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Friday 24 January 2020
Omaha Man Sentenced to 50 Months for Transporting an Explosive with Intent to Injure and Interstate StalkingRead the Press Release
United States Attorney Joe Kelly announced that Craig Niedbalski, age 61, was sentenced on January 22, 2020, in federal court in Omaha, Nebraska, for Transporting an Explosive with Intent to Injure and Interstate Stalking. United States District Court Judge Robert F. Rossiter, Jr., sentenced Niedbalski to 50 months’ imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Niedbalski will begin a three-year term of supervised release.
Niedbalski, met his victim, G.J., at a Catholics single club in Omaha in about 1986. G.J. and Niedbalski knew each other because of their membership in the club. Beginning in the mid-1990s, Niedbalski began sending unwanted letters and post cards to G.J. The letters and postcards were threatening and contained sexually explicit statements involving G.J. and her family. The letters and postcards were generally hand written or produced using a typewriter. From about 1996 to September of 2018, Niedbalski sent G.J. more than 100 threatening and unwanted letters and postcards. G.J. reported the conduct to the police
On July 23, 2003, Niedbalski sent a package in the mail to G.J. containing an object appearing to be a pipe bomb. On August 31, 2018, Niedbalski sent G.J. a package in the mail containing an incomplete improvised explosive device (“IED”). The IED consisted of a mobile phone connected by tape and wire to a galvanized steel pipe nipple, with galvanized steel endcaps, and a pyrotechnic mixture of gray powder and other materials, which, when properly confined and ignited, may explode. On the outside of the package was written, “CALL 402 680 [XXXX] FOR OPENING INSTRUCTIONS.”
During the 20 years of stalking, G.J. became involved in various civil lawsuits with Niedbalski to try and get him to stop stalking her. G.J. also had protective orders placed against Niedbalski. However, Niedbalski still refused to admit that he was sending the letters and postcards in the mail. The United States Postal Inspection Service was finally able to prove that Neidbalski was stalking G.J. when he sent the IED on August 31, 2018. The Postal Inspection Service forensically confirmed that the postage label on the envelope containing the IED matched images of postage labels that Niedbalski had saved in his digital devices. Niedbalski used a postage label that he had previously received in the mail, he digitally altered it, and he then placed the altered postage label on the envelope containing the IED. Despite Niedbalski’s attempt to alter the postage label, Postal Inspection Service was able to confirm that the postage label on the IED mailing matched the images saved on Niedbalski’s devices.
United States Attorney Joe Kelly recognized the excellent work and efforts of the United States Postal Inspection Service for solving this escalating, 20-plus-year course of conduct terrorizing the victim. USA Kelly added, “The district court’s sentence, which was above the advisory guidelines, should be a warning to those who stalk and terrorize others.”
The case was investigated by the United States Postal Inspection Service.
Oklahoma City Man Convicted in Two-Month Bank Robbery SpreeRead the Press Release
OKLAHOMA CITY – Yesterday afternoon, a federal jury found DWAYNE EDWARD RASMUSSEN, 55, of Oklahoma City, guilty of committing three bank robberies in Oklahoma City and Chickasha, announced U.S. Attorney Timothy J. Downing.
According to evidence at trial, Rasmussen robbed three banks in the course of two months: on March 5, 2019, he robbed the Weokie Credit Union at 2727 Southwest 15th Street in Oklahoma City; on March 18, 2019, he robbed the Bank of the West at 1600 Southwest 89th Street in Oklahoma City; and on April 30, 2019, he robbed the Community Bank of Oklahoma at 1227 West Grand Avenue in Chickasha. Mark Drew Wilson, Rasmussen’s accomplice for the robberies, testified to driving the getaway vehicle and the preparation for each robbery. Evidence further showed that in each of the robberies, Rasmussen wore gloves and disguised his appearance to avoid apprehension. Trial evidence from bank surveillance video and identifications by bank employees tied Rasmussen to each bank robbery. In the robberies, Rasmussen used the same terminology demanding "100s and 50s," and threatened "That’s not enough. Give me all your money." During the trial, nine bank employees and one bank customer testified about the use or intimation of a dangerous weapon during the commission of the bank robberies.
The trial lasted six days, and the jury deliberated approximately nine hours before finding Rasmussen guilty of three counts of bank robbery. He was acquitted on one additional bank-robbery count.
At sentencing, Rasmussen faces a maximum potential penalty on each of the bank robbery counts of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution. If, however, the court determines his criminal history includes two or more serious violent felonies, he could be subject to mandatory life in prison.
Last November, Mark Drew Wilson pleaded guilty to a conspiracy to commit bank robbery. Wilson is currently awaiting sentencing, where he faces up to five years in prison, three years of supervised release, a fine of $250,000, and restitution to four banks.
This case is the result of an investigation by the FBI—Oklahoma City Field Office and Laboratory Division in Quantico, the Oklahoma City Police Department, the Yukon Police Department, and the Chickasha Police Department. Assistant U.S. Attorneys Wilson D. McGarry and Mary E. Walters prosecuted the case.
Nine East Texans Arrested for Trafficking MethamphetamineRead the Press Release
TYLER, Texas - U.S. Attorney Joseph D. Brown announced today that nine individuals have been arrested pursuant to a federal indictment charging them with drug and firearms violations in the Eastern District of Texas.
A federal grand jury returned the 42-count indictment on Jan. 15, 2020, charging the following individuals with being involved in a conspiracy to traffic methamphetamine in Smith, Cherokee, and Rusk counties:
Alexa Leigh Brown, 50, of Tyler;
Stanley Wayne Hunter, 43, of Troup, Texas;
David Raymond Lusk, 41, of Jacksonville, Texas;
Johnathan Rudy Duke, 30, of Recklaw, Texas;
Anthony Russell Hamilton, 42, of Tyler;
Donald Ray Carr, 55, of Tyler;
Justin Ray Carr, 32, of Tyler;
Joseph Paul Melancon, 46, of Henderson, Texas; and
Tonya Hudson Hammonds, 46, of Troup.
The indictment alleges that the arrested individuals conspired with others to distribute large quantities of methamphetamine in the Eastern District of Texas, and that several of the defendants possessed firearms while being convicted felons and in furtherance of their drug trafficking activities. The defendants appeared before U.S. Magistrate Judge K. Nicole Mitchell on Jan. 22 and 24, 2020, to be arraigned on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, and use, carrying, or possession of a firearm during and in furtherance of a drug trafficking crime. Many of the charged offenses carry a statutory penalty range that includes life in prison.
This case is the result of a nearly two-year joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Texas Department of Public Safety; Smith County Sheriff's Office, Tyler Police Department, Troup Police Department, Cherokee County Sheriff's Office, Jacksonville Police Department, Rusk County Sheriff's Office, Henderson Police Department, and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Lucas Machicek.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Women Plead Guilty in Credit Card Fraud ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that LAKISHA WILLIAMS, age 38, and her spouse BRITTANY WHITE, age 33, both of New Orleans, pleaded guilty today before U.S. District Judge Barry W. Ashe to charges stemming from their participation in a credit card fraud ring that operated in the New Orleans area.
According to court documents, WILLIAMS and WHITE and the other defendants engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own own bank accounts.
Court documents also detail how WILLIAMS took flights with other co-conspirators to perform fraudulent credit card transactions in various cities in the United States, including Charleston, South Carolina; Chicago, Illinois; Ft. Lauderdale, Florida; Nashville, Tennessee; St. Louis, Missouri; Richmond, Virginia; and Charlotte, North Carolina. WILLIAMS and WHITE admitted that they caused between $150,000.00 and $250,000.00 in losses through their own conduct and that of their co-conspirators.
WILLIAMS pleaded guilty to four counts of the Third Superseding Indictment: conspiracy to commit access device fraud, possession of fifteen or more counterfeit or unauthorized access devices, possession of device-making equipment, and aggravated identity theft. WHITE pleaded guilty to two counts: conspiracy to commit access device fraud and possession of fifteen or more counterfeit or unauthorized access devices.
As to the conspiracy charge, both WILLIAMS and WHITE face a maximum of five years in prison. As to the charge of possession of fifteen or more counterfeit or unauthorized access devices, WILLIAMS and WHITE may receive a maximum of ten years in prison. As to the charge of possession of device making equipment, WILLIAMS may receive a maximum of up to fifteen years in prison. As to the charge of aggravated identity theft, WILLIAMS must be sentenced to two years in prison to be served consecutively to any other sentence. Each defendant may also be fined up to $250,000.00 or twice the gross gain or gross loss for each count. Sentencing is set for both defendants on April 30, 2020, before Judge Ashe.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Strasser also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.
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Nekoosa Man Sentenced to 72 Months for Possessing Sawed-Off ShotgunRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jere Wipfli, 48, Nekoosa, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 72 months in federal prison for illegally possessing a sawed-off shotgun. Wipfli pleaded guilty to this charge on August 16, 2019.
On May 24, 2018, Wipfli failed to appear for a jury trial in Adams County, Wisconsin. Law enforcement officers traveled to Wipfli’s Nekoosa home where they arrested him. While at Wipfli's residence, officers observed freshly fired shell casings on the deck and driveway. A condition of Wipfli's bond prohibited him from possessing weapons. Officers obtained a search warrant for Wipfli's residence and seized a sawed-off Remington 12-gauge shotgun, as well as evidence of drug distribution. During an interview with law enforcement, Wipfli admitted to possessing the weapon and knowing it was illegal due to its length.
The charge against Wipfli was the result of an investigation conducted by the Rome Police Department, Juneau County Sheriff’s Office, Necedah Police Department, Nekoosa Police Department, Adams County District Attorney’s Office, Juneau County District Attorney’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Chadwick M. Elgersma handled the prosecution.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative, the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
NYC Restaurateur Pleads Guilty in Manhattan Federal Court to Tax Evasion SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, and Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that ADEL KELLEL, owner of Raffles Bistro, formerly a restaurant located in New York City, pled guilty today for his role in a tax evasion scheme. KELLEL pled guilty before Chief Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court, restaurateur Adel Kellel cooked his books for years, skimming money from his restaurant and salting it away in personal accounts or using it for personal expenses. His scheme was a recipe for making millions in unreported income, but now he will have to pay for his gluttony.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “The defendant funded his lavish lifestyle by failing to pay legally obligated taxes thus causing harm to all Americans. We remain committed to prosecuting tax criminals who refuse to pay their fair share.”
IRS-CI Chief Jonathan D. Larsen said: “When Mr. Kellel chose to hide millions of dollars from the IRS, he unfairly shifted the tax burden to honest American taxpayers. As we start the tax filing season, this is a stark reminder of the serious consequences of tax evasion, including potential imprisonment. IRS-CI will continue to be relentless in our mission to root out tax fraud.”
According to the Information to which KELLEL pled guilty and statements made in court:
In 2011, KELLEL was the President and a 45 percent owner of K&H Restaurant, Inc. (“K&H”), which operated Raffles Bistro (“Raffles”), a restaurant then located in a hotel (the “Hotel”) in Manhattan. From 2012 through 2015, KELLEL was the 100 percent owner of K&H. The gross receipts of K&H consisted primarily of: (a) credit card payments by Raffles’ customers; (b) cash payments by Raffles’ customers; and (c) check payments by the Hotel for various services that Raffles provided to hotel guests and patrons, including room service, banquets, and catering.
KELLEL concealed and did not report to the Internal Revenue Service (“IRS”) a substantial portion of K&H’s gross receipts for the calendar years 2011 through 2015. As part of his tax evasion scheme, KELLEL deposited substantial cash income received from Raffles’ customers into personal bank accounts or spent it directly on personal expenses, without disclosing it to his accountants or paying taxes on it. KELLEL also diverted over 150 Hotel checks, totaling over $2 million in gross receipts, by depositing the checks into approximately a dozen bank accounts that KELLEL did not disclose to his accountants.
KELLEL used the diverted income for various personal expenses, including overseas transfers; condominium fees; rent for a high-end Manhattan apartment; college tuition payments from his children; shopping at luxury retailers, such as Hugo Boss and Saks Fifth Avenue; payments for luxury cars manufactured by Mercedes, Porsche, and Maserati; and payments for domestic and international travel.
By fraudulently concealing from his accountants the cash and a portion of the Hotel checks received by Raffles, KELLEL caused K&H’s corporate income tax returns and KELLEL’s own individual income tax returns for the calendar years 2011 through 2015 to be materially false. As a result of his conduct, KELLEL admitted to causing a combined tax loss of at least approximately $771,195 to the IRS and the New York State Department of Taxation and Finance (“NYSDTF”).
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KELLEL, 62, of New Hyde Park, New York, pled guilty to one count of tax evasion and faces a maximum sentence of five 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, KELLEL agreed to pay at least $771,195 in restitution to the IRS and the NYSDTF. KELLEL is scheduled to be sentenced by U.S. District Judge Paul G. Gardephe on April 23, 2020.
Mr. Berman praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case. Mr. Berman also thanked the U.S. Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Olga I. Zverovich and Special Assistant U.S. Attorney Jorge Almonte of the Department of Justice’s Tax Division are in charge of the prosecution.
Manhattan Restauranteur Pleads Guilty to Tax Evasion SchemeRead the Press Release
The owner of a former New York City restaurant pleaded guilty to tax evasion today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, and Chief of Internal Revenue Service- Criminal Investigation (IRS-CI) Jonathan D. Larsen.
“The defendant funded his lavish lifestyle by failing to pay legally obligated taxes thus causing harm to all Americans,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “We remain committed to prosecuting tax criminals who refuse to pay their fair share.”
“As he admitted in court, restaurateur Adel Kellel cooked his books for years, skimming money from his restaurant and salting it away in personal accounts or using it for personal expenses,” said U.S. Attorney Geoffrey S. Berman for the Southern District of New York. “His scheme was a recipe for making millions in unreported income, but now he will have to pay for his gluttony.”
“When Mr. Kellel chose to hide millions of dollars from the IRS, he unfairly shifted the tax burden to honest American taxpayers,” said IRS-CI Chief Jonathan D. Larsen. “As we start the tax filing season, this is a stark reminder of the serious consequences of tax evasion, including potential imprisonment. IRS-CI will continue to be relentless in our mission to root out tax fraud.”
According to the Information and statements made in court, in 2011, Adel Kellel was the President and a minority owner of K&H Restaurant Inc. (K&H), which operated Raffles Bistro (Raffles), a restaurant located at a New York City-based hotel. From 2012 through 2015, Kellel was the sole owner of K&H. K&H’s gross receipts consisted primarily of: (1) credit card payments by Raffles customers; (2) cash payments by Raffles customers; and (3) check payments by the hotel for services that Raffles provided to hotel guests and patrons, including room service, banquets, and catering.
From 2011 through 2015, Kellel concealed a substantial portion of K&H’s gross receipts by not fully reporting the cash received from Raffles’ customers. Kellel further hid the gross receipts by depositing cash into personal bank accounts, by spending funds directly on personal expenses, and by diverting checks paid by the hotel to K&H into non-business bank accounts that Kellel hid from his accountants. During this time, Kellel diverted more than 150 hotel checks, totaling more than $2 million, to more than a dozen bank accounts.
Kellel used the diverted income for personal expenses, including: overseas transfers; condominium fees; rent for a high-end Manhattan apartment; college tuition payments from his children; shopping at luxury retailers, such as Hugo Boss and Saks Fifth Avenue; payments for luxury cars manufactured by Mercedes, Porsche, and Maserati; and to pay for domestic and international travel.
By fraudulently concealing from his accountants the cash and a portion of the hotel checks received by Raffles, Kellel caused K&H’s corporate tax returns, and Kellel’s own tax returns from 2011 through 2015 to be materially false. Kellel admitted that his conduct caused a tax loss of at least $771,195 to the Internal Revenue Service (IRS) and the New York State Department of Taxation and Finance (NYSDTF).
U.S. District Judge Paul G. Gardephe set sentencing for April 23, 2020. At sentencing, Kellel faces a maximum sentence of five years in prison. He also faces a term of supervised release and monetary penalties. As part of his plea agreement, Kellel agreed to pay restitution of $613,478 to the IRS, and to pay restitution of $157,717 to NYSDTF.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Berman, and IRS-CI Chief Larsen praised the efforts of IRS-CI, who conducted the investigation, and Assistant Chief Jorge Almonte of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich, who are in charge of the prosecution.
Man from Las Vegas, Nevada sentenced to 3 years in federal prison for wire fraud targeting military memberRead the Press Release
ALBUQUERQUE, N.M. – Richard E. Sipe, 39, of Las Vegas, Nevada was sentenced in federal court in Albuquerque on January 23 to three years (36 months) in prison for wire fraud after executing a scheme to steal money from a member of the Army by convincing her to accept worthless checks in exchange for cash.
Sipe previously pleaded guilty to this offense on June 11, 2019. According to public court records, Sipe met the victim at Sky City Casino near Grants, New Mexico. Sipe gave the victim a false name and convinced her he had adequate money in the bank but had reached his limit to withdraw money from his account. Sipe asked the victim to give him cash in exchange for checks written on his bank account. She agreed and gave Sipe cash in exchange for checks totaling $6000 between approximately December 2017 and April 2018. The victim withdrew the cash from an ATM. The victim tried to deposit the checks in her bank account but the bank rejected the checks because Sipe’s account was closed. When the victim confronted Sipe over the phone, he admitted he had been defrauding people for approximately ten years. Sipe said he specifically targeted military members because he believed they usually had quick access to cash.
Sipe’s sentence also included an order to pay restitution to the victim. Sipe must also serve a three-year term of supervised release after completing his prison sentence.
The Bureau of Indian Affairs and New Mexico State Police investigated the case. U.S. Attorney John C. Anderson prosecuted the case.
Man Sentenced to 50 Years in Prison for Orchestrating Snapchat Sextortion Ring that Targeted ChildrenRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Chief W. Howard Harrison of the Planation Police Department, and Chief Dale Engle of the Davie Police Department, announced that Joseph Isaiah Woodson, Jr., 30, of Ashburn, Virginia, was sentenced yesterday to a total of 600 months in federal prison and a lifetime of supervised release by U.S. District Judge Jose E. Martinez, after having been convicted at trial of using the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses.
On September 27, 2019, Woodson, Jr. was convicted at trial on three counts of Production of Child Pornography, one count of Distribution of Child Pornography, one count of Sending Extortionate Threats, and one count of Conspiracy.
According to the evidence presented at trial, beginning in October 2017 through September 2018, Woodson. Jr. persuaded, induced, enticed and coerced numerous minor female children across the country to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct using the camera on their cellular telephones. Woodson, Jr. infiltrated the Snapchat accounts of these children by pretending to be one of their friends on social media. Once given the passwords, Woodson, Jr. took over the victims’ Snapchat accounts and demanded the children send him sexually explicit videos and images of themselves using the web based texting application “KIK” in order to get back and regain control of their accounts. Woodson, Jr. conspired with others to systematically extort and exploit children using the internet.
“Child predators beware - anyone who uses social media and the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses risks spending the rest of their lives in prison,” stated U.S. Attorney Ariana Fajardo Orshan. “We implore the community to help us protect our loved ones by monitoring our children’s social media accounts and reporting all suspected offenses to law enforcement. The U.S. Attorney’s Office stands united with our federal, state and local law enforcement partners to root out child exploitation.”
“Joseph Isaiah Woodson, Jr. is a menace who preyed on the most vulnerable among us, children,” said George L. Piro, Special Agent in Charge, FBI Miami. “Using social media, Woodson would befriend, then coerce numerous minor female victims to send him sexually explicit videos and images. His sentence of 50 years in prison should serve as a warning to others involved in sextortion. Rooting out this type of crime is a cooperative effort. I commend the hard work and professionalism of our partners including; Davie Police Department, Plantation Police Department, Coral Springs Police Department, Fairfax City Police Department, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, U.S. Army Criminal Investigation Command and FBI Miami’s Child Exploitation Task Force.”
“It is through partnerships such as this, that we are able to extend the arm of law enforcement to ensure predators such as Joseph Isaiah Woodson, Jr. are no longer a threat to our children,” stated Davie Police Chief Dale Engle. “We are grateful here at the Davie Police Department that the resources needed were made available to see this case through to a conclusion.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI Miami’s Child Exploitation Task Force, in partnership with the Davie Police Department and Plantation Police Department. Coral Springs Police Department, Fairfax City Police Department, FBI Dallas, FBI Indianapolis, FBI Operation Rescue Me, FBI Technical Analysis Unit, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, and the U.S. Army Criminal Investigation Command all assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Pleads Guilty to Opioid Overdose Resulting in DeathRead the Press Release
ALEXANDRIA, Va. – A former Northern Virginia resident pleaded guilty today to distribution of heroin that resulted in the death of a Leesburg man in March 2016.
According to court documents, John Jacob Stapleton, 33, who most recently resided in Fort Pierce, Florida, regularly obtained illegal opioids from sources of supply that he and others distributed to customers within Loudoun County and the greater Washington, D.C. Metropolitan area. In March 2016, Stapleton distributed heroin that resulted in the death of E.L., a former Loudoun County resident. A forensic toxicologist determined that E.L.’s blood and vitreous humor each contained a combination of morphine and 6-acetylmorhpine, and a forensic pathologist determined that E.L. died of heroin poisoning. Further investigation by law enforcement officials revealed that E.L. overdosed on heroin that another individual obtained directly from Stapleton.
Stapleton pleaded guilty to distribution of heroin resulting in serious bodily injury and death. He faces a mandatory minimum penalty of 20 years and a maximum penalty of life in prison when sentenced on April 17. 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; Michael L. Chapman, Loudoun County Sheriff; and Gregory C. Brown, Leesburg Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys David A. Peters and Raj Parekh are prosecuting the case.
This matter was investigated by the Washington Field Office’s Safe Streets/HIDTA Task Force which is composed of Agents and Task Force Officers from the Leesburg PD, the Loudoun County Sheriff’s Office, the Fairfax County Police, the Prince William County Police, the Alexandria City Police, the Vienna Police Department, the Herndon Police Department, the Fauquier County Sheriff’s Office, the Department of Homeland Security, and in cooperation with the DEA, ATF and USMS.
The task force’s mission is to effectively identify, disrupt and dismantle the most egregious gangs and criminal enterprises engaged in violence and narcotics distribution within Northern Virginia.
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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-340.
Major Drug Dealer Found Guilty of Conspiracy and Narcotics TraffickingRead the Press Release
Jackson, Miss. – Daniel Robert, 43, of Meridian, was found guilty yesterday by a federal jury after a three day trial before Chief U.S. District Judge Daniel P. Jordan III in Jackson. Robert was found guilty of two counts of conspiracy to possess cocaine with intent to distribute, one count of possession of cocaine with intent to distribute, and one count of attempted possession of cocaine with intent to distribute, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation.
“This case proves that law enforcement and prosecutors will always get their man. Criminals can run, but they cannot hide, as the long arm of the law will always grab them wherever they are and bring them to justice. I applaud our men and women in law enforcement for their tenacity and fortitude in ensuring this drug dealer is taken off our streets and sent to prison where he belongs,” said U.S. Attorney Hurst.
"The amount of time it takes to bring someone to justice does not deter our commitment to protect our communities," said SAC Sutphin. "This case is a great example of the resolve of the Special Agents and prosecutors, along with our law enforcement partners, to rid our streets of those who are intent on flooding it with illicit drugs."
From 2007 through 2009, Robert was being investigated by the FBI along with several other individuals. The FBI’s investigation showed that Robert directed the sale of multiple kilograms of cocaine and took in tens of thousands of dollars. Robert organized the transport of cocaine from Houston, Texas, and sold the narcotics in Lauderdale County, Mississippi. Robert’s criminal organization involved numerous people and utilized vehicles with custom built hidden compartments for transportation of drugs and money.
An undercover operation specifically showed that Robert received $16,000 in exchange for over a kilogram of cocaine. Robert used two different individuals, who were both charged as co-conspirators, to receive money and distribute cocaine.
On June 26, 2009, Robert, along with another co-conspirator, were stopped in Vidor, Texas, driving a truck with a hidden compartment containing almost 8 kilograms of cocaine. Robert was released from custody in Vidor, Texas, and traveled back to Mississippi. With the help of his girlfriend, Robert attempted to reclaim his cocaine, which he believed had not been discovered in the hidden compartment.
Robert believed his girlfriend was arranging to purchase the truck from insurance adjusters who had taken possession of the truck on the basis that it was reported stolen. The insurance adjusters were actually undercover FBI agents with the consent of the insurance company that actually owned the truck. Video recordings and pictures were taken of Robert and his girlfriend when they came to the insurance “sale.” After “purchasing” the truck, Robert returned to Meridian, and proceeded to attempt to recover the cocaine he thought was still inside the hidden compartment.
FBI and SWAT officers descended on the location and arrested most of the organization, but Robert was able to elude capture by fleeing into a nearby field. Robert remained at large for a decade before he was taken into custody by the FBI.
Robert has an additional pending charge for witness tampering in the Federal District Court for the Southern District of Mississippi. Robert also faces charges in Illinois for narcotics distribution and witness tampering.
Robert was indicted by a federal grand jury on September 3, 2009. He is currently in custody and will be sentenced on May 1, 2020, by Judge Jordan. Robert faces a maximum penalty of life in prison and a $10,000,000.00 fine.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Erin O. Chalk and Chet Kirkham.
MS-13 Gang Member Pleads Guilty to Conspiracy to Commit Murder and ExtortionRead the Press Release
SAN FRANCISCO – Tomas Rivera, a/k/a Profugo, a/k/a Caballo, a/k/a Jonas Portillo Escobar pleaded guilty to racketeering conspiracy and conspiracy to commit murder and extortion for his role as an MS-13 gang member, announced United States Attorney David L. Anderson and Homeland Security Investigations (“HSI”) Special Agent in Charge Tatum King. The guilty plea was received by the Honorable Edward J. Davila, United States District Judge.
“Rivera’s arrest was a criminal arrest, although it was erroneously criticized at the time as being part of an immigration sweep,” stated United States Attorney David L. Anderson. “As the plea agreement shows, Rivera was a high-ranking participant in a criminal conspiracy perpetrating murder, extortion, and drug trafficking, and a member of the notorious transnational gang MS-13. Federal and local law enforcement need to work together to combat the threat of violence from street gangs like MS-13. We are all safer when law enforcement is allowed to work together.”
“Bringing this gang member to justice is a direct result of the strong partnerships between HSI agents and local law enforcement, most especially the Santa Cruz Police Department, in this complex federal criminal investigation,” said Tatum King, special agent in charge, HSI San Francisco. “Our agents will not rest until our communities are safe and these dangerous criminals are brought to justice.”
Chief Andrew Mills of the Santa Cruz Police Department said, “We are grateful to our federal partners for assisting Santa Cruz with taking a very violent criminal off our streets.”
The transnational street gang La Mara Salvatrucha, also known as MS-13, has local chapters, or “cliques,” throughout the world, including El Salvador, Honduras, Mexico, and the United States. MS-13 members and associates engage in crimes such as murder, narcotics trafficking, extortion, and obstruction of justice. The Santa Cruz Salvatrucha Locos (“SCSL”) is an MS-13 clique that operates in and around Santa Cruz, California.
According to his plea agreement, Rivera, 27, of El Salvador, arrived in Santa Cruz in April 2016, where he quickly stepped in as second in command of the SCSL clique of the MS-13 gang. From April 2016 through January 2017, Rivera and SCSL members engaged in drug trafficking and extortion. Rivera coordinated with MS-13 members in El Salvador and other places to carry out the directives of the gang’s leadership in and around Santa Cruz. Rivera acknowledged that he pushed for strict adherence to MS-13 rules, including the rule that required all people who wanted to join the gang to commit a murder to qualify for membership.
The plea agreement describes Rivera’s role in patrolling the area over which SCSL gang members asserted their control. Rivera admitted in the plea agreement that on one occasion he and other SCSL members beat up a suspected rival gang member they found in their territory. On another occasion, Rivera and other MS-13 members were in a car, when they spotted people they suspected of being rival gang members. One of the MS-13 members shot at and attempted to kill a member of the group.
In the plea agreement, Rivera admitted that he played a key role in a murder committed by SCSL gang members. Rivera admitted that in April 2016 he discussed seeking approval from El Salvador to kill a suspected rival gang member. The murder of the rival gang member was committed by SCSL members on September 22, 2016, and Rivera collected the murder weapons. At an October 2016 SCSL meeting, Rivera took charge of organizing the day-to-day efforts of SCSL members to kill additional rivals. The plea also describes Rivera’s involvement in burning clothing and a car involved in another murder by MS-13 members.
A federal grand jury returned a second superseding indictment against Rivera and others on August 16, 2018. The indictment charged Rivera with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit extortion by force, in violation of 18 U.S.C. § 1951(a); and one count of conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5). Rivera pleaded guilty to all three counts.
Judge Davila scheduled Rivera’s sentencing hearing for April 13, 2020, at 1:30 p.m. Pursuant to the terms of his plea agreement, Rivera has agreed that a reasonable and appropriate disposition of his case would include a term of 27 years in prison. The court also may order an additional term of supervised release, payment of a fine and restitution, and forfeiture. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Seven of the other charged defendants have already pleaded guilty for their roles in the SCSL and MS-13 criminal enterprise and six have been sentenced as reflected in the following chart:
Name
Charges
Sentence
Ismael Alvarenga-Rivera, a/k/a Casper
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 23, 2019, to 90 months in prison
Willfredo Ayala-Garcia, a/k/a Chino
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 17, 2019, to 80 months in prison
Jose David Abrego-Galdamez, a/k/a Largo
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 16, 2019, to 36 months in prison, consecutive to his sentence in CR 17-567 BLF
Gerber Morales, a/k/a Choco
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on September 17, 2019, to 72 months in prison
Emilio Escobar-Albarnga, a/k/a Diablo
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on January 20, 2020, to 60 months in prison
Josue Alcedis Escobar Cerritos, a/k/a Penguino
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on July 30, 2019, to 72 months in prison
Melvin Lopez, a/k/a Sharky
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a); Conspiracy to Commit Murder, 18 U.S.C. § 1959(a)(5).
Sentencing currently scheduled for January 27, 2020
The United States Attorney’s Office’s Organized Crime Strike Force is prosecuting the case. This prosecution is the result of an investigation conducted by HSI with the assistance of the Santa Cruz Police Department.
Lowell Woman Pleads Guilty to Stealing Approximately $182,000 from EmployerRead the Press Release
BOSTON – A Lowell woman pleaded guilty yesterday in connection with embezzling approximately $182,000 from a veterinary hospital that employed her.
Sasha A. Saulnier, 32, pleaded guilty to six counts of wire fraud before U.S. District Court Judge Nathaniel M. Gorton who scheduled sentencing for April 24, 2020. In August 2019, Saulnier was charged by criminal complaint.
Saulnier was employed by a full-service animal hospital as a client relations specialist from October 2011 until September 2018. During that time, she had various client responsibilities, including selling retail products to customers at the hospital. Saulnier also served in a temporary supervisory role, which gave her access to management software and the ability to manipulate account transactions and accounting data.
From March 2014 through August 2018, Saulnier entered false refund transactions into the company’s management software, and then credited her own personal debit cards, which linked directly to her personal checking account. Specifically, Saulnier occasionally entered a fictitious refund for merchandise that was legitimately purchased by a customer, but never returned, and then credited the bogus refund to her own debit card. Saulnier also fabricated refunds for wholly fictitious retail purchases that were never actually made, and then credited that amount to her own debit card. In an effort to conceal her fraud, Saulnier used dormant accounts of inactive hospital clients, such as those with deceased pets and so-called “test accounts,” set up solely for training purposes. In addition, Saulnier fabricated discounts which she applied to purchases of retail products.
Over the course of the scheme, Saulnier used her position to falsify approximately 482 transactions resulting in refunds and credits totaling more than $182,800 to her own bank account. Saulnier used this money for personal expenses and travel, including trips to Las Vegas, New York City and the Bahamas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or up to twice the loss involved, restitution and forfeiture. 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 Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
Leader of Alien Smuggling Operation Sentenced to 9 Years in PrisonRead the Press Release
On January 22, 2020, George Ferrer Sanchez, 46, of Miramar, Florida, was sentenced to 108 months in prison by U.S. District Judge Marcia G. Cooke in Miami, Florida for orchestrating a conspiracy to launder proceeds of alien smuggling operation that transported Cuban nationals to Mexico, into the United States. As part of the Court’s sentence, Ferrer Sanchez was ordered to pay a $5.4 million forfeiture money judgment and to forfeit two real properties to the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
Ferrer Sanchez previously pled guilty to participating in a conspiracy to commit money laundering (Case No. 19cr20085).
According to the court record, including the agreed upon factual proffer and evidence presented during the sentencing hearing, from or around January 2009 or earlier, and continuing to at least June 2015 or later, Ferrer Sanchez was the leader of an alien smuggling conspiracy operating in Miami, Florida and elsewhere. Ferrer Sanchez directed an operation that stole vessels used to smuggle Cuban nationals to the United States through Mexico. Conspirators brought the migrants out of Cuba, in exchange for payment for their smuggling services. Once migrants were in Mexico, the conspiracy utilized phone calls to family members and friends in South Florida to secure payment for their release. Ferrer Sanchez also conspired with others to acquire funds from the migrants’ family members in South Florida, which were laundered through the business and real property, in order to promote and further their alien smuggling conspiracy.
This prosecution is the result of the ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership to combat Caribbean based organized crime that includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami. In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones.
If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-866-347-2423 or visit https://www.ice.gov/tipline. The toll-free phone number is available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, and additional languages.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ICE-HSI and FBI in this matter. This case is being prosecuted by Assistant U.S. Attorneys Ignacio J. Vázquez, Jr., and J. Mackenzie Duane. Assistant U.S. Attorneys Adrienne Rosen and Annika Miranda are assigned to the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Kirkville Man Charged with Transportation of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Timothy B. Pease, 30, of Kirkville, New York, was arrested yesterday on charges of transportation of child pornography following the execution of a search warrant at his residence by Special Agents of the Federal Bureau of Investigation ("FBI"), announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The defendant appeared today in Federal Court in Syracuse, New York, before United States Magistrate Judge Miroslav Lovric on a criminal complaint charging him with posting image and video files containing child pornography to an on-line group, and remanded into custody.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted of transporting child pornography, Pease faces a mandatory minimum sentence of 5 years, and a maximum term of 20 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Jury Convicts Davenport Man for Sexual Exploitation of a ChildRead the Press Release
ROCK ISLAND, Ill. – A federal jury deliberated for less than thirty minutes before returning a guilty verdict late Wednesday afternoon, Jan. 22, 2020, against Timothy Brandon Fredrickson, 30, of Davenport Iowa, for sexual exploitation of a child. Sentencing for Fredrickson has been scheduled for June 2, 2020, at the U.S. Courthouse in Peoria.
Over two days of testimony, the government presented evidence that Fredrickson had been communicating with a sixteen year-old girl over the internet. Throughout the course of their conversations, Fredrickson directed the girl to produce and send to him sexually explicit content. Fredrickson then saved their communications and the content she created at his direction.
Fredrickson remains in the custody of the U.S. Marshals Service. At sentencing, Fredrickson faces statutory penalties of a minimum of 15 years and up to 30 years in prison.
The Moline Police Department and the U.S. Secret Service investigated the charges. Assistant U.S. Attorneys Jennifer Mathew and Donald Allegro represented the government at trial.
The case was brought as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jeffersonville Man Charged with Two Federal Firearm OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Christopher Mesick, 38 of Jeffersonville, was indicted yesterday by a federal grand jury sitting in Burlington with being a felon in possession of a firearm and with being an unlawful user of a controlled substance in possession of a firearm. Mesick was arrested on these charges on January 13, 2020 and was detained. Mesick waived his appearance yesterday at his arraignment before U.S. Magistrate Judge John M. Conroy and Mesick’s defense attorney entered pleas of not guilty on his behalf.
According to a federal criminal complaint, on January 5, 2020, troopers with the Vermont State Police (VSP) conducted a welfare check on Christopher Mesick at his residence on Main Street in Jeffersonville. When troopers arrived at his residence, they observed Mesick unsteady on his feet and slurring his speech. Mesick made several threatening comments toward the troopers and was handcuffed for his safety and the safety of the troopers. During the interaction with Mesick, one of the troopers observed four rifles in the living room. The trooper recognized three of the rifles as AR-15 style rifles with bayonets attached. One rifle had a 50-round drum magazine inserted. Mesick is a convicted felon by virtue of a 2017 conviction for aggravated assault.
On January 13, 2020, VSP executed a state search warrant at Mesick’s residence. During the search, law enforcement recovered approximately 16 firearms, including several AR-15 and AK-style assault rifles. Law enforcement officers also located several cases of various ammunition, a footlocker full of knives and machetes, body armor and a few ounces of marijuana. Mesick told law enforcement he was a marijuana user.
If convicted of being a felon in possession of a firearm, Mesick faces a maximum sentence of 10 years of imprisonment and up to a $250,000 fine. Mesick also faces a maximum sentence of 10 years of imprisonment and up to a $250,000 fine if he is convicted of being an unlawful user of a controlled substance in possession of a firearm. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
This case was investigated by the Vermont State Police, ATF and Customs and Border Protection Air and Marine Operations (Plattsburgh Air Unit). This case is part of the Department of Justice’s Project Safe Neighborhoods (PSN) Program. 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.
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 United States is represented in this matter by Assistant U.S. Attorney Wendy Fuller. Christopher Mesick is represented by Federal Public Defender Michael Desautels.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 21 was:
Darren Samuel Whiteman, 36, of Billings, on charges of robbery affecting commerce and possession of a firearm in relation to a crime of violence. If convicted of the most serious crime, Whiteman faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release, and a minimum mandatory 10 years to life consecutive to any other crime if convicted of discharge of the firearm. Whiteman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department investigated the case. Pacer case reference. 20-10.
Rodney George Plentyhawk, Jr., 42, of Lame Deer, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Plentyhawk faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Plentyhawk was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-148.
Appearing on Jan. 24 was:
Nicholas Dale Jennings, 35, of Minot, N.D., on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Jennings faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Jennings was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-156.
Robert Hal Hanson, 59, of Lavina, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Hanson faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hanson was detained pending further proceedings. The FBI West task force investigated the case. Pacer case reference. 19-132.
Frank Agedious Gun Shows, 41, a transient, on charges of failure to register as a sex offender. If convicted of the most serious crime, Gun Shows faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release. The U.S. Marshals Service investigated the case. Pacer case reference. 19-130.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 22 was:
Santiago Marron, 37, of San Bernardino, CA, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Marron faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Marron was detained pending further proceedings. The Northwest Drug Task Force and Homeland Security Investigations investigated the case. Pacer case reference. 20-2.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS, La. - U.S. Attorney Peter Strasser announced that DANIEL J. KUESPERT, age 30, of LaPorte County, Indiana, was sentenced on January 23, 2020, for failing to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
United States District Court Judge Barry Ashe sentenced KUESPERT to nineteen (19) months incarceration to be followed by five (5) years of supervised release.
According to court records, KUESPERT was convicted for two counts of Child Molesting in La Port Circuit, Indiana. KUESPERT was sentenced to twelve years in jail with the Indiana Department of Corrections. In addition to the jail sentence, KUESPERT was ordered to register as a sex offender for a period of life. In September 2018, law enforcement officers in Indiana discovered that KUESPERT had left the state without notification. Accordingly, they issued a warrant for his arrest. On January 7, 2019, KUESPERT was discovered on South Claiborne and Canal Street by the U.S. Marshals. KUESPERT admitted to the Marshals that he knew he was required to register as a sex offender with the New Orleans Police Department, but he decided not to because he did not want the authorities in Indiana to know his whereabouts.
U.S. Attorney Strasser praised the work of the United States Marshals Service, the Orleans Parish Sheriff’s Office, the New Orleans Police Department, and the LaPorte County Sheriff’s Office in this matter. He also extended his thanks to the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Indian National Sentenced to 5 Years in Federal Prison for Scamming Victims of over $377,000Read the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Safder Iqbal, age 28, an Indian national, was sentenced to serve 60 months (5 years) in federal prison followed by 3 years on supervised release for participating in several scams involving call centers. Iqbal was also ordered to pay $377,889.35 in restitution to the victims. He was remanded into custody immediately after the sentencing hearing. The Denver FBI joined in today’s announcement.
According to court records, including the stipulated facts contained in the defendant’s plea agreement, Safder Iqbal travelled to the United States from his native country of India in April 2018 to work at a hotel in Colorado Springs through the J-1 visa program. Iqbal then implemented a number of different scams. The first scam involved call centers where he and others falsely notified victims that they had erroneously received, or would receive, a refund for computer tech-support services. Victims were called by India-based call center agents who claimed to work for tech support companies. In many instances, the victims were persuaded to allow the agents to access their computer via remote access software. Once inside the computer, the agents collected information about the victims’ bank accounts, accessed victim bank accounts online, and generated statements falsely claiming the victims had received a deposit when, in fact, they had not.
For example, the defendant opened a bank account that he used to deposit money from an elderly victim that he tricked into providing money to the defendant and others through the refund scam. The victim, was defrauded out of approximately $20,000. Iqbal also took money from another out-of-state victim who was defrauded of $50,000 through a combination of the refund scam and another scam involving tech support.
The tech support scam involved deceiving victims believing that they had a serious computer problem. Sometimes these victims would encounter a “pop up” on their computer while browsing the internet. These pop ups would falsely tell the victim that there was a problem with their computer and would provide a number for tech support. Calls to that number would be answered by an India-based scheme participant. These agents would then offer to diagnose the problem and persuade the victim to provide access to the victim’s computer through remote access software. Once inside the victim’s computer, the agents would use simple commands to make it appear that there was a problem with the computer when, in fact, there was not. The agents would then ask for money to perform tech support services.
Victims of both the refund and tech support scams were directed to pay the participants of the scheme using a variety of means. Some victims were persuaded to purchase gift cards at retail stores and then provide the gift card number directly to the calling agents. Others were told to use a money transfer service to send the money to “receivers” (including defendant Safder Iqbal) with established bank accounts in the United States and elsewhere. Members of the scheme also simply commandeered the victims’ computer, accessed their bank accounts using the internet, and used the illicit access to transfer money. It is estimated that the defendant and others took over $377,000 from their victims.
Court records show that even before coming to the United States to work as a receiver, the defendant had several roles in various India-based fraud schemes. He had previously worked as a call center agent working to defraud victims in the United States and around the world, including in the United Kingdom, Canada, Australia and South Africa. He had also served as a “broker” helping to connect the India-based owners of scam call centers with receivers who could accept money from victims in their native countries. At one point, the defendant used proceeds of the scheme to run his own call center in India.
“Stealing from the elderly and vulnerable is a crime that can threaten the victim’s ability to pay their most basic living expenses,” said U.S. Attorney Jason Dunn. “Prison is an appropriate place for those like this defendant who come to this country for no other reason than to scam people.”
"The FBI is committed to proactively and thoroughly investigating criminal activities that harm our elderly community members," said FBI Special Agent in Charge Dean Phillips. "Thanks to the diligence and perseverance of our investigators, law enforcement partners, and U.S. Attorney's Office, Safder Iqbal will no longer victimize senior citizens with his fraud scheme.”
The prison sentence was pronounced by U.S. District Court Judge William J. Martinez. Co-defendant Danish Rashid, who pleaded guilty in August 2019 to participating in the scheme, is due to be sentenced on February 5, 2020.
Anyone who believes they may be a victim of tele-fraud is encouraged to contact the FTC via this website.
Additional resources providing information about the Department of Justice’s efforts to combat these scams can be found at the website for the Department’s Elder Justice Initiative.
The case was investigated by the Federal Bureau of Investigation (FBI) with substantial assistance from the Thornton Police Department’s Economic Crimes Unit.
The defendant was prosecuted by Assistant United States Attorney Bryan D. Fields.
Illegal Alien Sentenced to 10 Years in Federal Prison for Role in Drug Trafficking OrganizationRead the Press Release
Memphis, TN – An illegal alien from Mexico, Jesus Vega, 38, has been sentenced to 121 months in federal prison for conspiracy and possession with intent to distribute methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, in August 2018, investigators with the DEA and the 24th Judicial District Drug Task Force recovered 11 pounds of methamphetamine from a driver in Decatur County during a routine traffic stop. The driver identified Jesus Vega as the leader of a Memphis drug trafficking organization supplying methamphetamine and heroin into and through West Tennessee.
On October 1, 2018, investigators intercepted and seized 31 pounds of methamphetamine in Vega's house located in Memphis. Other co-conspirators in the drug trafficking organization were also indicted, and have already been convicted and sentenced in this matter. Over the course of the investigation, agents in multiple states recovered over 400 pounds of methamphetamine and 5 kilograms of heroin, all either in Memphis or destined for the Memphis area.
On January 22, 2020, U.S. District Court Judge Thomas L. Parker sentenced Vega to 121 months in federal prison followed by 5 years supervised release. After completion of his custodial sentence, Vega will be subject to deportation by U.S. Immigrations & Customs Enforcement (ICE) and Enforcement & Removal Operations (ERO).
U.S. Attorney D. Michael Dunavant said, "West Tennessee is a major logistics hub for the country, and drug trafficking organizations transport large quantities into and through our communities. Because distribution of illegal narcotics is NOT a victimless crime, we use every available resource to disrupt and dismantle these conspiracies and hold them accountable for distributing poisonous illegal drugs that cause addiction, injury, and death. We commend the outstanding investigative work of our federal and local law
enforcement partners in this important case involving significant seizures of dangerous narcotics."
The Drug Enforcement Administration (DEA) and the 24th Judicial District Drug Task Force investigated this case.
This case was part of the Organized Crime Drug Enforcement Task Force Program (OCDETF), which seeks to investigate and prosecute large-scale drug trafficking and violence involving multiple districts across the United States.
Special Assistant United States Attorney Joseph Griffith prosecuted this case on behalf of the government. This case is part of the Heroin Initiative in collaboration with the Shelby County District Attorney General’s Office.
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Hubert Dupigny Convicted in Manhattan Federal Court of Sex Trafficking OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that a federal jury yesterday found HUBERT DUPIGNY, a/k/a “Fox,” guilty of sex trafficking of minors and conspiracy to commit sex trafficking of minors, following an eight-day jury trial before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Hubert Dupigny recruited girls who were in foster care, then sexually exploited them for financial profit. Such predatory conduct is repugnant and, as the jury found, deserving of a guilty verdict. Dupigny now awaits sentencing for his crimes.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
From at least in or about August 2016 through in or about May 2017, HUBERT DUPIGNY, a/k/a “Fox,” the defendant, engaged in a conspiracy to commit sex trafficking of minors. The defendant recruited, enticed, harbored, transported, advertised, provided, obtained, and maintained two minor victims (“Victim-1” and “Victim-2”) for the purpose of commercial sex.
The defendant recruited Victim-1 and Victim-2 when they were living in foster care facilities or homes in New York City. The defendant used Backpage.com to post advertisements of Victim-1 and Victim-2 for commercial sex, and then directed Victim-1 and Victim-2 to meet customers to engage in commercial sex out of an abandoned home in Brooklyn, New York.
The conviction of HUBERT DUPIGNY is the culmination of the prosecution of 19 defendants, set forth in eight indictments, for the sex trafficking of at least 20 minor girls and young adults in New York State’s social services system. With DUPIGNY’s conviction, all 19 of the defendants have now been convicted, either via guilty plea or following trial.
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DUPIGNY, 36, of Brooklyn, New York, was convicted of two counts of sex trafficking of a minor and one count of conspiracy to commit sex trafficking. The defendant faces a mandatory minimum sentence of 10 years in prison on each count of sex trafficking of a minor, and faces a maximum sentence of life in prison on each of the three counts of conviction. The maximum potential sentences are prescribed by Congress and provided for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing will take place before Judge Furman on May 13, 2020, at 3:30 p.m.
Any individuals who believe they have information that may be relevant to this investigation should contact the Federal Bureau of Investigation (“FBI”) at (212) 384-1000 or https://tips.fbi.gov/.
Mr. Berman thanked the FBI and the New York City Police Department (“NYPD”) for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Mollie Bracewell, Elinor Tarlow, Jacob Gutwillig, Michael Herman, and Alison Moe are in charge of the prosecution.
Honduran National with History of Illegally Reentering the United States Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon Fremin announced that United States District Court Judge John W. deGravelles sentenced Ivan Alexi Mejia-Alvarado, age 44, of Honduras, to serve 21 months in federal prison following his conviction for illegal re-entry into the United States by a removed alien. The Court specified that Mejia-Alvarado’s federal sentence would run consecutively to any sentence he may receive on a pending state charge for simple battery. During the sentencing hearing, the Court found that Mejia-Alvarado was subject to enhanced statutory penalties based on his 2002 prior conviction in California for forcible rape and stalking.
On June 4, 2019, Mejia-Alvarado was found at the East Baton Rouge Parish Prison by a Department of Homeland Security Deportation Officer. After obtaining Mejia-Alvarado’s biometric data, the deportation officer confirmed his true identity and his status as a citizen and national of Honduras, who had been previously removed from the United States on at least two occasions, at or near Chandler, Arizona, on or about February 23, 2005, and December 29, 2008.
U.S. Attorney Fremin stated, “Aliens who have previously been convicted of violent felonies in our country and who return after being removed pose a serious threat to the safety of our citizens. Our office is committed to working with our federal, state, and local partners to apprehend, convict, and remove this menace from our country. I want to thank our prosecutor and U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.”
“This case is an excellent example of ICE’s ongoing focus to prioritize its enforcement efforts toward individuals who pose the greatest threat to public safety and egregiously violate our nation’s immigration laws,” said ICE Enforcement and Removal Operations Acting New Orleans Field Office Director Bill Joyce. “Despite attempts by some groups to confuse the public, it is a federal crime to illegally enter the U.S. and those who reenter after having been previously removed commit a federal crime as this case clearly shows.”
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana and U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. This case was prosecuted by Assistant United States Attorney Caroline Gardner.
Grayson County Woman Sentenced for Wire Fraud ConspiracyRead the Press Release
SHERMAN, Texas – A 57-year-old Collinsville, Texas woman has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Rosemary Wolf pleaded guilty on June 12, 2019, to conspiracy to commit wire fraud and was sentenced to 51 months in federal prison by U.S. District Judge Amos L. Mazzant on Jan. 2, 2020.
According to information presented in court, Wolf conspired with James Michael Murray to defraud Brakebush Brothers, Inc., a food services company formerly known as Trinity Valley Foods, Inc., out of $1,207,163.32 from March of 2014 through November 2015. Wolf, in her role as Executive Assistant, conspired with Murray to set up fake business entities with similar names of legitimate Brakebush customers in order to divert company funds to bank accounts held by Wolf and Murray. Wolf caused checks to be issued by Brakebush to the fraudulent businesses and provided the checks to Murray. Murray deposited the checks in accounts he controlled and shared the ill-gotten funds with Wolf. Murray and Wolf used the funds to pay for lifestyle expenses including gambling at Oklahoma-based casinos and costs associated with owning horses.
“Businesses are vulnerable to insider thefts like this because we all want to trust our employees, especially in smaller companies,” said U.S. Attorney Joseph D. Brown. “While companies have to rely on their employees, cases like this confirm that they should follow the old saying of ‘Trust, but verify’ as much as possible.”
On Aug. 13, 2019, Murray was sentenced to 36 months in federal prison for his role in the scheme. Both Wolf and Murray were ordered to pay full restitution to Brakebush of $1,207,163.32.
Anyone with information on other participants in this scheme are asked to contact law enforcement.
This case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Lesley Davis Brooks.
Georgia Optician Sentenced in Identity Theft CaseRead the Press Release
NEW ORLEANS, La. - U.S. Attorney Peter G. Strasser announced that JOHN ANTHONY MARSH, age 56, a resident of Lawrenceville, Georgia was sentenced on January 22, 2020 by U.S. District Judge Martin L.C. Feldman to three years’ probation, with a condition that the first 45 days be served on home confinement, in connection with his guilty plea to identity theft. In addition, MARSH agreed to pay restitution to the Medicare and Medicaid programs.
According to court documents, in 2016, MARSH opened a business in New Orleans called Magazine Medical Group & Associates, LLC (“Magazine Medical”) that provided ophthalmological services. MARSH opened Magazine Medical at the same location as another medical clinic that had provided ophthalmological services, Business 1. Between June 2016 and September 2016, MARSH used Business 1’s name when submitting claims for medical services to Medicare and other health care benefit programs to make it appear is those purported medical services were performed at Business 1.
Additionally, according to court documents, during that same time period, MARSH used the National Provider Identifier of a physician, who previously worked for Business 1, to submit claims to Medicare and other health care benefit programs making it appear as though that physician performed medical services at Magazine Medical. That physician neither worked for MARSH or Magazine Medical nor treated any patients for ophthalmological services at that clinic.
As reimbursement for the fraudulent claims that MARSH was responsible for submitting through Magazine Medical, Medicare and other health care benefit programs issued checks to Business 1 and the physician. MARSH received and deposited these checks into his bank account. In total, between June 2016 and September 2016, MARSH fraudulently caused billings to Medicare and other health care benefit programs totaling approximately $77,198 for medical services that were not provided by that physician, and received approximately $20,669.67 for these claims. MARSH agreed to repay $20,669.67 in restitution to the Medicare and Medicaid programs.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, the Department of Health and Human Services, and the Louisiana Attorney General’s Office’s Medicaid Fraud Control Unit for their work investigating the case.
The case is being prosecuted by Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Duane A. Evans.
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Fugitive Coachella Valley Doctor Extradited from Israel to Face 20-Year Prison Term Imposed in Cosmetic Surgery SchemeRead the Press Release
SANTA ANA, California – A cosmetic surgeon who oversaw a long-running health care fraud scheme that conned insurance companies into paying tens of millions of dollars for unnecessary cosmetic procedures has been extradited from Israel to serve a 20-year federal prison sentence issued while he was a fugitive.
Dr. David M. Morrow, 75, a former Rancho Mirage resident, arrived late Thursday night at Los Angeles International Airport. During a court hearing this morning, United States District Judge Josephine L. Staton ordered that Morrow immediately begin serving his prison sentence.
In September 2017, Judge Staton sentenced Morrow in absentia to 240 months in federal prison for running a scheme that duped health insurance companies into paying tens of millions of dollars for cosmetic procedures with false claims that procedures being performed were medically necessary. When the sentence was issued, Morrow had been on the run for four months after pleading guilty to conspiracy to commit mail fraud and filing a false tax return.
Morrow fled the United States along with his wife, Linda Morrow, 67, who was deported by Israel last July. Linda Morrow is facing a 31-count grand jury indictment that charges her with participating in the $50 million scheme run through The Morrow Institute (TMI) in Rancho Mirage. In a separate case, she faces contempt of court charges for fleeing the United States while free on bond in the health care fraud case. Her trial date in the contempt of court case is June 16.
Linda Morrow was the executive director of TMI, while David Morrow, a dermatologist-turned-cosmetic-surgeon, was the owner. The Morrows oversaw a scheme in which TMI submitted millions of dollars in claims for procedures that were certified as “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs” and breast augmentations. In some cases, according to court documents, patients underwent procedures they did not want in exchange for promises from Morrow that he would perform the cosmetic procedures that they really wanted. In other cases, Morrow performed procedures on certain patients who had not given informed consent, which “resulted in ongoing medical problems or disfigurement.” Evidence presented during Morrow’s sentencing hearing also showed that Morrow had paid a patient for undergoing surgeries that were billed to insurance.
Authorities believe the Morrows fled in May 2017. Prior to becoming fugitives, they failed to report to court officials, among other things, the sale of their $9.45 million home in Beverly Hills.
Court records show that, prior to the Morrows fleeing to Israel, they transferred more than $4 million dollars to Israeli bank accounts using the names of third parties. Recently filed court documents detail how both Morrows used fraudulent Mexican passports – with their photos, but other persons’ names – to enter Israel, and after they entered Israel they applied for Israeli citizenship using those fraudulent identities.
When the Morrows were arrested in Israel last year, they were no longer using the fraudulent Mexican identities, but were living under different fake identities and were using fraudulent Guatemalan passports. When Israeli law enforcement arrested Linda Morrow, she falsely claimed that her name was “Hannah.” Court documents also show that FBI agents have determined that the Morrows used an Israeli attorney and others in Israel in an attempt to launder more than $2 million.
Morrow was transported from Israel by the United States Marshals Service.
The investigation into the Morrows and TMI was conducted by the FBI, IRS Criminal Investigation, and the California Department of Insurance.
The Israeli National Police; the FBI’s Legal Attachés in Jerusalem, Mexico City, and Guatemala; the United States Marshals Service; the United States Border Patrol’s Northern Border Coordination Center; and the Department of Justice’s Office of International Affairs provided considerable assistance in the location, apprehension, and extradition of defendant David Morrow.
The matter is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
Four-Time Felon Sentenced to Prison for Heroin DistributionRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to over nine years in prison for supplying over 770 grams of heroin to a distributer between March 2017 and December 2017.
According to court documents, Jeffrey Moten, 46, provided approximately 770 grams of heroin to an individual for redistribution. This individual then dealt out the heroin to others, including to an undercover law enforcement officer, and totaled a profit of over $60,000. Moten is a career offender with four prior drug related felony convictions.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Karolina Klyuchnikova prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-325.
Fort Mitchell Man Pleads Guilty to Bankruptcy FraudRead the Press Release
COVINGTON, Ky. - A Fort Mitchell, Kentucky man, Joseph Shockey, 53, pleaded guilty to bank fraud in federal court Friday, before U.S. District Court Danny C. Reeves.
In his guilty plea agreement, Shockey admitted to applying for and receiving a one-year line of credit for from Stock Yards Bank and Trust Company. Prior to receiving the line credit, Shockey executed loan documents and personally guaranteed the line of credit, failing to inform the bank that a default judgment had been entered against him in Salt Lake County, Utah and that he was liable for a judgment $579,428, plus interest. This material omission led the bank to extend the line of credit to him, ultimately resulting in a loss to Stock Yards Bank and Trust. Shockey will be required to repay $449,496.07.
Shockey was indicted in October 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the guilty plea.
The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Elaine Leonhard.
Shockey is scheduled to be sentenced on April 29, 2020. He faces up to 30 years in prison and a maximum fine of $1,000,000. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former scientist from Los Alamos National Laboratory pleads guilty in federal court to making false statement about involvement with Chinese government technology programRead the Press Release
ALBUQUERQUE, N.M. – Turab Lookman, 67, of Sante Fe, New Mexico, and a former scientist at Los Alamos National Laboratory, pleaded guilty in federal court in Albuquerque today to a charge of making a false statement to a government investigator about his involvement in the Thousand Talents Program, an initiative by the Chinese government to recruit people with access to and knowledge of foreign technology and intellectual property.
A grand jury previously indicted Lookman on May 22, 2019, on three counts of making false statements to the federal government. In his plea agreement, Lookman admitted to lying to a counterintelligence investigator from Los Alamos National Laboratory on June 6, 2018. The investigator asked Lookman if he had been recruited by or applied for a job with the Thousand Talents Program. Lookman knowingly made a false statement by answering “no” when he knew that he had in fact been recruited by, applied for, and been accepted for participation in the Thousand Talents Program for monetary compensation.
Lookman is currently out of custody awaiting sentencing. He faces up to five years in prison and a $250,000 fine.
The FBI investigated this case with support from the Los Alamos National Laboratory. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Former Rosemont Resident Charged with Producing Child PornographyRead the Press Release
CHICAGO — A former Rosemont resident has been indicted on federal child pornography charges for allegedly exploiting a minor to produce sexually explicit images.
MARCOS GERMAN MENDEZ, 32, is charged with two counts of using a minor to produce child pornography, one count of transporting child pornography, and one count of possession of child pornography on his cell phone.
The indictment was returned in 2016 in U.S. District Court in Chicago. Mendez was arrested in July of last year in León, Guanajuato, Mexico, and recently extradited to Chicago. He made an initial court appearance here on Thursday before U.S. Magistrate Judge Jeffrey I. Cummings. Mendez pleaded not guilty to the charges and will remain in custody pending a detention hearing on Feb. 3, 2020, at 2:00 p.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago. Substantial assistance was provided by the U.S. Postal Inspection Service, U.S. Customs and Border Protection, Cook County Sheriff’s Office, and U.S. Marshals Service. The government is represented by Assistant U.S. Attorney Misty N. Wright.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com/home or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Former Mexican Federal Police Commander Arrested for Drug-Trafficking ConspiracyRead the Press Release
An indictment was filed yesterday in federal court in Brooklyn charging Ivan Reyes Arzate, a former Mexican Federal Police Officer and Commander of the Mexican Federal Police’s Sensitive Investigative Units (“SIU”), with three counts of cocaine trafficking conspiracy. Reyes Arzatel allegedly received bribes in exchange for assisting El Seguimiento 39, a Mexican Cartel associated with the Sinaloa Cartel, the Beltran Leyva Organization and other Mexican cartels, ship cocaine from Mexico to the United States. Earlier today, federal agents arrested Reyes Arzate in Brooklyn, and he was arraigned this morning before United States Magistrate Judge Cheryl L. Pollak. Reyes Arzate was remanded pending trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); Dermot F. Shea, Commissioner, New York City Police Department (NYPD); and Keith M. Corlett, Superintendent, New York State Police (NYSP), announced the charges.
“By choosing to align himself with drug traffickers instead of the people of Mexico that he was sworn to protect, Reyes Arzate’s corruption ensured the safe passage of massive quantities of illegal narcotics into the United States,” stated United States Attorney Donoghue. “This Office will continue working tirelessly with our law enforcement partners to make enablers of drug cartels answer for their crimes, whoever they are and wherever they operate.” Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Offices for the Southern District of California and the Northern District of Illinois for their assistance on the case.
“Collective law enforcement efforts to cut off drug cartels’ supply chain into the United States has led to worldwide arrests, including Ivan Reyes Arzate,” stated DEA Special Agent-in-Charge Donovan. “I applaud our federal, state, local and international law enforcement partners for their diligent work on this significant investigation.”
“As a Commander in the Mexican Federal Police, Arzate allegedly offered protection of the cartel’s criminal activities in exchange for hundreds of thousands of dollars in bribes,” stated HSI Special Agent-in-Charge Fitzhugh. “Arzate’s corruption as the highest-ranking officer in the MFP’s Sensitive Investigative Unit allowed violent cartels to continue the flow of drugs through the region without consequence, but it is clear today that no one is exempt from justice.”
"This case shows no one is exempt from the law, and those who choose a life of crime, no matter their rank or employment, will be brought to justice,” stated NYSP Superintendent Corlett. “This suspect gave in to greed, putting people and communities at risk, when he should have been doing his job to protect them. I commend the great work of the New York Strike Force in this case. We will continue to make it our priority to find and dismantle violent enterprises and partnerships to make our streets safer.”
According to the indictment and other court filings, Mexican SIU officers routinely work with U.S. law enforcement to combat narcotics trafficking, money laundering and other criminal activities. From 2003 to 2016, Reyes Arzate was a Mexican Federal Police Officer assigned to SIU. In 2008, he was appointed SIU Commander, making him the its highest ranking officer and principal point of contact for information sharing between U.S. and Mexican law enforcement personnel assigned to the SIU.
From approximately September 2016 to November 2016, while serving as SIU commander, Reyes Arzate received hundreds of thousands of dollars in bribes from El Seguimiento 39 in exchange for providing protection for the cartel’s drug trafficking. Specifically, in exchange for a $290,000 bribe, he disclosed to the cartel’s leadership sensitive information about a pending DEA investigation. The bribe payments have been corroborated by intercepted communications obtained pursuant to judicially-authorized wiretaps.
Earlier, in the mid-2000s, in exchange for cash bribes, Reyes Arzate allegedly provided sensitive law enforcement information to other Mexican drug cartels, including the Beltran Leyva Organization, which was then a faction of the Sinaloa Cartel led by Joaquin Guzman Loera, also known as “El Chapo.” As a result, these criminal enterprises operated without significant interference from Mexican law enforcement, and imported multi-ton quantities of cocaine and other drugs into the United States.
If convicted of the drug conspiracy charge, Reyes Arzate faces a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.
This investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime DEA Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, NYPD, NYSP, HSI, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, United States Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and the Public Integrity Section. Assistant United States Attorneys Michael P. Robotti, Ryan Harris and Erin Reid are in charge of the prosecution.
The Defendant:
IVAN REYES ARZATE
Age: 57
Mexico City, MexicoE.D.N.Y. Docket No. 20-CR-30 (ERK)
Former Memphis Police Officer and Co-Conspirator Plead Guilty to Civil Rights Conspiracy Involving Robbery and KidnappingRead the Press Release
Memphis, TN – On December 6, 2018, a federal grand jury indicted former Memphis Police Officer, Sam Blue, 61, and co-conspirator, Anthony Davis, for federal criminal civil rights violations which included the violent crimes of robbery and kidnapping. On January 24, 2020, Blue pled guilty to conspiracy to violate civil rights by using force, violence, and intimidation, and conspiracy to commit robbery affecting interstate commerce. On January 24, 2020, Davis pled guilty to conspiracy to violate civil rights by using force, violence, and intimidation, conspiracy to commit robbery affecting interstate commerce, and aiding and abetting the deprivation of civil rights by kidnapping. U.S. Attorney D. Michael Dunavant announced the guilty pleas today.
According to information presented in court, between 2014 and 2018 Sam Blue, a sworn Memphis Police Department officer, conspired with others to rob drug dealers of drugs or drug proceeds. Prior to the planned robberies, various co-conspirators would conduct surveillance of the targets. Officer Blue provided his co-conspirators with information, such as home addresses for the targets of the robberies, obtained from law enforcement restricted sources. Blue also provided his co-conspirators with equipment, including an official MPD badge, and a car dashboard blue light to use during the planned robberies so that they could falsely claim to appear to be law enforcement.
In July 2018, Eric Cain was selected as a robbery target by the conspirators. The defendants began conducting surveillance on Cain and put a GPS tracker on his car. Blue provided the gate code used by law enforcement to access Cain’s apartment complex in furtherance of the plan to commit the robbery.
On July 13, 2018, as Cain was leaving his apartment in Memphis around 4:30 a.m. a black car with flashing blue lights pulled up behind his car. Cain believed he was being stopped by law enforcement. Two of the defendants, dressed in black clothing with the word "police" on it and wearing masks and armed with handguns, got out of the car with the flashing lights and ordered Cain to get out of his car and get on the ground. Cain obeyed and the men handcuffed him, put a hood over his face, and placed him in the back of their car. The defendants then drove Cain to a house on Reese Road here in Memphis.
At this new location, Cain was taken inside the house and restrained while the defendants beat him, burned him on his arms, neck, and head, and demanded that he tell them where he kept his money and/or drugs. Cain was able to escape by jumping through the front window of the house. He was hospitalized for a week in the burn unit and underwent surgery for his injuries.
Sentencing for Blue is scheduled for May 21, 2020, and sentencing for Davis is scheduled for May 28, 2020, before U.S. District Court Judge John T. Fowlkes Jr. where they each face sentences of up to life imprisonment.
U.S. Attorney D. Michael Dunavant said: "A very low percentage of law enforcement officers engage in official misconduct and corruption, but when they do, it tarnishes the entire criminal justice system and damages the trust and confidence of citizens in proper police authority. When police officers use their badges to violate and oppress civil rights by robbery and kidnapping, it is our duty to expose their corruption, hold them accountable, and protect society from their violence and dishonesty. These guilty pleas and significant potential sentences will hopefully deter other violent and corrupt police behavior, restore the public’s faith in honest officers, and send a strong message that nobody is above the law."
This case was investigated by the FBI Tarnished Badge Task Force.
Assistant U.S. Attorney David Pritchard is prosecuting this case on behalf of the government.
Former Long Island Broker Pleads Guilty to Participating in a $147 Million Stock Manipulation SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Stephanie Lee, a former broker who worked in conjunction with Plainview-based Elite Stock Research and Melville-based My Street Research and related companies (“My Street Research”), pleaded guilty to conspiracy to commit securities fraud, securities fraud, money laundering and money laundering conspiracy, wire fraud conspiracy and obstruction of an official proceeding in connection with the sale of the stock of two publicly traded companies, CES Synergies, Inc. (CESX), and National Waste Management Holdings, Inc. (NWMH). The top count to which Lee pleaded guilty carries a maximum sentence of 20 years’ imprisonment. The plea proceeding took place before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea. Mr. Donoghue expressed his appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance in the investigation.
As alleged in court papers, between August 2013 and July 2017, Lee and her co-defendants engaged in a scheme to defraud investors, many of them elderly, through the use of high-pressure call centers located at Elite and My Street Research. Lee and her co-defendants artificially controlled the trading price and volume of publicly traded companies by, among other things, retaining Elite and My Street Research to use pressure tactics, material misrepresentations and omissions to induce victims from around the country to purchase stock. Although the victims believed they were buying stock on the open market, Lee and her co-defendants secretly coordinated the trading so that the victims purchased shares at inflated prices that were owned and controlled by Lee and certain co-defendants. Following her arrest, Lee gave false information to the FBI agents who interviewed her in connection with the alleged fraud.
Lee is among 16 defendants who were charged in July 2017 in connection with the $147 million illegal stock manipulation scheme, and she is the thirteenth defendant to plead guilty. A fourteenth defendant, Michael Watts, was convicted after trial in October 2019. Four defendants have been sentenced for their roles in the scheme: Ronald Hardy was sentenced to 10 years’ imprisonment; Dennis Verderosa was sentenced to six years’ imprisonment; McArthur Jean was sentenced to four years’ imprisonment; and Emin Cohen was sentenced to two years’ imprisonment.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution. Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Forfeiture Section is handling the forfeiture matters.
The Defendant:
STEPHANIE LEE
Age: 48
St. Petersburg, FloridaE.D.N.Y. Docket No. 17-CR-372 (S-3)(JS)
The Defendants Who Were Previously Convicted:
RONALD HARDY
Age: 44
Port Jefferson, New YorkMCARTHUR JEAN, also known as “John McArthur”
Age: 37
Dix Hills, New YorkERIK MATZ
Age: 46
Mt. Sinai, New YorkBRIAN HEEPKE, also known as “Brian Targis”
Age: 39
Farmingdale, New YorkDENNIS VERDEROSA
Age: 79
Coram, New YorkEMIN L. COHEN, also known as “Ian Grant”
Age: 36
Coram, New YorkPAUL EWER
Age: 39
Massapequa, New YorkASHLEY ANTOS
Age: 28
Central Islip, New YorkSERGIO RAMIREZ
Age: 46
East Meadow, New YorkROBERT GILBERT
Age: 53
Cold Spring Harbor, New YorkANTHONY VASSALLO
Age: 56
Farmingdale, New YorkMICHAEL WATTS
Age: 63
Sugarland, TexasE.D.N.Y. Docket No. 17-CR-372 (JS)
Former Housing Authority Director Pleads Guilty to Stealing Federal FundsRead the Press Release
Hazlehurst, Miss. – Barbara Thedford Skipper, 51, of Hazlehurst, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to theft of federal funds, announced U.S. Attorney Mike Hurst and Assistant Special Agent-in-Charge Jerome Winkle with the United States Department of Housing and Urban Development (“HUD”) Office of Inspector General (“OIG”).
From 2015 through 2017, while serving as Executive Director for the Hazlehurst Housing Authority, Skipper knowingly converted and misapplied funds from the Housing Authority’s operating account to her own use. Operating account funds are designed to assist the Housing Authority with the upkeep of public housing residential living conditions. Such public housing is established to provide decent and safe rental housing for eligible low-income families, the elderly and persons with disabilities.
In the course of the investigation, it was discovered that Skipper utilized Hazlehurst Housing Authority’s operating account to purchase personal items, including, but not limited to, clothing, perfume, countertop ice makers, electronic tablets, cookware, a fitness wristband, portable boom box, champagne flutes, Fire TV stick and several gift cards. It was also discovered that Skipper made unauthorized purchases from an online retailer and made payments to her personal Bank of America credit card from the Housing Authority operating account. The total amount of loss was $57,202.
Skipper will be sentenced by Judge Reeves on April 22, 2020 at 9:00 a.m. She faces a maximum penalty of 10 years in prison and a $250,000 fine, as well as restitution.
The case is the result of an investigation by the United States Department of Housing and Urban Development Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Keesha Middleton.
Former Del Rio Sector U.S. Border Patrol Agent Sentenced to Federal Prison for Production and Possession of Child PornographyRead the Press Release
In San Antonio this morning, a federal judge sentenced a former Del Rio Sector U.S. Border Patrol agent assigned to the Uvalde Station to 50 years in federal prison for producing and possessing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that 37-year-old Vernon Lee Millican of Leakey, TX, pay a $10,000 special assessment under the Joint Victims of Trafficking Act (JVTA) and be placed on supervised release for a period of 20 years after completing his prison term.
On October 17, 2019, Millican pleaded guilty to one count of production of child pornography and one count of possession of child pornography. By pleading guilty, Millican admitted that between April 2015 and June 2018, he used multiple devices to produce and possess images and videos of himself sexually assaulting a prepubescent minor; and, depicting the minor engaging in sexually explicit conduct. According to the victim, Millican began to sexually abuse her when she was six years old.
“Today we put behind bars a brutal sexual predator who is a disgrace to the Border Patrol and the United States. His punishment is richly deserved,” stated U.S. Attorney Bash.
Millican was arrested on January 31, 2019, after a federal search warrant was executed at his home. He has since remained in federal custody.
“A heartbreaking reality of the world we’re living in is the hidden abuse of children,” said FBI Special Agent in Charge Combs. “They’re suffering in silence every day, both in our community and around the world, as we go about our daily lives. The FBI will relentlessly pursue every lead to rescue children who are being victimized, and bring their perpetrators to justice. We strongly urge members of the public to help us in our fight to protect children, as they are some of the most vulnerable in our community.”
FBI agents, together with the Department of Homeland Security Office of the Inspector General and the Clackamas County Sheriff’s Office in Oregon, investigated this case with assistance from the Real County Sheriff’s Office. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.Former Attorney Sentenced for $1.6 Million Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A former attorney was sentenced today to 88 months in prison for conspiring to defraud Virginia State Senator Richard Saslaw’s campaign account, a Canadian business, and an organization intended to support college students with autism and other intellectual disabilities out of more than $1.6 million.
According to court documents, David H. Miller, 71, of Fairfax, conspired with his wife, Linda Diane Wallis, to defraud three categories of victims from 2011 to 2014. First, Miller conspired with Wallis to create two fake law firms, Federal Legal Associates and The Straile Group. Miller and Wallis used the fake law firms to fraudulently bill Miller’s employer, SkyLink Air and Logistic Support, Inc. (SkyLink), a Canadian based aviation company that maintained an office in Dulles, for legal work that was never actually performed. Miller and Wallis caused over $360,000 in losses to SkyLink.
Second, Miller and Wallis embezzled more than $650,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued over 70 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled at approximately $653,000. All of the checks were issued without the knowledge or permission of Senator Saslaw or his campaign staff, and were ultimately deposited into accounts that were controlled by Miller or Wallis.
Third, Miller and Wallis misappropriated funds for an autism organization, which Miller co-founded and for which Wallis served as the Executive Director. The organization, known as The Community College Consortium on Autism and Intellectual Disabilities (CCCAID), claimed to provide assistance to community colleges to develop programs for individuals with autism and other intellectual disabilities. Between April 2010 and April 2013, community colleges located around the country and an individual donated around $780,000 to CCCAID. The funds contributed to CCCAID were supposed to be used to further the mission of the organization and not to enrich Miller or Wallis. Despite these restrictions, from 2011 to 2014, Miller and Wallis embezzled over $600,000 from CCCAID’s bank account and used the money to pay their own personal expenses.
Miller and Wallis laundered the proceeds of their crimes through multiple bank accounts and ultimately spent the funds on lavish personal expenses, such as mortgage payments on a million-dollar home in Fairfax, renovations to an oceanfront property in Bethany Beach, Delaware, fee payments to a country club, and travel on private aircraft from Manassas to Jamaica for a family vacation at a luxury oceanfront resort.
Miller’s co-conspirator and wife, Linda Diane Wallis, previously pleaded guilty and was sentenced to more than four years in prison on March 18, 2016.
In addition to the prison sentence, Miller was ordered to pay $1,640,655 in restitution, and ordered to forfeit the same amount.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Timothy M. Dunham, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Uzo Asonye, Samantha P. Bateman, Karen L. Taylor, and Special Assistant U.S. Attorney Annie Zanobini prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-213.
Former Attorney Charged with Fraud for Falsely Representing to Client that Assistant United States Attorney had Agreed to Accept a Bribe in Exchange for Securing a Reduced Sentence for ClientRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced on January 23, 2020, that former attorney Mark A. Ruppelt (age: 50) was charged in a three-count information with devising and executing a scheme to defraud his client, in violation of the federal wire fraud statute.
The information alleges that Ruppelt’s scheme was to obtain money from his client by falsely claiming he had arranged to pay a bribe to an Assistant United States Attorney (“AUSA”) and other officials, in exchange for their assistance in obtaining a sentence reduction for the client. In fact, none of those officials were aware of Ruppelt’s representations to his client, and none had been offered or agreed to accept a bribe.
According to the information, Ruppelt asked for, and received, a total of $30,000 from his client. In a series of phone conversations, Ruppelt, among other things:
- falsely told his client that a specific AUSA was willing to accept a bribe;
- falsely told his client that the $30,000 would “100% secure” the AUSA’s assistance in obtaining a sentence reduction;
- falsely told his client that Ruppelt had already “taken care of” bribing a probation officer and only had to finish paying the AUSA;
- put the client off by falsely telling the client that the AUSA, while still on board with accepting the bribe, wanted to wait several weeks so that the political climate was more conducive to getting away with the bribe arrangement; and
- attempted to conceal his scheme by directing his client to avoid “putting anything in writing,” explaining that “there can’t be any trace of this.”
If convicted, Ruppelt faces a maximum term of imprisonment of 20 years, a maximum term of three years of supervised release, and a maximum fine of $250,000.
An information is a formal method of charging an individual with a criminal offense. The charges contained in the information are merely allegations and are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gregory J. Haanstad.
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Former Assistant Director of Real Estate for City of Boston Sentenced for Accepting $50,000 in BribesRead the Press Release
BOSTON – The former Assistant Director of Real Estate working for the Boston Planning and Development Agency (BPDA) was sentenced today in federal court in Boston in connection with accepting $50,000 in bribes.
John M. Lynch, 67, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 40 months in prison, one year of supervised release, and ordered to pay restitution of $14,400 and to forfeit $50,000. The government recommended a sentence of 48 months in prison.
In September 2019, Lynch pleaded guilty to one count of bribery involving an organization receiving federal funds and one count of filing a false federal tax return.
“Mr. Lynch’s conduct illustrates the kind of pay-to-play scheme that, if left unchecked, destroys government institutions and the public’s faith in those institutions,” said United States Attorney Andrew E. Lelling. “This office will aggressively prosecute any public official, regardless of party or position, whose greed leads them to breach the public trust and break federal law.”
“It may be difficult for anyone who went to John Lynch’s office seeking nothing more than a fair shake to understand why a public servant one day points his moral compass toward personal ruin knowing how much he will lose in order to gain so little. But public corruption cases aren’t built around employees who appreciate what they have,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Palm-greasing at any level undermines a community’s faith in their government. The FBI encourages anyone who encounters or suspects municipal malfeasance to report it, and to help us to hold those who violate taxpayers’ trust accountable.”
“While John Lynch should have been exercising his authority for the benefit of the City of Boston and its residents, he instead lined his own pockets with ill-gotten proceeds and further sought to defraud the Internal Revenue Service” said Kristina O’Connell, Special Agent In Charge of IRS Criminal Investigation’s Boston Field Office. “Today’s sentencing should serve as a reminder to those who seek to violate the public’s trust that you will be held accountable for your actions.”
In 2017, a Boston real estate developer sought to sell a parcel of residential real estate in Boston, but needed Boston Zoning Board of Appeals (ZBA) approval to extend a permit that would allow the property to be sold as a multi-unit development. In order to secure the permit extension, the developer agreed to pay $50,000 in bribes to Lynch, in return for Lynch using his influence at the BPDA to secure a vote from a ZBA member. In May 2017, the ZBA member voted to grant the permit extension, enabling the developer to sell the property at an additional half a million dollar profit that the developer otherwise would not have received. Per their agreement, the developer then paid Lynch $25,000 in cash and gave Lynch a $25,000 check, which Lynch used to pay a personal bill. Lynch then failed to report those and another $10,000 payment he had received from the real estate developer on this 2018 tax returns.
U.S. Attorney Lelling, FBI Boston SAC Bonavolonta and IRS-CI SAC O’Connell made the announcement today. Assistant U.S. Attorney Dustin Chao of Lelling’s Public Corruption Unit prosecuted the case.
Florida man pleads guilty to role in moving company racketeering conspiracyRead the Press Release
CINCINNATI – A Florida man is the first of 12 charged in Cincinnati in a moving company racketeering conspiracy to plead guilty in U.S. District Court. Members of the racketeering conspiracy defrauded, extorted, and stole from customers who hired companies controlled by the moving enterprise to move customers’ household goods.
Vladimir Pestereanu, 30, of Sunny Isles Beach, Fla., pleaded guilty this afternoon to participating in the racketeering conspiracy.
As part of his plea, Pestereanu, who is also known as “Vova,” admitted that beginning in May 2015, he participated in the racketeering activity as a foreman in a West Chester, Ohio warehouse kept on behalf of the criminal enterprise.
Pestereanu knew that it was the practice of the enterprise to charge customers for moving more cubic footage of household goods than were actually loaded by members of the enterprise. Pestereanu also knew members of the enterprise were refusing delivery of some customers’ household goods based on fraudulent charges that were added after customers’ goods were loaded by the enterprise.
The defendant participated directly in mail fraud and extortion. He demanded from customers additional payment based on fraudulently inflated cubic footage.
In total, the conspiracy is valued at between $1.5 million and $3.5 million.
Participating in a racketeering conspiracy, as defined in this case, is punishable by up to 20 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Andrea Kropf, Regional Special Agent-in-Charge, Midwestern Regional Investigations Office, Office of Inspector General, U.S. Department of Transportation (USDOT); and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Timothy S. Black. Assistant United States Attorneys Megan Gaffney Painter and Matthew Singer are representing the United States in this case.
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Florida Man Sentenced for Conspiracy to Re-Sell Diverted PharmaceuticalRead the Press Release
NEW ORLEANS, La. – U.S. Attorney Peter G. Strasser announced that ELISEO MARTINEZ (MARTINEZ), age 48, a resident of Miami, Florida, was sentenced on January 23, 2020 after pleading guilty to conspiracy to commit theft of medical products, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
MARTINEZ was sentenced to 135 months imprisonment with credit for time served, supervised release for a term of 3 years, and a $300.00 assessment. MARTINEZ was also ordered to pay restitution in the amount of $203,000.
According to court documents, beginning sometime prior to December 2012, MARTINEZ and others conspired to use Marea Distributors and Logistics, LLC, in Louisiana and Marea Distributors, LLC, in Florida to fraudulently re-sell diverted pharmaceuticals. Working together, the defendants would collect dispensed drugs of known and unknown origin, counterfeit drugs, expired drugs, and drugs not authorized for resale and then fraudulently reintroduce them into the pre-retail, wholesale market for eventual sale under false pretenses to pharmacies and end users. According to court documents
Among other things, the defendants would create and scan fraudulent invoices and send them from Marea Distributors in Florida to Marea Distributors & Logistics in Louisiana by email. In Louisiana, Marea Distributors & Logistics would then send the fraudulent invoices by email from Louisiana to wherever the diverted pharmaceuticals were shipped. When necessary, Marea Distributors & Logistics in Louisiana would create invoices for the products and email them to customers who were making purchases.
During the course of the conspiracy the defendants opened or caused to be opened bank accounts in the names of various entities, including Marea Distributors & Logistics and Marea Distributors. The defendants used those accounts to deposit the proceeds obtained from the sale of diverted pharmaceuticals and then to further distribute those proceeds to bank accounts controlled by them.
U.S. Attorney Strasser praised the work of the United States Drug Enforcement Administration, Internal Revenue Service, Food and Drug Administration, and the Miami Dade Police Department, in investigating this matter. The case was prosecuted by Assistant United States Attorneys Theodore R. Carter, III, and David Haller.
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Federal Jury in Waco Convicts California Drug Courier for Attempting to Transport Approximately 21 Pounds of Methamphetamine to WacoRead the Press Release
In Waco this afternoon, a federal jury convicted 27–year-old Francisco Resendez Martinez of Gonzales, CA, for attempting to deliver approximately 21 pounds of methamphetamine from California to Waco, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Steven S. Whipple, Houston Field Division.
Jurors convicted Martinez of one count of conspiracy to possess with intent to distribute methamphetamine. Evidence presented during trial revealed that for more than a year and a half, DEA agents were investigating a drug trafficking operation led by 38-year-old Waco resident Johnny Casillas. On February 26, 2018, California Highway Patrol deputies stopped a vehicle on I-40 in San Bernardino, CA, being driven by the defendant. Upon searching the vehicle, authorities discovered the methamphetamine contained in 23 packages inside a suitcase.
Following the verdict, Judge Albright remanded Martinez to the custody of the U.S. Marshals Service. Martinez faces between ten years and life in federal prison. Sentencing is scheduled for May in front of U.S. District Judge Alan D. Albright in Waco.
Jurors today acquitted Martinez’s co-defendant, 55-year-old Los Angeles area resident Patricia Ferrer, of the drug conspiracy charge. Casillas and another co-defendant, 42-year-old Veronica Real of Hesperia, CA, are awaiting sentencing after pleading guilty to the drug conspiracy charge—Casillas, on May 8, 2018, and Real, on December 18, 2018. Sentencing for Casillas and Real is scheduled for 9:30am on February 25, 2020, before Judge Albright. Like Martinez, Casillas and Real face between ten years and life in federal prison.
The DEA, together with the McLennan County Sheriff’s Office, Texas Department of Public Safety, Riverside County (CA) Sheriff’s Office, California Highway Patrol, and U.S. Border Patrol investigated this case. Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150YearsFederal Jury in Del Rio Convicts Honduran National of Illegal Re-Entry and Assaulting U.S. Border Patrol AgentsRead the Press Release
In Del Rio last night, a federal jury convicted 49–year-old Honduran National Leivin Pineda for illegal re-entry into the U.S. and assaulting a U.S. Border Patrol agent near Eagle Pass, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Evidence presented during trial revealed that on September 2, 2018, U.S. Border Patrol agents observed the defendant, who they believed to be an illegal alien, walking along FM 1907 in Maverick County. The agents attempted to approach Pineda, but he fled on foot into the brush. At several points during the foot chase, Pineda threw softball-sized rocks at a high velocity towards the agents’ heads. During the pursuit, the agents repeatedly gave verbal commands to stop, but Pineda refused. Due to Pineda’s actions and that the rocks thrown at the agents could cause serious physical injury or death, a pursuing agent drew his firearm and shot Pineda in the upper chest/left upper arm area in order to neutralize the threat.
Testimony also revealed that Pineda had illegally entered the U.S. on three previous occasions. He was last removed from the U.S. on July 13, 2018, in Alexandria, LA.
Following the incident, Pineda received medical treatment and was released from the hospital. Pineda has since remained in federal custody.
Pineda faces up to 20 years in federal prison on the assault charge and up to two years in federal prison for illegal re-entry. Sentencing is scheduled for later this year in front of U.S. District Judge Alia Moses in Del Rio.
The FBI, Department of Homeland Security Office of Inspector General (DHS OIG) and U.S. Customs and Border Protection Office of Professional Responsibility (CBP OPR) investigated this case. Assistant U.S. Attorney John Kennedy and Joshua Banister are prosecuting this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150YearsFederal Jury Convicts Former Portland Resident of Accessing Child PornographyRead the Press Release
Portland, Maine: A former Portland resident was convicted yesterday of accessing with intent to view child pornography following a three-day jury trial, U.S. Attorney Halsey B. Frank announced.
According to evidence presented at trial, in July 2015, agents with U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (HSI) executed a search warrant at the Portland home of George Royle V, 45. Agents seized a laptop computer under the warrant. A forensic analysis of the laptop showed that Royle had been accessing internet websites containing child pornography images with the intent to view them. He also had been using peer-to-peer file-sharing software to seek out child pornography.
Royle faces up to 10 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
HSI and the Maine State Police Computer Crimes Unit investigated the case.
Family Physician Pays $285,000 to Settle False Claims Act Allegations of Billing Services at Inflated RateRead the Press Release
Knoxville, Tenn. – Family physician Dr. Chang-Wen Chen and his practice Chang-Wen Chen, M.D., P.C. paid $285,000 to resolve allegations that they violated the False Claims Act by improperly charging government health care programs the physician’s rate for services that were provided by nurse practitioners. The allegations challenged billings submitted to Medicare, Medicaid (“TennCare”) and TRICARE from 2013 through 2019.
Medicare and TennCare reimburse at the higher physician rate for services provided by nurse practitioners or other non-physician providers when the services are rendered “incident-to” a physician’s services, but only if the physician provides direct supervision. TRICARE always pays the reduced rate for services rendered by non-physician providers regardless of whether a physician supervises. The government alleged that Dr. Chen’s practice unlawfully billed government payors at the physician rate even when services were rendered by unsupervised nurse practitioners.
Under the False Claims Act, any person who presents false claims for payment to the United States is liable for three times the damages the government incurs as a result of the false claims and penalties ranging from $5,000 to $22,363 per violation, depending on when the violations occurred.
“False billing practices contribute to the rising cost of health care in our country, and cheat taxpayers out of billions of dollars each year,” said U.S. Attorney J. Douglas Overbey. “This settlement demonstrates the continued commitment of the United States Attorney’s Office to protecting the integrity of our federal health care programs.”
“Medicare and other government health payment rules on non-physician providers are clear. While nurse practitioners may provide excellent care, billing their services at an inflated rate cheats taxpayers who are paying for these vital services,” said Derrick Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue investigating threats to federally funded health care programs.”
“I applaud the Department of Justice and the U.S. Attorney for the Eastern District of Tennessee for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ronald Place, director of the Defense Health Agency. "The efforts of the Department of Justice to safeguard the health care benefit for our service members, veterans and their families is commendable. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This investigation was a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Tennessee; the Tennessee Attorney General’s Office; the U.S. Department of Health and Human Services, Office of Inspector General; and the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit. The investigation was prompted by a lawsuit filed in 2015 by a former nurse practitioner at the practice, under the qui tam or “whistleblower” provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The relators share of the recovery in this case is $51,300.
The case is captioned United States and State of Tennessee ex rel. Forester v. Chang-Wen Chen, M.D. and Chang-Wen Chen, M.D., P.C., Case No. 3:18-cv-51 (E.D. Tenn.).
Assistant United States Attorneys L. Margaret Harker, Jeremy S. Dykes, and Jessica Sievert represented the United States.
The claims settled by this agreement are allegations only; there has been no determination of liability.
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False Tax Return Filer Sentenced to 34 Months in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Ramon Christopher Blanchett to 34 months in federal prison for theft of government funds. The court also ordered Blanchett to forfeit $980,000, which is traceable to proceeds of the offense.
Blanchett had pleaded guilty on October 1, 2019.
According to court documents, on February 21, 2017, Blanchett electronically filed his 2016 Form 1040, U.S. Individual Income Tax Return, claiming (1) $18,497 in wage income, (2) a state and local income tax deduction of $47,357, and (3) an income tax withholding credit of $1 million. These figures were not accurate. Blanchett attached two Forms W-2 to his return, and one of them contained false and fraudulent information, including an inflated wage amount and inflated amount of tax withheld. Based upon this return, Blanchett falsely claimed that he was due a tax refund of $1 million, and requested that $20,000 of that amount be applied to his 2017 estimated tax.
In April 2017, the IRS mailed a U.S. Treasury check for $980,000 to Blanchett at his residential address in Tampa. Blanchett deposited the check into an account at SunTrust Bank. SunTrust reported the transaction to the IRS, closed Blanchett’s accounts, and held the funds for the IRS.
Ultimately, in 2018, Blanchett received a new official check for $980,000 and deposited it into an account that he opened with Grow Financial Credit Union (GFCU) in Tampa, Florida. Blanchett told GFCU that the funds represented the proceeds of an inheritance he had received from his father’s estate. In fact, Blanchett had not received proceeds from an inheritance. Blanchett used some of the funds to purchase a 2016 Lexus RC350 for $51,617 at a Tampa dealership.
In August 2018, a federal magistrate judge authorized seizure warrants for Blanchett’s Lexus and the money in his GFCU account at the time. Both the vehicle and $919,421.87 were seized.
In April 2018, Blanchett electronically filed another false and fraudulent tax return – this time for tax year 2017 – claiming he was due a refund of $26,477.
In September 2018, Blanchett voluntarily appeared at the IRS office in Tampa, for an appointment that he had made with the Taxpayer Assistance Center. The center alerted IRS-Criminal Investigation agents, who told Blanchett that he was under criminal investigation regarding the $980,000 refund, which he had received. Notwithstanding communications from agents, Blanchett filed a third false and fraudulent income tax return in February 2019 for the 2018 tax year, claiming a refund of $465,734.
With the exception of one Form W-2, Blanchett did not earn wages in the amounts claimed on the Forms W-2 attached to his tax returns. Moreover, he did not make enough wages to have any income tax withheld, and the amounts of tax withheld reported on his tax returns were false. In short, Blanchett knew he was not entitled to a tax refund for tax years 2016, 2017, or 2018.
This case was investigated by the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
East Bay Real Estate Developer Sentenced to 15 Months for Making Conduit Contributions in Two U.S. Congressional CampaignsRead the Press Release
SAN FRANCISCO – Oakland-area real estate developer James Tong was sentenced to 15 months in prison today for funneling tens of thousands of dollars of his own money through straw donors into two consecutive congressional campaigns for a member of the U.S. House of Representatives.
United States Attorney David L. Anderson for the Northern District of California, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office made the announcement.
Tong, 74, of Fremont, Calif., was sentenced by U.S. District Judge Jon S. Tigar of the Northern District of California.
A federal jury convicted Tong on October 8, 2019, of two counts of making contributions to a federal campaign in the names of other individuals. According to the evidence presented at trial, in 2012 and 2013 Tong made $38,000 in conduit contributions to the initial and reelection campaigns of a candidate who was running for the U.S. House of Representatives. Tong provided envelopes of cash to his bank manager and another business associate and directed them to give the cash to individuals in the community, who then used Tong’s cash to write checks in their own names to the campaign for the U.S. congressional candidate Tong was supporting. Tong leveraged financial obligations and the implied loss of business opportunities to induce his bank manager and business associate to distribute cash in the community to be donated. The network of straw donors included dozens of conduits, including at least one foreign national who was not eligible to make donations to federal elections. Tong also directed his middlemen to conceal the scheme by instructing the straw donors not to deposit the cash; and he later directed one of the middlemen to withhold information from the FBI after he was interviewed.On August 31, 2017, a federal grand jury indicted Tong charging him with two counts of making and causing campaign contributions in the name of another, in violation of 52 U.S.C. §§ 30122 and 30109(d)(1)(D). The jury found Tong guilty of both counts.
As part of the sentence, Judge Tigar found that Tong obstructed justice when he told his middlemen not to deposit cash given to them. Judge Tigar also sentenced the defendant to a one-year period of supervised release and a $380,000 fine.
The FBI conducted the investigation. Trial Attorneys Amanda R. Vaughn and Rebecca G. Ross of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney S. Waqar Hasib of the Northern District of California prosecuted the case.
District Man Sentenced to 21 Years in Prison for Second-Degree Murder While Armed in Northeast WashingtonRead the Press Release
WASHINGTON – Donnell Mills, 30, of Washington, D.C., was sentenced today to a total of 21 years for second-degree murder while armed from a killing that took place in 2018 in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The defendant pled guilty in the Superior Court of the District of Columbia on October 22, 2019. He was sentenced by the Honorable Milton Lee. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on the morning of November 8, 2018, at approximately 9:29am, the decedent Jelani Mohammed was walking along the 1500 block of Benning Road NE, Washington, DC. The defendant and his co-defendant ran up behind the decedent and assaulted him while the defendant stabbed him one time with a knife belt puncturing the decedent’s right lung. Despite life-saving efforts, the decedent was pronounced dead at 9:59am. The defendant has been held without bond since his arrest on November 21, 2018.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant United States Attorney Katherine Earnest, Paralegal Specialists Stephanie Siegerist, Tameka Garcia, and Alesha Matthews; Victim/Witness Advocate Jennifer Clark.
Finally, they commended the work of Assistant U.S. Attorney Monica Trigoso, who investigated and prosecuted the case.
Desmet Man Pleads Guilty to Witness TamperingRead the Press Release
COEUR D’ALENE – Jay Christopher Matt, 38, of Desmet, Idaho, pleaded guilty to witness tampering, U.S. Attorney Bart M. Davis announced today. Sentencing for Matt is set for April 9, 2020, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
According to court records, Matt was initially charged in federal court with multiple counts related to a domestic violence incident that occurred in Desmet in August 2019. While pending trial, law enforcement officers discovered that Matt was contacting potential witnesses in the case, including the victim, and made efforts to persuade witnesses to not cooperate with the ongoing investigation, not show up to trial, or change their story in order to help Matt evade prosecution. Based on this conduct, Matt was charged with witness tampering and ultimately plead guilty.
Witness tampering is punishable by up to 20 years in federal prison, a fine of up to $250,000, and a term of supervised release of up to three years.
This case was investigated by Federal Bureau of Investigation, Coeur d’Alene Tribal Police Department, Benewah County Sheriff’s Office, and Bonner County Sheriff’s Office.
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Defendant Pleads Guilty in Brooklyn Federal Court to Attempted Obstruction of Justice MurderRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Luis Taveras pleaded guilty to attempt to commit obstruction of justice murder. The plea proceeding took place before United States District Judge Roslynn R. Mauskopf. When sentenced, Taveras faces up to 30 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York Field Office, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Keith M. Corlett, Superintendent, New York State Police (NYSP), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“The defendant’s crime was not only an attack on an individual victim, it was also an attack on our system of justice,” stated United States Attorney Donoghue. “The message of this prosecution is clear – anyone who carries out such a crime, wherever committed, is not beyond the reach of U.S. law enforcement.”
“In his attempt to stop a man from providing information to the U.S. by leading a hitman right to him, Taveras now stands to serve time for his role in this conspiracy,” stated HSI Special Agent-in-Charge Fitzhugh “HSI’s partnerships domestically and internationally directly enhances our ability to arrest and prosecute those who seek to obstruct justice to hide from the truth.”
“In our investigations, it has become apparently clear that violence doesn’t travel far from drug trafficking,” stated DEA Special Agent-in-Charge Donovan. “I commend the men and women responsible for investigating and prosecuting Luis Alfredo Taveras who allegedly would stop at nothing to protect his drug distribution network.”
“This plea is proof that we will aggressively seek to hold criminals accountable for their actions. I commend the members of the task force for their efforts in this case, and their ongoing partnership to cut off the flow of illegal narcotics into our communities,” stated NYSP Superintendent Corlett.
“Our reach in this case stretched overseas, to bring to justice a criminal who put innocent people in danger in the name of illegal drug trafficking. It highlights the success our combined federal and local efforts have in continuing to eradicate violence and keep narcotics out of New York City neighborhoods,” stated NYPD Commissioner Shea.
As detailed in the superseding indictment, other court filings and the defendant’s statements at his guilty plea proceeding, Taveras participated in the attempted murder of an individual he knew from prior narcotics transactions and believed to be cooperating with U.S. law enforcement. On June 21, 2016, Tavares entered a restaurant in Cali, Colombia, and sat down at a table with the victim. Shortly thereafter, Taveras stood up, walked to the back of the restaurant, and watched as a co-conspirator entered the restaurant and fired eight shots – wounding the victim in the shoulder and arm, and also wounding two family members of the victim, including a five-year-old child. Taveras and his co-conspirator then fled. The three victims survived their wounds. The harrowing attack was captured on videotape in the restaurant.
At today’s guilty plea proceeding, Tavares admitted that he identified the intended target to his co-conspirator, and that he wanted to prevent that individual from providing information to U.S. law enforcement
On February 21, 2019, Taveras was arrested by federal law enforcement agents in Miami.
Taveras’s arrest and guilty plea are the results of an ongoing investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF), led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Soumya Dayananda and Erin Reid are in charge of the prosecution.
The Defendant:
LUIS TAVERAS
Age: 30
Miami, FloridaE.D.N.Y. Docket No. 19-CR-180 (S-2) (RMM)
Convicted Buffalo Bank Robber Charged AgainRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Licata, 52, of Buffalo, NY, was charged by criminal complaint with bank robbery. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, on January 21, 2020, the defendant entered the M&T Bank branch on Grant Street in Buffalo, and passed a demand note to the victim-teller. The note threatened the teller if the teller did not give him cash. The victim-teller complied and gave Licata U.S. currency. Later that same day, law enforcement officers arrested the defendant and found him in possession of currency taken during the robbery.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained. In 2011, Licata also committed bank robbery in Buffalo, and was sentenced to serve 120 months in prison.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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