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12 February 2020
Baltimore Business Owner Sentenced to 15 Years in Federal Prison for Conspiring to Burn Down His Business in Order to Obtain Insurance ProceedsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Demetrios Stavrakis, a/k/a Jimmy, age 54, of Lutherville-Timonium, Maryland, to 15 years in federal prison, followed by three years of supervised release, for an arson conspiracy to damage his business by setting it on fire in order to obtain insurance proceeds. Judge Hollander also ordered that Stavrakis forfeit $15,081,435. The federal jury returned the guilty verdict late on October 28, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian Geraci; and Commissioner Michael Harrison of the Baltimore Police Department.
U.S. Attorney Robert K. Hur stated, “The evidence proved that ‘Jimmy’ Stavrakis conspired to burn down his business in order to defraud his insurance company of millions of dollars in insurance proceeds. Now he will serve 15 years in federal prison, where there is no parole—ever. Criminals who commit arson to obtain insurance proceeds jeopardize their community and first responders, and must be held accountable.”
According to evidence presented at his 7-week trial, beginning in July 2015, Stavrakis made a plan to set fire to commercial property he owned at 234 S. Haven Street in Baltimore, in order to collect insurance proceeds on the property. The building housed Adcor Industries, Inc., a manufacturing shop owned by Stavrakis since 1991, as well as Adcor Beverage, LLC and other LLC’s owned and created by Stavrakis.
Testimony at trial revealed that by 2010, Adcor’s business experienced a downturn due to the loss of a contract with Colt Industries. From 2011 to 2015, Stavrakis’s businesses defaulted on various loans, struggled to pay suppliers resulting in legal action, and sold off profitable divisions of the business to satisfy defaulted loans. In 2014, Adcor incurred an operating loss of $2,053,427 and its liabilities exceeded its assets by almost $900,000. Financial records showed that during 2014, Stavrakis liquidated personal assets and injected the proceeds into Adcor to utilize as working capital. A public accounting firm hired by Adcor to review its financial condition reported to Stavrakis that the balance of cash and cash equivalents as of December 31, 2014 was inadequate to fund operations through December 31, 2015. More losses followed, and Adcor was again in default on a line of credit and their monthly operating losses put them on pace to lose approximately $2.9 million for the year.
The evidence proved that on July 28, 2015, just before 6 p.m., Stavrakis used adhesive tape to defeat one of the security features on the front door of the building so that the person or persons setting the fire could enter the building.
According to the trial evidence, at 12:25 a.m. on July 29, 2015, someone disarmed the alarm inside the building by entering the four-digit code. At 12:33 a.m., an alarm in another part of the building was disarmed. At approximately 1:30 a.m., the fire was reported to law enforcement by a passerby who saw smoke emanating from the building. The Baltimore Fire Department responded to extinguish the blaze. The fire destroyed an office on the shop floor of the building and damaged a portion of the ceiling directly above the office area. Later on July 29, 2015, Stavrakis contacted a public adjuster firm that his company had previously retained to notify them of the fire and to request their assistance in filing claims with the insurance company.
Trial evidence proved that from July 29, 2015 through August 5, 2016, the adjusters, acting on behalf of Stavrakis and his companies, submitted insurance claims totaling more than $21 million. The insurance company paid a total of approximately $15,081,435. Of that amount, approximately $7.5 million was used to purchase new machinery, purchase parts inventory, restore the building, and for other business expenses. In addition, insurance proceeds were transferred or used for other expenses, including $600,000 which was transferred to an account in the name of Stavrakis’s wife, after which additional monthly payments of approximately $6,000 followed; approximately $98,499.20 used to purchase a 2016 Mercedes-Benz GL 550, titled and registered to Stavrakis; approximately $52,890.55 used to purchase a BMW titled and registered in the name of Stavrakis’s wife; approximately $25,500 used to purchase a 2016 Harley-Davidson Street Glide motorcycle; and approximately $35,087 in watches and jewelry.
United States Attorney Robert K. Hur commended the ATF, the Office of the Maryland State Fire Marshal, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Judson T. Mihok and Paul E. Budlow, who prosecuted the case.
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Attorney General William P. Barr Makes Announcement on Sanctuary Cities at the National Sheriffs' Association ConferenceRead the Press Release
BIRMINGHAM, ALA. – Attorney General William P. Barr has announced further actions the Department of Justice will take to protect the American people by ensuring the proper and lawful functioning of our nation’s federal immigration system. Attorney General William Barr said, “Let us state the reality up front and as clearly as possible: When we are talking about sanctuary cities, we are talking about policies that are designed to allow criminal aliens to escape. These policies are not about people who come to our country illegally but have otherwise been peaceful and productive members of society. Their express purpose is to shelter aliens whom local law enforcement has already arrested for other crimes. This is neither lawful nor sensible.”
Read the Attorney General’s full remarks at this link: https://www.justice.gov/opa/speech/attorney-general-william-p-barr-delivers-remarks-national-sheriffs-association-winter
“Our federal, state, and local law enforcement within the Northern District of Alabama are steadfast in their commitment to enforce all the laws of our state and federal justice systems,” Town said. “This commitment is due to the support and coordination local law enforcement has with their federal partners. Through the Prosecutor-to-Prosecutor Program my office has prioritized improving the quality and reliability of the assistance that we provide to our local law enforcement partners. Our continued partnership has developed mutual respect and support by federal and local law enforcement for the mission and work of their counterparts. One of the many benefits of this common purpose and allegiance between federal, state, and local law enforcement has been a shared adherence to respect all federal immigration laws and keeping our communities safe.”
Examples of illegal aliens prosecuted in this office:
Felipe Martinez-Arrellanes, a citizen of Mexico, was removed from the United States to Mexico in June 2013 following a felony conviction. In January 2018, Martinez-Arrellanes was arrested under the name “Felipe Martinez” by the Tuscaloosa Police Department and charged with Soliciting Prostitution. Martinez-Arrellanes was taken into ICE custody. Martinez-Arrellanes pled guilty to Illegal Re-entry After Deportation or Removal in April 2018.
Mike Sierra, a citizen of Mexico, was removed from the United States to Mexico in February 2016 and July 2014. Before, during and after those removals, Sierra, often using an alias, was convicted two times for Driving Under the Influence and two times for Illegal Entry into the United States. Following his most recent conviction in January 2018, for Driving Under the Influence in Northport, Ala., the defendant was taken into ICE custody. Sierra pled guilty to Illegal Re-Entry Deportation or Removal in March 2018.
Jose Hernandez Hernandez, a citizen and national of Mexico, illegally possessed a Rossi 38 caliber pistol in June 2018, in Madison County. Hernandez pled guilty to Possession of a Firearm by an Illegal Alien in October 2018.
Armed Methamphetamine Dealer Sentenced to Five YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jermaine Stamps, 33, of Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to five years in federal prison, followed by four years of supervised release, for possessing more than 50 grams of methamphetamine with intent to distribute. Stamps pleaded guilty to this charge on October 30, 2019.
In June and July 2019, Stamps distributed methamphetamine to an undercover officer on five occasions. On July 18, 2019, the Dane County Narcotics Task Force executed a search warrant at his apartment. They recovered 64 grams of methamphetamine, a loaded Glock 9mm pistol and $1,079. Stamps admitted he had been distributing narcotics for five years, and that he had recently begun selling methamphetamine too.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies and prosecutors and communities to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
The charge against Stamps was the result of an investigation conducted by the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Anthony Ahn Le, 21, of Daphne, Alabama, was sentenced today to 121 months on three federal charges relating to drugs and guns. In July of 2019, Le entered a guilty plea to one count of conspiracy to possess with intent to distribute marijuana, and two counts of using, carrying or possessing a firearm during or in relation to a drug trafficking felony.
United States District Court Judge Jeffery U. Beaverstock imposed the 121 month sentence on February 10, 2020. Specifically, Le was sentenced to 60 months on each of the gun counts, which are required by statute to be served consecutively to all other sentences. Le was sentenced to one month on the drug count, which will also be consecutive. Judge Beaverstock ordered that Le will serve a term of five years under supervised release when he is discharged from prison. The judge also ordered that Le will pay special assessments of $300.
The case was investigated by the Foley Police Department, the Daphne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Eugene Sanchez Crayton, 27, of Mobile, was sentenced this morning in federal court for his involvement in the distribution of controlled substances while carrying a firearm. In October of 2019, Crayton entered a guilty plea to the charges of possession with intent to distribute “spice,” a controlled substance analogue, carrying a firearm in relation to a drug trafficking felony, and being a felon in possession of a firearm.
United States District Court Judge Callie V. S. Granade imposed a sentence of 105 months imprisonment, consisting of 45 months on the drug and felon in possession counts, and 60 months consecutive on the other gun count. The judge ordered that Crayton would serve a period of five years under supervised release when he is discharged from prison. During that term, he will undergo drug testing and treatment. The judge ordered that Crayton will pay a special assessment of $300.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Alton man sentenced for attempting to entice minor via social mediaRead the Press Release
McALLEN, Texas - A 23-year-old man has been ordered to federal prison following his conviction for attempted coercion and enticement of a minor, announced U.S. Attorney Ryan K. Patrick.
Dan Eliud Moncada-Gonzalez pleaded guilty Nov. 25, 2019.
Today, U.S. District Judge Micaela Alvarez sentenced Moncada-Gonzalez to 120 months in federal prison. In handing down the sentence, the court noted his behavior was not a lapse in judgment as the defense attempted to portray, adding that Moncada-Gonzalez was provided multiple opportunities to stop his conduct. He was further ordered to serve five years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Moncada-Gonzalez will also be ordered to register as a sex offender.
In June 2019, Moncada-Gonzalez enticed an individual he believed to be a 13-year-old female on a social media application. During his conversations, he sent multiple unsolicited sexually-explicit images of himself and others and described sexual acts he desired to perform with the minor.
Moncada-Gonzalez then requested to meet in person at an agreed upon location. There, he expected to engage in sexual activity with the minor. Law enforcement took him into custody upon his arrival.
At the time of his arrest, Moncada-Gonzalez had condoms, lubricant, oral gel and marijuana with him.
Immigration and Customs Enforcement’s Homeland Security Investigations Rio Grande Valley Child Exploitation Investigations Task Force conducted the investigation.
Assistant U.S. Attorneys Michael Mitchell and Claire Nguyen prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
11 February 2020
Young Fentanyl Trafficker Pleads Guilty to Possessing Large Quantities of Drugs and Multiple FirearmsRead the Press Release
PITTSBURGH – A former resident of McKees Rocks, Pennsylvania pleaded guilty in federal court to federal narcotics and firearms charges, United States Attorney Scott W. Brady announced today.
Dushawn Griffey, age 21, pleaded guilty before Chief United States District Court Judge Mark R. Hornak to one count of conspiracy to possess with the intent to distribute and distribute 40 grams or more of fentanyl and one count of possession of a firearm in connection with a drug trafficking crime.
In connection with the guilty plea, the court was advised in March of 2017, Griffey, then 18, was a fentanyl dealer living and operating out of a house in McKees Rocks, PA. On March 28, 2017, City of Pittsburgh Bureau of Police Detectives stopped Griffey after he left his house in McKees Rocks and recovered a bag of fentanyl and a loaded firearm from him. Subsequent to this stop, members of the FBI Western District of Pennsylvania Opioid Task Force conducted a search of Griffey’s home. The search of the home recovered a large quantity of suspected fentanyl, drug packaging materials and drug paraphernalia, and multiple firearms.
The law provides for a mandatory minimum total sentence of 10 years in prison up to life, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. DuShawn Griffey has been detained since his initial appearance in federal court and will remain detained pending sentencing.
Assistant United States Attorneys Timothy M. Lanni and Douglas Maloney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, Stowe-Rox Police Department, and Pennsylvania Attorney General’s Office.
Willow Grove Man Sentenced to 27+ Years in Prison for Sexually Exploiting and Abusing Children While Living in His Mother’s HomeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Anthony Rocco Major, 47, of Willow Grove, PA was sentenced to 325 months’ imprisonment and 20 years’ supervised release by United States District Court Judge Joel Slomsky for multiple child exploitation offenses.
In July 2019, the defendant pleaded guilty to multiple counts of manufacturing child pornography. The charges arise from Major’s abuse of a girl under the age of 10. While the defendant was living in his mother’s home, he lured the victim to his upstairs bedroom with the promise of playing computer games. While upstairs and separated from other adults in the house, the defendant undressed the child and filmed himself sexually assaulting her. The victim suffered in silence for years, only coming forward after her mother caught the defendant in the act of molesting the victim’s younger sister in the home’s pool. Videos of the sexual assaults, along with other images of child pornography, were recovered from the computer in the defendant’s bedroom.
“The defendant is a dangerous predator who targeted very young children for years while living in his mother’s home, right under her nose,” said U.S. Attorney McSwain. “Instead of acting as a trusted, caring adult, Major violated the trust of these children, their mother and his own family in the most heinous way – and recorded his depravity for posterity. Today’s significant sentence will keep him safely behind bars and unable to commit similar crimes. Holding child sexual offenders accountable will continue to be a top priority of my Office and the entire Department of Justice.”
“Anthony Rocco Major will spend the rest of his life behind bars where he can no longer harm children,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia. “The defendant violated his young victim twice. First, via sexual assault, and second by creating images of that depraved and horrific crime. Today’s sentence is well deserved. In partnering with our federal, state, local law enforcement allies, Homeland Security Investigations will remain steadfast in our efforts to rid our communities of child predators.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Veronica J. Finkelstein.
Waterbury Man Involved in New Haven Drug Ring Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HAKEEM BASIR, 56, of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into a New Haven-based drug trafficking organization that acquired and distributed heroin and cocaine. The investigation revealed that Basir distributed heroin at locations in Waterbury and Hartford.
During the investigation, law enforcement officers seized more than 500 grams of heroin, more than 300 grams of fentanyl, more than one kilogram of cocaine, three firearms, over $90,000 in cash, vehicles, jewelry and precious metals.
On April 19, 2018, a grand jury in New Haven returned an indictment charging Basir and 18 other individuals with narcotics trafficking offenses. Basir and several other members of the conspiracy were arrested on April 25, 2018.
Basir has been detained since his arrest. On August 9, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The Connecticut Department of Correction, Milford Police Department and East Haven Police Department have assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Walpole Man Sentenced for Filing a False Tax ReturnRead the Press Release
BOSTON – A Walpole man was sentenced today in federal court in Boston in connection with failing to report income from his landscaping business to the Internal Revenue Service (IRS).
Stephen L. Petrucci, 57, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to one year and a day in prison, one year of supervised release, a fine of $10,000 and restitution to the IRS in the amount of $633,327. In November 2019, Petrucci pleaded guilty to one count of filing a false tax return.
Petrucci owed more than $630,000 in income taxes to the IRS after he failed to report approximately $1.8 million in income from his landscaping business on his federal tax returns for tax years 2012 through 2017. To conceal his scheme, Petrucci utilized bank accounts at three different banks or directly cashed customer checks without first depositing them. He also maintained two sets of books: one to track business receipts deposited into his corporate account and one to track gross business receipts. He further withheld information concerning his gross business receipts from his tax preparers.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Wagner Man Charged with Threatening CommunicationsRead the Press Release
United States Attorney Ron Parsons announced that a Wagner, South Dakota, man has been indicted by a federal grand jury for Threatening Communications.
Kyle Gullikson, age 29, was indicted on December 3, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 7, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 5, 2019, Gullikson knowingly and willfully transmitted threatening messages on Facebook.
The charge is merely an accusation and Gullikson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Gullikson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Ute Mountain Ute Man Found Guilty of Violent Sexual and Physical Assault of Wife Following Week-Long Jury TrialRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that David Sidney Wells, age 43, of Towaoc, Colorado, was found guilty last week of federal sexual and physical assault charges following a week-long jury trial. Wells appeared at trial in custody and was remanded to the custody of the U.S. Marshals Service at the trial’s conclusion. The FBI and the Bureau of Indian Affairs (BIA) joined in today’s announcement.
Wells was indicted by a federal grand jury on four counts – Aggravated Sexual Abuse, Assault with the Intent to Commit Aggravated Sexual Abuse, Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon. According to court documents, as well as facts presented during trial, on March 9. 2019, Wells assaulted his wife of ten years in their residence on the Ute Mountain Ute Indian Reservation, in Towaoc, Colorado. Wells repeatedly struck his wife in the head with a wooden club, kicked her in the stomach to induce a miscarriage, and punched her in the face. Wells then sexually assaulted her before strangling her to unconsciousness. The victim’s injuries were so severe that she was medically evacuated by airplane to a Lakewood, Colorado hospital.
Following the assault, Wells fled the scene. At the time of the assault, Wells had a warrant for his arrest from a case brought by the State of Colorado for Assault in the Second Degree by Strangulation, as an act of domestic violence, related to an assault against his wife from August of 2018. Additionally, Wells had a prior history of domestic violence convictions in tribal court.
The defendant was indicted on April 5, 2019. He was founded guilty on February 7, 2020, following a jury trial before U.S. District Court Judge Blackburn. Wells is scheduled to be sentenced by Judge Blackburn on June 7, 2020 in Durango, Colorado. Wells faces up to life in prison.
“Sexual assault on the Ute Mountain Ute Reservation will always be vigorously prosecuted by this office,” said U.S. Attorney Jason Dunn. “Wells was responsible for a brutal and violent assault against this victim. He is now facing a significant prison sentence.”
This case was investigated by the Federal Bureau of Investigations (FBI) and the Bureau of Indian Affairs (BIA). The defendant was prosecuted by Assistant U.S. Attorneys Jeff Graves and R. Josh Player.
United States Attorney’s Office Reaches Settlement with Lackawanna County over Polling Place Access for VotersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Lackawanna County under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheel chairs and other mobility aids, and for individuals who are blind or have vision impairments.
According to United States Attorney David J. Freed, during the May 16, 2017 primary election, the United States Attorney’s Office, along with an architect from the Department of Justice, surveyed a portion of the county’s polling place locations. The survey resulted in a finding that many of the county’s polling places contain barriers to access for persons with disabilities. Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program.
Lackawanna County is working collaboratively with the United States Attorney’s Office to make all polling places accessible. Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day.
“I commend Lackawanna County for agreeing to achieve our shared goal of making polling places accessible to all eligible voters with a disability,” said U.S. Attorney Freed. “Individuals with disabilities have a fundamental right to participate in our democracy and barriers to access polling places must not diminish or restrict that right.”
This investigation was handled by Assistant United States Attorney Michael J. Butler, the civil rights coordinator for the Middle District of Pennsylvania, with the assistance of the United States Department of Justice, Civil Rights Division (Disability Rights Section). Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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United States Attorney's Office District of Arizona January 2020 Immigration and Border ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
1,074 individuals were charged in January with illegal reentry
A. 336 of those 1,074 individuals had been convicted of non-immigration criminal offenses in the
U.S.
Of the 336 individuals with non-immigration criminal records,
1. 67 had violent crime convictions, including
2 individuals had homicide convictions
8 individuals had sex offense convictions
31 individuals had domestic violence convictions
2. 53 had property crime convictions
3. 107 had DUI convictions
4. 119 had drug crime convictions
B. 252 of those 1,074 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
76 individuals were charged in January with alien smuggling
III. Ilegal Entry CCI (formerly Operation Streamline) (8 U.S.C. 1325)
779 individuals were charged in January with illegal entry on the CCI calendar
Criminal conviction information based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
United States Attorney Announces Money Laundering Charges Against Operators of Multimillion-Dollar Nationwide High-End Prostitution EnterpriseRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of the Department of Homeland Security’s (“DHS”) Homeland Security Investigations (“HSI”) in New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of TRACY REYNOLDS, a/k/a “Sara,” and IZHAK COHEN, for money laundering and conspiracy to commit money laundering in connection with their ownership and operation of VIP Escorts, a nationwide multimillion-dollar business offering high end prostitution services, as well as the seizure of bank accounts and 391 websites related to the VIP Escorts business. REYNOLDS was arrested this morning at Tampa International Airport while boarding a flight to Mexico and was presented today in Tampa federal court. COHEN was arrested by Israeli authorities in Hadera, Israel. The United States Attorney’s Office will seek COHEN’s extradition to stand trial in the United States.
According to the allegations in the Complaint sworn out in Manhattan federal court:[1]
From at least 2012 to the present, REYNOLDS and COHEN have operated an online high-end prostitution business through their company and its affiliates known as “VIP Escorts.” VIP Escorts maintains a website, http://wvvw.vipescorts.com (the “VIP Escorts Website”), which it used to promote its prostitution services and was registered to COHEN. VIP Escorts also operates an array of affiliated escort websites, which also advertised its prostitution services, with names such as “Prestige Escorts,” “American Escorts,” “Russian Escorts,” and “Manhattan Exotics,” all of which are registered to COHEN.
As part of their prostitution business, REYNOLDS and COHEN arranged for escorts to meet clients in Manhattan and in numerous other locations for prostitution services, charging them thousands of dollars. REYNOLDS and COHEN required escorts to deposit the proceeds of their commercial sex acts into a large number of bank accounts that they controlled, many of them in the name of fake entities. REYNOLDS and COHEN then laundered the money through thousands of domestic and international financial transactions. In total, over $10 million passed through various personal and business accounts controlled by REYNOLDS during the course of this conspiracy, and over $1 million was sent from REYNOLDS in the United States to COHEN in Israel in thousands of small transactions designed to conceal the nature, location, source, ownership, and control of the proceeds.
REYNOLDS and COHEN then used the proceeds of the prostitution scheme for personal gain and to further their illegal prostitution business. They paid, for example, over $295,000 from bank accounts under their control to advertise the VIP Escorts business on a known advertising platform for the prostitution industry.
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REYNOLDS, 45, of Alamosa, Colorado, and Cohen, 53, of Hadera, Israel, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and two counts of money laundering, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI, NYPD, and the El Dorado Task Force, and expressed his sincere gratitude to the Israel National Police and the Israel Ministry of Justice for their support and assistance with the investigation. He also thanked the Office of International Affairs of the U.S. Department of Justice for their assistance in the arrest of COHEN.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Michael R. Herman is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney Scott W. Murray’s Statement Regarding Sanctuary CitiesRead the Press Release
CONCORD- Yesterday, Attorney General William Barr addressed the dangers that sanctuary cities and sanctuary policies pose to the general public. In jurisdictions that have adopted these policies, local law enforcement officers are restrained from working with their federal law enforcement partners. The result is that federal law enforcement officers are hampered in their efforts to locate, arrest, and remove people who are in the United States illegally. This may include individuals who are actively engaged in criminal conduct.
Barr’s remarks resonate in New Hampshire, where the opioid crisis has been fueled by foreign drug cartels who exploit our citizens for the sake of making a profit. Their lethal drugs reach our state through a network of traffickers who often employ criminal aliens as dealers to sell drugs in our communities. To shield themselves from arrest, criminal aliens often reside outside of our state, sometimes living in sanctuary cities where they feel safe.
The highest obligation of the government is to protect its citizens, especially from victimization by criminals. This requires coordination on the part of law enforcement at all levels. When local communities adopt sanctuary policies, those policies can jeopardize public safety by preventing the federal government from arresting and prosecuting removable aliens. While reasonable people can debate the merits of various immigration policies, few would contest that those who commit serious criminal offenses while unlawfully inside this country should be prosecuted and then removed from the United States. When a sanctuary jurisdiction refuses to honor an immigration detainer and releases a felon onto the street, all of our citizens are endangered. These policies also endanger the brave law enforcement officers who must try to identify and arrest criminal aliens after they have been released by sanctuary cities.
Here in New Hampshire, we frequently prosecute criminals who are unlawfully in this country, including those who have taken up residency in sanctuary cities in other states. Many of these criminal aliens have distributed fentanyl, heroin and other dangerous drugs, thereby causing great suffering. It is not uncommon to encounter criminal aliens who use fraudulent documents to mask their true identity and immigration status. If these criminals are released before they can be removed from the United States, it can be challenging to locate them again. Enforcing our laws is a complicated and difficult undertaking and sanctuary policies only make it more difficult to protect our citizens.
While New Hampshire has not been in the forefront of the sanctuary movement, it is important to realize that we are negatively impacted by the adoption of these policies in other states. The reality is that criminals can shelter behind sanctuary policies to the detriment of everyone else in society. This is especially true if you are an interstate drug dealer looking for a place to hide while hooking Granite Staters on your deadly product.
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U.S. Attorney Duncan's Statement on Sanctuary JurisdictionsRead the Press Release
Respecting and enforcing the law, including criminal immigration law, is at the core of the Department of Justice’s mission. Unfortunately, some state and local jurisdictions are attempting to impede or frustrate the Federal Government’s efforts, by enacting “sanctuary policies.” The terms “sanctuary city” and “sanctuary jurisdiction” are not proper legal terms and actually have no consensus definitions. Generally, a jurisdiction is considered to have “sanctuary policies” when the jurisdiction prevents or limits state and local law enforcement from working with their federal partners in some way. While these policies vary widely in substance and scope, at a minimum, most limit the sharing of certain information between state and local police and federal law enforcement authorities.
In truth, these “sanctuary” jurisdiction policies are the opposite of what their name suggests. When implemented, they jeopardize public safety by preventing the federal government from locating, arresting, and prosecuting removable aliens inside the United States, including those who have committed criminal offenses.
To be clear, state and local governments are not compelled by federal law to participate in federal immigration enforcement activities. That said, they are not permitted to actively obstruct federal efforts either.
In the Eastern District of Kentucky, we do not have any recognized sanctuary jurisdictions, and only have a very small number of local entities that are uncooperative with federal law enforcement. Overall, we are fortunate to share extremely strong working relationships with state and local government agencies and our law enforcement partners. However, the threat to public safety is not limited to jurisdictions with these harmful sanctuary policies.
One common way these sanctuary jurisdictions intentionally frustrate federal law is by failing to honor an immigration detainer – a formal request issued by Immigration and Customs Enforcement (ICE) officials asking federal, state, or local law enforcement authorities to simply hold an individual who is already in custody on another violation of criminal law. The detainer is based on probable cause that an alien is illegally in the country. ICE issues detainers to give other law enforcement agencies notice that it intends to take custody of the alien within 48 hours, before he or she is released from criminal custody.
ICE routinely requests detainers so that it can take appropriate action, which might include deportation. A jurisdiction that refuses to honor a detainer simply releases the individual back onto the streets. This forces ICE agents to re-arrest the person – a situation that can create a danger to the agents and others. Moreover, it also causes an unnecessary expenditure of time, manpower, and resources – forcing agents to lawfully re-arrest a person who has just be released from custody. A jurisdiction that ignores detainers and releases criminal aliens undermines the law and ultimately endangers each of us.
Our Office remains committed, along with our partners at the Department of Homeland Security (DHS), ICE, and other agencies, to enforcing and respecting the law. This includes the prosecution of illegal immigration cases.
In Fiscal Years 2018 and 2019, our Office prosecuted 119 defendants for felony violations of criminal immigration laws, including cases involving defendants who had been previously deported for aggravated felony offenses. During the same timeframe, we prosecuted 17 defendants charged with being illegal aliens in possession of a firearm.
Our enforcement efforts also include prosecuting individuals, who are illegally in the United States, with other criminal offenses, such as drug trafficking. One such example is the prosecution of Fernando Lara Salas, a cooperative effort led by investigators from the Drug Enforcement Administration (DEA), DHS, ICE, and the Lexington Police Department.
Lara Salas was convicted of multiple offenses, at trial in January 2018, including drug trafficking, firearms, and immigration offenses. His drug trafficking convictions included conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute more than five kilograms of cocaine, and possession with intent to distribute fentanyl, methamphetamine, and tramadol. Lara Salas’ firearms convictions included possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and possession of a firearm by an alien. Lara Salas was also convicted of unlawfully re-entering the United States after previously being deported for a felony drug offense.
The joint investigation by federal and state law enforcement into the drug trafficking activities of Lara Salas began in August 2016, and culminated with the execution of search warrants at Lara Salas’ residence in Lexington and a cargo trailer located in a remote location in Franklin County. The search of Lara Salas’ home resulted in the seizure of 6 kilograms of cocaine, more than 50 grams of methamphetamine, a 9 mm firearm, and $110,000 in U.S. currency. Evidence found in the cargo trailer revealed that Lara Salas and others utilized the trailer for the preparation of fentanyl for distribution. Agents located packaging material consistent with kilogram quantities of controlled substances, and the packaging contained a residual amount of fentanyl – a particularly deadly Schedule II opioid. Also located in the trailer were five kilograms of tramadol, a Schedule IV controlled substance that is commonly used by drug traffickers as a cutting agent for fentanyl and heroin, and boxes of latex gloves.
Lara Salas had previously been convicted of felony possession of cocaine, in 2014, and deported to Mexico. He illegally reentered the country after his deportation and resumed his drug trafficking activities. For his most recent conviction, Lara Salas was sentenced to nearly 30 years in federal prison.
Lara Salas’ prosecution demonstrates the importance of strong partnerships across local, state, and federal law enforcement. It is imperative that we continue working together to enforce the law.
Respecting and enforcing the law, including criminal immigration law, is at the core of the Department of Justice’s mission. Unfortunately, some state and local jurisdictions are attempting to impede or frustrate the Federal Government’s efforts, by enacting “sanctuary policies.” The terms “sanctuary city” and “sanctuary jurisdiction” are not proper legal terms and actually have no consensus definitions. Generally, a jurisdiction is considered to have “sanctuary policies” when the jurisdiction prevents or limits state and local law enforcement from working with their federal partners in some way. While these policies vary widely in substance and scope, at a minimum, most limit the sharing of certain information between state and local police and federal law enforcement authorities.
In truth, these “sanctuary” jurisdiction policies are the opposite of what their name suggests. When implemented, they jeopardize public safety by preventing the federal government from locating, arresting, and prosecuting removable aliens inside the United States, including those who have committed criminal offenses.
To be clear, state and local governments are not compelled by federal law to participate in federal immigration enforcement activities. That said, they are not permitted to actively obstruct federal efforts either.
In the Eastern District of Kentucky, we do not have any recognized sanctuary jurisdictions, and only have a very small number of local entities that are uncooperative with federal law enforcement. Overall, we are fortunate to share extremely strong working relationships with state and local government agencies and our law enforcement partners. However, the threat to public safety is not limited to jurisdictions with these harmful sanctuary policies.
One common way these sanctuary jurisdictions intentionally frustrate federal law is by failing to honor an immigration detainer – a formal request issued by Immigration and Customs Enforcement (ICE) officials asking federal, state, or local law enforcement authorities to simply hold an individual who is already in custody on another violation of criminal law. The detainer is based on probable cause that an alien is illegally in the country. ICE issues detainers to give other law enforcement agencies notice that it intends to take custody of the alien within 48 hours, before he or she is released from criminal custody.
ICE routinely requests detainers so that it can take appropriate action, which might include deportation. A jurisdiction that refuses to honor a detainer simply releases the individual back onto the streets. This forces ICE agents to re-arrest the person – a situation that can create a danger to the agents and others. Moreover, it also causes an unnecessary expenditure of time, manpower, and resources – forcing agents to lawfully re-arrest a person who has just be released from custody. A jurisdiction that ignores detainers and releases criminal aliens undermines the law and ultimately endangers each of us.
Our Office remains committed, along with our partners at the Department of Homeland Security (DHS), ICE, and other agencies, to enforcing and respecting the law. This includes the prosecution of illegal immigration cases.
In Fiscal Years 2018 and 2019, our Office prosecuted 119 defendants for felony violations of criminal immigration laws, including cases involving defendants who had been previously deported for aggravated felony offenses. During the same timeframe, we prosecuted 17 defendants charged with being illegal aliens in possession of a firearm.
Our enforcement efforts also include prosecuting individuals, who are illegally in the United States, with other criminal offenses, such as drug trafficking. One such example is the prosecution of Fernando Lara Salas, a cooperative effort led by investigators from the Drug Enforcement Administration (DEA), DHS, ICE, and the Lexington Police Department.
Lara Salas was convicted of multiple offenses, at trial in January 2018, including drug trafficking, firearms, and immigration offenses. His drug trafficking convictions included conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute more than five kilograms of cocaine, and possession with intent to distribute fentanyl, methamphetamine, and tramadol. Lara Salas’ firearms convictions included possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and possession of a firearm by an alien. Lara Salas was also convicted of unlawfully re-entering the United States after previously being deported for a felony drug offense.
The joint investigation by federal and state law enforcement into the drug trafficking activities of Lara Salas began in August 2016, and culminated with the execution of search warrants at Lara Salas’ residence in Lexington and a cargo trailer located in a remote location in Franklin County. The search of Lara Salas’ home resulted in the seizure of 6 kilograms of cocaine, more than 50 grams of methamphetamine, a 9 mm firearm, and $110,000 in U.S. currency. Evidence found in the cargo trailer revealed that Lara Salas and others utilized the trailer for the preparation of fentanyl for distribution. Agents located packaging material consistent with kilogram quantities of controlled substances, and the packaging contained a residual amount of fentanyl – a particularly deadly Schedule II opioid. Also located in the trailer were five kilograms of tramadol, a Schedule IV controlled substance that is commonly used by drug traffickers as a cutting agent for fentanyl and heroin, and boxes of latex gloves.
Lara Salas had previously been convicted of felony possession of cocaine, in 2014, and deported to Mexico. He illegally reentered the country after his deportation and resumed his drug trafficking activities. For his most recent conviction, Lara Salas was sentenced to nearly 30 years in federal prison.
Lara Salas’ prosecution demonstrates the importance of strong partnerships across local, state, and federal law enforcement. It is imperative that we continue working together to enforce the law.
Two Project Safe Childhood Defendants Plead GuiltyRead the Press Release
CHARLESTON, W.Va. – Defendants in two separate Project Safe Childhood cases pled guilty, announced United States Attorney Mike Stuart.
“These are despicable crimes,” said United States Attorney Mike Stuart. “Our partners are working around the clock to track down sexual exploiters of children. We will prosecute each and every one and seek the maximum penalty by law.”
Christopher Charles Hirst, 26, of Hurricane, pled guilty to receipt of child pornography. Hirst admitted that beginning in approximately August 2018 he began a relationship with a 14-year-old girl from Putnam County. During the course of that relationship, Hirst repeatedly asked the minor to send him sexually explicit photographs via the Snapchat app. When the minor ultimately sent the images, Hirst preserved those images without the minor’s knowledge. Hirst also admitted to taking several sexually explicit images of the minor in person, including one depicting them engaged in a sexual act. Hirst faces at least 5 years and up to 20 years in prison when sentenced on May 11, 2020. Following his release from prison, Hirst will be required to register as a sex offender. The Putnam County Sheriff’s Department and Homeland Security Investigations conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
Joey Michael King, 39, of Elkview, pled guilty to attempted enticement of a minor that occurred online in February 2019. King admitted that in February 2019, he communicated via a social messaging application with a minor he believed to be a 15-year-old girl located in Bridgeport, West Virginia. In reality, the minor was a Task Force Officer with the West Virginia State Police Internet Crimes Against Children Task Force and he was operating in an undercover capacity. Despite knowing the purported minor’s age, King repeatedly requested who he believed to be a minor to take sexually explicit photographs of her female genitals and to send them to him both via text and email. King provided who he believed to be a minor with his personal cell phone number and his personal email – both of which matched the phone number and email that King provided to the West Virginia Sex Offender Registry in his January 2019 Sex Offender Registration Report. King faces a mandatory minimum sentence of at least ten years imprisonment and up to life in prison when he is sentenced on May 7, 2020. The Federal Bureau of Investigation, in conjunction with the West Virginia State Police Internet Crimes Against Children Task Force, the Bridgeport Police Department, and the Nitro Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Kristin F. Scott handled the prosecution.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Two Pittsburgh Felons Charged with Illegally Possessing FirearmsRead the Press Release
PITTSBURGH - Two residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Tyrone Terry, age 28, and Terrelle Smith, age 28, both residents of Pittsburgh, Pennsylvania, as defendants.
According to the Indictment, on October 8, 2019, Terry and Smith each knowingly possessed a firearm, knowing they had been previously convicted of crimes with terms exceeding one year punishment. Federal law prohibits anyone from owning a firearm who has been convicted of a crime for a term of one year or longer. Terry was in possession of a FN Herstal Five-Seven 5.7x28 semiautomatic pistol, knowing he had been previously convicted of carrying a firearm without a license. Smith was in possession of a Glock 19 9mm semiautomatic pistol, knowing he had been previously convicted of flight to avoid apprehension, trial or punishment, possession of a firearm with an altered manufacturer’s name, and carrying a firearm without a license.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Charged with Bronx MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging RALPH BERRY and FRANK LOPEZ with the murder of Caprice Jones in the vicinity of 751 East 161 Street, Bronx, New York. BERRY was arrested on Friday in Bethlehem, Pennsylvania, and was presented before U.S. Magistrate Judge Henry S. Perkin. LOPEZ was arrested on Friday in Plano, Texas, and was taken into federal custody on Monday. He will be presented tomorrow before U.S. Magistrate Judge Christine A. Nowak. The case is assigned to U.S. District Judge Alison J. Nathan.
U.S. Attorney Geoffrey S. Berman said: “Many years have passed since Caprice Jones was murdered, but the detectives of the NYPD continued investigating, working to see that justice would be done. Now, thanks to their extraordinary efforts, in partnership with the Special Agents of our Office, Ralph Berry and Frank Lopez face federal murder charges.”
As alleged in the Indictment[[1]] unsealed today in Manhattan federal court:
On June 21, 2000, BERRY handed LOPEZ a gun and LOPEZ fired shots in the vicinity of 751 East 161st Street in the Bronx, New York. The shooting was in furtherance of a conspiracy to distribute crack cocaine. Jones was hit during the shooting, and ultimately died from his wounds in 2010 at the age of 42.
* * *
BERRY, 52, and LOPEZ, 43, are each charged with murder through use of a firearm, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of five years in prison, and murder in connection with a drug trafficking crime, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD and the Special Agents of the United States Attorney’s Office for the Southern District of New York. He also thanked the United States Marshals Service and the Plano Police Department for their assistance with the arrests.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Dominic A. Gentile and Maurene Comey are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Two Former Owners of South Florida Tech Support Scam Sentenced to Lengthy Prison TermsRead the Press Release
EAST ST. LOUIS, ILL. – Two former owners of a fraudulent tech support business known as Client Care Experts, LLC (“Client Care”) are going to prison for a long time. Yesterday, in federal district court in East St. Louis, Illinois, Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James McCormick, 47, of Hollywood, Florida, were sentenced to prison terms of 113 months and 132 months respectively. Both men previously pleaded guilty to a charge of conspiracy to commit wire fraud.
Seward was the founder and chief executive officer of Client Care, while McCormick served as another high-level executive for the Boynton Beach, Florida company, which was formerly known as First Choice Tech Support. For about 15 months, Seward and McCormick also operated a similar tech support business called ABC Repair Tech (ABC), located in Costa Rica.
According to court documents, the defendants purchased pop-up advertisements that appeared suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and falsely informed the victims that serious problems, such as viruses or malware, had been detected on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop responding. The pop-ups also typically warned the victims not to shut down their computers or else they would lose all their data. Instead, the ads directed them to call a toll-free number, where they were connected to sales representatives who continued the fraud.
The sales representatives convinced the victims to grant them remote access to their computers, where normal computer functions and routine processes were highlighted as evidence of serious computer problems. Victims were never told that the pop-ups that had hijacked their computers were just advertisements purchased by the tech support company, or that in most instances they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked at the steep prices, the sales representatives would offer them discounts, such as senior citizen and veterans discounts.
From 2013 to 2016, the two companies – Client Care and ABC – combined to defraud more than 40,000 people. Victims were located in all 50 States, the District of Columbia, Puerto Rico, several U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois, representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two companies took in over $25 million.
As part of their sentence, the court ordered both Seward and McCormick to pay over $11.5 million in restitution to the victims of their fraud scheme.
“As the court observed, there is a growing gap between our ever-increasing reliance on technology and the average person’s understanding of how that technology works,” said U.S. Attorney Weinhoeft. “These men took advantage of that gap to line their own pockets. What’s even more disturbing is that many of the victims were senior citizens. Following Attorney General Barr’s Elder Justice Initiative, we want would-be scammers to know that if they reach out and defraud people in southern Illinois, we’re going to haul them into federal court in this district and hold them accountable for their crimes.”
Over the past three years, 17 other employees of Client Care and ABC have also pleaded guilty to federal fraud violations in the Southern District of Illinois:
Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at Client Care
Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at Client Care
Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at Client Care
Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at Client Care
Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at Client Care
Erica Marie Crowell, 30, of Maple Shade, NJ – Salesperson at Client Care
Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at Client Care
Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at Client Care
Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at Client Care
Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at Client Care
Michael Cary Lawing, 34, of Lincolnton, NC – CEO of ABC
Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at Client Care
Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at Client Care
Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at Client Care
Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at Client Care
Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/Client Care
Grant Clark Wasik, 36, of Oakland Park, FL – Vice President and Sales Manager of Client Care
All 17 of those defendants have already been sentenced, as follows:
Date
Defendant
Prison Sentence
Restitution
Mar. 8, 2018
Ryan Carr
12 months + 1 day
$20,384.36
May 7, 2018
Joshua Cortez
18 months
$3,034.00
June 8, 2018
Patrick Dougherty
12 months + 1 day
$240,966.94
June 14, 2018
Anthony Ludena
12 months + 1 day
$176,692.26
June 29, 2018
Nicholas Davidson
5 years probation
$181,808.40
July 26, 2018
Timothy Miller
5 years probation
200 hours community service
$127,042.06
Aug. 3, 2018
Tatum Espenshade
1 day + 18 months home detention
$132,683.68
Sept. 11, 2018
Andrew Broad
12 months + 1 day
$55,238.28
Sept. 20, 2018
Jonathan Richardson
12 months + 1 day
$78,638.99
Oct. 4, 2018
Corey Bachman
1 day + 400 hours community service
$156,806.25
Oct. 8, 2019
Grant Wasik
125 months
$10,619,430.95
Oct. 10, 2019
Joseph Aievoli
1 day + 200 hours community service
$106,355.82
Oct. 15, 2019
Michael Lawing
18 months
$266,501.94
Oct. 23, 2019
Eric Iannaccone
12 months + 1 day
(pending)
Dec. 10, 2019
Robert McCart
Time served
100 hours community service
none
Dec. 10, 2019
Kyle Swinson
1 day + 400 hours community service
$7,589.31
Jan. 8, 2020
Erica Crowell
Time served
12 months home detention
$123,815.60
These cases were part of an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The cases were prosecuted by Assistant United States Attorneys Scott A. Verseman, Ranley R. Killian, and Nathan D. Stump. The Florida Attorney General’s Office raided Client Care in June 2016 and has been cooperating with the federal investigation, in addition to bringing its own civil enforcement action against the fraudulent company under Florida state law.
The Federal Trade Commission has been working for some time to shut down illegal tech support scams. For more information about the FTC’s “2019 Tech Support Takedown,” please visit https://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.
Some consumers who were victimized by ABC or Client Care / First Choice Tech Support have received additional fraudulent calls. These calls typically come from companies claiming either (a) that the technical support the victims purchased has been transferred to them and additional funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be advised that no companies have been authorized to provide them with any tech support services on behalf of ABC or CLIENT CARE / First Choice Tech Support, or to provide them with a refund for any previous purchases.
Three from Erie Charged with Conspiring to Possess MethRead the Press Release
ERIE, Pa. - Three former residents of Erie, Pennsylvania, have been indicted by a federal grand jury in Erie on charges of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named David Anthony Madden, 33, David Lee Cramer, 51, and Jamie Eileen Cramer, 42, as defendants.
According to the Indictment presented to the court, the defendants conspired to possess with intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of life imprisonment, a fine of $20,000,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tennessee Woman Pleads Guilty to Health Care FraudRead the Press Release
Abingdon, VIRGINIA – A Strawberry Plains, Tennessee woman, who billed Virginia Medicaid for services that were not completed, pled guilty yesterday in U.S. District Court in Abingdon to one count of federal health care fraud, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Kathy Marie Patrick, 61, formerly of Richlands, Virginia, pleaded guilty yesterday in federal court to one count of health care fraud. At sentencing, Patrick faces up to 20 years in federal prison and/or a fine of up to $250,000. Patrick also agreed to pay $30,968.40 in restitution. A sentencing hearing has been scheduled for April 30, 2020.
According to court documents, Patrick worked as a services facilitator for Virginia Medicaid from August 2012 through September 2019. Services facilitators are responsible for assisting individuals, who have chosen to receive care at home as an alternative to a nursing facility, by providing home visits, training, assessments, and other services on a regular basis.
Patrick admitted today that on multiple occasions, she billed for training to recipients and/or employers of record that had not actually been completed. Some of these visits were alleged to have occurred while Patrick was working her other jobs at the Cumberland Mountain Community Services Board and, later, Dollywood.
The investigation of the case was conducted by the Office of the Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney and Assistant Attorney General Janine Myatt is prosecuting the case for the United States.
Tenet Healthcare and Affiliated California Hospital to Pay $1.41 Million to Settle False Claims Act Allegations for Implanting Unnecessary Cardiac MonitorsRead the Press Release
Tenet Healthcare Corporation and its affiliated hospital Desert Regional Medical Center (DRMC), a general medical and surgical hospital located in Palm Springs, California, have agreed to pay $1.41 million to resolve allegations that they violated the False Claims Act by knowingly charging Medicare for implanting unnecessary cardiac monitors, the Justice Department announced today.
“Providers that bill for unnecessary services and devices contribute to the soaring cost of health care,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice holds accountable those providers that impose unnecessary treatments upon patients and pass the inflated costs on to federal health care programs.”
Medicare only reimburses services and treatments that are reasonable and medically necessary. This settlement resolves allegations that DRMC knowingly charged Medicare for unnecessary cardiac monitors (often called loop recorders) that DRMC cardiologists implanted in beneficiaries from 2014 to 2017.
“Invasive medical procedures, such as implanting heart monitors, are not without risk,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Therefore, when these procedures are medically unnecessary, as contended in this case, people in government health programs are put at needless peril, and taxpayers end up with the bill.”
The settlement resolves allegations filed in a lawsuit by Michael Grace, a former DRMC employee, under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The civil lawsuit is docketed in the Central District of California and is captioned United States ex rel. Grace v. Tenet HealthCare Corp.; St. Francis Hospital-Memphis; Desert Regional Medical Center; and Apollo MD, Case No. 17-CV-1481. As part of this settlement, Grace will receive $240,789 as his share of the government’s recovery.
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the Office of Inspector General for the U.S. Department of Health and Human Services.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
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.
Tax Return Preparer Sentenced to PrisonRead the Press Release
St. Louis - Aaron Mitchell, 31, of the 8700 block of Oriole in St. Louis, was sentenced today to 34 months in federal prison after pleading guilty to charges involving a federal income tax refund scheme. Mitchell appeared before United States District Judge Audrey G. Fleissig who also ordered him to pay $99,576.00 in restitution to the Internal Revenue Service.
At the time of his guilty plea, Mitchell admitted to preparing over 160 tax returns for the years 2013 through 2015. He filed those returns electronically from his residence on the 8700 block of Oriole in the City of St. Louis. The returns contained false W-2 wage and withholding information as well as false claims of tax credits for education expenses including the American Opportunity Credit. According to court papers, the IRS lost $99,576.00 in tax refunds paid as a result of Mitchell’s actions.
In sentencing Mitchell, the judge noted his many fraud convictions and his pending fraud charges in St. Louis County, St. Charles County, Franklin County and Madison County, Illinois. The court also noted that Mitchell had been taken off bond in the tax case after being arrested for shoplifting at a Walmart store in Granite City on New Year’s Eve. The judge told Mitchell that he was a “one man financial wrecking crew.”
The case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation office in St. Louis as assisted by the United States Postal Inspection Service. This case was prosecuted by the United States Attorney’s Office in St. Louis.
Talihina Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bobby Garman, age 38, of Talihina, Oklahoma, entered a guilty plea to Distribution Of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both; and to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 20 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that on or about February 8, 2019, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about August 26, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol, the District 16 Drug Task Force, and the Oklahoma Bureau of Narcotics and Dangerous Drugs Control.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Springfield Business Owner Pleads Guilty to Evading $300,000 in Employment TaxesRead the Press Release
SPRINGFIELD, Mo. – An Ozark, Missouri, man pleaded guilty in federal court today to failing to pay more than $300,000 in employment taxes for his businesses in Springfield.
John P. Hardwick, 51, waived his right to an indictment and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with attempting to evade taxation.
Hardwick owned and operated JTBT Investments, LLC, and Hardwick Quartz & Granite, LLC, both located in Springfield. Hardwick accumulated $306,298 in employment tax liabilities as an employer from 1994 through 2016, and failed to pay the money to the IRS.
In 2016, the IRS issued a Notice of Intent to Levy, which notified Hardwick that the IRS would contact individuals and entities that conducted business with him and notify those customers of the fact that he owed the IRS money. This notice would also direct customers to pay any monies due to Hardwick to the IRS instead, as a means of collecting on the amount due.
Hardwick then directed at least two of his customers to disregard the IRS levies; he also told them he would not complete their ongoing projects if they paid the IRS instead of him.
Under federal statutes, Hardwick is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation.
Sanctuary Cities Impede the Administration of JusticeRead the Press Release
Baltimore, Maryland – The Justice Department yesterday announced that it has filed suit against local jurisdictions in the states of California and New Jersey, and King County, Washington, for implementing policies that it alleges violates the “Supremacy Clause” of the Constitution, which provides that the laws of the United States shall be the supreme law of the land. The Constitution vests the federal government with the sole authority to make and enforce immigration law. The jurisdictions sued by the Justice Department have passed laws or implemented policies that impede the Department of Homeland Security from deporting or detaining aliens, or from accessing information in state databases. The U.S. Attorney’s Office for the District of Maryland supports efforts to prosecute those who commit federal crimes, regardless of their immigration status.
Maryland U.S. Attorney Robert K. Hur stated, “Detainers—official requests to hold an inmate pending federal action—are issued every day by federal law enforcement agencies for individuals charged with, or suspected of committing, federal crimes and violations. When detainers are not honored, the justice system cannot work, and inmates are released into the community where they are free to commit crime, victims are denied the right to justice, and law enforcement officers, who must find and rearrest the suspect, are endangered. Our immigration laws are part of our justice system. Failing to honor immigration detainers—at the very least wastes limited law enforcement resources—and worse, can lead to tragic outcomes for law enforcement and victims. All jurisdictions must uphold the rule of law in order for our system of justice to work.”
Individuals who are suspected of committing federal crimes and violations have certain rights under the Constitution, including individuals brought into federal custody after having a detainer lodged against them.
Jurisdictions that fail to honor detainers impede the administration of justice. While cooperation among law enforcement agencies in Maryland is generally excellent, there are some instances where local jurisdictions failed to honor federal detainers, sometimes with tragic consequences. Josue Rafael Fuentes-Ponce and Joel Ernesto Escobar, two Salvadoran national underage teenagers, were arrested in May 2018 and charged in Prince George’s County with attempted first-degree murder, attempted second-degree murder, participation in gang activity, conspiracy to commit murder, attempted robbery, and other charges. U.S. Immigration and Customs Enforcement (ICE) lodged immigration detainers with the Prince George’s County Detention Center for both individuals. Both Fuentes-Ponce and Escobar were released following the conclusion of that case, without the ICE detainer being honored and without any notification provided to ICE. According to court documents, in May 2019, Fuentes-Ponce and Escobar were again arrested and charged with the MS-13-related murder of a 14-year-old girl.
In another Prince George’s County case, on February 18, 2019, U.S. Immigration and Customs Enforcement (ICE) issued a detainer with the Prince George’s County Detention Center for Guatemalan national Juan Vincente Gomez-Quintana, who was in the United States illegally, after his arrest on local charges. Gomez-Quintana is a previously convicted felon who had been deported, with prior criminal convictions for identity theft, fraud, multiple DUIs, and trespassing. ICE also notified the county of an outstanding federal criminal arrest warrant for illegal reentry issued by the U.S District Court for the Eastern District of Virginia. On May 8, 2019, Prince George’s County released Gomez without honoring the detainer or the federal criminal arrest warrant. Gomez is still being sought by law enforcement.
On March 26, 2019, U.S. Immigration and Customs Enforcement (ICE) arrested Carlos Manuel Murcia-Brizuela, a Salvadoran national in Manassas, Virginia. as a previously deported criminal alien. On April 9, 2019, the U.S. District Court for the Eastern District of Virginia issued a criminal arrest warrant for Murcia on the federal charge of illegal reentry. On April 11, 2019, Murcia was turned over to the Fairfax County, Virginia, Police Department pending extradition to Montgomery County, Maryland, due to an outstanding criminal warrant issued by Montgomery County Circuit Court for felony rape and third-degree sex assault. In addition to notifying Montgomery County of the outstanding federal criminal arrest warrant, an immigration detainer was also placed on Murcia. Unfortunately, a sexual predator is now free, since neither the federal criminal arrest warrant nor the immigration detainer was honored by Montgomery County, and Murcia was released on July 12, 2019. Murcia is still being sought by law enforcement. Some of Murcia’s previous convictions include felony DUI causing injury, inflicting corporal injury on a spouse, and a misdemeanor conviction for cruelty towards animals.
The U.S. Attorney’s Office for the District of Maryland values its relationship with our federal, state, and local law enforcement partners and we will continue to work with them to arrest and prosecute violent criminals—regardless of immigration status—and remove them from our communities.
The Attorney General’s remarks are available here.
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Russian Citizen Pleads Guilty to Cyber Tax Fraud Scheme That Resulted in More Than $1.5 Million in Losses to Department of the TreasuryRead the Press Release
Earlier today, in federal court in Brooklyn, Anton P. Bogdanov, a citizen of Russia, pleaded guilty before United States Magistrate Judge Vera M. Scanlon to wire fraud conspiracy and computer intrusion in connection with a scheme in which he and others used stolen personal information to file federal tax returns and fraudulently obtain more than $1.5 million in tax refunds from the Department of the Treasury. When sentenced, Bogdanov faces up to 20 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“Cyber criminals operating from halfway around the world might think they are beyond the reach of U.S. law enforcement, but they are mistaken – just ask Anton P. Bogdanov. This Office and our law enforcement partners will use all necessary resources to combat sophisticated computer hacking and identity theft,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation the New York County District Attorney’s Office for its assistance with the case.
“Combating cyber-attacks is one of IRS-CI’s top priorities especially when our taxpayers are victimized,” stated IRS-CI Special Agent-in-Charge Larsen. “Mr. Bogdanov used sophisticated means to enrich himself, and we will always be at the ready to tackle these global fraud schemes.”
According to court filings, between June 2014 and November 2016, Bogdanov and his co-conspirators misappropriated personally identifiable information (“PII”), such as Social Security numbers and dates of birth of identity theft victims by gaining unauthorized access to the computer systems of private tax preparation firms in the United States. He and his co-conspirators then changed the tax return information so that the refunds were paid to prepaid debit cards that they controlled. Bogdanov and his co-conspirators were able to gain access to these systems by exploiting a vulnerability in a remote access program used by the tax preparation firms’ employees to log in from home and while traveling. Bogdanov also used misappropriated PII to obtain prior tax filings of victims from the IRS Transcript System website, and filed new tax returns, purportedly on behalf of the victims, so that refunds were paid to prepaid debit cards he and his co-conspirators controlled. The debit cards were cashed out in the United States, and a percentage of the proceeds was wired to Bogdanov in Russia.
Bogdanov was arrested in Thailand in November 2018 and extradited to the United States in March 2019.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Michael T. Keilty and Jonathan E. Algor are in charge of the prosecution.
The Defendant:
ANTON P. BOGDANOV (also known as “Kusok”)
Age: 34
RussiaE.D.N.Y. Docket No. 19-CR-197 (MKB)
Rochester Man Pleads Guilty to Having A Gun in A School ZoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose L. Silva, Jr., 25, of Rochester, NY, pleaded guilty to possession of a firearm in a school zone before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a $100,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on May 12, 2019, the defendant possessed a loaded firearm while he was within 1,000 feet of the grounds of Benjamin Franklin High School in Rochester. Silva passed by the school on his way to the Wal-Mart on Hudson Avenue in Rochester.
While the defendant was at Wal-Mart, store security officers observed him stealing clothing. They stopped Silva and recovered a .22 caliber revolver with a defaced serial number in his sweatshirt pocket. Although the gun was not functional, it was loaded with nine rounds of ammunition.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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 plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for May 4, 2020, at 11:00 a.m. before Judge Geraci.
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Riverview Man Pleads Guilty to Distributing More Than A Kilogram of CocaineRead the Press Release
Tampa, Florida – Emmanuel de la Cruz (40, Riverview) today pleaded guilty to distributing cocaine. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, a confidential informant (CI) negotiated with de la Cruz to obtain cocaine. The CI traveled to meet de la Cruz at a house where de la Cruz gave the CI just over a kilogram of cocaine.
This case was investigated by the Drug Enforcement Administration and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Callan L. Albritton.
Rhode Island Property Developer Sentenced to Eight Years in Prison for $10 Million Ponzi Scheme and Obstructing IRS InvestigationRead the Press Release
An East Greenwich, Rhode Island, property developer was sentenced to eight years in prison today for operating a $10.3 million dollar Ponzi scheme and obstructing an Internal Revenue Service (IRS) investigation, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Aaron L. Weisman for the District of Rhode Island.
According to court documents and statements made in court, Monique N. Brady owned and operated MNB LLC, a property preservation and rehabilitation business. From 2014 through summer 2018, Brady used her business to solicit private investors to invest funds for large scale rehabilitation of properties with the promise that investors would receive half of the profits. Brady told investors the projects consisted of full‑scale rehabilitations of foreclosed properties in Rhode Island, Connecticut, Massachusetts, and New Hampshire, costing tens of thousands of dollars. In reality, the projects consisted of smaller preservation-type work costing far less. In many instances, Brady solicited investors and received funds for projects that did not exist. Of the 171 properties for which Brady ostensibly obtained investor fund for rehabilitation projects, 98 were for properties her company was never hired to preserve, and on which no work was ever performed.
To make her solicitations appear legitimate, Brady created fraudulent emails claiming she had won a bid to rehabilitate a property from an established national property preservation company. Although these emails included the name of an actual employee of the company, the company in fact had no such involvement with Brady and the employee’s name was used without permission. Brady collected more than $10 million in investor funds, some of which she used for personal expenditures.
After Brady was informed that she was the subject of an IRS investigation, she attempted to obstruct the investigation by asking her investors to delete all emails, texts, and documents relating to their investments in MNB rehabilitation projects.
On July 11, 2019, Brady pleaded guilty to charges of wire fraud, aggravated identity theft, and obstructing an Internal Revenue Service (IRS) investigation.
In addition to the term of imprisonment, U.S. District Court Judge John J. McConnell Jr. ordered Brady to serve three years of supervised release, to pay $4.78 million in restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Weisman thanked special agents of the IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Assistant U.S. Attorney Lee Vilker and Trial Attorney Christopher O’Donnell of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Raleigh County Woman Enters Guilty Plea to Health Care FraudRead the Press Release
Defendant fraudulently obtained over $300,000
CHARLESTON, W.Va. – Julie M. Wheeler entered a guilty plea for federal health care fraud, announced United States Attorney Mike Stuart. Wheeler, 43, of Beckley, faces up to 10 years of incarceration, a $250,000 fine, and three years of supervised release when sentenced on May 20, 2020. She will also be subject to an order of restitution in an amount ranging from $302,131 to $469,983, with the final determination to be made by the Court at sentencing.
“Can you imagine? Wheeler defrauded the Spina Bifida Health Care Benefits Program and in the process stole hundreds of thousands of dollars from taxpayers,” said United States Attorney Mike Stuart. “Taking advantage of the condition of spina bifida of a child for personal greed is truly a despicable crime. Wheeler even admitted that she defrauded the VA of hundreds of thousands of dollars and deprived the victim- a child diagnosed with spina bifida- of services. The VA provides critical benefits and services to heroic veterans and their dependents. Our veterans deserve better. The families of our veterans deserve better. And the victims of terrible conditions like spina bifida deserve all of God’s graces. Greed is a terribly destructive human condition.”
The VA provided health care benefits to certain Korean and Vietnam War veteran’s children who were diagnosed with spina bifida through the Spina Bifida Health Care Benefits Program. Spina bifida is a type of birth defect where there is an incomplete closing of the spine, potentially leading to complications including difficulty in walking, poor bladder or bowel control, and difficulty in mobility. A veteran’s child, K.L., received such a diagnosis and qualified for in home care through this VA program.
Wheeler was related to K.L and was also the owner of a homecare services company, JRW Homecare Support Services. Wheeler was hired to provide services to K.L. due to K.L.’s spina bifida condition at the VA approved rate of $736 a day to provide eight hours of daily services. Wheeler’s care was supposed to include bathing, grooming, changing K.L.’s clothes and other issues associated with K.L.’s hygiene, food intake, and lifestyle.
Wheeler submitted fraudulent applications where she filled out VA forms and was overpaid for providing care for K.L. Specifically, Wheeler did not provide K.L. the care for and during the time period described. Wheeler submitted claims to the VA stating that she provided care for K.L. eight hours a day, seven days a week, from October 2016 to April 2018 at the full daily rate of $736 a day. Wheeler gave a statement to the VA and the FBI admitting that she greatly inflated the rate and quality of the care that she provided to K.L. This was corroborated by other witnesses who provided statements that Wheeler did not provide eight hours of daily care. Wheeler further admitted that her conduct defrauded the VA of hundreds of thousands of dollars and deprived the victim of services. The victim of the spina bifida diagnosis, K.L., has since passed away.
Stuart praised the work of the Veterans Affairs - Office of Inspector General (VA-OIG), the Federal Bureau of Investigation, the Office of Veterans Affairs (VA), and the United States Department of Health and Human Services - Office of Inspector General (HHS-OIG). The investigation was conducted by members of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid (ARPO) Strike Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters.
Senior United States District John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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RI Businesswoman Sentenced in $10M Ponzi Scheme that Defrauded 23 IndividualsRead the Press Release
PROVIDENCE – An East Greenwich attorney and businesswoman who duped family members, friends, and business associates as she operated a $10.3 million Ponzi scheme to help finance an extravagant lifestyle, including a $1 million home, numerous expensive trips abroad and multiple trips to the Super Bowl, and luxury items such as her collection of Louis Vuitton shoes, was sentenced in U.S. District Court in Providence today to 8 years in federal prison and ordered to pay back her victims a total of $4.78 million.
Monique N. Brady, 45, whose company, MNB, specialized in preserving the condition of foreclosed homes for resale, previously admitted to the court that among those she defrauded were close friends in her community, a close friend from childhood and another from law school, a childcare provider for her children, an elderly Alzheimer’s patient, her step-brother, and three firefighters in the same city where her now ex-husband is employed as a firefighter.
As part of the scheme, Brady told investors that her company had secured contracts to perform large scale rehabilitation projects on foreclosed properties in Rhode Island, Connecticut, Massachusetts, and New Hampshire. She represented to a total of thirty-one investors that payments ranging from approximately $20,000 to $80,000 were needed to pay subcontractors to perform the work. In exchange for their investment, they were promised a return of fifty percent of the profit realized on the project they invested in. Many investors realized little or no return on their investment. Some investors invested in multiple projects.
In reality, MNB was hired by banks to perform menial tasks such as mowing grass, changing locks, winterizing properties, boiler or electrical inspections, and snow removal. The majority of projects secured by MNB were for less than $1,000. Many were for as little as $25 to a few hundred dollars.
To make potential investors believe she had secured contracts for large scale rehabilitation projects, Brady provided fraudulent emails purporting to be from a national property rehabilitation company claiming Brady had been approved to rehabilitate a property. Brady included in the emails fraudulent itemizations of work to be performed. Brady also included, without permission, the identity of an actual employee of the national property rehabilitation company in an attempt to make the emails appear authentic.
By the time the scheme ended after its discovery in the summer of 2018, twenty-three individuals had lost approximately $4.8 million to Brady. An investigation by Internal Revenue Service Criminal Investigation revealed that of the 171 properties for which Brady solicited and received funds from investors, 98 were for properties her company was never hired to preserve, on which no work was performed.
“Monique Brady took advantage of the trust many, many people put in her, with total disregard for the path of personal pain and financial ruin she left behind. Her conduct was reprehensible and heartbreaking,” said United States Attorney Aaron L. Weisman.
“I commend the hard work of investigators from IRS Criminal Investigation and FBI who put a stop to Monique Brady and her schemes, and the prosecution team of attorneys from our office and from the Department of Justice’s tax division that held her accountable. I hope the significant sentence imposed today by Chief Judge McConnell will bring some measure of justice to the many victims of Monique Brady.”
“Monique Brady operated a multi-year scheme in which her victims included some of her closest friends, a relative, and many others with whom she had community ties. Equally disturbing to the scheme is Brady’s attempt to cover her misdeeds by asking those same victims to delete and destroy the very evidence that would eventually lead to her prosecution.” said Special Agent in Charge Kristina O’Connell. “Though Brady’s victims have suffered both financial and emotional losses, I hope that today’s sentencing leaves them comforted by the fact that justice has been served.”
“The nearly two dozen people Monique Brady defrauded of millions included family, first responders, neighbors, childhood pals, and elders in the grips of dementia – people who trusted her to invest their life savings, only to be left with empty bank accounts and grief,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We at the FBI hope the victims find some measure of comfort in today’s sentence. “
Brady also admitted to attempting to obstruct an Internal Revenue Service criminal investigation when, after being told by IRS criminal investigators she was under investigation, she asked investors to delete or destroy all email correspondence, texts, and documents relating to their investments in MNB rehabilitation projects.
According to court documents, after Brady became aware of the investigation, she and her paramour, a Rhode Island attorney, secured a meeting with the Rhode Island Department of the Attorney General and the Rhode Island State Police, requesting they investigate the victims of this case for usury.
As the case proceeded toward federal indictment, Brady purchased a one way ticket to Vietnam. Once the FBI discovered Ms. Brady’s intention to leave the country, she moved her flight to an earlier departure date. Ms. Brady was arrested one day before her scheduled flight.
Ms. Brady pleaded guilty on July 11, 2019, to wire fraud, aggravated identity theft, and obstructing an IRS investigation.
At sentencing today, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Brady to 96 months imprisonment, 3 years’ supervised release, and ordered her to pay restitution to the victims totaling approximately $4.8 million.
The case was prosecuted by Assistant United States Attorney Lee Vilker of the District of Rhode Island and Trial Attorney Christopher O’Donnell of the Tax Division.
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Prince George’s County Felon Sentenced to More Than 5 Years in Federal Prison for Illegal Possession of a Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Warren Louis Taylor, Jr., age 48, of Suitland, Maryland, to 66 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition. The sentence was imposed on February 10, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Tim Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to Taylor’s guilty plea, on February 21, 2019, officers with the Prince George’s County Police Department were patrolling the area of an apartment complex in District Heights, Maryland, when they got out of their cars to investigate a strong odor of fresh and burnt marijuana. They saw two individuals in the back seat of a black Nissan Pathfinder and a cloud of smoke inside the vehicle. Taylor was seated behind the driver’s seat and a female was seated behind the front passenger’s seat. As the officers spoke with Taylor, they saw several marijuana cigarettes and loose marijuana and conducted a search of the vehicle. The officers located a .40-caliber semi-automatic pistol, loaded with seven rounds of .40-caliber ammunition, underneath the driver’s seat, directly in front of where Taylor was sitting. They also recovered approximately 198 grams of marijuana, $5,755 in cash, and drug distribution paraphernalia.
Taylor admitted that the firearm, drugs and cash belonged to him and that he planned to distribute the marijuana. Further, Taylor knew that he was prohibited from possessing a firearm or ammunition as a result of a previous felony drug conviction.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jessica Collins and Elizabeth Wright, who prosecuted the case.
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Postal Worker Charged with Stealing Packages Containing NarcoticsRead the Press Release
BOSTON – A U.S. Postal employee was arrested today and charged in federal court in Boston with stealing mail believed to contain controlled substances.
Shawn M. Herron, 44, of Whitman, Mass., was charged in a criminal complaint with one count of theft of mail. Herron was released on conditions following an initial appearance in federal court this afternoon.
Herron has been employed by the Postal Service since September 2005, and is currently a Manager of Customer Services at the Fall River Post Office. Prior to this position, he was the Supervisor of Customer Service at the Canton Post Office.
According to court documents, Herron tracked packages he suspected of containing narcotics and, rather than dealing with them appropriately, opened them and stole the contents for his own use. It is alleged that Herron profiled priority parcels from Puerto Rico and west coast U.S. states, and parcels flagged by law enforcement as potentially containing illegal narcotics, and then removed them from the U.S Mail stream. Herron tracked the suspected parcels through Postal Service databases and monitored their arrival at the Fall River Post Office (FPO). After their arrival at the FPO, Herron located the parcels and brought them to his personal office space, where it is alleged that he stole the narcotics and stowed them for personal use and possible distribution. These parcels often then disappeared from the mail stream altogether, and expected customers reported them as never being delivered.
The charging statute provides a sentence of up to five years in prison, at least three years of supervised release and up to a $250,000 fine. 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; Matthew M. Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburgh Man Served as a Drug Runner for DS44 Neighborhood GangRead the Press Release
PITTSBURGH, PA –A resident of Pittsburgh pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Keevan Jackson, 21, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute 40 grams or more of heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Jackson is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Jackson was involved in the distribution of heroin and fentanyl, including serving as a runner for co-conspirator Christopher Highsmith.
Judge Stickman scheduled sentencing for July 9, 2020, at 10:30 am. The law provides for a total sentence of not less than five years to not more than 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Jackson remains detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the
Wilkinsburg Police Department. Other assistingagencies include the Green Tree PoliceDepartment, New YorkCityPolice Department, Mount Oliver Police Department, PennsylvaniaState Police, Yonkers Police Department,United States Marshals Fugitive Task Force, and theUnited States PostalInspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement TaskForce Program (OCDETF). The OCDETF program supplies critical federal fundingandcoordination thatallows federaland state agencies to work together to successfully identify,investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pierre Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Andrew Bunch, age 30, was sentenced to 324 months in federal prison, followed by 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bunch was indicted by a federal grand jury on May 14, 2019. He pled guilty on November 19, 2019.
The conviction stemmed from a conspiracy beginning in the spring of 2018 and continuing through May 2019, in which Bunch, his friend Nathan Thoe (deceased), Nikki Hopkins and others, intentionally distributed and possessed with intent to distribute 2.2 kilograms of methamphetamine, a Schedule II controlled substance in and around the Pierre and Ft. Pierre areas.
During the course of the conspiracy, Bunch, Thoe, and Hopkins made numerous trips to Colorado to obtain methamphetamine. Bunch and Thoe routinely carried firearms on these trips and used firearms to protect their product. Hopkins was sentenced on January 27, 2020, to 10 years in federal prison.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Division of Criminal Investigation, the Pierre Police Department, the Stanley County Sheriff’s Office, the South Dakota Highway Patrol, and the Bureau of Indian Affairs. Assistant U.S. Meghan N. Dilges prosecuted the case.
Bunch was immediately turned over to the custody of the U.S. Marshals Service.
Pierre Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on February 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Loren Goodlow, age 30, was sentenced to 6 months in federal prison, followed by 6 months of home confinement, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Goodlow was indicted by a federal grand jury on October 16, 2018. He pled guilty on November 19, 2019.
The conviction stemmed from an incident in Lower Brule, South Dakota, on August 28, 2018, after Goodlow was arrested on tribal charges. During the booking process, Goodlow struck a correctional officer.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Goodlow was immediately turned over to the custody of the U.S. Marshals Service.
Part Owner of International Trading Business Sentenced to Three Years in Prison for Tax FraudRead the Press Release
A Saratoga, California, businessman was sentenced to 36 months in prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney David L. Anderson for the Northern District of California.
“The integrity of our tax system relies on all taxpayers filing accurate tax returns and dealing honestly with the Internal Revenue Service,” said Principal Deputy Assistant Attorney General Zuckerman. “Those who commit tax crimes by cheating on their returns and dealing falsely with the IRS expose themselves to criminal prosecution and prison.”
“The defendant’s luxury residence and vehicle reflect his true income, not the income he falsely underreported to the IRS,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “His crime was compounded by lying to the IRS when he was audited. Today’s sentence sends a clear message that those who intentionally conceal income and evade taxes will be held accountable for their crimes.”
According to the evidence presented at trial and information provided to the Court, Jyh-Chau “Henry” Horng was a minority owner of a home-based international trading business that sold scrap metal to China while that country was undergoing its economic and infrastructure boom. From 1999 through 2008, Horng failed to report on his tax returns millions of dollars in profits from the business. Horng and his wife used the business profits to buy residential properties in New York City and the San Francisco Bay area, invest over $5 million in a Milpitas shopping center, and purchase a Bentley. During an IRS audit of the returns, Horng made false statements to the Internal Revenue Service (IRS), including that neither he nor his wife had any foreign bank accounts. After the audit, Horng failed to file any tax returns from 2009 through 2018.
Horng was convicted by a jury in June 2018 of filing false tax returns and making false statements to an IRS agent while under audit. After the jury verdict, Horng also pleaded guilty to lying on a bank mortgage application.
In addition to the term of imprisonment, U.S. District Judge Beth Labson Freeman ordered Horng to serve three years of supervised release and to pay $1.1 million in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Anderson thanked special agents and a former special agent of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Michael Pitman and Trial Attorney Christopher Magnani of the Tax Division, who prosecuted the case, and Paralegal Specialist Jonathan Deville for his assistance during the trial.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Parmelee Couple Sentenced in Involuntary Manslaughter CaseRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, couple has been sentenced by Chief Judge Roberto A. Lange, U.S. District Court, based on their convictions in an Involuntary Manslaughter and Child Abuse case.
Dakota Horned Eagle, age 29, pled guilty on November 4, 2019, to Involuntary Manslaughter and Operating a Motor Vehicle While Under the Influence of Alcohol Causing Serious Bodily Injury to a Minor. On January 27, 2020, he was sentenced to 52 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Ashley Stoneman, age 25, pled guilty on November 18, 2019, to Child Abuse. On February 10, 2020, she was sentenced to 18 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
The couple was indicted by a federal grand jury on July 23, 2019.
The convictions stemmed from an incident that occurred on July 12, 2019, in Todd County, South Dakota. On that date, Horned Eagle and Stoneman were consuming alcoholic beverages and socializing at a residence in the He Dog Community. At approximately 1:00 p.m., they decided to drive back to their residence in nearby Parmelee. They loaded six children into their vehicle and departed the residence, with Horned Eagle driving and Stoneman riding in the front passenger seat. None of the children, who ranged in age from two months old to twelve years old, were secured with car seats or seat belts. Horned Eagle was intoxicated. A short time later, they were traveling on a gravel road between He Dog and Parmelee, when their vehicle left the roadway and wrecked. At the time of the wreck, Horned Eagle was driving at least 50 miles per hour (mph) in an area where the posted speed limit is 35 mph.
Two of the children in the vehicle suffered fatal injuries as a result of the wreck. The other four children in the vehicle sustained non-life-threatening injuries.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Horned Eagle and Stoneman were immediately turned over to the custody of the U.S. Marshals Service.
Owner of Car Dealership Charged with Engaging in Large-scale FraudRead the Press Release
NEWARK, N.J. – The former owner of a Ramsey, New Jersey, car dealership is scheduled to make his initial court appearance and be arraigned today on charges that he defrauded his customers and lenders, U.S. Attorney Craig Carpenito announced.
Afzal Khan, a/k/a “Bobby Khan,” 37, was charged by indictment in 2015 with five counts of wire fraud.
According to the documents filed in this case and statements made in court:
From at least December 2013 through September 2014, Khan, through his car dealership,
Emporio Motor Group (“Emporio”) of Ramsey, engaged in acts to defraud lenders to, and customers of, Emporio. As part of his criminal activities, Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible. Khan also obtained loans from the victim bank for cars that were delivered, but for which neither he nor Emporio had title. The purchasers of these cars were liable for the loans, but could not register the cars. Khan also offered to sell cars for individuals on consignment but thereafter did not return the cars or provide any money to the purchaser from the sale of the car.
As a result of Khan’s actions, the victim bank was exposed to a potential loss of more than $1.5 million.
Each count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Khan or twice the gross loss suffered to the victims of his offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment. He also thanked the Department of Justice’s Office of International Affairs, the Bergen County Prosecutor’s Office and the Ramsey Police Department for their assistance in the case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Oklahoma United States Attorneys Share National Concerns with Sanctuary City PoliciesRead the Press Release
The United States Attorneys from Oklahoma share Attorney General William Barr’s concerns with sanctuary policies in some cities across our nation expressed yesterday at the National Sheriffs' Association conference. (See remarks here.) U.S. Attorney Timothy J. Downing, Western District of Oklahoma, U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma, U.S. Attorney R. Trent Shores, Northern District of Oklahoma, and U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office Director Marc J. Moore collectively make the following statement:
Sanctuary city policies, however well intended, are misleading, uninformed, and detrimental to public safety. In reality, only criminals find sanctuary in sanctuary cities.
In partnership with the Field Office Director of Immigration and Customs Enforcement, we want to express our gratitude to the state, tribal, and local law enforcement authorities throughout Oklahoma that partner with federal agencies to improve public safety by enforcing federal immigration laws that were passed by Congress. These collaborative law enforcement relationships make Oklahomans safer by ensuring that dangerous criminals who are also unlawful aliens in our country are held accountable and removed from our communities.
Law enforcement agencies in Oklahoma understand that effective law enforcement includes immigration enforcement. However, there is a growing public-safety concern that sanctuary city policies seen in other states could find a foothold here in Oklahoma.
Despite claims to the contrary, so-called sanctuary policies do not protect illegal immigrants who came to our country but have otherwise been peaceful and productive members of society. Rather, the express purpose of sanctuary policies is to shelter illegal aliens whom local law enforcement have already arrested for other crimes. In short, sanctuary policies protect criminals and hurt immigrant communities.
Over the past year in Oklahoma, the vast majority of illegal aliens who have faced federal criminal charges and potential deportation have been previously convicted of felony offenses. Examples of those felony convictions include:
- Aggravated sexual assault of a child under 14 years of age
- Failure to register as a convicted sex offender
- Assault and battery with a dangerous weapon- automobile
- Assault and battery with dangerous and deadly weapons
- Battery with serious bodily injury
- Aggravated assault on a peace officer
- Domestic assault and battery
- Domestic assault and battery by strangulation
- Domestic assault and battery with a dangerous weapon
- Domestic assault and battery in the presence of a minor
- Possession of illegal drugs
- Possession of drugs with intent to distribute (heroin, crack, cocaine, methamphetamine and more)
- Money laundering
- Trafficking of illegal drugs
- Attempted armed robbery
- Driving under the influence of alcohol or drugs
- Conspiring to perform an act of violence
Individuals who engage in criminal activity, regardless of their immigration status, pose a danger in every community.
When state or local jurisdictions have custody of known or suspected illegal aliens, federal law enforcement may issue a detainer – a formal request to hold that criminal – so it can take appropriate action, including deportation, following the conclusion of the immigrant’s pending state proceeding. Honoring detainers is not anti-immigrant; rather, honoring detainers is anti-criminal and critical to protecting all Oklahomans, including immigrants.
The fact of the matter is that when sanctuary jurisdictions ignore lawful detainers, they release criminal aliens onto the street. These catch and release policies imperil the safety of every person in a community. Moreover, it puts into harm’s way law enforcement officers who are often tasked with locating released criminal aliens and executing arrest warrants. Importantly for Oklahomans, the consequences of sanctuary city policies do not exclusively impact sanctuary jurisdictions. Indeed, known criminal aliens released into so called “sanctuary cities” have traveled to neighboring jurisdictions, where they have committed heinous, violent crimes.
For these reasons, we stand with Attorney General Barr in his rejection of sanctuary city policies. We support Oklahoma’s immigrant communities and look forward to working with them to improve public safety. As such, we will continue working with our law enforcement partners and community leaders to hold accountable all criminals who violate our laws and harm our communities.
-U.S. Attorney Timothy J. Downing, Western District of Oklahoma
-U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma
-U.S. Attorney R. Trent Shores, Northern District of Oklahoma
- Field Office Director Marc J. Moore, U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office
SEE remarks from Attorney General William P. Barr regarding protecting public safety by enforcing immigration laws at the National Sheriffs’ Association Winter Legislative and Technology Conference
Oklahoma United States Attorneys Share National Concerns with Sanctuary City PoliciesRead the Press Release
The United States Attorneys from Oklahoma share Attorney General William Barr’s concerns with sanctuary policies in some cities across our nation expressed yesterday at the National Sheriff’s Association conference. (See remarks here.) U.S. Attorney Timothy J. Downing, Western District of Oklahoma, U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma, U.S. Attorney R. Trent Shores, Northern District of Oklahoma, and U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office Director Marc J. Moore collectively make the following statement:
Sanctuary city policies, however well intended, are misleading, uninformed, and detrimental to public safety. In reality, only criminals find sanctuary in sanctuary cities.
In partnership with the Field Office Director of Immigration and Customs Enforcement, we want to express our gratitude to the state, tribal, and local law enforcement authorities throughout Oklahoma that partner with federal agencies to improve public safety by enforcing federal immigration laws that were passed by Congress. These collaborative law enforcement relationships make Oklahomans safer by ensuring that dangerous criminals who are also unlawful aliens in our country are held accountable and removed from our communities.
Law enforcement agencies in Oklahoma understand that effective law enforcement includes immigration enforcement. However, there is a growing public-safety concern that sanctuary city policies seen in other states could find a foothold here in Oklahoma.
Despite claims to the contrary, so-called sanctuary policies do not protect illegal immigrants who came to our country but have otherwise been peaceful and productive members of society. Rather, the express purpose of sanctuary policies is to shelter illegal aliens whom local law enforcement have already arrested for other crimes. In short, sanctuary policies protect criminals and hurt immigrant communities.
Over the past year in Oklahoma, the vast majority of illegal aliens who have faced federal criminal charges and potential deportation have been previously convicted of felony offenses. Examples of those felony convictions include:
- Aggravated sexual assault of a child under 14 years of age
- Failure to register as a convicted sex offender
- Assault and battery with a dangerous weapon- automobile
- Assault and battery with dangerous and deadly weapons
- Battery with serious bodily injury
- Aggravated assault on a peace officer
- Domestic assault and battery
- Domestic assault and battery by strangulation
- Domestic assault and battery with a dangerous weapon
- Domestic assault and battery in the presence of a minor
- Possession of illegal drugs
- Possession of drugs with intent to distribute (heroin, crack, cocaine, methamphetamine and more)
- Money laundering
- Trafficking of illegal drugs
- Attempted armed robbery
- Driving under the influence of alcohol or drugs
- Conspiring to perform an act of violence
Individuals who engage in criminal activity, regardless of their immigration status, pose a danger in every community.
When state or local jurisdictions have custody of known or suspected illegal aliens, federal law enforcement may issue a detainer – a formal request to hold that criminal – so it can take appropriate action, including deportation, following the conclusion of the immigrant’s pending state proceeding. Honoring detainers is not anti-immigrant; rather, honoring detainers is anti-criminal and critical to protecting all Oklahomans, including immigrants.
The fact of the matter is that when sanctuary jurisdictions ignore lawful detainers, they release criminal aliens onto the street. These catch and release policies imperil the safety of every person in a community. Moreover, it puts into harm’s way law enforcement officers who are often tasked with locating released criminal aliens and executing arrest warrants. Importantly for Oklahomans, the consequences of sanctuary city policies do not exclusively impact sanctuary jurisdictions. Indeed, known criminal aliens released into so called “sanctuary cities” have traveled to neighboring jurisdictions, where they have committed heinous, violent crimes.
For these reasons, we stand with Attorney General Barr in his rejection of sanctuary city policies. We support Oklahoma’s immigrant communities and look forward to working with them to improve public safety. As such, we will continue working with our law enforcement partners and community leaders to hold accountable all criminals who violate our laws and harm our communities.-U.S. Attorney Timothy J. Downing, Western District of Oklahoma
-U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma
-U.S. Attorney R. Trent Shores, Northern District of Oklahoma
-Field Office Director Marc J. Moore, U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office
Oklahoma United States Attorneys Share National Concerns with Sanctuary City PoliciesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorneys from Oklahoma share Attorney General William Barr’s concerns with sanctuary policies in some cities across our nation expressed yesterday at the National Sheriff’s Association conference. (See remarks here) U.S. Attorney Timothy J. Downing, Western District of Oklahoma; U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma; U.S. Attorney R. Trent Shores, Northern District of Oklahoma; and U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office Director Marc J. Moore collectively make the following statement:
Sanctuary city policies, however well intended, are misleading, uninformed, and detrimental to public safety. In reality, only criminals find sanctuary in sanctuary cities.
In partnership with the Field Office Director of Immigration and Customs Enforcement, we want to express our gratitude to the state, tribal, and local law enforcement authorities throughout Oklahoma that partner with federal agencies to improve public safety by enforcing federal immigration laws that were passed by Congress. These collaborative law enforcement relationships make Oklahomans safer by ensuring that dangerous criminals who are also unlawful aliens in our country are held accountable and removed from our communities.
Law enforcement agencies in Oklahoma understand that effective law enforcement includes immigration enforcement. However, there is a growing public-safety concern that sanctuary city policies seen in other states could find a foothold here in Oklahoma.
Despite claims to the contrary, so-called sanctuary policies do not protect illegal immigrants who came to our country but have otherwise been peaceful and productive members of society. Rather, the express purpose of sanctuary policies is to shelter illegal aliens whom local law enforcement have already arrested for other crimes. In short, sanctuary policies protect criminals and hurt immigrant communities.
Over the past year in Oklahoma, the vast majority of illegal aliens who have faced federal criminal charges and potential deportation have been previously convicted of felony offenses. Examples of those felony convictions include:- Aggravated sexual assault of a child under 14 years of age
- Failure to register as a convicted sex offender
- Assault and battery with a dangerous weapon- automobile
- Assault and battery with dangerous and deadly weapons
- Battery with serious bodily injury
- Aggravated assault on a peace officer
- Domestic assault and battery
- Domestic assault and battery by strangulation
- Domestic assault and battery with a dangerous weapon
- Domestic assault and battery in the presence of a minor
- Possession of illegal drugs
- Possession of drugs with intent to distribute (heroin, crack, cocaine, methamphetamine and more)
- Money laundering
- Trafficking of illegal drugs
- Attempted armed robbery
- Driving under the influence of alcohol or drugs
- Conspiring to perform an act of violence
Individuals who engage in criminal activity, regardless of their immigration status, pose a danger in every community.When state or local jurisdictions have custody of known or suspected illegal aliens, federal law enforcement may issue a detainer – a formal request to hold that criminal – so it can take appropriate action, including deportation, following the conclusion of the immigrant’s pending state proceeding. Honoring detainers is not anti-immigrant; rather, honoring detainers is anti-criminal and critical to protecting all Oklahomans, including immigrants.
The fact of the matter is that when sanctuary jurisdictions ignore lawful detainers, they release criminal aliens onto the street. These catch and release policies imperil the safety of every person in a community. Moreover, it puts into harm’s way law enforcement officers who are often tasked with locating released criminal aliens and executing arrest warrants. Importantly for Oklahomans, the consequences of sanctuary city policies do not exclusively impact sanctuary jurisdictions. Indeed, known criminal aliens released into so called “sanctuary cities” have traveled to neighboring jurisdictions, where they have committed heinous, violent crimes.
For these reasons, we stand with Attorney General Barr in his rejection of sanctuary city policies. We support Oklahoma’s immigrant communities and look forward to working with them to improve public safety. As such, we will continue working with our law enforcement partners and community leaders to hold accountable all criminals who violate our laws and harm our communities.
- U.S. Attorney Timothy J. Downing, Western District of Oklahoma
- U.S. Attorney Brian J. Kuester, Eastern District of Oklahoma
- U.S. Attorney R. Trent Shores, Northern District of Oklahoma
- Field Office Director Marc J. Moore, U.S. Homeland Security, Immigration and Customs Enforcement (ICE) Dallas Field Office
Ohio man sentenced to 14 years for plotting attack on Cleveland’s July 4th parade in an effort to support al QaedaRead the Press Release
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 50 of Maple Heights, Ohio, was sentenced to 14 years of imprisonment and lifetime supervised release for attempting to provide material support to a foreign terrorist organization, as well as 5 years of imprisonment each for threats against the President of the United States and threats against family members of the President of the United States. All three terms of imprisonment will be served concurrently.
“This defendant plotted an attack on families and children in downtown Cleveland on July 4th, a day of utmost importance to all Americans, and he further attempted to undermine our democracy by making threats against the President and his family,” U.S. Attorney Justin Herdman said. “For this conduct, the defendant is deserving of every day of this 14 year sentence. The Department of Justice is committed to protecting our nation from people who adhere to violent ideologies and move to act upon them, whether they are in furtherance of their own personal aims or, like here, on behalf of terrorist groups like Al Qaeda. We are grateful to the FBI, the Cleveland Joint Terrorism Task Force, and all of our law enforcement partners for their vigilance and hard work in this case and many others.”
“Pitts, a U.S. citizen living in Ohio, pledged his allegiance to al-Qaeda, a foreign terrorist organization, and will now serve a lengthy sentence behind bars,” said FBI Special Agent in Charge Eric B. Smith. “The FBI and the Joint Terrorism Task Force will continue to use every available resource to disrupt those who seek to bring harm to our fellow citizens.”
According to an affidavit filed in the case and other court records, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts and the UCE met in Walton Hills, Ohio, in 2018, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, to retrieve items used to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where Pitts discussed the impending July 4th bombing: “And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off.” Pitts also expressed a desire to pack a car filled with explosives near the parade, as opposed to his original idea of remote control cars filled with explosives. Pitts reasoned that less time and skill were required to pack a car with explosives versus packing individual remote control cars. Pitts further disclosed additional reconnaissance planning prior to the parade:
DP: That’s why I said I’m going down there the 2nd and the 3rd by myself.
UCE: Alright. Because we gotta have this lined up.
DP: That’s why I’m not going down by the naval base this time. I’m walking the parade route, where they going.
UCE: Alright.
DP: I might find another pick, but that point is guaranteed. That’s the one we want.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
During this conversation, Pitts once again discussed the use of remote control cars, namely as a distraction. Pitts told the UCE that he believed cut up metal should replace BBs in the remote control cars, saying: “If BBs hit you, you can still live, but if shrapnel hits you – it will tear you up.” Pitts further stated remote control cars should be rolled underneath a police car or federal agent car and detonated so that it distracted law enforcement and parade goers while the larger bomb was detonated.
Pitts’ additional plan for remote control cars packed with metal and explosives was that they be given to children of military personnel to play with during the parade so that the children would unwittingly detonate the bombs.
Pitts was arrested at the conclusion of the July 1 meeting.
The FBI-Cleveland Division’s Joint Terrorism Task investigated the case, which was prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Jerry Teresinski of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
###
NDTX Round-Up February 11Read the Press Release
SENTENCING - JEAN LOUI VARGAS-MALAVE
On January 31, Jean Loui Vargas-Malave, 29, was sentenced 10 years in federal custody for conspiracy to possess methamphetamine with the intent to distribute. Vargas-Malave agreed to smuggle controlled substances onto commercial airlines at the Dallas/Ft. Worth International Airport (DFWIA). He, along with coconspirators, bypassed security at the DFWIA and loaded what they believed to be methamphetamine onto an American Airlines flight to Newark, New Jersey. This case was investigated by the Federal Bureau of Investigation, Criminal Investigations Division of the Internal Revenue Service, and the Dallas Police Department. This case was prosecuted by AUSA George Leal, AUSA John De La Garza, and AUSA John Kull.
GUILTY PLEA – HECTOR TORRES-GONZALEZ
On February 4, Hector Torres-Gonzalez, 44, pled guilty to aiding and abetting possession with the intent to distribute heroin. Torres-Gonzalez admitted to agreeing to distribute 24 kilograms of methamphetamine, 13 kilograms of heroin, and 91 grams of cocaine in April of 2019. Agents also found a pistol and $12,520 in Torres-Gonzalez’ possession. He faces up to 20 years in federal custody for his crimes. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA Rachael Jones.
SENTENCING – AUSTIN DAVID REED
On February 3, Austin David Reed, 27, was sentenced to 15 years in federal custody for the crimes of carjacking and using, carrying, and brandishing a firearm during a crime of violence. Reed stole a 2006 Acura from a victim by threatening the victim at gunpoint. After stealing the car, Reed led the officers pursuing him on a dangerous chase. Please click here to hear more about this case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department and was prosecuted by AUSA Ryan Raybould.
SENTENCING – JOHNNATTAN RAMIREZ
On February 3, Johnnattan Ramirez, 37, was sentenced to 25 years in federal custody and $182,942.96 in restitution for 3 counts related to robbery and 2 counts related to brandishing a firearm during a crime of violence. Ramirez was involved in three separate robberies of diamond and jewelry salesmen. Ramirez and his coconspirators would rent vehicles, conduct surveillance of the salesmen, and then apprehend their victims. The coconspirators would threaten the salesmen with guns and take their valuables, however on one occasion they also abducted a victim and took him to a nearby apartment complex. This case was investigated by the Federal Bureau of Investigations and prosecuted by AUSA Ryan Raybould.
SENTENCING – CRYSTAL DOUGLAS
On February 3, Chrystal Douglas, 35, was sentenced to 9 years in federal custody for maintaining a drug involved premises. Douglas allowed her coconspirator to conduct methamphetamine sales at her home in Arlington. In exchange, Douglas would receive personal use amounts of methamphetamine. Sometimes, Douglas was unaware of the amounts of methamphetamine being bought and sold in her house. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA Shawn Smith.
Multiple men convicted of trafficking cocaineRead the Press Release
LAREDO, Texas – A total of five men from Laredo have admitted to conspiracy and possessing with the intent to distribute various amount of cocaine, announced U.S. Attorney Ryan K. Patrick.
Christian Alejandro Enriquez, 27, pleaded guilty today. Luis Ernesto Lopez, 34, Martin Arturo Ramirez, 28, Jose Erasmo Saucedo Jr., 38, and Luis Antonio Villanueva, 41, previously entered their pleas.
In July 2016, authorities initiated an investigation into Saucedo’s street-level cocaine distribution activities. Between Feb. 2, 2017, and April 19, 2019, Saucedo conspired with Lopez, Ramirez, Villanueva and Enriquez in person and over the telephone to possess with intent to distribute cocaine.
Today, all five men admitted they were involved in the transportation of cocaine on various dates. On one occasion, Ramirez coordinated an event in which Lopez picked up a bag of 1.5 kilograms of cocaine from Villanueva’s house. On other dates, Saucedo and Enriquez also sold cocaine to undercover authorities.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing June 1, 2020.
Saucedo, Villanueva and Ramirez face a minimum of five and up to 40 years in prison and a possible $5 million fine. For their convictions, Lopez and Enriquez face a maximum 20-year-prison term and a possible $1 million fine.
Ramirez, Saucedo, Villanueva and Enriquez were permitted to remain on bond pending their sentencing hearings. Lopez has been and will remain in custody.
The Drug Enforcement Administration, Texas Department of Public Safety and Laredo Police Department conducted the long-term Organized Crime Drug Enforcement Task Force investigation dubbed Funion Fiesta. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Monroe County Man Found Guilty of Drug Distribution Resulting in Two DeathsRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vincent Ingino, age 28, of Stroudsburg, Pennsylvania, was found guilty of two counts of unlawfully distributing a controlled substance resulting in death after a five-day trial before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, jurors deliberated for approximately three hours before rendering the guilty verdicts against Ingino for the August 11, 2018 death of Victim 1, age 24, and the August 12, 2018 death of Victim 2, age 28, both from Monroe County, Pennsylvania.
Prosecutors from the U.S. Attorney’s Office presented the testimony of Dr. Rameen Starling-Roney, a Forensic Pathologist, and Dr. Michael Coyer, Forensic Toxicologist, who opined that fentanyl laced heroin caused the deaths of Victim 1 and Victim 2. Additional testimony was provided by Pennsylvania State Police Officers and other individuals related to the investigation who testified that Ingino first sold fentanyl laced heroin to Victim 1 on Friday night, August 10, 2018 and made another sale of fentanyl laced heroin to Victim 2 on Saturday night, August 11, 2018. FBI Special Agents and other individuals related to the distribution also testified.
“Drug dealers such as this defendant, who profit from their illegal enterprise, bear responsibility for the destruction, damage and death that they cause,” said U.S. Attorney Freed. “We are proud to work with our partners in the Monroe County District Attorney’s Office, the Pennsylvania State Police and the FBI to bring a measure of justice to two families who have lost loved ones. While we will continue to do all that we can to promote treatment for those with substance use disorders, my office will always hold the dealers who push poison in our streets to account.”
The investigation was conducted by the FBI – Scranton Office, the Pennsylvania State Police, and Detectives of the Monroe County District Attorney’s Office. Assistant United States Attorneys Michelle Olshefski and Jenny Roberts prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. The drug distribution resulting in death charge also carries a mandatory minimum penalty of 20 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mission Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on February 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Hunter Ritter, age 20, was sentenced to 30 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ritter was indicted by a federal grand jury on October 16, 2019. He pled guilty on November 19, 2019.
The conviction stemmed from an incident that occurred on August 9, 2019, wherein Ritter assaulted his domestic partner at their home in Mission, by striking her face with his hand and knocking her down. At the time of this incident, Ritter had two prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Ritter was immediately turned over to the custody of the U.S. Marshals Service.