ imprisonment, followed by 3 years’ of supervised release.
EDWARDS was named in a Criminal Information filed on October 25, 2019, charging him with possession of a stolen firearm and ammunition. On November 15, 2019, EDWARDS pled guilty to that charge.
According to the investigation, on May 1, 2018, the Fayetteville Police Department conducted a traffic stop on a vehicle with a broken windshield suspected of being involved in an earlier reported accident. When the officer approached the driver’s side of the vehicle, he made contact with EDWARDS. The officer could smell the odor of marijuana coming from within the vehicle, and removed the occupants. The officer then deployed his K-9 around the vehicle, and the dog alerted for the presence of contraband. Officers searched the vehicle and recovered a loaded, .25 caliber handgun underneath the driver’s seat and .25 caliber ammunition in the rear pocket of the passenger seat. EDWARDS later admitted to possessing the firearm and ammunition and that he had reason to believe the firearm and ammunition were stolen. EDWARDS is a validated member of the Nine-Trey Bloods street gang.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Fayetteville Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Chad Rhoades handled the prosecution of this case for the government.
Employee at Mortgage Company Sentenced to 46 Months in Prison for Illegally Accessing Computer to Steal $2 MillionRead the Press Release
CAMDEN, N.J. – A Camden woman was sentenced today to 46 months in prison for accessing a protected computer without authorization, stealing money from her employer and then laundering the proceeds of her theft, U.S Attorney Craig Carpenito announced.
Dilcia Mercedes, 38, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of unauthorized access of a computer with intent to defraud and one count of money laundering. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From April 2014 to May 2017, Mercedes worked for a mortgage lender as a payment processor and had access to the company’s computer system. She discovered that some escrow checks were returned to the company as undeliverable. Mercedes admitted that she would monitor those funds by checking monthly reports to see if the funds were ever claimed. If the money was not claimed, Mercedes recruited various family members and friends to allow her to use their bank accounts. With that information, Mercedes used her family members’ and friends’ identities to open reloadable debit/credit accounts. She accessed the company’s computer system and made it appear as if the customer requested that the money be sent via wire transfer into the fraudulent accounts. After creating the request, Mercedes then accessed the company’s computer and approved the transfer using a co-worker’s login and password.
Mercedes caused approximately 580 fraudulent wire transfers, totaling more than $2 million, from her company’s bank account to bank accounts and reloadable debit/credit accounts controlled by Mercedes’ relatives, friends or associates. She then used the money to pay personal expenses.
In addition to the prison term, Judge Bumb sentenced Mercedes to three years of supervised release and ordered her to pay $2,087,697 in restitution.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Wyatt Achord, and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Carroll, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Michael Kahn Esq., Cherry Hill, New Jersey
Eastern District of New York U.S. Attorney’s Office Collects over $1.1 Billion in Criminal and Civil Actions in Fiscal Year 2019Read the Press Release
United States Attorney Richard P. Donoghue announced today that the Eastern District of New York collected over $1.1 billion in criminal and civil actions in fiscal year 2019. Of this amount, $24,687,372 was collected in criminal actions, and $1,093,836,145 was collected in civil actions handled solely by the Eastern District. Additionally, $1,012,187 resulted from cases handled in conjunction with other U.S. Attorney’s Offices and litigating divisions of the Department of Justice, including the forfeiture of $215,491,403 in assets tainted by crime.
“The Eastern District’s recoveries in fiscal year 2019 are notable for having achieved economic justice on behalf of those who were harmed by individuals and corporate entities that put profits ahead of individuals and their well-being,” stated United States Attorney Donoghue. “This Office is committed to vigorously pursuing civil and criminal penalties from wrongdoers.”
FY 2019 Collections Highlights
In October 2018, the Eastern District of New York recovered $480 million in civil penalties from Nomura Holding America Inc. and several of its affiliates to resolve claims that Nomura misled investors in connection with the marketing, sale and issuance of residential mortgage-backed securities between 2006 and 2007.
Also in October 2018, AmerisourceBergen Corporation, one of the nation’s largest wholesale drug companies, and its subsidiaries AmerisourceBergen Specialty Group, AmerisourceBergen Drug Corporation, Oncology Supply Company and Medical Initiatives, Inc. (collectively “ABC”), entered into a settlement agreement with the United States in which ABC agreed to pay $625 million to resolve civil liability under the False Claims Act. The claims against ABC arose from its repackaging and distributing of pre-filled syringes that were not approved for sale or use by the U.S. Food and Drug Administration. The drugs involved in the scheme were supportive drugs for cancer patients undergoing chemotherapy treatment.
Collections Overview
The U.S. Attorneys’ Offices, along with the Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victims, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund, and are used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Detroit Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pled guilty to federal drug and gun crimes, announced United States Attorney Mike Stuart. Antonio Maurice Davis, 28, pled guilty to possession with intent to distribute a mixture of heroin and fentanyl and to possession of a firearm in furtherance of drug trafficking.
“Just plain deadly – heroin, fentanyl and guns,” said United States Attorney Mike Stuart. “We are steadfast in our commitment to hold violent, out-of-state drug dealers accountable for the chaos and despair they have caused in our communities.”
On May 15, 2019, officers with the Huntington Police Department were conducting surveillance in the south side area of Huntington when they saw Davis wearing a bright blue jacket and black pants. Davis came out of an apartment building carrying several bags and placed the bags in the backseat area of a minivan, behind the driver, and then got into the front passenger seat of the minivan. The minivan backed out of the driveway and travelled east on 12th Avenue to 12th Street. Huntington Police Officers conducted a traffic stop of the vehicle in the 1400 block of Charleston Avenue after learning the driver had a suspended license. Immediately following the stop, officers approached the minivan. The officers smelled an odor of marijuana coming from the minivan. Both the driver and Davis were removed from the vehicle. Davis initially identified himself as Jonathon Maurice Mason. Officers later learned that his real name was Antonio Maurice Davis. A K9 unit that was called to the scene positively indicated on the vehicle for the presence of drugs.
Officers then searched the minivan. During the search, they located a High-Point 9mm rifle on the back floorboard behind the drivers’ seat. The jacket that Davis was seen wearing was located in between the driver’s seat and the front passenger seat. Inside the jacket officers found a large amount of a white powdery substance in a plastic baggy. They also found a second plastic baggy that contained a white chunky substance. Other suspected narcotics were also located in the jacket. Officers also located a gym bag behind the drivers’ seat of the vehicle. Inside the gym bag, officers located 3 handguns, digital scales, multiple cellular telephones, ammunition and other evidentiary items of value. The powdery substance was analyzed and found to be approximately 38 grams of a mixture of heroin and fentanyl.
Davis faces up to 20 years imprisonment and a $1,000,000 fine on the drug charge and mandatory 5 years to life on the gun charge, which must run consecutively to the drug charge. Davis is scheduled to be sentenced on June 1, 2020.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Defendant who conspired to steal aircraft secrets sentenced to 70 months in federal prisonRead the Press Release
SAVANNAH, GA: A North Carolina man who took part in a conspiracy to steal design information from aircraft companies to speed up approval of competing airplane technology has been sentenced to nearly six years in federal prison.
Craig German, 59, of Kernersville, N.C., was sentenced to 70 months in federal prison by Senior U.S. District Court Judge William T. Moore Jr., said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. German, who pled guilty to Conspiracy to Steal Trade Secrets in September 2019, also was ordered to pay a fine of $2,000 and serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Theft is theft, pure and simple. Any company’s intellectual property has value – not only in dollars, but in the amount of time and effort put into its creation,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “By stealing the trade secrets of his employer, German attempted a shortcut to his own enrichment and instead will take a long ride to prison.”
According to court documents and testimony, German agreed with his co-conspirators to steal trade secrets from aircraft companies in order to assist a competitor company in developing their own anti-ice aircraft technology. Without authorization, German copied anti-ice trade secret documents from the aircraft company for which he worked, and then emailed those documents to his co-conspirators.
“German chose to steal the secrets of a U.S. company rather than do the hard work necessary to succeed in the free market, and now he is paying the price,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are pleased by this sentence, and the FBI will continue to aggressively protect America’s economic security and intellectual property from foreign adversaries.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Davenport Man sentenced to Prison for Tax CrimesRead the Press Release
DAVENPORT, Iowa – On February 13, 2020, Jonathan Folker, age 39, of Davenport, was sentenced by United States District Court Chief Judge John A. Jarvey to 15 months in prison on each of two counts of Tax Evasion and Making and Subscribing a False Tax Return, those terms to run concurrent. Folker was ordered to serve three years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund. Folker was also ordered to pay restitution in the amount of $256,783, with interest.
On June 5, 2019, the United States Attorney’s Office filed a two-count Information charging Folker with Tax Evasion and Making and Subscribing a false tax return. A plea agreement was entered on August 20, 2019, and Folker admitted he failed to file income tax returns for several years and had a total tax liability of $256,783. Folker also admitted he made and subscribed a false Form 1040 for the tax year 2012.
This case was investigated by Internal Revenue Service- Criminal Investigations and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Columbus man who posed as minors on Facebook sentenced to 11 years in prison for distributing child pornographyRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in federal court today to 11 years in prison for distributing child pornography.
Michael D. Moore, 29, posed as a minor female on Facebook and sent child pornography files to a 14-year-old female.
Moore was a registered sex offender in Franklin County, as the result of a 2012 conviction for pandering sexually oriented matter involving a minor and importuning. In that case, Moore posed as a minor male on Facebook. After initially receiving a state community control sentence, Moore violated probation and was sentenced to nearly five years in prison.
Moore engaged in the federal offense conduct in this case seven months after being released from state custody, while he was still on state parole.
According to court documents, in September 2018, the Ohio Internet Crimes Against Children (ICAC) Task Force forwarded two CyberTipline reports it had received from the National Center for Missing and Exploited Children (NCMEC) to the Franklin County ICAC Task Force.
Facebook and Google had each submitted tips to NCMEC regarding the uploading of child pornography images from Moore’s accounts.
Search warrants revealed explicit conversation between Moore (who was posing as a 12-year-old girl) and a 14-year-old on Facebook. Moore claimed to be the child in the pornography he shared with the victim.
During a search of Moore’s residence, investigators discovered four cell phones. One cell phone contained child pornography images. Three of the phones had password protection that initially prevented forensic examination and Moore refused to provide password information for the phones. Later access to two of those phones revealed additional child pornography files and a different online conversation with a victim who was 15 years old.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Ohio Attorney General Dave Yost; and Franklin County Sheriff Dallas Baldwin announced the sentence imposed by U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Heather A. Hill is representing the United States in this case.
# # #
Columbus man sentenced for role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Michael L. Forrest, Jr., of Columbus, Ohio, was sentenced today to 48 months incarceration for his role in a cocaine and heroin distribution operation, U.S. Attorney Bill Powell announced.
Forrest, also known as “Flip,” age 28, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1,000 feet of a Protected Location” in July 2019. Forrest admitted to selling cocaine near the Pulaski Playground in Ohio County in August 2018.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department.
U.S. District Judge John Preston Bailey presided.
Cleveland man pleaded guilty to five armed robberiesRead the Press Release
Amhad Jones, 26, pleaded guilty to five counts of interfering with commerce by robbery and three counts of using a firearm during and in relation to a crime of violence for a series of armed robberies in Cleveland, Ohio last year.
According to court records and Jones’ acknowledgements during the change of plea hearing:
On January 18, 2019, Jones entered the Metro PCS store located at 9312 Harvard Avenue, Cleveland, Ohio. He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee. The employee gave him approximately $900 and Jones fled.
On February 6, 2019, Jones entered the Metro PCS store located at 10959 Kinsman Road, Cleveland, Ohio. He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee. The employee gave him approximately $250 and Jones fled.
On February 13, 2019, Jones entered the Metro PCS store located at 14701 Kinsman Road, Cleveland, Ohio. He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee. The employee gave him approximately $350 and Jones fled.
On April 19, 2019, Jones entered the Metro PCS store located at 14701 Kinsman Road, Cleveland, Ohio. He walked up to the counter, then he pulled out a pistol and brandished it at the employee. The employee gave him approximately $300-$800 and Jones fled.
On April 23, 2019, Jones entered the Metro PCS store located at 9312 Harvard Avenue, Cleveland, Ohio. He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee. The employee, a concealed carry permit holder, retrieved his own pistol and shot Jones three times. Jones received medical attention and was later arrested. A pistol was recovered from Jones.
This prosecution is part of Project Guardian, the Justice Department’s signature initiative to reduce gun violence and enforce federal firearms laws.
This case is also part of Project Safe Neighborhoods, a program that surges federal and local law enforcement resources to communities’ most violent neighborhoods in order to root out offenders and build positive relationships with victims, witnesses and community members.
This case was investigated by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Cuyahoga County Prosecutor’s Crime Strategies Unit, and prosecuted by Assistant U.S. Attorney Kelly L. Galvin.
###
Clearfield County Woman Sentenced for Defrauding Social SecurityRead the Press Release
JOHNSTOWN, Pa. – A resident of Clearfield County, Pa. has been sentenced in federal court in Johnstown to two years’ probation and restitution in the amount of $149,520.41 to the Social Security Administration on her conviction of conversion of government funds, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Maryann Bowes-Dailey, 56, of Osceola Mills, Pa.,
According to information presented to the court, from June 1, 2001 to Feb. 28, 2013, Bowes-Dailey did receive and convert falsely to her own use a total of $149,520.41, which represents 416 separate Social Security Administration benefit payments made to her to which she was not entitled.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Social Security Administration, Office of Inspector General for the investigation that led to the successful prosecution of Bowes-Dailey.
Central Falls Man Pleads Guilty to Drug Trafficking, Firearms ChargesRead the Press Release
PROVIDENCE, RI – A member of a Central Falls neighborhood-based street gang known for flashing drugs, firearms, and gang signs on social media, pled guilty in federal court today to trafficking crack cocaine and being in possession of two stolen firearms.
Elton Andrade, aka “MT Flex,” 20, a member of the “Money Team” street-gang, was arrested by members of the FBI’s Safe Streets Violent Gang Task Force and Central Falls Police in February 2018, during a Project Safe Neighborhoods investigation into individuals in Central Falls involved in, among other things, drug trafficking and firearms violations.
On February 26, 2018, Central Falls Police and members of the FBI Safe Streets Task Force executed a court-authorized search of a Central Falls residence where they seized from Andrade’s bedroom two bags containing a total of 28.53 grams of crack cocaine, two loaded firearms that a forensic audit later determined to be stolen, and $1,503 in cash.
Andrade, who was not present at the time of the search, was arrested the following day after being surveilled by law enforcement leaving a Seekonk, Mass., motel and taking a taxi to Central Falls. He was arrested by Central Falls police when they conducted a traffic stop of the taxi.
Andrade, who has been detained since his arrest, today pled guilty to possession with intent to distribute 28 grams or more of cocaine base and two counts of possession of a stolen firearm, announced United States Attorney Aaron L. Weisman, Central Falls Police Chief Colonel Daniel J. Barzykowski, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Andrade is scheduled to be sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on May 18, 2020.
Possession with intent to distribute 28 grams or more of cocaine base is punishable by statutory penalties of not less than 5 years and not more than 40 years imprisonment, 3 years’ supervised release, and a fine of up to $250,000. Possession of a stolen firearm is punishable by statutory penalties of up to 10 years imprisonment, 3 years’ supervised release, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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.
###
California Man Sentenced to Prison for Smuggling 18 Pounds of Cocaine to KSRead the Press Release
TOPEKA, KAN. – A California man was sentenced today to 52 months in federal prison for smuggling 18 pounds of cocaine to Kansas, U.S. Attorney Stephen McAllister said.
Jesus Gonzalez-Molina, 30, pleaded guilty to one count of possession with intent to distribute cocaine. In his plea, he admitted he was driving eastbound on I-70 through Shawnee County when he was stopped by the Kansas Highway Patrol. Troopers searched the 2007 Toyota 4Runner he was driving and found a hidden compartment containing the drugs.
McAllister commended Assistant U.S. Attorney Skip Jacobs, the Kansas Highway Patrol and Drug Enforcement Administration for their work on the case.
Brooklyn Owner of Durable Medical Equipment Companies Pleads Guilty to Participating in $9 Million Health Care Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that GREG MILLER pled guilty today to participating in a $9 million scheme to defraud providers of “no-fault” insurance plans. As part of the scheme, MILLER and his co-conspirators billed insurance companies millions of dollars for expensive durable medical equipment that was never provided to patients. MILLER pled guilty before United States District Court Judge Katherine Polk Failla.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Greg Miller exploited New York’s no-fault auto insurance system by billing millions of dollars for durable medical equipment that was never actually provided to patients, was medically unnecessary, or was far more expensive than the equipment that was provided. Now Miller awaits sentencing for his crime.”
FBI Assistant Director William F. Sweeney Jr. said: “When private health care programs are abused, the financial burden is typically passed on to consumers of these programs by way of increased premiums and other means of supporting services provided by the company. This is in no way a victimless crime, as it translates into very real numbers for those who pay into these health care programs. Miller’s conduct was just another way to make a quick profit at the expense of others, and this type of behavior can’t be tolerated.”
As alleged in the Information filed today in Manhattan federal court:
Between 2014 and 2019, GREG MILLER employed other individuals to serve as the nominal owners of at least two durable medical equipment (“DME”) supply companies located in Brooklyn, New York. MILLER, the true owner and operator of the companies, directed these individuals to submit fraudulent bills to private insurance companies that provided “no-fault” insurance plans. Under New York State law, a company that insures a vehicle involved in an accident is required to provide reimbursement for certain treatments and services provided to the vehicle occupants, regardless of who was at fault in the accident. These treatments and services may include DME if the DME is necessary and actually provided. The bills submitted by MILLER’s companies were fraudulent because, among other things, the bills were for DME that was never provided to patients, for DME that was medically unnecessary, or for expensive DME purportedly provided to patients when the DME in fact provided to patients was inexpensive DME.
MILLER, 60, pled guilty to one count of conspiring to commit health care fraud and faces a maximum sentence of 10 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. As part of his plea, MILLER agreed to forfeit $3,698,010 and to pay at least that amount in restitution.
Mr. Berman praised the outstanding investigative work of FBI’s Healthcare Fraud Task Force.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
Brooklyn Man Pleads Guilty to Drive-By ShootingRead the Press Release
Earlier today, in federal court in Brooklyn, Steven Bynum pleaded guilty before United States District Judge Ann M. Donnelly to firing a handgun into a group of people in furtherance of a drug distribution dispute, wounding a pregnant innocent bystander. When sentenced, Bynum faces up to life in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
According to court filings and facts presented during court proceedings, in early 2017, Bynum and his co-conspirators stole drugs from another drug dealer (“John Doe”) and then distributed those drugs at the Kingsborough Houses in Crown Heights, Brooklyn. In June 2017, “John Doe” retaliated by assaulting and pistol-whipping Bynum. On September 10, 2017, Bynum drove to Dean Street in East New York, where he spotted “John Doe” standing with a group of people. Bynum fired multiple shots at the group, but missed “John Doe” and instead hit a five-month pregnant bystander twice in the head. The victim still suffers from partial paralysis and permanent cognitive damage from the bullet wounds.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being is handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro and Temidayo Aganga-Williams are in charge of the prosecution.
The Defendant:
STEVEN BYNUM (also known as “Nitty”)
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-0255 (AMD)
Broken Arrow Man Pleads Guilty to Making Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Aaron Robert Schupp, age 36, of Broken Arrow, Oklahoma, entered a guilty plea to Making Counterfeit Obligation, in violation of Title 18, United States Code, Section 471, punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that beginning in or about September 2018, and continuing until on or about September 17, 2019, in the Eastern District of Oklahoma, the Defendant, with intent to defraud, did falsely make, forge, counterfeit and alter an obligation of the United States, that is, fifteen (15) falsely made, forged, counterfeited and altered twenty-dollar Federal Reserve Notes, and six (6) falsely made, forged, counterfeited and altered one-hundred-dollar Federal Reserve Notes.
The charges arose from an investigation by the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Biotech Company CEO Sentenced for Securities Fraud and ObstructionRead the Press Release
BOSTON – The chief executive officer of PixarBio Corp., a Boston-based biotech company, was sentenced today for defrauding the company’s investors and obstructing an SEC investigation.
Frank Reynolds, 57, of Newton, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to seven years in prison to be followed by three years of supervised release. Reynolds was also ordered to pay $280,000 in forfeiture and restitution of approximately $7.5 million, with the exact amount to be determined at a later date. In October 2019, Reynolds was convicted of by a federal jury, following a three-week trial, of one count of securities fraud and three counts of obstructing an agency proceeding.
The jury convicted Reynolds of defrauding PixarBio investors through manipulative trading of the company’s shares and false and misleading statements about the company’s finances, the timeline for FDA approval of its key drug, and Reynolds’s own background, which he claimed included curing his own paralysis. In fact, the evidence at trial showed that Reynolds was never paralyzed.
Among the false and misleading statements introduced into evidence was a December 2015 email and private placement memorandum, in which Reynolds promised investors that PixarBio’s drug, NeuroRelease, would end “thousands of years of morphine and opiate addiction.” In fact, the evidence at trial demonstrated that the drug would not end opioid addiction, and was simply an existing drug for which PixarBio claimed to have developed an additional means of delivery in a time-release form for post-operative pain.
In August 2016, Reynolds caused PixarBio to issue a press release announcing that a private securities offering underway at the time was oversubscribed, and that the maximum offering amount would be increased from $20 million to $30 million. Two months later, Reynolds caused PixarBio to issue another press release announcing that, due to oversubscription, the maximum offering amount would be increased again from $30 million to $40 million. In fact, the evidence at trial showed that the securities offering was never fully subscribed and had raised less than $10 million.
Reynolds also misrepresented the timeline to FDA approval for NeuroRelease. In a November 2016 securities filing that Reynolds signed as PixarBio’s CEO, the company stated that clinical trials were expected to begin “in late 2017 and US FDA approvals for the NeuroRelease 14-day product are expected in 2018,” despite the fact that PixarBio managers had told Reynolds that this timeline was not achievable.
Reynolds directed two co-conspirators, Kenneth Stromsland and Jay Herod, to engage in manipulative trading in PixarBio shares that artificially pushed up the stock’s trading price. The evidence demonstrated that Herod shared the proceeds of his trading with Reynolds and PixarBio. Reynolds then misled the SEC about the trading and his prior misstatements in sworn testimony, during which he introduced a backdated document as purported evidence that $300,000 in trading proceeds Herod had given him was actually an investment unrelated to Herod’s trading. Reynolds also induced Herod and Stromsland to mislead the SEC in their own sworn testimony. Herod and Stromsland previously pleaded guilty to securities fraud and obstruction charges and testified at the trial.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Leslie A. Wright of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Bergen County Man Sentenced to 30 Months in Prison for Embezzling Funds from Employee Benefit PlanRead the Press Release
NEWARK, N.J. – A Bergen County man who embezzled funds from his company’s employee benefit plan over an eight-year period was sentenced today to 30 months in prison, U.S. Attorney Craig Carpenito announced.
Howard Preschel, 63, of Teaneck, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to one count of an indictment charging him with embezzling funds from the CMG Vending Inc. Pension Trust Fund.
According to documents filed in this case and statements made in court:
Preschel served as the sole trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. As the trustee, Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries.
Between November 2010 and April 2018, Preschel embezzled $368,782.66 from the pension trust fund by engaging in 52 separate illegal withdrawals or transfers from various pension trust accounts. As a result of these illegal withdrawals and transfers, the trust fund accounts lost an additional $93,266.98 in interest.
In addition to the prison term, Judge Wigenton sentenced Preschel to three years of supervised release. She also ordered Preschel to make restitution to the CMG Vending Inc. Pension Trust Fund in the amount of $462,049.64. Preschel also agreed to a debarment which prohibits him from acting as a fiduciary on behalf of any employee benefit plan for a period of 13 years.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in Mountainside, and the United States Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director of the New York Regional Office, Thomas Licetti, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
Alleged St. Croix Drug Trafficking Organization Members Charged with Possession of Firearms and NarcoticsRead the Press Release
St. Thomas, USVI –– Ivan James, Kai James, Joh Williams, Malachi Benjamin and Tillisa Caesar appeared on February 12, 2020, before U.S. Magistrate Judge Ruth Miller for arraignment on a twenty-count superseding indictment charging drug conspiracy, possession with intent to distribute cocaine and marijuana, and possession of firearms during and in relation to a drug trafficking conspiracy, United States Attorney Gretchen C.F. Shappert announced. At the conclusion of the hearing, Magistrate Miller remanded Ivan James, Williams and Benjamin pending their detention hearings on February 20, 2020. Ceaser was previously detained on separate drug trafficking conspiracy charges, and Kai James was placed on home confinement.
According to court records, Ivan James and Kai James were alleged leaders of a large-scale drug trafficking organization that operated on St. Croix. Federal law enforcement first discovered the organization’s existence during a 2013 investigation, which revealed that Ivan James was smuggling narcotics into the Golden Grove Correctional Facility on St. Croix with the aid of a now deceased corrections officer. According to reports, Joh Williams, who was incarcerated at Golden Grove, distributed the narcotics on behalf of James. Thereafter, in July 2015, Ivan James directed his associates to rob a rival drug dealer of several kilograms of cocaine at gunpoint. The investigation continued with the execution of a search warrant at the James family compound located at 239 Estates LaGrange on St. Croix, where federal agents recovered over 1,000 marijuana plants and one half kilograms of cocaine. During the search, federal agents also recovered four pistols and one AR-15 rifle together with a large cache of ammunition. The investigation culminated with the seizure of an additional four pistols, one AK 47 rifle and approximately 24 kilograms of marijuana that were concealed and shipped in a commercial freezer from Miami, FL to St. Croix via Paradise Freight Shipping on February 28, 2019.
The superseding indictment charges all defendants with drug conspiracy and possession with intent to distribute narcotics. In addition, Ivan James, Kai James and Benjamin are charged with possession of firearms during and in relation to a drug trafficking conspiracy. Benjamin is also charged in a separate indictment with possession with intent to distribute cocaine after a vehicle for which he was a passenger was stopped and searched by Virgin Islands Police Officers on St. Croix. Benjamin allegedly fled the scene after officers asked him about his involvement in the 2019 double homicides at the Cockpit Coliseum on St. Croix.
This case is being investigated by the Homeland Security Investigation, Drug Enforcement Administration and Alcohol Tobacco and Firearms. It is being prosecuted by Assistant U.S. Attorney Delia L. Smith.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Alabama Man Pleads Guilty to Tax EvasionRead the Press Release
A Birmingham man pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to court documents and statements made in court, in 2011, John P. Cooney, 70, filed delinquent tax returns for 2008 through 2010, in which admitted that he owed the Internal Revenue Service (IRS) approximately $780,000, but did not include any payment. Rather, to evade his tax obligation, Cooney created a nominee entity, GVA Advisors, LLC (GVA), and directed that income from his employer and dividends from his investments be paid to an account in GVA’s name, rather than to him directly. From 2013 through 2016, Cooney deposited more than $435,000 into the GVA account, concealing the funds from the IRS. In all, as result of his actions, Cooney owed by 2017 more than $1.3 million in outstanding balances, penalties, and interest to the IRS.
Sentencing is scheduled for May 28, 2020. At sentencing, Cooney faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release and monetary penalties. Pursuant to the plea agreement, Cooney has agreed to pay restitution of $1,311,904 to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Catherine Crosby Long and Trial Attorneys Alexander Effendi and Kathryn Sparks of the Tax Division, who are prosecuting this case.
15 Central Illinois Men Arrested in FBI Operation in Kankakee AreaRead the Press Release
URBANA, Ill. – Central District of Illinois U.S. Attorney John C. Milhiser and FBI Special Agent in Charge Sean M. Cox, Springfield Division, announced that 15 Central Illinois men were arrested over the weekend related to an FBI Operation conducted in Kankakee County. The operation was conducted with the coordination and assistance of the Bradley Police Department, the Kankakee County Sheriff’s Office, and the Kankakee Area Metropolitan Enforcement Group.
The men have been charged in separate criminal complaints with attempted enticement of a child to engage in illegal sexual activity; some have also been charged with attempted sexual exploitation of children. The complaints were unsealed on Feb. 18, 2020, as each made their respective initial appearances in federal court in Urbana. Each was ordered detained pending hearings scheduled later this week.
According to the affidavits filed in support of the complaints, each of the men allegedly used various social media applications to contact and engage online with FBI covert employees posing as 14 and 15-year-old minors to make arrangements to meet the minor girl or boy with the intent to engage in sexual activity. Some of the men attempted to entice or coerce the minors to send them sexually explicit images.
As the men arrived at or near the designated address, in Bradley, Ill., they were arrested and taken into custody by FBI Special Agents; the Bradley Police Department; the Kankakee County Sheriff’s Office; and, the Kankakee Area Metropolitan Enforcement Group. Assistant U.S. Attorney Elly M. Peirson is representing the government in the case prosecutions.
The defendants charged in this operation with attempted enticement of a minor are:
- Joshua T. Koenig, 27, of the 100 block of W. Main St. Buckley, Ill.;
- Jody L. Lagesse, 45, 1900 block of S. Schuyler Ave., Kankakee;
- Shane R. Ferris, 23, of the 1100 block of Coyote Run, Bourbonnais;
- Nick Vincent Senor, 25, of the 100 block of N. 8th Ave., Kankakee;
- Dale Martin Alvin Scering, 26, 400 block of Ivy Lane, Bradley;
- Robert Shawn Anderson, 50, 300 block of E. Spruce St., Paxton;
- Bryan Rossi, 29, 400 block of Titonka St., Park Forest; and,
- Timothy Lyle Dean, 37, 200 block of Spencer Ct., Bourbonnais.
The defendants charged in this operation with attempted enticement of a minor and attempted sexual exploitation of a child are:
- Matthew T. Gribbon, 48, of the 1100 block of S. 5th Ave., Kankakee;
- Ryan I. Woodruff, 21, of the 600 block of S. Rosewood Ave, Kankakee;
- Anmol Chugh, 28, of the 400 block of W. Dewey St., Saint Anne;
- Kyren Williams, 30, of the 1000 block of S. Osborn Ave., Kankakee;
- Cole Montgomery, 25, of the 17300 block of 2400 North Rd., Danville;
- Joseph Adam Longanecker, 40, of the 100 block of Birch Ct., Manteno; and,
- Jazzie Simmons, 28, of the 200 block of Greenwood Ave., Kankakee.
If convicted, for the offense of attempted enticement of a minor, each defendant faces a minimum of 10 years and up to life in prison. For the offense of attempted sexual exploitation of a child, each defendant faces a minimum of 15 years and up to 30 years in prison.
Members of the public are reminded that a complaint is merely an accusation; each defendant is presumed innocent unless proven guilty.
These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
11 Members of Brooklyn-Based 5-9 Brims Gang Charged with Racketeering Conspiracy, Murder, Murder Conspiracy and FraudRead the Press Release
A superseding indictment and criminal complaint were unsealed today in federal court in Brooklyn charging 11 members of the 5-9 Brims, a violent set of the Bloods street gang, with crimes related to their participation in a criminal enterprise that made money through narcotics trafficking and financial scamming, and maintained its power through acts of violence, including murder. The arraignments and initial appearances of six defendants arrested today are scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the superseding indictment.
“The 5-9 Brims is a violent criminal organization that has terrorized residents of Brooklyn and Queens by committing brutal acts of violence in public places, trafficking narcotics on the streets and defrauding victims through financial schemes,” stated United States Attorney Donoghue. “This Office is working closely with our federal and local partners to dismantle criminal street gangs and prosecute their members to the fullest extent of the law.” Mr. Donoghue thanked Homeland Security Investigations, New York, and the New York City Department of Investigation for their work on the case.
“These violent street gangs simply want to make money with as little effort as possible, which is why they’re venturing into unique criminal territory for gangs such as credit card fraud while maintaining their tried and true drug trafficking and murder activity,” stated FBI Assistant Director-in-Charge Sweeney. “The work our FBI New York Metro Safe Streets Task Force is doing is extremely important to the communities where these gangs are terrorizing people. Those people don’t deserve to fear bullets flying by their homes while they sleep, or seeing people killed in the streets. They deserve peaceful neighborhoods and safe places to live.”
“The members of the 5-9 Brims are alleged to have engaged in a host of illegal activity including acts of violence and murder,” stated ATF Special Agent-in-Charge DeVito. “Thanks to great coordination and leveraging of resources with our local, state and federal partners these individuals will be brought to justice. I would like to thank the United States Attorney’s Office for their diligent work in prosecuting this case.
“Today’s takedown highlights our relentless work in stopping the violence carried out by large, established gangs and their ruthless offshoots. I commend our detectives, and federal partners, for their sustained focus on this case until all the major defendants could be arrested,” stated NYPD Commissioner Shea.
According to the indictment and other court filings, the 5-9 Brims is a set of the Bloods street gang that operates in Brooklyn, Queens, Manhattan, the Bronx and elsewhere. Gang members have committed acts of violence, including murder, robbery and assault, and engaged in drug-trafficking and fraud. Between January 2012 and December 2019, the defendants committed crimes to further the interests of the gang, including earning money for the gang’s members, and enhancing the gang’s position with respect to rival criminal organizations.
During the charged period, the 5-9 Brims were feuding with a rival faction of the 5-9 Brims, known as the “Real Ryte,” whose members also operated in Brooklyn. The feud led to a series of violent confrontations and, as alleged, during this period several members of the 5-9 Brims conspired to murder members of Real Ryte. Defendant Marvin Pippins, a 5-9 Brims member, allegedly shot and killed Sean Peart, a Real Ryte member, on December 19, 2015 in broad daylight while the victim was sitting in his car in Bedford Stuyvesant, Brooklyn.
On August 15, 2018, members of the 5-9 Brims carried out a violent assault against a bartender at Angels night club in Flushing, Queens, who had not shown proper respect for another member of the gang. Defendant Yonette Respass, who was serving a sentence in a federal prison at the time, commissioned her younger female members, referred to as “drops,” to “pop that bottle” on the bartenders, stating “I want hands put on them. I don’t even want no talking.” That night, Defendants Jeffrey Bush, Louis Love, Rodolfo Zambrano and three of Respass’s “drops” met at Angels where they lured one of their bartender targets across the bar, and, while holding her by the hair, beat her head and threw a bottle at her. Bush recorded the assault on his cell phone, and the video was sent to the gang member on behalf of whom Respass allegedly ordered the attack.
Throughout the period charged in the superseding indictment, members of the gang supplemented their illegal drug business by committing numerous financial frauds, including possession and use of stolen identities, fraudulent checks and access devices such as credit cards and bank account information.
Defendants Jeffrey Bush, Tyshawn Atkins, Louis Love, Marvin Pippins, James Sease, Montel Shuemake and Rodolfo Zambrano are charged in the superseding indictment with racketeering conspiracy for agreeing to commit crimes on behalf of the gang, including drug trafficking, identification and access device fraud, as well as multiple acts involving murder. Defendant Marvin Pippins is also charged with murder in-aid-of racketeering in a retaliatory act of gang-related violence for killing Sean Peart; Marvin Pippins, James Sease and Montel Shuemake are charged with conspiring to murder additional members of a rival faction of the gang. Defendants Jeffrey Bush, Louis Love, Rondolfo Zambrano, India Lane and Yonette Respass are charged with conspiracy to commit assault in-aid-of racketeering. A number of the defendants are variously charged with narcotics and firearms-related offenses. Pippins is a fugitive.
Two additional 5-9 Brims members, Jose Battle and Brian Jackson, were arrested on a complaint charging them with financial fraud.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jennifer M. Sasso, Drew G. Rolle and Nicholas J. Moscow are in charge of the prosecution.
The Defendants:
JEFFREY BUSH (also known as “Chuck” and “Chuck Taylor”)
Age: 35
Brooklyn, New YorkTYSHAWN ATKINS (also known as “Breeze”)
Age: 25
Brooklyn, New YorkINDIA LANE (also known as “Gorgeous Gangsta”)
Age: 29
Brooklyn, New YorkLOUIS LOVE (also known as “Scoobz” and “Scoobie”)
Age: 29
Brooklyn, New YorkMARVIN PIPPINS (also known as “Mukk”)
Age: 29
Brooklyn, New YorkJAMES SEASE (also known as “Chop Whop”)
Age: 32
Brooklyn, New YorkMONTEL SHUEMAKE (also known as “Buzzo”)
Age: 29
Brooklyn, New YorkRODOLFO ZAMBRANO (also known as “Latinn Dinero”)
Age: 26
Brooklyn, New YorkJOSE BATTLE (also known as “Strizzy”)
Age: 25
Brooklyn, New YorkBRIAN JACKSON (also known as “Grape” and “Maxx Millii”)
Age: 29
Brooklyn, New YorkYONETTE RESPASS
Age: 28
Bronx, New YorkE.D.N.Y. Docket No. 19-CR-378 (S-1)(DLI)
Saturday 15 February 2020
United States Attorney Mike Stuart Launches Public Service Announcements (PSAs)Read the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart is launching two PSAs that speak directly to the people of West Virginia about priorities of the Department of Justice and the United States Attorney’s Office for the Southern District of West Virginia – elder fraud and maintaining “tough on crime” efforts.
“The messages speak for themselves. We are making tremendous progress. It’s important we speak directly to the people of West Virginia,” said United States Attorney Mike Stuart. “Elder fraud and continuing our “tough on crime” initiatives- both are important priorities. Elder fraud is a national epidemic. It is a massive priority for Attorney General Barr and for me. Also important -- maintaining tough law enforcement efforts that are achieving great results while encouraging and supporting those that seek help and treatment from the terrible scourge of drug addiction. We are winning but bail reform and other so-called social justice initiatives risk reversing our progress. My office continues to work with a sense of urgency every day to hold drug dealers and violent offenders accountable and to protect West Virginia’s seniors from fraudsters.”
The messages, which will begin airing on February 17, 2020, are attached.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Three Charged in Federal Murder, Drug Conspiracy, and Firearm IndictmentRead the Press Release
SYRACUSE, NEW YORK – Kyle Leeper, age 36, of Palmyra, Pennsylvania, Ramon Nieves Cotto, age 28, of DeRuyter, New York, and Arlene Rodriguez, age 36, of Montebello, California, were named as defendants Thursday in a federal superseding indictment that includes charges of murder during a drug conspiracy, conspiracy to distribute and possess with intent to distribute 50 or more grams of methamphetamine, possession of 50 or more grams of methamphetamine with intent to distribute, and possession of a firearm by a convicted felon.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; Cortland County Sheriff Mark E. Helms; and Barstow, California, Police Chief Albert Ramirez Jr.
The superseding indictment charges Kyle Leeper, aided and abetted by Ramon Nieves Cotto, with shooting and killing Robert Chavez on January 17, 2019, while engaging in a drug trafficking conspiracy involving 50 or more grams of methamphetamine. Also charged with drug conspiracy is Arlene Rodriguez. The indictment also charges Leeper and Rodriguez with possessing with intent to distribute 50 or more grams of methamphetamine on January 19, 2019, in Cortland County, New York. All three defendants also are charged, either as principals, accomplices, or co-conspirators, with using and carrying a firearm during and in relation to drug trafficking crimes, with Kyle Leeper further charged with discharging that firearm and murdering Chavez, and Ramon Nieves Cotto charged with aiding and abetting those crimes. Kyle Leeper also is charged with possession of a firearm as a felon on that same day.
If convicted of committing murder during a conspiracy to distribute and possess with intent to distribute more than 50 grams of methamphetamine, Kyle Leeper and Ramon Nieves Cotto face a minimum sentence of 20 years, and a maximum sentence of up to life imprisonment, or a sentence of death. For the charge of conspiracy to distribute and possess with intent to distribute 50 or more grams of methamphetamine, Kyle Leeper, Ramon Nieves Cotto and Arlene Rodriguez face a minimum of 10 years and a maximum sentence of up to life in prison, a fine of up to $10 million and a term of supervised release of at least 5 years and up to life. Kyle Leeper and Arlene Rodriguez face those same penalties on the charge of possessing with intent to distribute 50 or more grams of methamphetamine. On the charge of using and carrying a firearm in relation to a drug trafficking crime, Arlene Rodriguez faces a sentence of 5 years to life imprisonment, a $250,000 fine, and a 5-year supervised release term; based on additional allegations against them of discharge of the firearm and murder, for this charge Kyle Leeper and Ramon Nieves Cotto each face sentences of 10 years to life imprisonment, or death, a fine of $250,000, and a 5-year supervised release term. Kyle Leeper could be sentenced for up to 10 years imprisonment, a fine of up to $250,000.00 and up to a 3-year term of supervised release if convicted of possession of a firearm by a convicted felon.
The charges in the superseding indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Ramon Nieves Cotto was arrested and arraigned yesterday in Syracuse, before United States Magistrate Judge Andrew Baxter, and was ordered detained pending a bail hearing. Kyle Leeper and Arlene Rodriguez have been detained in federal custody since August 2019, when they were charged in an earlier federal indictment that alleged drug and firearms charges only. Kyle Leeper and Arlene Rodriguez were first arrested on January 19, 2019, by members of the Cortland County Sheriff’s Office. New York State Penal Law charges for possession of methamphetamine and firearms possession stemming from those arrests have been dismissed following the federal indictments.
This case is being investigated by the FBI, the DEA, the Cortland County Sheriff’s Office, and the City of Barstow, California Police Department, with assistance from the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the Cortland County (New York) District Attorney’s Office, and the San Bernardino County (California) District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Steven D. Clymer, Richard R. Southwick, and Thomas R. Sutcliffe.
Friday 14 February 2020
Western Kansas Registered Sex Offender Sentenced to 24+ YearsRead the Press Release
WICHITA, KAN. – A registered sex offender living in western Kansas was sentenced Thursday to 292 months in federal prison on child pornography charges, U.S. Attorney Stephen McAllister said.
A federal jury convicted Wayne Benjamin Wasson, 60, Great Bend, Kan., on four counts of uploading child pornography to the internet and one count of possessing child pornography.
During trial, a prosecutor presented evidence that Yahoo and Google detected child pornography originating from Wasson’s residence. The digital trail led investigators to Wasson, who admitted he had received child pornography via Skype and had operated a number of other accounts. Investigators found child pornography within the accounts and on Wasson’s devices.
Wasson registered as a sex offender in 2007 following a conviction for possession of child pornography.
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.