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Thursday 19 December 2019
Shelbyville Man Sentenced to 72 Months for Distributing Child PornographyRead the Press Release
FRANKFORT, Ky. – A Shelbyville, Kentucky, man, Elder Rene Carrillo-Cruz, 28, was sentenced to 72 months in federal prison on Thursday, by United States District Judge Gregory F. Van Tatenhove, for distributing child pornography.
Carrillo-Cruz previously admitted that in March 2018, he knowingly distributed at least one video containing child pornography over the Internet. The investigation was the result of a Cyber Tipline report from the National Center for Missing and Exploited Children (NCMEC). As a result of the Cyber Tip, the Kentucky State Police conducted an investigation, which led them to obtain a search warrant that revealed evidence of the distribution of child pornography by Carrillo-Cruz.
Under federal law, Carrillo-Cruz must serve a minimum of 85 percent of his prison sentence. He will be under the supervision of the United States Probation Office for 20 years after being released.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI); and Rick Sanders, KSP Commissioner, jointly announced the sentence.
The investigation was conducted by the DHS-HSI and KSP. The United States was represented by Assistant United States Attorney David Marye.
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San Leandro Man Charged with Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Jose Victor Rodriguez, 36, of San Leandro, charging him with possession with intent to distribute at least 50 grams of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 25, Rodriguez led Manteca police officers on a high‑speed car chase during which he reached speeds of 110 miles per hour and covered 11.5 miles in 7 minutes. He then ran from his vehicle and was seen carrying a black bag that was later recovered and found to contain approximately 84 grams of methamphetamine in multiple separate packages.
This case is the product of an investigation by the FBI, Manteca Police Department, and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David Spencer is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of 40 years in prison and a mandatory minimum of five years in prison, and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Saint Louis Man Indicted for 2019 Attempted Armed Carjacking that Resulted in Victim's DeathRead the Press Release
St. Louis, MO – A federal indictment was returned today against Jalen Exavier Simms, 24, of Saint Louis, for his role in the June 3, 2019 death of victim Jabari Clark. The indictment specifically charges Simms with one count of the attempted carjacking of victim Clark’s 2012 Dodge Ram truck and one count of discharging a firearm in furtherance of that carjacking that resulted in victim Clark’s death.
If convicted, the both charges carry a maximum penalty of life imprisonment or the imposition of death. As is always the case, charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
“Gun violence and carjackings remain top priorities of this office. We continue to work with our federal, state, and local law enforcement partners to prevent these senseless acts of violence but, when they occur, we are committed to holding each and every perpetrator accountable to the fullest extent of the law,” said United States Attorney Jeff Jensen following the indictment’s return.
This case is being investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Romanian Nationals Plead Guilty in Federal Court to Illegal Possession of Device Making Equipment and Possession of Fifteen or More Counterfeit or Unauthorized Access DevicesRead the Press Release
United States Attorney Brandon J. Fremin announced that Cristian Constantin, age 20, and Mihaela Stancu, age 25, both of Romania, pled guilty before U.S. Chief Judge Shelly D. Dick. Constantin pled guilty to illegal possession of device making equipment and possession of fifteen or more counterfeit or unauthorized access devices. M. Stancu pled guilty to possession of fifteen or more counterfeit or unauthorized access devices. Earlier, on October 30, 2019, Petre Stancu and Antonio Serdaru pled guilty to possession of fifteen or more counterfeit access devices. As a result of their guilty pleas, these defendants face significant terms of imprisonment, fines, and a period of supervised release
On March 9, 2019, a bank fraud investigator with Capital One Bank began following the progress of a group of Romanians driving about Shreveport, Louisiana, using fraudulent credit cards to withdraw sums of cash from various Capital One Bank ATMs. The investigator then followed their progress from Shreveport to Baton Rouge, Louisiana, where the group continued to use those fraudulent cards to withdraw cash at Bank One locations in Baton Rouge.
Upon receiving this information from the investigator, Secret Service immediately passed it on to state and local law enforcement agencies, urging those agencies to rush personnel to those ATM locations to find and apprehend those suspects.
The investigator supplied information surrounding the vehicle makes, license plate numbers, and photographs of individuals in this group. Those photographs included one of a white Honda Accord, a black Mercedes, and a GMC Terrain. The investigator shared video stills depicting P. Stancu, Serdaru, and Constantin making fraudulent withdrawals at various Capitol One Bank ATM locations, as well as M. Stancu, marking those cards used by her brother, P. Stancu, to make those fraudulent withdrawals.
Secret Service received information of fraudulent activity occurring at the Bank One ATM at or near 6581 Siegen Lane/Industriplex. A deputy rushed to that location and found Constantin and a pregnant juvenile in a GMC Terrain. Law enforcement agents found over one hundred counterfeit credit cards, an encoder device, false identification documents for Constantin, and approximately $5,200.
Constantin later confessed that he used the credit cards to make fraudulent withdrawals from various Bank One ATM locations.
On March 11, 2019, Livingston Parish Sheriff’s Office deputies found and stopped the black Mercedes, driven by P. Stancu, and occupied by his sister, M. Stancu, Serdaru, and a juvenile in Walker, Louisiana. During this encounter, the juvenile female falsely claimed to be pregnant and requested deputies to allow her to go to the restroom. After deputies told the juvenile female to wait for an ambulance, she tried to hide a boost bag she was carrying beneath the Mercedes.
Deputies seized the bag and found it contained approximately $3,860 and 191 counterfeit cards. These cards contained re-encoded account numbers of customers who did their banking with Capital One and Regions Bank. During their search of the Mercedes, authorities found $931, four gift cards with re-encoded account numbers (counterfeit cards), and a cellular phone.
P. Stancu, M. Stancu and Serdaru admitted to authorities that they used those counterfeit cards to make fraudulent withdrawals from various ATM machines. Additionally, P. Stancu and Serdaru led authorities to the Honda Accord they left in a parking lot of the Home Depot in Denham Springs, Louisiana.
U.S. Attorney Fremin stated, “Access device fraud is a serious crime that can put citizens in great financial distress. This office will always take these crimes seriously and work with all of our partners to bring offenders to justice. I want to commend our prosecutor, the Secret Service, the Livingston Parish Sheriff’s Office, the East Baton Rouge Sheriff’s Office, and the investigators from Capital One Bank, whose quick action resulted in the arrest and conviction of these fraudsters.”
Tara McLeese, Resident Agent in Charge of the United States Secret Service in Baton Rouge, praised the quick response of local law enforcement. McLeese said, “Our partners in state and local law enforcement are critical to suppressing fraudulent financial activities. Through the Secret Service led Southwest Louisiana Financial Crimes Task Force, there are robust protocols and procedures in place to identify and capture individuals who choose to defraud the public.”
Livingston Parish Sheriff Jason Ard stated, “This case shows that agencies working together and sharing information can lead to great success. This type of crime heavily impacts these victims - not only taking their money, but targeting their way of living. When we can work together to take down a group of cowards attacking our hard-working citizens, it is a success in law enforcement.”
This matter is being investigated by the United States Secret Service, with critical assistance from the Livingston Parish Sheriff’s Office and East Baton Rouge Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Robert W. Piedrahita.
Rapid City Man Sentenced on Conspiracy ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 17, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Robert Cook, age 37, was sentenced to 4 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Cook joined a methamphetamine distribution conspiracy with other individuals no later than January 2017. During the course of the conspiracy, Cook received methamphetamine directly from different individuals and distributed the methamphetamine in Rapid City. Over the course of the conspiracy, at least 500 grams of methamphetamine was distributed in the Rapid City area.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Cook was immediately turned over to the custody of the U.S. Marshals Service.
Porcupine Woman Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, woman convicted of Larceny was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lorraine Yellow Boy, age 45, was sentenced on December 16, 2019, to 6 months in federal prison, followed by 1 year of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $30,661 in restitution.
The conviction stems from Yellow Boy, while employed as an Evidence Technician with the Oglala Sioux Tribe Department of Public Safety, taking $30,661 from evidence bags and using it for her personal benefit between October 2018 and March 2019.
The investigation was conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Yellow Boy was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Man Charged with Illegally Possessing Synthetic CannabinoidRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on Dec. 17, named Kris Johnson, age 28, as the sole defendant.
According to the indictment, on August 12, 2018, Kris Johnson possessed with the intent to distribute a quantity of 5-F ADB, a synthetic cannabinoid, a Schedule I controlled substance
The law provides for a maximum total sentence of not more than 20 years in prison, 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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Agency 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.
Pierre Man Indicted on Gun ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Nathen Doherty, a/k/a Nathan Doherty, age 22, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 13, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 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 May 11, 2018, Doherty, knowing he was an unlawful user of and addicted to a controlled substance as defined in 21 U.S.C. § 802, knowingly possessed a Remington Arms Company Incorporated, model 870 Express Super Magnum, 12 gauge, pump-action shotgun, which had been shipped and transported in interstate commerce and foreign commerce.
The charge is merely an accusation and Doherty is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Doherty was released on bond pending trial. A trial date has not been set.
Philip Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Philip, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 17, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Steven Frost, age 38, was sentenced to 5 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Frost, a previously convicted felon prohibited from possessing firearms, knowingly possessing a Mossberg, model 500A, 12 gauge pump shotgun, a Smith & Wesson, model Bodyguard, .380 caliber semi-automatic pistol, and a Taurus, model PT738, .380 caliber semi-automatic pistol, which were all found in Frost’s vehicle during a traffic stop near Black Hawk on January 5, 2018.
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.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the South Dakota Highway Patrol. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Frost was immediately turned over to the custody of the U.S. Marshals Service.
Owner of Golf Management Company Charged with Embezzlement of City Funds and Tax FraudRead the Press Release
BOSTON – A federal grand jury in Springfield returned an indictment today charging a Springfield golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
Kevin M. Kennedy, 41 of East Longmeadow, was indicted on three counts of theft concerning programs receiving federal funds, four counts of wire fraud, four counts of engaging in monetary transactions in excess of $10,000 with the proceeds of specified unlawful activity, eight counts of money laundering, and four counts of filing a false tax return, and one count of conspiracy to defraud the United States. Kent S. Pecoy, 62, and Jason Pecoy, 39, both of Wilbraham, were also charged with conspiracy to defraud the United States.
According to the indictment, Kennedy owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect greens fees and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
The wire fraud and money laundering charges provide for a sentence of up to 20 years in prison, five years of supervised release, and a fine of $250,000. The theft and monetary transactions charges provide for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. The tax fraud charges provide for a sentence of up to three years in prison, three years of supervised release, and a fine of $100,000. The conspiracy charges provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Christopher O’Donnell of the Justice Department’s Tax Division are prosecuting the case.
Owner of Golf Management Company Charged with Embezzlement of City Funds and Tax FraudRead the Press Release
A federal grand jury in Springfield, Massachusetts, returned an indictment today charging a local golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew E. Lelling for the District of Massachusetts. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
According to the indictment, Kevin M. Kennedy, a Massachusetts resident, owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect golfer fees, known as “greens fees,” and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, Massachusetts, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
If convicted, Kennedy faces a maximum of up to 20 years in prison for each count of wire fraud and money laundering, ten years in prison for each count of theft concerning a program receiving federal funds and for engaging in monetary transactions in property derived from specific unlawful activities, five years in prison for conspiracy, and three years in prison for each count of filing a false tax return. Kennedy also faces a term of supervised release, restitution and monetary penalties.
If convicted, the Pecoys each face up to five years in prison for the conspiracy count, a term of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney Steve Breslow from the District of Massachusetts and Trial Attorney Christopher O’Donnell of the Department of Justice’s Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owner of Detroit-Area Health Care Clinics Sentenced to Prison for a Diversion Scheme Involving 500,000 Pills of Oxycodone and Other DrugsRead the Press Release
The owner of a Detroit-area pain clinic and physical therapy clinic was sentenced to 11 years in prison today for her role in a diversion scheme involving more than 500,000 pills of oxycodone and other drugs.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Shirley Douglas, 70, of West Bloomfield, Michigan, was sentenced by U.S. District Judge David Lawson of the Eastern District of Michigan. In September, Douglas pleaded guilty to one count of conspiracy to distribute controlled substances.
As part of her guilty plea, Douglas admitted that, as the owner and operator of a pain clinic and a physical therapy clinic located in Southfield, Michigan, she conspired with others to distribute medically unnecessary controlled substances, including oxycodone, oxymorphone, alprazolam, hydrocodone and promethazine hydrochloride, through the selling of appointments with physicians at their pain clinics.
The total drug amount attributable to Douglas is in excess of 500,000 pills of oxycodone.
Douglas’s co-defendant, Malik Fuqua, pleaded guilty on Nov. 13, 2019, and is scheduled to be sentenced on Feb. 26, 2020.
The DEA and HHS-OIG investigated the case. Assistant Chief Malisa Dubal and Trial Attorney Patrick Suter of the Criminal Division’s Fraud Section are prosecuting the case. The case was previously prosecuted by Assistant Chief Drew Bradylyons and Trial Attorney Tom Tynan of the Criminal Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Owner of Scrap Metal Business Admits Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – The owner of a scrap metal business in Morris County, New Jersey, today admitted that he underreported his income on his personal tax returns, avoiding paying more than $175,000 in taxes, U.S. Attorney Craig Carpenito announced.
Anthony Curto Jr., 51, of Succasunna, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of making and subscribing a false tax return.
According to documents filed in the case and statements made in court:
Curto owned and operated Total Metal Transport, a business headquartered in Succasunna that purchased and transported scrap metal and other materials. Curto admitted that for tax years 2012 and 2013, he underreported and failed to report the gross receipts from Total Metal Transport, which he operated on a cash-only basis, on his personal tax return, avoiding more than $175,000 in taxes.
The count of making and subscribing a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 24, 2020.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the Health Care & Government Fraud Unit.
Orlando Man Sentenced to More Than 13 Years in Federal Prison for Armed Carjacking of Pizza Delivery DriverRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp has sentenced Sheldrick D. Singleton Jr. (20, Orlando) to 13 years and 4 months in federal prison for committing an armed carjacking, and for possessing a firearm during and in relation to a crime of violence. Singleton had pleaded guilty on August 26, 2019.
According to court records, on March 21, 2019, Singleton and two other suspects held a pizza delivery driver at gunpoint as the driver attempted to deliver a pizza in the Pine Hills area of Orlando. While holding the victim at gunpoint, Singleton and the other two suspects demanded the keys to the victim’s vehicle and drove away, leaving the victim behind. Approximately 20 minutes later, deputies located the vehicle in Winter Garden and attempted to stop the vehicle. The suspects refused to stop and fled, at speeds of more than 100 miles per hour. One of the pursuing deputies performed a tactical maneuver that successfully immobilized the vehicle. Singleton and the other two suspects were then removed from the vehicle and arrested.
One of the suspects, Anthony Sean Williams Jr., was indicted by a federal grand jury for the same offenses as Singleton and is currently pending trial. The third suspect is a minor and the matter is being handled in state court.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Winter Garden Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Omaha Man Found Guilty of Child Enticement ChargeRead the Press Release
United States Attorney Joe Kelly announced that Luis A. Tobar, age 44, of Omaha, Nebraska, was found guilty on December 18, 2019, following a two-day trial in federal court in Omaha for Attempted Coercion and Enticement of a Minor. The Honorable Robert F. Rossiter, Jr. scheduled Tobar’s sentencing for March 13, 2020 at 9:30 a.m. Tobar is facing a mandatory minimum of 10 years’ imprisonment and up to life imprisonment for this conviction.
On April 12, 2019, the FBI Child Exploitation and Human Trafficking Task Force (CEHTTF) was conducting an operation in Douglas County, Nebraska. As part of the operation, an undercover officer with the CEHTTF posted an advertisement on an escort website known to be used for the purposes of prostitution. Tobar responded to the advertisement and engaged in communications with an undercover officer who he believed to be a 15-year-old female. Believing that he was communicating with a 15-year-old female, Tobar requested that she send him nude pictures, agreed to pay her for sex, and traveled to an agreed upon location to meet her. Tobar was arrested by members of the CEHTTF and at the time of his arrest was found to be in possession of the cellular phone he used to communicate with the undercover officer, a large monetary sum, and alcohol.
This case was investigated by the FBI Child Exploitation and Human Trafficking Task Force. Douglas County Sheriff’s Office, Lincoln Police Department, Omaha Police Department, LaVista Police Department, Nebraska State Patrol, Council Bluffs Police Department, and the Sarpy Douglas County Law Enforcement Academy participated in the April 12, 2019 operation.
Ohio man admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Thomas Savage, of Wintersville, Ohio, has admitted to a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Savage, age 37, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Savage admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Savage faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio man admits to cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Mustafa Ali Vaughn, of Canal Winchester, Ohio, has admitted to drug distribution, U.S. Attorney Bill Powell announced.
Vaughn, also known as “Moose” and “Fargo,” age 38, pled guilty to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location.” Vaughn admitted to selling cocaine near Luau Manor in Ohio County in May 2019.
Vaughn faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
O.C. Immigration Lawyer Sentenced to 18 Months in Federal Prison for Long-Running Visa Fraud Scheme and Tax OffensesRead the Press Release
SANTA ANA, California – A Laguna Beach lawyer was sentenced today to 18 months in federal prison for submitting dozens of fraudulent visa petitions to U.S. immigration authorities and for failing to report her illicit funds to the IRS.
Mihae Park, 54, was sentenced by United States District Judge Josephine L. Staton, who scheduled a March 6 hearing on the amount of restitution to be paid.
Park pleaded guilty on May 16 to a two-count information charging her with visa fraud and filing a false tax return.
Between 2000 and 2017, Park submitted to U.S. Citizenship and Immigration Services (CIS) more than 200 immigrant and non-immigrant work visa petitions that had false information. The petitions sought visas for foreign nationals based on false claims that they were going to work in highly skilled or executive positions at various businesses, when, in reality, they would not be employed by those companies, or they worked in low-level positions for which a visa would not be available. Among other false information contained in the visa petitions, Park claimed that she was employed by the petitioners under the alias Michelle Park, stated the businesses had employees who were actually deceased or retired people, listed the same people as employees at multiple petitioners, used bogus Social Security numbers for employees of petitioners, and submitted fake tax returns for work visa petitioners.
The charging information cited two particular examples of Park’s visa fraud that occurred in 2013, when she submitted two fictitious petitions on behalf of an Orange County educational company. The petitions were submitted for two people she claimed would work there, respectively, as a Chinese language teacher and as a music instructor. In reality, the company did not know or hire the two work visa beneficiaries, and the company did not offer classes in Chinese language or music.
“The crux of [Park’s] fraud was that she submitted petitions on behalf of entities without their knowledge, for the benefit of individuals who were not their employees, and disclosed none of that to CIS,” prosecutors wrote in the government’s sentencing papers.
Park also admitted filing false tax returns for the years 2009 through 2014 by failing to report receipts totaling $763,418 for this time period. As a result of her underreporting of her business income, Park admitted in her plea agreement that she owes the IRS $266,988 in unpaid federal income tax over this six-year period.
The government seized $292,482 that Park received for the filing of fraudulent visa petitions, and also seized a 2012 Ferrari California and a 2015 Volkswagen GTI that Park purchased with the visa fraud proceeds.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services, and IRS Criminal Investigation.
This case was prosecuted by Assistant United States Attorneys Lawrence E. Kole of the Santa Ana Branch Office and Brent A. Whittlesey of the Asset Forfeiture Section.
North Carolina Man Sentenced to 10 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Newton, North Carolina, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 12, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gregory Skrehot, age 59, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
From February 2017 through February 25, 2018, Skrehot conspired and agreed with others to receive methamphetamine directly from suppliers in Colorado. Skrehot would transport the methamphetamine to Rapid City, where he would then distribute it to numerous individuals. Over the course of the conspiracy, at least 500 grams of methamphetamine was distributed in the Rapid City area.
This case was investigated by the Unified Narcotics Enforcement Team (UNET) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Skrehot was immediately turned over to the custody of the U.S. Marshals Service.
North Carolina Man Residing in Deschutes National Forest Sentenced for Failing to Register as a Sex OffenderRead the Press Release
EUGENE, Ore.—A North Carolina man illegally residing in the Deschutes National Forest was sentenced to federal prison today after months of failing to register as a sex offender.
Russell Joseph Szkolnyj, 51, of Wake County, North Carolina was sentenced to 18 months in federal prison and five years’ supervised release.
According to court documents, in 2006, Szkolnyj was convicted of indecent liberties with a six-year-old child and ordered to register as a sex offender. He was later convicted in 2009 and 2012 for failing to register in North Carolina. By May 2018, Szkolnyj had once again failed to register prompting the Wake County, North Carolina Sheriff’s Office to seek and obtain a warrant for his arrest.
Sometime thereafter, Szkolnyj relocated to Oregon and, in July 2018, was advised by John Day, Oregon police officers of his need to register. Ten days later, Szkonyj, who still had failed to register, was contacted by Bend, Oregon police officers investigating the theft of a paddleboard in a public park. Szkolnyj gave the officers a false name and was ultimately convicted for the theft and sentenced to probation.
On November 2018, Szkolnyj was found to be residing in the Deschutes National Forest. U.S. Forest Service law enforcement officers advised Szkonyj that he could not reside on public land and must immediately vacate the forest. The officers discovered that Szkonyj was still not registered as a sex offender and referred the matter to the U.S. Marshals Service and U.S. Attorney’s Office for prosecution.
The U.S. Marshals Service investigation determined that by January 2019, Szkolnyj was staying in Hood River, Oregon and likely heading toward Portland. The Marshals worked closely with several local law enforcement agencies along the Interstate 84 corridor and in the Portland Metropolitan area to locate and track Szkolnyj. Szkolnyj was arrested by Hillsboro, Oregon police officers on February 23, 2019. At the time of his arrest, Szkolnyj had been in at least five Oregon counties over an 8-month period while failing to register as a sex offender.
On September 5, 2019, Szkolnyj pleaded guilty to one count of failing to register as a sex offender.
This case was investigated by the U.S. Forest Service and the U.S. Marshals Service with assistance from the Hillsboro and Hood River Police Departments. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Nine Defendants Indicted for Trafficking Heroin and Methamphetamine in San Joaquin CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 10-count indictment today against nine defendants, charging them with various drug and firearms offenses, U.S. Attorney McGregor W. Scott announced.
The defendants are:
Jose Encarnacion Mayo Rodriguez, 32, of Lathrop;
Sylvia Zambrano, 56, of Lathrop;
Yesenia Lopez, 38, of Lathrop;
Maria Luisa Escamilla-Lopez, 39, of Stockton;
Juan Chavarria, 19, of Stockton;
Juan Ramon Lopez, 39, of Stockton;
Nereyda Alvarez, 32, of Stockton;
Phillip Allen Bailey, 48, of Stockton; and
Charles James Billingsley Jr., 51, of Stockton.
According to court records, Mayo led a drug trafficking organization in San Joaquin County that included several family members and associates. Mayo and his co-defendants met with an undercover agent five times between March and Oct. 2019 and sold undercover law enforcement officers heroin and methamphetamine. Law enforcement seized 28 pounds of methamphetamine and 2 pounds of heroin from co-defendant Yesenia Lopez during a traffic stop. On Dec. 5, agents executed search warrants at eight locations, which resulted in the seizure of over 44 pounds of methamphetamine, 10 pounds of heroin, 2 pounds of cocaine, 10 firearms, and $128,000 in cash.
This case is the product of an investigation by the U.S. Drug Enforcement Administration with assistance from the California Highway Patrol.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug-trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted of the most significant charges, each defendant faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. Any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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.
Newark Man Sentenced to 10 Years in Prison for Firearms Offense Related to Shooting of 5-Year-Old GirlRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for being convicted of being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Jamar Battle, 31, was previously convicted after a three-day trial before U.S. District Judge William J. Martini on one count of being a felon in possession of a firearm and ammunition. The jury deliberated two hours before delivering the guilty verdict. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On the evening of July 4, 2018, Battle was involved in an argument with his girlfriend and was waiting for her outside of her home. After she arrived near her home, Battle fired six shots at the car she had been riding in as it pulled away. He did not hit his intended target, but did hit a 5-year old girl who had been walking with her father after watching a neighborhood fireworks display. The child survived the shooting but suffered a major injury that required immediate medical attention.
Prior to this shooting, Battle had been convicted of six felonies. In 2015, Battle was sentenced to New Jersey State Prison on two firearms offenses and had just been released from prison in May 2018.
In addition to the prison term, Judge Martini sentenced Battle to three years of supervised release.
U.S. Attorney Carpenito credited law enforcement officers of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose; special agents of the Department of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens 2nd, with the investigation leading to today’s sentencing.
The government was represented by Senior Trial Counsel Robert Frazer and Special Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey
New Haven Man Sentenced to PrisonRead the Press Release
FORT WAYNE – Adonnis Carswell, age 34, of New Haven, Indiana was sentenced before U.S. District Court Judge Holly A. Brady following his conviction after a 4-day jury trial in September 2019, announced U.S. Attorney Kirsch.
Carswell was sentenced to 421 months in prison followed by 3 years of supervised release.
”Today Mr. Carswell received a justified 35 year sentence,” said U.S. Attorney Kirsch. “A sentence like this should send a strong message of deterrence to others who wish to be part of similar activities. My Office and our law enforcement partners will continue to investigate, prosecute and seek lengthy prison sentences for these type of crimes.”
According to evidence presented at trial, in June 2017, a search warrant was executed on a residence in New Haven, Indiana where Carswell lived. During the search agents found numerous firearms (to include a Smith and Wesson pistol, a Scorpion Pistol and a rifle which contained a 100 round drum magazine and 124 rounds of ammunition), over 60 grams of heroin, along with other indicia of drug distribution (packaging, scales, and over $25,000 in cash). A jury found Carswell guilty of maintaining a place for purposes of distributing a controlled substance (cocaine, heroin and marijuana), possessing with intent to distribute less than 100 grams of heroin, possessing a firearm in furtherance of the drug trafficking crime, and being a convicted felon in possession of a firearm as charged in Counts 1-4 of the Indictment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Indiana State Police with the assistance of the New Haven Police Department as well as the Drug Enforcement Administration and Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorneys Anthony Geller and Sarah Nokes.
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New Castle Defendant Now Facing Additional Drug ChargeRead the Press Release
PITTSBURGH, PA - A federal grand jury returned a Superseding Indictment today against a resident of New Castle, Pennsylvania, on charges of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment, returned on Dec. 17, named Zaamar Stevenson, aka Scrap, age 43, as the sole defendant.
According to the Superseding Indictment, on or about November 9, 2015, the defendant conspired to distribute and to possess with intent to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance, and a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance. In addition, the Superseding Indictment charges the defendant with possessing with intent to distribute both of those drugs on that date.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, 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.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Butler County District Attorney's Drug Task Force and the Federal Bureau of Investigation conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mt. Vernon Woman Pleads Guilty in Federal Court to Health Care FraudRead the Press Release
United States Attorney Ron Parsons announced that Nancy Tingle, age 53, of Mt. Vernon, South Dakota, appeared before U.S. District Judge Karen E. Schreier on December 16, 2019, and pled guilty to an Information that charged her with Health Care Fraud.
According to court documents, between on or about 2012 and continuing until the fall of 2018, Nancy Tingle knowingly and willfully executed and attempted to execute a scheme and artifice to defraud a health care benefit program to obtain, by means of false and fraudulent pretenses, representations, and promises, property owned by and under the custody and control of a health care benefit program in connection with the delivery of and payment for health care benefits, items, and services. Specifically, Tingle worked as the business office manager at Firesteel Healthcare Community in Mitchell, South Dakota. At times relevant to this case, Tingle defrauded Firesteel Healthcare Community of funds and monies, and in doing so, Tingle manipulated Medicaid funds intended for Firesteel Healthcare Community. Tingle knew that she was not authorized to receive the funds and monies of Firesteel Healthcare Community and that she used the fraudulently obtained funds on personal items and personal expenditures. The loss amount attributable to Tingle’s fraudulent conduct exceeded $450,000. She also failed to pay taxes on the taxable income that she obtained through fraud, resulting in over $100,000 of back taxes.
The investigation was conducted by the U.S. Department of Health and Human Services – Office of the Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Jeremy Jehangiri.
A presentence investigation was ordered and a sentencing date of March 9, 2020, has been set. The defendant was released on bond pending sentencing.
Monongalia County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Derrick Morris, of Morgantown, West Virginia, was sentenced today to 60 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Morris, age 32, pled guilty to one count of “Use of a Firearm During and in Relation to a Drug Offense” in September 2019. Morris, who is prohibited from having a firearm because of a previous conviction, is admitted to having a .45 caliber semi-automatic pistol during a drug offense in Monongalia County in November 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Miramar Man Sentenced to Five Years for Participating in $1.5 Million Apple Pay Fraud ConspiracyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Laurent Pierre-Louis (31, Miramar) to five years in federal prison for conspiracy to commit wire fraud and aggravated identity theft. Pierre-Louis had pleaded guilty on April 10, 2019.
According to court documents, Pierre-Louis and others fraudulently obtained access to at least 477 credit card accounts and linked those accounts to the Apple Pay app on their iPhones. Then, using their iPhones, Pierre-Louis and his co-conspirators made purchases using their victims’ credit card accounts, without having to present actual credit cards to retailers. Pierre-Louis, alone, was linked to over 1,800 fraudulent credit card transactions. Collectively, the conspirators made more than $1.5 million in fraudulent purchases.
Pierre-Louis’s co-defendants were previously sentenced as follows - Johnny Max Wesley (24, Miami) to 48 months in federal prison; Daniel Butler (30, North Miami) to 54 months’ imprisonment; and Rachel Bishop (27, Miami) to 12 months’ probation, to be served while on home detention.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Minnesota Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Saint Cloud, Minnesota, man has been indicted by a federal grand jury for Production of Child Pornography, Transfer of Obscene Material to a Minor, Travel with Intent to Engage in Illicit Sexual Conduct with a Minor, and Attempted Enticement of a Minor Using the Internet.
Nathan Paul Grondahl, age 24, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on December 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, life of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 19, 2019, Grondahl knowingly persuaded a minor to engage in sexually explicit conduct for the purpose of producing visual depictions, knowing such depictions would be transported in interstate or foreign commerce, or mailed, and would be produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by a computer. Grondahl also used a cellular telephone to transfer and attempt to transfer obscene materials to a minor, who had not attained the age of 16.
The Indictment also alleges that on November 22, 2019, Grondahl knowingly traveled to engage in sexual conduct with the same minor. Grondahl again used his cellular telephone to attempt to knowingly persuade that minor to engage in sexual activity.
The charges are merely accusation and Grondahl 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.
Grondahl was released on bond pending trial. A trial date has not been set.
Mid-Wilshire Cancer Doctor and His Medical Office Agree to Pay over $3 Million to Settle Claims They Defrauded Medicare and Medi-CalRead the Press Release
LOS ANGELES – The Department of Justice announced today that Nassir Medical Corp. and its owner, Dr. Youram Nassir, have agreed to pay the United States and California $3,356,565 to settle False Claims Act allegations that they defrauded public health care programs by billing for oncology drugs and services that were not actually provided to patients.
Nassir Medical Corp., which does business as Cancer Care Institute, is a hematology and oncology practice based in in the Mid-Wilshire area of the City of Los Angeles. This medical office specializes in treating cancer patients and such treatment often requires physicians to prescribe, dispense, infuse, and administer a variety of oncology drugs. Medicare and Medi-Cal reimburse physicians both for the cost of drugs themselves and for the cost of infusing and administering those drugs to patients.
Between January 2010 and December 2013, Nassir Medical Corp. and Nassir allegedly violated the False Claims Act by submitting bogus claims to Medicare and Medi-Cal, according to this case’s settlement agreement. The defendants allegedly billed public health programs for drugs that were not actually purchased, dispensed, or administered, and for infusion services that were not actually provided. The defendants have agreed to pay $2,377,675.51 to the United States and $978,907.49 to California.
Nassir Medical Corp. and Nassir also have entered into an integrity agreement with the United States Department of Health and Human Services, Office of Inspector General.
This settlement resolves allegations originally brought in a lawsuit filed in 2016 by Kenneth Bryan, a retired health care consultant and administrator, under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions permit private parties to sue on behalf of the government for false claims for government funds and to share in any recovery. Mr. Bryan will receive more than $475,000 from the federal government as his share of the settlement amount.
Assistant United States Attorney Ross M. Cuff of the Civil Fraud Section represented the United States in this matter, which was investigated by agents from the United States Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned United States, et al., ex rel. Bryan v. Nassir Medical Corp., et al., 16-cv-2289-JAK (C.D. Cal.). The claims resolved by the settlement are allegations only. There has been no determination of liability.
Member of Syndicato de Nuevo Mexico prison gang faces federal charges of racketeering and firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Jody Rufino Martinez, 40, of Truchas, New Mexico appeared in federal court in Albuquerque yesterday for arraignment on a superseding indictment charging him with racketeering and being a felon in possession of a firearm.
A grand jury returned the superseding indictment charging these offenses on Dec. 11, 2019. A grand jury previously indicted Martinez on Oct. 16, 2019, for the firearm offense only. According to the superseding indictment, Martinez was a member of the Syndicato de Nuevo Mexico gang from 1998 through June 7, 2019. SNM is a powerful and violent prison gang formed soon after a deadly riot at the Penitentiary of New Mexico in 1980. SNM has allegedly controlled drug distribution and other illegal activities within the New Mexico prison system and engaged in street-level narcotics trafficking.
The superseding indictment accuses Martinez of racketeering conspiracy for conducting affairs of the SNM gang as a criminal enterprise through a pattern of criminal activity. This activity allegedly included beating a corrections officer on Oct. 31, 1999, and shooting a rival and intimidating a witness on Oct. 24, 2018.
Martinez is currently in custody awaiting trial on the superseding indictment. He faces up to 20 years in prison for racketeering and up to 10 years in prison for being a felon in possession of a firearm. An indictment is only an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The FBI investigated this case with the New Mexico Corrections Department and the New Mexico State Police. Assistant U.S. Attorneys from the Las Cruces Branch Office are prosecuting the case.
Matthews, N.C. Man Sentenced to 10 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – Gino Aristoteles Costa, 43, of Matthews, N.C. was sentenced late yesterday to 121 months in prison for transportation of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also ordered Costa to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in November 2017, Costa was using a peer-to-peer network to access and transport multiple files containing child pornography. HSI agents were able to successfully download multiple files of child pornography from Costa during this time period. During a subsequent search of Costa’s residence, law enforcement seized Costa’s computer. Costa admitted he downloaded child pornography videos for several months, some depicting the sexual abuse of children as young as toddlers.
Costa pleaded guilty on July 8, 2019, to transportation of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked HSI for conducting the investigation. Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. 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.
Man from Albuquerque sentenced to more than 14 years in prison for robbery and firearms chargesRead the Press Release
ALBUQUERQUE, N.M. – Anthony Romero, 38, of Albuquerque, New Mexico, was sentenced in federal court in Albuquerque on Dec.16 to more than 14 years (171 months) in prison for interference with interstate commerce by robbery and using, carrying, and discharging a firearm during and in relation to a crime of violence.
Romero pleaded guilty to these offenses on Sept. 3. In his plea agreement, he admitted robbing a pizza restaurant in Albuquerque on May 9, 2017. Romero went to a drive-through window and threatened an employee with a firearm. He fired two shots from a .45 caliber revolver and then entered the restaurant through the window where he forced the employee to empty three cash registers. Romero fled the scene with the money in a leather bag. In Romero’s plea agreement, he also admitted to committing other robberies the same day.
The FBI investigated the case with the Albuquerque Police Department. Special Assistant U.S. Attorney Timothy Trembley prosecuted the case as part of the U.S. Attorney’s Office’s “SAUSA Partnership” with the Bernalillo County District Attorney’s Office, a joint initiative designed to reduce violent crime in Albuquerque.
Madison Man Sentenced to 150 Months for Shooting Man During Drug DealRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James E. Taylor, 37, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 150 months in prison for discharging a firearm during a drug deal. Taylor pleaded guilty to this charge on August 19, 2019.
In April 2016, Taylor arranged to purchase marijuana from a Town of Madison man. During the transaction, Taylor and the man got into a physical fight and Taylor pulled a gun from his pocket and pointed it at the man. The two continued to struggle and Taylor shot the man in the head, then stole the man’s marijuana. The man survived the shooting, but had to undergo surgery and has a lasting injury. Taylor fled the state and was later arrested on an unrelated warrant in Rockford, Illinois.
In sentencing Taylor, Judge Conley considered Taylor’s lengthy criminal history and the fact that Taylor kept going back to crime even though many people tried to help him. Judge Conley told Taylor that he was out of time to change, and that the next time he commits a crime, he will likely go to prison for the rest of his life. Judge Conley also noted that bringing a gun to a drug deal is tempting fate, and but for a chance intervention and life-saving surgery, the man that Taylor shot likely would have died.
The charge against Taylor was the result of an investigation conducted by the Town of Madison Police Department, with the assistance of the Wisconsin Department of Justice Division of Criminal Investigation, Dane County Sheriff’s Office, and UW-Madison Police Department. The prosecution of the case has been handled by U.S. Attorney Scott C. Blader and Assistant U.S. Attorney Laura Przybylinski Finn.
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, prosecutors and communities to prevent and deter gun violence.
MS-13 defendant sentenced to 40 years in prison for role in 3 murders, drug trafficking, extortion, money laundering, assaultRead the Press Release
COLUMBUS, Ohio – Jose Manuel Romero-Parada, 25, formerly of Indianapolis, was sentenced in U.S. District Court today to 480 months in prison.
Romero-Parada, also known as “Russo,” is one of 23 individuals charged in a second superseding indictment in February 2018 who are alleged to be members and associates of MS-13 in Columbus.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
The second superseding indictment alleges that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
Romero-Parada pleaded guilty in August 2019. He took responsibility for his role in the murders of Carlos Serrano-Ramos and Wilson Villeda, as well as his involvement in drug trafficking, extortion, money laundering and assault.
As part of his plea, Romero-Parada also accepted responsibility for his role in an additional, unindicted murder that took place in 2017 in Indianapolis. Israel Anibal Mejia-Martinez was killed and dismembered with bladed weapons and buried in Grassy Creek Regional Park in Indianapolis. Law enforcement officers from Columbus and Indianapolis found his remains in August 2018.
In 2019, six defendants in this case have been sentenced. A total of 14 defendants have pleaded guilty this year.
The lead defendant, Martin Neftali Aguilar-Rivera (also known as Momia), was sentenced in October to life in prison with no chance of release.
“The purpose behind the brutality of the murders committed by MS-13 was to send a message to anyone who dare threaten their existence,” said U.S. Attorney David M. DeVillers. “Let this sentence be a message to MS-13 that we are threatening the existence of this transnational criminal organization.”
DeVillers is joined by Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Thomas Quinlan announced the sentence imposed today by U.S. District Court Judge Edmund A. Sargus, Jr. Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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Mayor of Taylor and Two Others Indicted for Bribery and FraudRead the Press Release
A thirty-three count Indictment unsealed today charges City of Taylor Mayor Richard “Rick” Sollars, businessman Shady Awad, and Taylor Community Development Manager Jeffrey Baum with conspiracy to commit bribery in a scheme spanning from 2015 to 2019, United States Attorney Matthew Schneider announced. The Indictment also charges Sollars and Awad with seven counts of bribery each, and charges Sollars and Baum with 18 counts of Wire Fraud.
According to the Indictment, Sollars helped Awad’s real estate development company Realty Transition LLC obtain scores of tax-foreclosed properties owned by the City of Taylor. In return, Awad lavished Sollars with thousands of dollars in cash and over $30,000 in renovations to Sollars’s home, over $11,000 in renovations to Sollars’s lake house, and over $12,000 in new household appliances. The appliances included a refrigerator, stove, microwave, dishwasher, a $1,600 cigar humidor, a vacuum cleaner, and a clothes washer and dryer. The free renovations provided to Sollars by Awad include hardwood floors on every level of Sollars’s Taylor residence, hardwood floors at the lake house, a garage door, a new front door, cabinets, and a refurbished lake house deck. The Indictment also alleges that Jeffrey Baum received bribes from Awad and another developer, in exchange for Baum’s help in obtaining tax-foreclosed properties from the City.
Text messages between Sollars, Awad, and Baum cited throughout the Indictment document the bribe scheme. In one text, Awad states as follows: “My relationship with Rick is worth $1 million so whatever it takes I’ll pay for it” in telling a contractor to do free work on Sollars’s lake house. In another text, the Indictment states that Awad told Sollars that Sollars was Awad’s “silent partner” in Awad’s real estate development business. Sollars, 45, is a resident of Taylor. Awad, 39, and Baum, 44, are both residents of Allen Park, Michigan.
The Indictment also charges Sollars and Baum with 18 counts of Wire Fraud, alleging that Sollars and Baum defrauded donors to Sollars’s campaign fund in three ways. First, Sollars would take checks from his campaign account and write them payable to a particular market, purporting to pay for catering for one of Sollars’s events. Instead, the market owner would cash the campaign checks and give the cash back to Sollars, with no catering provided. Second, Sollars and Baum would direct Sollars’s supporters to write checks directly to the market for events that never occurred. Sollars would get cash and scratch-off lottery tickets from the market owner. Third, Sollars and Baum would solicit and accept thousands of dollars in cash contributions to Sollars’s campaign. Instead of depositing the funds into his campaign account, Sollars would simply keep the cash and use it for personal expenses.
The Indictment also seeks forfeiture of $205,993 in cash seized from Sollars’s home on February 10, 2019.
Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
“The unearthing of allegedly blatant corruption at the top levels of government in the City of Taylor should disturb every citizen of our state,” said United States Attorney Matthew Schneider. “Federal law enforcement will continue to aggressively investigate and prosecute any public officials who choose their personal greed over their public oath.”
"Any time an allegation of corruption is brought to our attention, the FBI's Detroit Area Public Corruption Task Force will investigate it thoroughly. Public corruption at any level undermines the community's faith in their elected officials and does long-term damage to government institutions," said SAC D'Antuono. "With that in mind, we encourage anyone who believes they have information about corruption to contact the FBI at 313-965-4545 or tips.fbi.gov."
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys Dawn Ison and R. Michael Bullotta.
An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Lower Brule Man Sentenced for Larceny and Aiding and AbettingRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Larceny and Aiding and Abetting was sentenced on December 16, 2019, by U.S. District Judge Roberto A. Lange.
Demitre’ Ecoffey, age 25, was sentenced to 2 years of probation, $2,084 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ecoffey was indicted by a federal grand jury on February 13, 2019. He pled guilty on December 16, 2019.
The conviction stemmed from an incident on May 26, 2017, when Ecoffey and Alan Thompson, Jr., took and vandalized personal property from the driveway and outdoor lot of an individual’s residence in Lyman County, resulting in a total loss of $2,084.
Alan Thompson, Jr., was set to be sentenced on October 7, 2019, but failed to appear. A warrant for his arrest has been issued.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Defendant was released following his sentencing hearing.
Louisiana Man and Oakland Man Admit Murder-For-Hire Plot Leading to Death of TargetRead the Press Release
SAN FRANCISCO – Marcus Etienne, a.k.a. Hitler, and Mario Robinson, both pleaded guilty to conspiracy charges stemming from the activities of a marijuana distribution organization, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The plea was accepted by the Hon. William H. Alsup, United States District Judge.
According to the plea agreements, Etienne, 38, of St. Martin Parish, La., and Robinson, 36, of Opelousas, La., and Oakland, Calif., were involved in an enterprise based in St. Martin Parish, Louisiana, consisting of more than seven members who conducted a continuing and extensive narcotics distribution conspiracy. Etienne admitted that he was the leader of the enterprise beginning as early as 2009. The defendants both acknowledged that the enterprise engaged in narcotics distribution, assault, robbery, extortion, extortionate collection of extensions of credit, murder for hire, murder, money laundering, illegal firearms possession, gambling on dogfighting, and obstruction of justice. Robinson further admitted that in 2015, he moved from California to Louisiana and began receiving marijuana from the enterprise to distribute in Louisiana.
Etienne and Robinson admitted their respective roles in the 2016 murder of another enterprise member, Trince Thibodeaux. According to the plea agreements, Etienne ordered the murder of Thibodeaux because Etienne believed Thibodeaux had stolen money and narcotics from the enterprise. Etienne offered Robinson $5,000 to murder Thibodeaux, and Robinson accepted. Robinson then contracted with a third party to complete the murder. On March 22, 2016, Robinson lured Thibodeaux to a location in Oakland where the third party shot and killed Thibodeaux. A week later, Robinson sent a $1,250 wire transfer to the individual who shot Thibodeaux. Robinson acknowledged that he expected to remain in good standing with Etienne and the enterprise by completing the murder at Etienne’s direction.
The plea agreements describe additional activities the defendants engaged in to promote the enterprise. For example, the plea agreements describe how the enterprise purchased marijuana in California and used the United States Postal Service to ship the drugs to Louisiana and Texas. Robinson admitted he received packages containing between one and ten pounds of marijuana every one or two months. Robinson and Etienne used cash proceeds from the narcotics trafficking to purchase marijuana and other controlled substances in California. Robinson also purchased money orders in Louisiana to pay the enterprise’s marijuana suppliers in California. Both Etienne and Robinson admitted that they conducted financial transactions with proceeds of narcotics trafficking to conceal the nature, source, and ownership of the enterprise’s profits.
In addition, Etienne admitted he purchased and maintained dogs used for fighting in Breaux Bridge, Louisiana, on a property owned by another member of the enterprise. At the property, Etienne and other members of the enterprise hosted dog-fighting events at which attendees would pay a cover fee and bet money on the dogfights. Dogs, including dogs owned by Etienne, were seriously injured and even killed either during the events or as a result of the training leading up to the events.
On December 18, 2018, a federal grand jury indicted Etienne, Robinson, and one other for their respective roles in the enterprise. Both defendants pleaded guilty to conspiracy to distribute marijuana, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(A)(vii), and 846; racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); and conspiracy to launder monetary instruments in violation of 18 U.S.C. § 1956(h).
The defendants face maximum statutory penalties as follows:
CHARGE
STATUTE
MAXIMUM STATUTORY PENALTY
Conspiracy to Distribute and possess with intent to distribute 1,000 kilograms or more of marijuana
21 U.S.C. § 846, 841, and (b)(1)(A)
Not less than 10 years or more than life in prison
$10,000,000 fine
After filing of prior conviction, if applicable, not less than 20 years or more than life in prison and
$20,000,000 fine
Conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity
18 U.S.C. § 1962(d)
Life in prison
$250,000 fine
Conspiracy to commit money laundering
18 U.S.C. § 1956(h)
20 years in prison
$250,000 fine
Additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants will remain in federal custody pending sentencing. Judge Alsup has scheduled the sentencing hearing for both defendants for April 7, 2020 at 2:00 p.m.
The case is being prosecuted by Assistant United States Attorneys Meredith Osborn, Claudia Quiroz, and William Frentzen and with the assistance of Jessica Meegan. This case is being investigated by the Federal Bureau of Investigation’s Oakland Division, the Internal Revenue Service, and the Oakland Police Department, with assistance from the St. Landry Parish, Louisiana, Sheriff’s Office, and the Opelousas, Louisiana, Police Department.
Livingston meth trafficker sentenced to prisonRead the Press Release
BILLINGS—A Livingston man who led law enforcement on a vehicle chase before getting arrested after a manhunt was sentenced on Wednesday to 13 years in prison and five years of supervised release for methamphetamine trafficking crimes, U.S. Attorney Kurt Alme said.
Shaunesy Alan Cole, 37, pleaded guilty on June to possession with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Susan P. Watters presided.
Cole was charged with drug trafficking crimes after Park County Sheriff’s deputies attempted to pull over a vehicle Cole was driving in July 2018, the prosecution said in court records. Cole gave a false name and instead of stepping out of the vehicle as instructed, he sped off. As deputies pursued, Cole fired a gun from the driver’s side window. Law enforcement stopped the chase for safety reasons and because Cole had driven down a dead end road. Law enforcement set up a road block and a manhunt began.
The next day, deputies got a call from a resident in Quinn Creek that Cole was walking around the balcony of his home. As officers converged, Cole jumped off the balcony and went down a steep embankment. Officers arrested Cole a short time later. During a search of the area, officers found a loaded 9mm semi-automatic pistol. On Cole, officers found a box of 9mm ammunition and about 21 grams of meth.
In an interview with law enforcement, Cole said he was using heroin, meth and acid and that he had traded four grams of meth for the 9mm pistol. Law enforcement determined that the pistol had been reported stolen.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which 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.
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Lithuanian Man Sentenced to 5 Years in Prison for Theft of over $120 Million in Fraudulent Business Email Compromise SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EVALDAS RIMASAUSKAS, a Lithuanian citizen, was sentenced today to 60 months in prison for participating in a fraudulent business email compromise scheme that induced two U.S.-based Internet companies (the “Victim Companies”) to wire a total of over $120 million to bank accounts he controlled. RIMASAUSKAS previously pled guilty to one count of wire fraud before U.S. District Judge George B. Daniels, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Evaldas Rimasauskas devised an audacious scheme to fleece U.S. companies out of more than $120 million, and then funneled those funds to bank accounts around the globe. Rimasauskas carried out his high-tech theft from halfway across the globe, but he got sentenced to prison right here in Manhattan federal court.”
According to the allegations in the Indictment to which RIMASAUSKAS pled guilty, court filings, and statements made in public court proceedings:
From at least in or around 2013 through in or about 2015, RIMASAUSKAS orchestrated a fraudulent scheme designed to deceive the Victim Companies, including a multinational technology company and a multinational online social media company, into wiring funds to bank accounts controlled by RIMASAUSKAS. Specifically, RIMASAUSKAS registered and incorporated a company in Latvia (“Company-2”) that bore the same name as an Asian-based computer hardware manufacturer (“Company-1”), and opened, maintained, and controlled various accounts at banks located in Latvia and Cyprus in the name of Company-2. Thereafter, fraudulent phishing emails were sent to employees and agents of the Victim Companies, which regularly conducted multimillion-dollar transactions with Company-1, directing that money the Victim Companies owed Company-1 for legitimate goods and services be sent to Company-2’s bank accounts in Latvia and Cyprus, which were controlled by RIMASAUSKAS. These emails purported to be from employees and agents of Company-1, and were sent from email accounts that were designed to create the false appearance that they were sent by employees and agents of Company-1, but in truth and in fact, were neither sent nor authorized by Company-1. This scheme succeeded in deceiving the Victim Companies into complying with the fraudulent wiring instructions.
After the Victim Companies wired funds intended for Company-1 to Company-2’s bank accounts in Latvia and Cyprus, RIMASAUSKAS caused the stolen funds to be quickly wired into different bank accounts in various locations throughout the world, including Latvia, Cyprus, Slovakia, Lithuania, Hungary, and Hong Kong. RIMASAUSKAS also caused forged invoices, contracts, and letters that falsely appeared to have been executed and signed by executives and agents of the Victim Companies, and which bore false corporate stamps embossed with the Victim Companies’ names, to be submitted to banks in support of the large volume of funds that were fraudulently transmitted via wire transfer.
Through these false and deceptive representations over the course of the scheme, RIMASAUSKAS, the defendant, caused the Victim Companies to transfer a total of over $120,000,000 in U.S. currency from the Victim Companies’ bank accounts to Company-2’s bank accounts.
RIMASAUSKAS was arrested by Lithuanian authorities in March 2017, pursuant to a provisional arrest warrant, and was extradited to the Southern District of New York in August 2017.
* * *
In addition to the prison term, Judge Daniels ordered RIMASAUSKAS to serve two years of supervised release, to forfeit $49,738,559.41, and to pay restitution in the amount of $26,479,079.24.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, and thanked the Prosecutor General’s Office of the Republic of Lithuania, the Lithuanian Criminal Police Bureau, the Vilnius District Prosecutor’s Office and the Economic Crime Investigation Board of Vilnius County Police Headquarters, the Prosecutor General’s Office of the Republic of Latvia, and the International Assistance Group at the Department of Justice, Canada, for their assistance in the investigation, arrests, and extradition, as well the Department of Justice’s Office of International Affairs.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi and Olga Zverovich are in charge of the prosecution.
Leader of Drug Trafficking Organization Convicted of International Drug Trafficking ConspiracyRead the Press Release
A woman from Culiacan, Mexico was convicted after a seven-day jury trial for her role in an international drug trafficking conspiracy to transport thousands of kilograms of cocaine and dozens of pounds of methamphetamine into the United States.
Luz Irene Fajardo Campos, aka “La Comadre,” “La Madrina,” and “La Doña,” was convicted of conspiracy to distribute five kilograms or more of cocaine, and to manufacture and/or distribute 500 grams or more of methamphetamine in Mexico, Colombia, Honduras and elsewhere, knowing or intending that these substances would be unlawfully imported into the United States, in violation of Title 21, United States Code, Sections 959 and 963. Sentencing for the defendant is set for March 26, 2020. U.S. District Court Judge Ketanji Brown Jackson for the District of Columbia presided over the trial and will impose sentence.
According to the evidence introduced at trial, Fajardo Campos ran a drug trafficking organization with her adult children that was aligned with the Sinaloa cartel. She sourced cocaine directly from Colombia, employed pilots, and brokered the purchase of jets to fly the cocaine to Central America and Mexico. She partnered with other traffickers in the Sinaloa cartel and her children for further distribution of the cocaine into the United States. She also oversaw the importation of precursor chemicals into Mexico, which she processed into methamphetamine at a laboratory located in the desert outside Hermosillo, Mexico. She distributed this methamphetamine in Tucson, Arizona, and Jackson, Mississippi, among other locations.
“Luz Irene Fajardo Campos ran a sophisticated, multinational drug trafficking organization aligned with the Sinaloa cartel that pumped large quantities of cocaine and methamphetamine into communities across the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Her conviction yesterday demonstrates that the Department of Justice will aggressively pursue drug traffickers who send their poison to the United States, wherever they may be.”
“Yesterday’s verdict clearly shows that no matter where drug traffickers operate, DEA agents will relentlessly pursue those whose actions wreak havoc on American communities,” said Phoenix Field Division Acting Special Agent in Charge Apolonio Ruiz Jr. “The Fajardo Campos conviction should send a message to drug traffickers throughout the world that DEA is committed to finding those who profit from Americans suffering from addiction.”
The case was investigated by DEA’s Tucson, Arizona Office and DEA’s Mexico City Country Office.
Trial Attorneys Cole Radovich, Anthony Aminoff and Kaitlin Sahni, and paralegal Marilu Vargas of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) prosecuted this case, with significant assistance provided by the NDDS Judicial Attachés in Bogotá, Colombia, the Criminal Division’s Office of International Affairs, and the Criminal Division’s Office of Enforcement Operations.
Kerrville Man Sentenced to 460 Months in Federal Prison for Cyberstalking and Possession of Child PornographyRead the Press Release
In San Antonio today, 46-year-old Christopher Zamarripa was sentenced to 460 months in federal prison for cyberstalking and possession of child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, U.S. District Judge Fred Biery also ordered that Zamarripa be placed on supervised release for the remainder of his life after completing his prison term.
On August 15, 2019, Zamarripa pleaded guilty to ten counts of cyberstalking and one count of possession of child pornography. According to court records, Zamarripa caused substantial emotional distress to his victims by altering photographs of their faces he downloaded from the Internet and placing them onto photographs of bodies engaged in explicit sexual activities, which he then uploaded to online pornographic websites. Zamarripa also uploaded to the same online pornographic websites unaltered images of two child victims.
On August 22, 2017, Kerr County sheriff’s deputies seized Zamarripa’s laptop computer. A subsequent forensics analysis of the laptop revealed the presence of child pornography.
Zamarripa has remained in custody since his arrest by FBI agents on May 20, 2019.
This investigation was conducted by the FBI in San Antonio and the Kerr County Sheriff’s Office. Assistant U.S. Attorney Bettina Richardson prosecuted this case on behalf of the government.
Kayenta Man Sentenced to 15 Years in Prison for Vehicular HomicideRead the Press Release
PHOENIX, Ariz. – This week, Alonzo Anagal, of Kayenta, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 15 years of imprisonment to be followed by three years of supervised release. Anagal had previously pleaded guilty to involuntary manslaughter and assault of a child resulting in serious bodily injury.
On January 30, 2019, Anagal was driving while intoxicated on Highway 160, on the Navajo Nation Indian Reservation. Driving recklessly, Anagal caused an accident that killed two people in another vehicle, including a small child, and seriously injured a third person. After the accident, Anagal’s blood alcohol concentration was tested and found to be .221. Anagal is an enrolled member of the Navajo Nation.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
Kansas Man pleads Guilty to Murder for Killing a Woman on a Cruise ShipRead the Press Release
WASHINGTON – A Kansas man pleaded guilty today to murdering his longtime girlfriend during a cruise from Florida to the Bahamas in January 2018.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Stephen R. McAllister of the District of Kansas and Special Agent in Charge Rachel L. Rojas of the FBI’s Jacksonville Field Office made the announcement.
Eric Duane Newman, 55, of Topeka, Kansas, pleaded guilty before Chief U.S. District Judge Julie A. Robinson of the District of Kansas to one count of murder in the second degree for killing Tamara Tucker with malice aforethought.
According to the admissions made in connection with the plea, Newman and Tucker boarded the Carnival Elation cruise ship on Jan. 18, 2019, in Jacksonville, Florida, to take a round-trip voyage to the Commonwealth of the Bahamas. Newman and Tucker were staying together in a cabin room on the 13th deck of the cruise ship.
Before midnight on Jan. 18, Newman became involved in a verbal argument with Tucker inside their cabin room. At approximately 12:15 a.m. on Jan. 19, Newman physically attacked Tucker, and strangled her by placing both of his hands around her neck. In the process of strangling her, Newman pushed Tucker over the cabin room balcony railing causing her to fall to her death onto the 11th deck. Ms. Tucker died from blunt force trauma as a result of the fall. At the time, the cruise ship was sailing on the high seas in international water, approximately 30 nautical miles from New Smyrna Beach, Florida.
Sentencing has been scheduled for March 18, 2020, before Chief U.S. District Judge Julie A. Robinson.
The FBI’s Jacksonville Field Office conducted the investigation with the assistance of the FBI’s Topeka Field Office. Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Christine E. Kenney of the District of Kansas are prosecuting the case. The Criminal Division’s Office of International Affairs and the Commonwealth of the Bahamas Office of the Attorney General also provided assistance.
Kansas Man Pleads Guilty to Murder for Killing a Woman on a Cruise ShipRead the Press Release
A Kansas man pleaded guilty today to murdering his longtime girlfriend during a cruise from Florida to the Bahamas in January 2018.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Stephen R. McAllister of the District of Kansas and Special Agent in Charge Rachel L. Rojas of the FBI’s Jacksonville Field Office made the announcement.
Eric Duane Newman, 55, of Topeka, Kansas, pleaded guilty before Chief U.S. District Judge Julie A. Robinson of the District of Kansas to one count of murder in the second degree for killing Tamara Tucker with malice aforethought.
According to the admissions made in connection with the plea, Newman and Tucker boarded the Carnival Elation cruise ship on Jan. 18, 2019, in Jacksonville, Florida, to take a round-trip voyage to the Commonwealth of the Bahamas. Newman and Tucker were staying together in a cabin room on the 13th deck of the cruise ship.
Before midnight on Jan. 18, Newman became involved in a verbal argument with Tucker inside their cabin room. At approximately 12:15 a.m. on Jan. 19, Newman physically attacked Tucker, and strangled her by placing both of his hands around her neck. In the process of strangling her, Newman pushed Tucker over the cabin room balcony railing causing her to fall to her death onto the 11th deck. Ms. Tucker died from blunt force trauma as a result of the fall. At the time, the cruise ship was sailing on the high seas in international water, approximately 30 nautical miles from New Smyrna Beach, Florida.
Sentencing has been scheduled for March 18, 2020, before Chief U.S. District Judge Julie A. Robinson.
The FBI’s Jacksonville Field Office conducted the investigation with the assistance of the FBI’s Topeka Field Office. Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Christine E. Kenney of the District of Kansas are prosecuting the case. The Criminal Division’s Office of International Affairs and the Commonwealth of the Bahamas Office of the Attorney General also provided assistance.
Kaibeto Man Sentenced to Three Years in Federal Prison for Domestic AssaultRead the Press Release
PHOENIX, Ariz. – This week, Dustin Tso, of Kaibeto, Ariz., was sentenced by U.S. District Judge Dominic W. Lanza to three years of imprisonment to be followed by three years of supervised release. The three years of imprisonment imposed will be served in addition to six months of imprisonment previously served in tribal custody. Tso had previously pleaded guilty to assault of a spouse, intimate partner, or dating partner resulting in substantial bodily injury.
On January 12, 2019, Tso attacked the victim, including by striking her and strangling her. The assault occurred on the Navajo Nation Indian Reservation, and both Tso and the victim are enrolled members of the Navajo Nation. Tso’s sentence in this case was enhanced because he committed this crime while in violation of a protection order issued by the Navajo Nation tribal courts.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
KCK Man Pleads Guilty to Distributing over 450 Kilos of CocaineRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man pleaded guilty in federal court today to his role in a conspiracy to distribute more than 450 kilograms of cocaine in the metropolitan area.
Jesus Salvador Campoy-Estrada, also known as “Chava” and “Chavita,” 25, pleaded guilty before U.S. Chief District Judge Beth Phillips to participating in the drug-trafficking conspiracy that lasted from October 2013 to Nov. 15, 2018. Campoy-Estrada also pleaded guilty to money laundering.
Campoy-Estrada was a large cocaine supplier in the Kansas City metropolitan area who received cocaine, smuggled from Mexico, from the leader of the drug-trafficking organization. He then made multi-kilogram sales to other cocaine dealers involved in the conspiracy. Campoy-Estrada admitted that he distributed well in excess of 450 kilograms of cocaine during his involvement in the conspiracy.
A confidential witness started distributing cocaine with Campoy-Estrada in 2015. Initially, they distributed approximately eight to 10 kilograms of cocaine per week. By 2016, they were distributing 10 to 20 kilograms of cocaine per week.
When Campoy-Estrada was arrested, officers searched his mother’s residence and found $111,995 in cash, which he admitted was illicit drug proceeds from the sale of 3.5 to 4 kilograms of powder cocaine. Officers also found a loaded XD 9mm semi-automatic handgun and a drug ledger.
Co-defendants Miguel Armendariz-Rascon, 31, a citizen of Mexico residing in Olathe, Kansas, and Armando Rosales Jr., 30, of San Elizario, Texas, have also pleaded guilty to their roles in the conspiracy.
Campoy-Estrada and Armendariz-Rascon admitted they gave $491,211 in drug-trafficking proceeds to another co-conspirator, and received an unknown amount of powder cocaine. The money, which was seized by law enforcement, represented the proceeds of the distribution of more than 17 kilograms of cocaine.
Rosales admitted that he was a courier for the drug-trafficking organization. Investigators had received information that a shipment of cocaine was being delivered to the Kansas City, Missouri, metropolitan area. On Dec. 18, 2017, a DEA investigator stopped the Ford F-150 pickup Rosales was driving near Sweetwater, Texas. The investigator searched Rosales’s vehicle and found eight packages completely wrapped in electrical tape in the rear seat back of the truck. The packages contained a total of approximately eight kilograms of powder cocaine. Rosales admitted he was transporting the cocaine to the Kansas City metropolitan area.
According to the plea agreement, the drug-trafficking organization was purchasing cocaine for approximately $27,000 to $27,500 per kilogram. Accordingly, the value of the eight kilograms that Rosales transported was at least $216,000.
Under federal statutes, Campoy-Estrada is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford and Special Assistant U.S. Attorney Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.
Justice Department Will Move to Significantly Modify and Extend Consent Decree with Live Nation/TicketmasterRead the Press Release
The Department of Justice’s Antitrust Division will file a petition asking the court to clarify and extend by five and a half years the Final Judgment entered by the Court in United States v. Ticketmaster Entertainment, Inc., et al., Case No. 1:10-cv-00139-RMC (July 30, 2010). This is the most significant enforcement action of an existing antitrust decree by the Department in 20 years.
The 2010 Final Judgment permitted Live Nation to merge with Ticketmaster but prohibited the company from retaliating against concert venues for using another ticketing company, threatening concert venues, or undertaking other specified actions against concert venues for ten years. Despite the prohibitions in the Final Judgment, Live Nation repeatedly and over the course of several years engaged in conduct that, in the Department’s view, violated the Final Judgment. To put a stop to this conduct and to remove any doubt about defendants’ obligations under the Final Judgment going forward, the Department and Live Nation have agreed to modify the Final Judgment to make clear that such conduct is prohibited. In addition, Live Nation has agreed to extend the term of the Final Judgment by five and a half years, which will allow concert venues and American consumers to get the benefit of the relief the Department bargained for in the original settlement. The proposed modifications to the Final Judgment will also help deter additional violations and allow for easier detection and enforcement if future violations occur.
“When Live Nation and Ticketmaster merged in 2010, the Department of Justice and the federal court imposed conditions on the company in order to preserve and promote ticketing competition.” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s enforcement action including the addition of language on retaliation and conditioning will ensure that American consumers get the benefit of the bargain that the United States and Live Nation agreed to in 2010. Merging parties will be held to their promises and the Department will not tolerate transgressions that hurt the American consumer.”
The Department today filed a motion in the U.S. District Court for the District of Columbia to reopen the docket in the underlying action, a necessary step towards filing the petition to clarify and extend the Final Judgment. The Department will file that petition once leave is granted by the court.
The clarifications to the Final Judgment the parties will seek include provisions that:
- Live Nation may not threaten to withhold concerts from a venue if the venue chooses a ticketer other than Ticketmaster;
- A threat by Live Nation to withhold any concerts because a venue chooses another ticketer is a violation of the Final Judgment;
- Withholding any concerts in response to a venue choosing a ticketer other than Ticketmaster is a violation by Live Nation of the Final Judgment;
- The Antitrust Division will appoint an independent monitor to investigate and report on Live Nation’s compliance with the Final Judgment;
- Live Nation will appoint an internal antitrust compliance officer and conduct regular internal training to ensure its employees fully comply with the Final Judgment;
- Live Nation will provide notice to current or potential venue customers of its ticketing services of the clarified and extended Final Judgment; and
- Live Nation is subject to an automatic penalty of $1,000,000 for each violation of the Final Judgment.
- Live Nation will pay costs and fees for the Department’s investigation and enforcement.
Along with the provisions described above, the proposed modifications to the Final Judgment, if approved by the court, include additional safeguards to ensure Live Nation does not punish venues that want to work with competing ticketers, and importantly, extends the term of the Final Judgment for five and half years.
Live Nation Entertainment Inc. is a Delaware corporation headquartered in Beverly Hills, California. It claims to be the largest live entertainment company in the world, active in three principal segments: concert promotion, ticketing services, and sponsorship & advertising. In 2018, Live Nation’s revenues were approximately $10.8 billion.
Ticketmaster is a wholly-owned subsidiary of Live Nation following their merger in 2010. It claims to be the world’s leading live entertainment ticketing sales and entertainment company. In 2018, Ticketmaster’s revenues were approximately $1.5 billion.
Justice Department Awards More Than $333 Million to Fight Opioid CrisisRead the Press Release
Tampa, FL – The Justice Department’s Office of Justice Programs has announced awards of more than $333 million to help communities affected by the opioid crisis. $4,149,896 will help public safety and public health professionals in the Middle District of Florida combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.
“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
“We plan to continue to use every tool in our arsenal to combat the illegal distribution and use of opioids in our community,” said U.S. Attorney Maria Chapa Lopez. “These additional resources will increase the ability of our partners to save the lives of those affected by this dangerous epidemic.”
The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
The following awards were made to organizations in the Middle District of Florida.
City of Tampa (Comprehensive Opioid Abuse Site-based Program)
$900,000Family Support Services of North Florida (Enhancing Community Responses to the Opioid Crisis: Serving our Youngest Crime Victims)
$750,000Pinellas County Board of County Commissioners (Opioid Affected Youth Initiative)
$1,000,000Nassau County Board of County Commissioners (Adult Court and Veterans Treatment Courts Discretionary Grant Program)
$499,896Brevard County (Adult Court and Veterans Treatment Courts Discretionary Grant Program)
$500,000Pinellas County Board of County Commissioners (Adult Court and Veterans Treatment Courts Discretionary Grant Program)
$500,000 Pinellas County (Paul Coverdell Competitive Grant Program) $189,565In addition, the following statewide awards were made to organizations in Florida.
Florida Office of the State Courts Administrator (Comprehensive Opioid Abuse Site-based Program)
$1,492,871Institute for Intergovernmental Research (Opioid Affected Youth Initiative)
$1,000,000Big Brothers Big Sisters of America (Statewide and Regional Mentoring Initiatives for Youth Impacted by Opioids)
$1,250,000Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Jamaican National Indicted for Fraudulently Collecting Lottery Money from the ElderlyRead the Press Release
St. Louis, MO –Christopher Gibbon, 48, of Florissant, Missouri, was indicted by a federal grand jury on one count of conspiracy to commit mail fraud, wire fraud and bank fraud; four counts of mail fraud; and one count of bank fraud.
According to the Indictment, Gibbon, a Jamaican National who resided in St. Louis County, Missouri, participated in a lottery scheme targeting residents over the age of 60 residing in various parts of the country. He participated in the scheme as early as 2012 through July 2018.
The scheme involved individuals in Jamaica calling United States residents to inform them that they had won money and prizes in a lottery. Gibbon’s role was to mail letters to fraud victims advising them that the lottery winnings were legitimate. Because the letters were purportedly written by United States government officials, and mailed from within the United States, the recipients believed the fraudulent representations. In exchange, Gibbon received 20% of the illegal proceeds mailed to him while he forwarded the balance to his counterparts in Jamaica. Those proceeds ranged from $190.00 to as much as $50,000.00.
If convicted, Gibbon faces a maximum penalty of 20 years in prison and a $250,000 fine on each count. Restitution is also mandatory.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The U.S. Postal Inspection Service is investigating this case. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
The Department of Justice Elder Justice Initiative is dedicated to investigating and prosecuting financial crimes targeting older adults. The Eastern District of Missouri Identity Theft Task Force is a group of federal, state and local law enforcement agencies working together to combat identity theft and its related crimes across the St. Louis Community.
Indiana, California Drug-Trafficking Organizations DismantledRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that two drug-trafficking organizations with fifteen total members were indicted by a grand jury for charges of drug-trafficking, unlawful use of a communication facility, and being a felon in possession of a firearm. The cases were investigated and prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF).
"If you choose to make a living by selling drugs, promoting violence, and illegally possessing firearms in furtherance of those crimes, we will find you, and you will be prosecuted, federally" said Minkler. "The U.S. Attorney’s Office is committed to keeping our neighborhoods safe by removing violent crime organizations and individuals from our communities."
According to the superseding indictment, Defendants Tavares Hutcherson, Stefantatos, Mathews, Roshel, Jones, Eyre, Cox, and Carson conspired to distribute methamphetamine. Jones supplied methamphetamine to Hutcherson for re-distribution. Stefanatos acted as a middle-man for Jones and supplied drugs to Hutcherson. Hutcherson and Mathews distributed methamphetamine to each other as well as others in the Terre Haute area, including Cox, Roshel, and Carson. Eyre assisted Hutcherson in distributing drugs and collecting drug proceeds. The superseding indictment further alleges that Hutcherson, Mathews, and Jones possessed firearms
to protect themselves, their drugs, and their drug proceeds. With respect to Grindle, the superseding indictment states that Grindle took over 200 grams of methamphetamine and firearms from Mathews, prompting Mathews to enlist the help of co-conspirators to attempt to recover the drugs and guns.
According to a second superseding indictment arising out of the same investigation, Defendant James Briscoe, Page, Clephane, Bays, Pugh, and Bell conspired to distribute methamphetamine and marijuana. Pugh arranged for methamphetamine to be shipped from California to Indiana for re-distribution by Briscoe and Bell. In addition, Briscoe obtained methamphetamine from Page who operated out of Anderson, Indiana. Briscoe in turn supplied methamphetamine and marijuana to Bell, Clephane, Bays, and others. The superseding indictment also alleges that Briscoe, Page, Clephane, and Pugh possessed firearms, including a Hi-Point, 9mm pistol, a Mossberg, 12 gauge shotgun, a Micro Draco, 7.62 caliber pistol, a LLAMA, .45 caliber pistol, and an AK-style, short barrel rifle.
The indicted defendants, their ages, and residences are as follows:
Tavares Hutcherson, 42, Terre Haute, Ind.
Timothy Stefanatos, 40, Indianapolis, Ind.
Brock Mathews, 29, Terre Haute, Ind.
Deena Roshel, 52, Terre Haute, Ind.
Kyra Grindle, 19, Terre Haute, Ind.
Brad W. Jones, 35, Indianapolis, Ind.
Travis Eyre, 30, Terre Haute, Ind.
Robert Cox, 33, Terre Haute, Ind.
Zachary Carson, 25, Terre Haute, Ind.
James Briscoe, 36, Muncie, Ind.
Damarus Page, 37, Anderson, Ind.
Bradley Clephane, 35, Gosport, Spencer, Ind.
Christopher Bays, 33, Brazil, Ind.
Jamar Pugh, 26, Muncie, Ind.
James Bell, 40, Muncie, Ind.
The lead investigative agencies were the Drug Enforcement Administration, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation. Other agencies that assisted in the investigation include the Indiana State Police, Indianapolis Metropolitan Police Department, Terre Haute Police Department, Muncie Police Department, Anderson Police Department, Madison County Drug Task Force, Vigo County Sheriff’s Department, Vigo County Drug Task Force, Clay County Sheriff’s Department, and the Owen County Sherriff’s Department.
"The individuals arrested during this complex investigation were responsible for transporting large quantities of methamphetamine into the Wabash Valley area," said DEA Assistant Special Agent in Charge Michael Gannon. "Throughout the course of this investigation, agents seized approximately 23 pounds of methamphetamine, and 13
firearms. DEA commends the outstanding work that was done by the Terre Haute Police Department, the Indiana State Police, the Vigo County Drug Task Force, the Federal Bureau of Investigation and the United States Attorney’s Office. This violent drug trafficking organization showed complete disregard for the fine citizens of Terre Haute and utilized fear and intimidation to aid their criminal activity. All drug dealers need to take notice that the newly formed DEA Terre Haute Office along with our law enforcement partners will utilize all available resources to take investigations to the highest levels and steam roll drug dealers who are peddling garbage into our communities."
"The United States Postal Inspection Service is committed to the protection of our nation’s mail system, and to ridding the criminals’ use of the mail for the transportation of illegal drugs. This case is a great example of how working together with our law enforcement partners, we are able to make progress in getting the drugs off the streets in Indiana and California. The arrest and indictment of these defendants should serve as a warning to others who seek to commit drug-trafficking through the U.S. Postal Service." said Inspector in Charge Edward Gallashaw of the Detroit Division, U.S. Postal Inspection Service.
Indiana State Police Superintendent Doug Carter commented, "I am extremely proud of our participation in the Organized Crime Drug Enforcement Task Force." Carter continued, "The hard work of our assigned investigators, in collaboration with other member representatives, speaks to the dedication of state, county, local and federal law enforcement partners who work daily to make Indiana communities safer for everyone to enjoy."
"Too often, violence in our city is connected to the trafficking of illegal narcotics. These bad actors are willing to profit from crime and violence in our neighborhoods, and working closely with law enforcement partners to remove them from our community is crucial to making Indianapolis a safer place for all to call home," said IMPD Chief Bryan Roach.
"We are always eager to partner with federal law enforcement in an effort to aggressively investigate the predatory practices of those who seek to exploit the weak and drug-addicted for their own personal financial gain," said Sergeant Chad Boynton, Anderson Police Department K9 Supervisor and Madison County Drug Task Force Supervisor. "This investigation has undoubtedly produced a positive impact within Central Indiana, having resulted in the arrest of several significant drug traffickers."
According to Assistant United States Attorney M. Kendra Klump, who is prosecuting these cases for the government, defendants, if convicted, each face up to life in prison, except for Grindle, who faces up to 40 years in prison.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in organized drug and violent crime. See United States Attorney's Office, Southern District of Indiana Strategic Plan 2.1.