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31 January 2020
Man Sentenced for Embezzling $3 Million from EmployerRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to 30 months in prison for embezzling over $3.2 million from his employer.
According to court documents, Reginald Zayas, 49, of Upper Marlboro, was the Controller at a Virginia-based company. Over the course of almost four years, Zayas embezzled over $3.2 million from the company by unlawfully transferring funds from the company’s bank account to his own bank account, and he then often transferred the money from his account to others. Zayas transferred over $300,000 to accounts controlled by his wife, his girlfriend, and the mother of one of his children.
Zayas used the laundered money to pay for his own personal expenses, including exorbitant credit card bills, car payments, dining expenses and entertainment, and private school tuition.
In addition to the prison sentence, Zayas was also ordered to pay full restitution and forfeiture.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Cristina Stam and William Fitzpatrick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-297.
Ludlow Couple Sentenced to 18 Months in Prison for Six Year Bid-Rigging SchemeRead the Press Release
BOSTON – A Ludlow couple was sentenced yesterday in federal court in Springfield for a six-year bid-rigging and kickback scheme.
Joanne Murray, 54, and James Murray, 53, both of Ludlow, were each sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison and three years of supervised release. In February 2019, the defendants pleaded guilty to conspiracy to commit mail fraud, aggravated identity theft and tax evasion.
From approximately 2010 through 2015, the Murrays, along with others, engaged in a scheme to defraud the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. Joanne worked at a Springfield real estate brokerage, which managed hundreds of foreclosed properties owned by Freddie Mac. In the scheme, Joanne, James and others agreed to submit fraudulent “reimbursements” by the brokerage to Freddie Mac for James’s company, amounting to approximately $1,372,099 in repair, improvement and maintenance projects. After Freddie Mac paid the purported reimbursements, the brokerage paid James approximately 90% of those amounts and retained an approximately 10% skim. Joanne ensured that James’s company would win these projects by submitting fraudulent bids to Freddie Mac by purported competitors. To avoid detection by Freddie Mac, Joanne submitted bids in the name of a friend of the Murrays, without his knowledge, instead of James’s company, for work that was ultimately performed by James’s company. The Murrays and others also agreed to submit similar fraudulent requests for reimbursement of minor cleaning projects for James’s relative, amounting to approximately $68,960, in exchange for the brokerage’s retention of approximately 10% of the relative’s payments.
In addition, from 2012 through 2014, the Murrays evaded payment on outstanding federal tax debts based upon their 2008, 2009, 2010 and 2011 tax years by cashing numerous checks from the brokerage totaling approximately $461,030 rather than depositing those checks into their bank accounts. Lastly, in 2014, the Murrays jointly filed an individual federal income tax return that under-reported their gross receipts by approximately $151,178.
United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office prosecuted the case.
Lewis County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Shawn Andrew Hunt, of Weston, West Virginia, was sentenced today to 24 months incarceration for methamphetamine distribution, U.S. Attorney Bill Powell announced.
Hunt, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in December 2019. Hunt admitted to distributing methamphetamine in Marshall County in February 2019.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moundsville Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Las Vegas Tax Return Preparer Sentenced to More Than Three Years in Prison for Tax CrimesRead the Press Release
LAS VEGAS, Nev. - A Las Vegas, Nevada, tax return preparer was sentenced to 40 months in prison yesterday for tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents and statements made in court, Michael A. Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). When two of Sandoval’s clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. At NFS, Sandoval also filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses, charitable contributions, and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. On his own individual tax returns, Sandoval fraudulently understated his income from NFS for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654 to the IRS.
Sandoval previously pleaded guilty to one count each of tax evasion, aiding and assisting in the preparation and filing of a false tax return, and making and subscribing a false tax return.
In addition to the term of imprisonment, U.S. District Court Judge Gloria M. Navarro ordered Sandoval to serve three years of supervised release and to pay restitution of $281,630 to a client and of $100,138 to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Laplace Man Indicted for Being Felon in Possession of AmmunitionRead the Press Release
NEW ORLEANS, LOUISIANA – DWAYNE BROWN, age 34, a resident of Laplace, Louisiana, was indicted for being a felon in possession of ammunition, announced U.S. Attorney Peter G. Strasser.
According to court documents, on or about October 1, 2019, the defendant knowingly possessed ammunition after being convicted in the 40th Judicial Court, State of Louisiana, for aggravated flight from an officer, simple criminal damage to property, and unauthorized entry of an inhabited dwelling.
If convicted, the defendant faces 10 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
United States Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, and Firearms in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.
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KC Woman Pleads Guilty to Social Security, Bankruptcy Fraud SchemesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri woman pleaded guilty in federal court today to a Social Security and bankruptcy fraud scheme.
Carol L. Dille, 67, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of wire fraud and one count of bankruptcy fraud.
Dille married Gerald A. Sanders in November 1988; they separated in 2009. Dille admitted today that she filed an online application for retirement insurance benefits in September 2013, using the identity – including the name, date of birth, and Social Security number – of Sanders.
Dille, representing herself as Sanders, provided her own address, phone number, and email address as contact information. Dille, while still representing herself as Sanders, indicated benefits should be direct deposited into the bank account of “Alliance of Divine Love Chapel 1202,” of which she was the sole authorized signor on the account.
On May 7, 2015, Dille filed for Chapter 13 bankruptcy. She claimed $500,001 to $1 million in estimated liabilities, but failed to list – effectively concealing – the Alliance of Divine Love bank account. Dille’s bankruptcy case was dismissed on Oct. 5, 2015, because she failed to make required payments.
On March 9, 2016, Dille again filed for bankruptcy. Dille again failed to list – effectively concealing – the Alliance of Divine Love bank account. This case was dismissed on May 5, 2016, because Dille again failed to make required payments.
During the summer of 2016, Dille communicated with Sanders (who had moved to Indonesia) via email about helping him set up his retirement insurance benefits. She told him she had set up his benefits to begin depositing into a credit union. In August 2016, following a move from Indonesia to Guam, Sanders went into a Social Security Administration field office in Guam. Sanders was told the Social Security Administration had been paying retirement benefits for him since 2013. Sanders stated that he was not aware he had been receiving benefits since 2013, and that he had moved to Indonesia in 2009.
From October 2013 through November 2017, the Social Security Administration paid a total of $76,601 in monthly retirement payments earmarked for Sanders. Due to Dille’s fraudulent application and her subsequent concealment of the bank account, she fraudulently obtained at least $54,752 in retirement insurance benefits under Sanders’s name.
Under federal statutes, Dille is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the Social Security Administration, Office of Inspector General.
Jury convicts Fort Belknap man of strangling womanRead the Press Release
GREAT FALLS – A jury on Friday convicted a Fort Belknap man accused of assaulting and strangling a woman in Lodge Pole on the Fort Belknap Indian Reservation last year, U.S. Attorney Kurt Alme said.
The jury found Jordan Alexander Werk, 32, guilty of assault by striking, beating or wounding and of strangulation. The jury acquitted Werk of assault of a dating partner resulting in substantial bodily injury. Werk faces a maximum 10 years, a $250,000 fine and three years of supervised release on the strangulation charge and a maximum one year in prison, a $100,000 fine and one year of supervised release on the assault count.
The trial began on Thursday, with U.S. District Judge Brian M. Morris presiding. Judge Morris set sentencing for June 3 and continued Werk’s detention.
“There is no excuse for assaulting a woman. We know that Native women face higher rates of violence and sexual violence and we are committed to prosecuting those who prey on them. I want to thank Assistant U.S. Attorney Paulette Stewart, the FBI and the Fort Belknap tribal law enforcement for investigating and prosecuting this case,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that Werk assaulted and strangled the victim on April 8, 2019 in Lodge Pole in Blaine County and on the Fort Belknap Reservation. The victim reported on April 8, 2019 that Werk had assaulted her by grabbing her hair and throwing her to the ground. Werk kicked her in the chest, punched her in the head and choked her, causing her to see stars and have trouble breathing.
The victim also told law enforcement that during the assault, Werk told her that he knew how to hit someone to not show bruises and that if she was going to act like a victim, then he would treat her like one. The victim was treated for injuries, including a broken rib, at the Indian Health Service in Harlem.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the FBI and Fort Belknap tribal law enforcement.
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Jason Galanis Pleads Guilty in Manhattan Federal Court to Multiple Fraudulent SchemesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JASON GALANIS pled guilty today for his participation in multiple fraudulent schemes. In particular, GALANIS pled guilty for his role in a scheme to manipulate the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defrauding the shareholders of that company (the “Gerova Scheme”), as well as to defraud the clients of an investment advisory firm. GALANIS also pled guilty today to defrauding a Native American tribal entity and the investing public of tens of millions of dollars in connection with the issuance of bonds by the tribal entity (the “Tribal Bond Scheme”). GALANIS pled guilty to three counts of conspiracy to commit securities fraud, two counts of securities fraud, one count of investment adviser fraud, and one count of conspiracy to commit investment adviser fraud before U.S. District Judge P. Kevin Castel. GALANIS had previously pled guilty, in July 2016, for his participation in the Gerova Scheme and, in January 2017, for his participation in the Tribal Bond Scheme, but those convictions were subsequently vacated.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Jason Galanis orchestrated two multimillion-dollar fraud schemes, and put together a team of co-conspirators to carry them out. He and his codefendants engaged in market manipulation and the defrauding of shareholders, and they stole a large portion of the proceeds of tribal bonds that were intended to fund economic development projects. The overriding theme was victimizing others to enrich themselves. Now Jason Galanis awaits sentencing for his criminal greed.”
According to the allegations contained in the Information filed against GALANIS, charging documents filed against GALANIS’s co-conspirators, and statements made in related court filings and proceedings:
The Gerova Scheme
From 2009 to 2011, GALANIS, along with his co-conspirators John Galanis, Gary Hirst, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova and the investing public, by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration to GALANIS and his co-conspirators, without adequate disclosure of GALANIS’s role in directing the transactions or the benefits received by GALANIS and his co-conspirators.
As a part of the scheme to defraud, GALANIS obtained sufficient control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. GALANIS obtained this control without causing himself to be identified as an officer or director of Gerova so as to purport to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, GALANIS, with the assistance of Hirst, caused over 5,000,000 shares of Gerova stock, which represented nearly half the company’s public float and which were intended for GALANIS’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for GALANIS. GALANIS, John Galanis, Jared Galanis, Derek Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise GALANIS’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, GALANIS’s co-conspirators, with his knowledge and approval, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public GALANIS’s ownership of and control over the Gerova stock.
GALANIS, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, GALANIS and others were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that GALANIS controlled while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, GALANIS and his co-conspirators reaped nearly $20 million in profits.
The Scheme to Defraud Clients of Investment Firm-1
From 2007 to 2010, GALANIS along with an investment adviser identified in the Information as “CC-2,” participated in a scheme to defraud the clients of CC-2’s investment advisory firm, identified in the Information as “Investment Firm-1.” Oftentimes in exchange for compensation from GALANIS, CC-2 caused Investment Firm-1 clients to invest in notes issued by entities associated with GALANIS.
When obligations owed by entities associated with GALANIS became due, CC-2 used client funds to purchase either notes issued by other entities associated with GALANIS or publicly traded shares held by such entities. The funds generated were then used to pay the original obligations owed to other Investment Firm-1 clients. Through these securities trades, funds in client accounts of one set of Investment Firm-1 investors were used to pay obligations owed to a different set of Investment Firm-1 investors by entities associated with GALANIS.
The Tribal Bond Scheme
From March 2014 through April 2016, GALANIS, along with his co-conspirators Gary Hirst, John Galanis, a/k/a “Yanni,” Hugh Dunkerley, Michelle Morton, Devon Archer, and Bevan Cooney, engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by GALANIS and his codefendants to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
Documents governing the Tribal Bonds specified that an investment manager would invest the proceeds of the Tribal Bonds in investments that would generate annuity payments sufficient to pay interest on the Tribal Bonds and provide funds to the WLCC to be used for tribal economic development purposes. In fact, none of the proceeds of the Tribal Bonds were turned over to the investment manager specified in the closing documents. Instead, significant portions of the proceeds were misappropriated by GALANIS and his codefendants for their own personal use.
Specifically, the proceeds of the Tribal Bonds were deposited into a bank account in the name of Wealth Assurance Private Client Corporation (“WAPCC”), an entity controlled by Dunkerley and Hirst. Dunkerley transferred more than $38 million from the WAPCC account to an account controlled by GALANIS, who then misappropriated more than $8.5 million of the proceeds for his personal use, including for expenses associated with his home, jewelry and clothing purchases, travel and entertainment, and restaurant meals.
There was no ready secondary market for the Tribal Bonds. Nonetheless, without prior notice to their clients, Morton and Hirst, acting at the direction of GALANIS, used funds belonging to clients of two related investment advisers, Hughes Capital Management, Inc. (“Hughes”), and Atlantic Asset Management, LLC (“Atlantic”), to purchase the Tribal Bonds, even though GALANIS, Hirst, and Morton were well aware that material facts about the Tribal Bonds had been withheld from clients in whose accounts they were placed, including the fact that the Tribal Bond purchases fell outside the investment parameters set forth in the investment advisory contracts of certain Hughes clients and of the Atlantic pooled investment vehicle in which the Tribal Bonds were purchased. When Hughes and Atlantic clients learned about the purchase of the Tribal Bonds in their accounts, several of them demanded that the Tribal Bonds be sold. However, because there was no ready secondary market for the Tribal Bonds, no Tribal Bonds have been sold from any Hughes or Atlantic client accounts. In addition, GALANIS and his codefendants failed to apprise clients of Hughes and Atlantic regarding substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
In addition, a portion of the misappropriated proceeds was recycled and provided by GALANIS to entities affiliated with Archer and Cooney in order to enable Archer and Cooney to purchase subsequent Tribal Bonds issued by the WLCC. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase.
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GALANIS, 49, pled guilty to three counts of conspiracy to commit securities fraud, each carrying a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense; and one count of conspiracy to commit investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense. GALANIS will be sentenced by Judge Castel on May 12, 2020.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Mr. Berman praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Rebecca Mermelstein, and Negar Tekeei are in charge of the prosecution.
Jacksonville Man Sentenced to Six Years in Prison for Possessing Child Sex Abuse Videos and ImagesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Jason Ryan Fain (38, Jacksonville) to six years in federal prison for possessing a USB thumb drive that contained videos and images depicting the sexual abuse of young children. Fain was also sentenced to serve a 10-year term of supervised release and ordered to register as a sex offender.
A federal jury had found Fain guilty on October 30, 2019.
According to testimony and evidence presented at trial, on January 9, 2017, an officer with the Jacksonville Sheriff’s Office (JSO) responded to a citizen complaint at Fain’s residence and recovered a USB thumb drive belonging to Fain. A detective from JSO obtained a search warrant for the thumb drive, which contained 3,614 images and 7 videos depicting the sexual abuse of young children, together with “selfie” photos depicting Fain.
On October 27, 2017, Fain was arrested in Youngstown, Florida by investigators from the Bay County Sheriff’s Office. During an interview, Fain admitted that the thumb drive belonged to him and that it contained “hundreds” of pornographic images of children that he had obtained from the internet. A forensic analysis of the thumb drive by the FBI confirmed that it had accessed a particular file-sharing network on the internet. The device also contained a document that advocated the legalization of child pornography possession.
This case was investigated by the Jacksonville Sheriff’s Office, the Bay County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Irvington Fire Academy Trainee Arrested for Manufacturing Illegal PillsRead the Press Release
NEWARK, N.J. – Two Irvington, New Jersey, men, one of whom is currently attending the Irvington Fire Academy in order to become a firefighter, have been charged for operating a “mill” for the manufacture of illegal narcotic pills in an Irvington residence, U.S. Attorney Craig Carpenito announced.
Elijah Lee, 27, who was in training to become a firefighter with the Irvington Fire Department, and Immanuel Majerska, 37, were arrested Jan. 30, 2020, and charged with conspiring to distribute methylenedioxymethamphetamine, commonly referred to as “ecstasy,” or “MDMA.” The two defendants made their initial appearance today before U.S. Magistrate Judge Joseph A. Dickson. Lee was released on bail and Majerska was detained.
According to documents filed in this case and statements made in court:
The defendants allegedly manufactured MDMA pills in the basement of Lee’s residence. Law enforcement officers recovered two “presses” capable of producing pills from raw ingredients, multiple kilograms of bulk suspected MDMA powder, and numerous pills of suspected MDMA. Law enforcement officers also recovered a loaded firearm at Lee’s residence in a dresser in Majerska’s room. Majerska was in possession of approximately 1,000 suspected MDMA pills.
The conspiracy charge carries a maximum penalty of twenty years in prison and a $1 million fine.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York, under the direction of Peter C. Fitzhugh, with the investigation leading to today’s charges. He also thanked the Essex County Sheriff’s Department the Irvington and Union police departments for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Macurdy and Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office ODETF Unit in Newark.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty today was:
Shawna Renee Bercier, 37, of Laurel, on charges of conspiracy to possess with intent to distribute methamphetamine and distribution of meth. If convicted of the most serious charge, Bercier faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least five years of supervised release. Bercier was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 19-144.
Appearing on Jan. 30 was:
Braden Charles Losing, 25, of Miles City, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Losing faces a minimum 10 years in prison, a $250,000 fine and three years of supervised release. Losing was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person. Pacer case reference. 20-08.
Hugo Javier Quiroga, 46, of Billings and Mexico, on charges of false representation of Social Security number, false claim of U.S. citizenship and aggravated identity theft. If convicted of the most serious crime, Quiroga faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Quiroga was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-04.
Appearing on Jan. 29 was:
Susan Wilkinson, 33, of Billings, on charges of conspiracy to possess with intent to distribute and possession with intent to distribute controlled substances. If convicted of the most serious crime, Wilkinson faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Wilkinson was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-137.
Appearing on Jan. 28 was:
Daniel Kenneth Sherman, 34, of Worden, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Sherman faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Sherman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person. Pacer case reference. 19-150.
Tyrezes Demarquis Taylor, 25, of Billings, on charges of prohibited person in possession of a firearm and false statement during a firearms transaction. If convicted of the most serious crime, Taylor faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Taylor was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person. Pacer case reference. 20-09.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 29 was:
James Robert Starcevich, 24, of Butte, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Starcevich faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years to life of supervised release. Starcevich was released pending further proceedings. The Drug Enforcement Administration, Butte-Silverbow law enforcement and U.S. Postal Service investigated the case. Pacer case reference. 20-01.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Independence Financial Advisor Pleads Guilty to $1 Million Fraud Against Elderly ClientsRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, financial advisor pleaded guilty in federal court today to a fraud scheme in which he stole more than $1 million from two elderly clients.
“A trusted financial advisor greedily preyed on two unsuspecting elderly clients to illegally enrich himself,” said U.S. Attorney Tim Garrison. “It’s criminal, but even more contemptible when those granted positions of trust take advantage of vulnerable victims, such as their elderly clients.”
Kraig Gier, 59, pleaded guilty before U.S. District Judge Greg Kays to two counts of wire fraud.
Gier, who operated a business called Security Planning Corporation, admitted that he stole a total of $1,087,964 from a 96-year-old client and an 84-year-old client. Through his scheme to defraud, Gier caused losses to one victim client of $879,602 and to another victim client of $208,362.
Gier began making fraudulent withdrawals from the various investment accounts of these clients in February 2015, and had the money deposited into either his personal checking account or his business account. This fraud scheme continued until July 2018.
Gier sometimes forged the signature of the client victims on the paperwork associated with a particular withdraw request. At other times, Gier would contain with the withdrawal paperwork a fraudulent voided check with the victim’s name on it but with his personal or business account number as the intended recipient of the requested funds.
In order to cover up his fraudulent scheme, Gier admitted, he prepared false and fictitious documentation purportedly from the financial company holding the victim clients’ investment. This documentation would fraudulently represent they were making a significant profit even though he had often significantly depleted their account.
Under federal statutes, Gier is subject to a sentence of up to 20 years in federal prison without parole on each of the two counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Executive Assistant U.S. Attorney David Ketchmark. It was investigated by the FBI and the Independence, Mo., Police Department.
In Large-Scale Takedown, 12 Arrested, Charged with Gun and Drug CrimesRead the Press Release
Eight alleged gang members were arrested in a large-scale takedown Thursday, charged with gun and drug crimes following an investigation led by the DEA Dallas Division, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“357 Crips” gang members Dwight Alexander Frank, Paul Adron Freeman, Vernon Ray Stiff, Calvin James Thomas, Tyrel Demond Washington, Bernice Lee Woodson, Jr., Bryson Busby, and Michael McCoy were arrested Thursday and charged with conspiracy to possess with intent to distribute cocaine.
Four non-gang members – Alonzo Perez, Jr., Alonzo Perez, Sr., Beatriz Perez, and Max Davis – were also arrested and charged with related drug crimes.
The takedown, led by the DEA, began in the early morning hours Thursday, and stretched into the afternoon. The majority of the defendants were arrested at trap houses across the DFW metroplex, where agents seized roughly 2.5 kilograms of cocaine, 24 guns, and more than $300,000 in cash. (To date, the investigation has netted a total of approximately 7 kilos of cocaine, various other drugs, 37 firearms, and more than $500,000 in cash.
“There should never be any doubt that drug trafficking is not a victimless crime. These gang members sought to profit and expand their influence by peddling drugs throughout South Dallas. With the dismantlement of this organization, guns are no longer in the hands of these drug dealers and the drugs they sold are now off the streets. It was only through a tremendous partnership with the Dallas PD, the ATF, and many other area law enforcement agencies that Dallas is safer today than it was yesterday,” said DEA Special Agent in Charge Eduardo A. Chavez.
“We are grateful to the many law enforcement partners who collaborated to disrupt a drug trafficking ring,” said U.S. Attorney Erin Nealy Cox. “Cocaine continues to wreak havoc on our community and we will vigorously prosecute those that distribute this deadly drug.”
In addition to the conspiracy count, Mr. Woodson was charged with one count of possession with intent to distribute.
Ms. Perez, Jr., Mr. Stiff, Mr. Washington, and Mr. Woodson were also charged with maintaining drug-involved premises, as was Mr. Perez Jr.’s father.
Mr. Perez, Jr., Mr. Washington, and Mr. Woodson were also charged with being a convicted felon in possession of a firearm. Mr. Woodson was charged with possession of a firearm in furtherance of a drug trafficking crime.
Charges are merely allegations of criminal conduct, not evidence. The defendants are presumed innocent unless proven guilty in a court of law.
If convicted, the defendants face 10 years to life in prison on the conspiracy charge. Those charged with maintaining a drug involved premises face an additional 20 years; those charged with being a felon in possession of a firearm face an additional 10 years; and those charged with possession of a firearm in furtherance of a drug trafficking crime face an additional five years.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with assistance of the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Dallas Police Department, Rockwall Police Department, Rockwall County Sheriff’s Office, Flower Mound Police Department, Farmer’s Branch Police Department, Garland Police Department, Hunt County Sheriff’s Office, Denton Police Department, Dallas County Sheriff’s Office, Grand Prairie Police Department, and Plano Police Department. The U.S. Marshals Service led the charge in tracking defendants and effecting arrests. Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.
Illinois Man Indicted on Sex Trafficking ChargesRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging DARNELL DESHAWN STENNIS, 28, with one count of sex trafficking by force, fraud, and coercion, and two counts of transporting individuals to engage in prostitution. STENNIS is scheduled to be arraigned on these charges on February 6, 2020, before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.
According to the allegations in the indictment and documents filed in court, from January 2019 through March 2019, STENNIS recruited, harbored, advertised, solicited, and transported from Minnesota to North Dakota, a victim to engage in commercial sex acts by means of force, fraud, and coercion. From March 21, 2019, through March 25, 2019, STENNIS also transported a second victim from Minnesota to North Dakota with the intent that the victim would engage in commercial sex acts.
According to the allegations in the indictment and documents filed in court, on March 25, 2019, officers with the Bloomington Police Department were dispatched to the La Quinta Inn in Bloomington, Minnesota, following a report that a hotel guest heard yelling and what sounded like someone being thrown against a wall. Upon arrival, officers encountered STENNIS and two other individuals, identified as Victim A and Victim B. Officers checked the hotel room and observed obvious signs of a disturbance, including a toilet seat that was broken into multiple pieces and a towel rack that was bent. Victim A reported to officers that STENNIS had violently assaulted her. Victim A reported that STENNIS choked her, bashed her head into the towel rack, and pushed her down onto the toilet seat. STENNIS, who also had outstanding warrants, was arrested and placed into custody.
This case is the result of an investigation conducted by Homeland Security Investigations and the Bloomington Police Department.
Assistant U.S. Attorney Evan B. Gilead and Manda M. Sertich are prosecuting the case.
Defendant Information:
DARNELL DESHAWN STENNIS, 28
Charges:
- Sex trafficking by force, fraud, and coercion, 1 count
- Transporting individuals to engage in prostitution, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Illegal Alien Sentenced to 25 Years in Prison for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
BOISE – Ubaldo Soto-Diaz, an illegal alien from Mexico, but residing in Portersville, California, was sentenced to 25 years in prison for conspiracy to distribute methamphetamine and heroin, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge David C. Nye also ordered Soto-Diaz to pay a $2,000 fine and serve five years of supervised release following his prison sentence. Soto-Diaz pleaded guilty to the charge on July 18, 2019.
According to court records, Soto-Diaz admitted that between August 28, 2018, and January 28, 2019, he conspired with six other defendants to distribute methamphetamine and heroin. Soto-Diaz was found to be the leader and organizer of an extensive criminal organization that was responsible for distributing high potency methamphetamine, manufactured in Mexico and then transported from California to Idaho. During their investigation of Soto-Diaz and his organization, DEA agents seized over thirty pounds of 100% pure methamphetamine and almost two pounds of black tar heroin.
According to court records, Soto-Diaz had previously been convicted of transporting a controlled substance in 2000 and possession of controlled substances for sale in 2009. He was deported to Mexico on May 17, 2010. He was found to be illegally present in the United States on May 26, 2010, and was convicted of illegal entry. He again illegally returned to the United States and was convicted of possession of controlled substances for sale and unlawful possession of a firearm in 2012. At the time Soto-Diaz conspired to distribute methamphetamine and heroin to Idaho, he was illegally living in Portersville, California.
This case was a result of a joint investigation with Drug Enforcement Administration, Nampa Police Department, Canyon County Narcotics Unit, and Ada County Sheriff’s Office.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
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Humboldt Man Sentenced to 15 Years as an Armed Career CriminalRead the Press Release
Jackson, TN – Jerome Lavell McBride, 39, has been sentenced to 188 months in federal prison for being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to information presented in court, on December 12, 2017, as a law enforcement officer was traveling northbound on Highway 45W in his undercover vehicle when a crown Victoria passed him at a high rate of speed of approximately 70 mph in a 55 mph zone, so he initiated a traffic stop.
During the traffic stop, the agent observed a plastic baggy containing marijuana hanging out of the defendant’s pocket. A subsequent search of the vehicle produced a Lorcin .380 caliber pistol along with 15 individually wrapped bags of marijuana and $494.
The defendant has previously been convicted of 2nd degree robbery (KY), 2nd degree burglary (KY), second degree assault (KY), reckless endangerment with a deadly weapon, and aggravated assault. Because of these previous violent felony convictions, McBride was determined to be an armed career criminal under the federal sentencing guidelines, and subject to a mandatory minimum sentence of 180 months.
On January 30, 2020, Senior U.S. District Court Judge J. Daniel Breen sentenced McBride to 188 months in federal prison followed by 4 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, the defendant was an armed career criminal who continued to possess a firearm despite his prior violent felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more gun-toter removed from our streets for a very long time."
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Tennessee Violent Crime and Drug Task Force investigated this case.
Assistant U.S. Attorney Hillary Lawler Parham prosecuted this case on behalf of the government.
Harcros Chemicals Pleads Guilty to Violating Clean Air ActRead the Press Release
TOPEKA, KAN. – Harcros Chemicals, Inc., of Kansas City, Kan., pleaded guilty today to violating a federal clean air law in connection with a toxic chlorine gas cloud that formed over Atchison, Kan., in 2016, U.S. Attorney Stephen McAllister said.
According to the company’s plea agreement, Harcros is expected to pay a $1 million fine. The co-defendant in the case, MGP Ingredients, Inc., of Atchison pleaded guilty in November in the same case. That company also is expected to pay a $1 million fine.
Harcros pleaded guilty to negligently violating the federal Clean Air Act. In its plea, the company admitted that on Oct. 21, 2016, a greenish-yellow chlorine gas cloud formed when 4,000 gallons of sulfuric acid were mistakenly combined with 5,800 gallons of sodium hypochlorite. The Atchison County Department of Emergency Management ordered community members to shelter in place and to evacuate in some areas. Approximately 140 individuals including members of the public, first responders, employees of MGP Ingredients and Harcros Chemicals sought medical attention.
“The chemicals involved in this case posed serious public health and environmental dangers,” said Assistant Director Justin Oesterreich of EPA’s Criminal Investigation Division in Kansas. “EPA and its law enforcement partners are committed to holding responsible parties accountable for actions that put an entire community at risk.”
Harcros is set for sentencing May 27.
McAllister commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Victims can get more information on US v. Midwest Grain Products, Inc., by visiting https://www.justice.gov/usao-ks/victim-witness and filling out a victim questionnaire, leaving a message on a designated phone line at 913-551-6543 or emailing questions to [email protected]
Greeneville Man Sentenced for Conspiracy to Distribute Methamphetamine and Money LaunderingRead the Press Release
Greeneville, Tenn. – On January 24, 2020, Juan Moreno-Pantiga, 30, of Bulls Gap, was sentenced before the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Moreno-Pantiga plead guilty to an indictment charging him with conspiracy to distribute methamphetamine and conspiracy to commit money laundering. Moreno-Pantiga was sentenced to 262 months in prison and will be deported to Mexico after completion of his term of incarceration.
Moreno-Pantiga operated a used car lot from which he and his associates sold methamphetamine and laundered drug proceeds. Additionally, Moreno-Pantiga owned a stash-house where law enforcement recovered over 3 kilograms of methamphetamine, 450 grams of cocaine, 41 kilograms of marijuana, and five firearms during the execution of a search warrant. Moreno-Pantiga admitted he was part of a methamphetamine distribution network responsible for trafficking multiple kilograms of methamphetamine supplied by large trans-national criminal organizations. Moreno-Pantiga and 23 others were charged in an indictment returned by a federal grand jury on January 8, 2019. All defendants have plead guilty.
The multi-agency investigation included Greene County Sheriff’s Department, Greeneville Police Department, Hawkins County Sheriff’s Department, Hamblen County Sheriff’s Department, Jefferson County Sheriff’s Department, Washington County Sheriff’s Department, Tusculum Police Department, Baileyton Police Department, Elizabethton Police Department, Third Judicial Drug Task Force, Fourth Judicial Drug Task Force, Tennessee Bureau of Investigation (TBI), Tennessee National Guard Counter-drug Task Force, Tennessee Highway Patrol, United States Marshal Service, Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI)..
Assistant U.S. Attorneys J. Christian Lampe and Andrew C. Parker represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. 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.
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FusionPharm Co-Conspirators Sentenced for $10+ Million Securities Fraud and Money Laundering SchemeRead the Press Release
DENVER – United States Attorney Jason Dunn announced that co-conspirators Guy M. Jean-Pierre, William Sears, and Scott Dittman, were sentenced to federal prison for their roles in the FusionPharm securities and financial fraud scheme, which cost investors more than ten million dollars. Jean-Pierre, age 60, of the Dominican Republic was sentenced to serve seven years in prison based on his conviction at trial of securities fraud, mail fraud, wire fraud, money laundering, and conspiracy. William Sears, age 53, of Thornton, Colorado was sentenced to a total of eight years in prison for his role in the conspiracy, as well as for tax violations. Scott Dittman, age 50, of Franktown, Colorado was sentenced to five years in prison. All three defendants will serve an additional three years of supervised release at the conclusion of their years of incarceration.
According to information contained in court filings and evidence presented at trial, beginning in late 2010, the defendants sought to establish a business that would retrofit steel shipping containers so that they could be used to grow plants hydroponically. The defendants acquired a dormant publicly traded penny stock company and changed its name to FusionPharm as part of plans to develop and capitalize the business. The main business plan was to resell these repurposed shipping containers, which FusionPharm called “pharm pods,” to hydroponic growers. The pharm pods were, at times, marketed as effective vehicles to get fresh produce, such as lettuce, quickly and efficiently to restaurants and local groceries in urban markets. Over time, however, the pharm pods were marketed to marijuana or cannabis growers in Colorado and other states.
An object of the conspiracy was to conceal the co-conspirators’ role in the management and operation of FusionPharm, due to Sears’ prior securities felony conviction. Sears and Dittman falsely represented that neither Sears nor companies related to him were an affiliate or control person of FusionPharm, thereby allowing Sears’ and the related companies’ FusionPharm shares to be treated as unrestricted securities that could be immediately sold in the public securities markets under the ticker symbol FSPM. Additionally, defendants Sears and Dittman reported to the public that certain sales transactions and revenues for FusionPharm had occurred when, in fact, they had not.
Defendant Jean-Pierre, a graduate of Columbia University Law School, prepared and transmitted documents that allowed FusionPharm to sell stock in violation of securities laws, falsely portrayed deposits of proceeds from the sale of FusionPharm common stock as convertible debt obligations, concealed the role of other co-conspirators in the FusionPharm business, falsely represented that disclosure documents and financial statements constituted adequate current information about FusionPharm, and failed to disclose defendant Jean-Pierre’s role in drafting documents for another attorney to sign and represented as the other attorney’s own work product.
In addition to the sentences announced this week, United States District Court Judge William A. Martinez previously entered preliminary orders of forfeiture in the amount of $12,204,172, based on proceeds and assets the defendants obtained from the scheme.
“Thanks to the tireless work of our prosecutors and law enforcement partners, justice has finally come for the victims of this scheme,” said United States Attorney Jason Dunn. “Prosecuting a complex financial scheme like this is challenging and lengthy, but it is critical that the public have confidence in the markets and that those who commit securities fraud be dealt with harshly.”
"Today’s sentence will hold these individuals accountable for their criminal actions,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “This complex scheme that involved false entity information to defraud investors to purchase their stock for their sole financial gain and evade their tax obligations will not be tolerated. IRS-CI special agents work diligently to identify and bring to justice those who attempt to profit by providing false and misleading information to innocent individuals.”
“The FBI will continue to aggressively investigate illusory schemes devised to exploit innocent victims. The recent sentencings of Guy M. Jean-Pierre, William Sears, and Scott Dittman, should send a strong message to anyone considering engaging in white collar fraud schemes,” said FBI Denver Special Agent in Charge Dean Phillips. “We will continue to work with our law enforcement counterparts and United States Attorney’s Office to protect our citizens and economy from those engaged in white collar crime. We would like to thank the Internal Revenue Service and United State Postal Inspection Service for their partnership and efforts on this case.”
“Securities fraud conducted via the U.S. mail through secret arrangements and altered documents can lead to false trust in the markets. Postal Inspectors will never rest in our fight to prevent criminals from using the mail to further their illegal activities,” said Stephen Sherwood, Acting Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service.
This case was investigated by the FBI, IRS – Criminal Investigation, and United States Postal Inspection Service. Assistant United States Attorneys Jeremy Sibert and Robert Brown handled the prosecution. Assistant United States Attorney Tonya Andrews handled the asset forfeiture issues in this matter.
CASE NUMBER: 17-cr-8 and 16-cr-301
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Fugitive Wanted by Iraq for Murder of Iraqi Police Officers Arrested in ArizonaRead the Press Release
PHOENIX – On January 31, 2020, a Phoenix-area resident, who is alleged to have been the leader of a group of Al-Qaeda terrorists in Al-Fallujah, Iraq, appeared today before a federal magistrate judge in Phoenix, Arizona in connection with proceedings to extradite him to the Republic of Iraq. He is wanted to stand trial in Iraq for two charges of premeditated murder committed in 2006 in Al-Fallujah.
The arrest was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Michael Bailey for the District of Arizona.
An Iraqi judge issued a warrant for the arrest of Ali Yousif Ahmed Al-Nouri, 42, on murder charges. The Government of Iraq subsequently requested Ahmed’s extradition from the United States. In accordance with its treaty obligations to Iraq, the United States filed a complaint in Phoenix seeking a warrant for Ahmed’s arrest based on the extradition request. U.S. Magistrate Judge John Z. Boyle issued the warrant on January 29, 2020, and Ahmed was arrested the following day.
According to the information provided by the Government of Iraq in support of its extradition request, Ahmed served as the leader of a group of Al-Qaeda terrorists in Al-Fallujah, Iraq, which planned operations targeting Iraqi police. Ahmed and other members of the Al-Qaeda group allegedly shot and killed a first lieutenant in the Fallujah Police Directorate and a police officer in the Fallujah Police Directorate, on or about June 1, 2006, and October 3, 2006, respectively.
The details contained in the complaint are allegations and have not yet been proven in court. If Ahmed’s extradition is certified by the court, the decision of whether to surrender him to Iraq will be made by the U.S. Secretary of State.
Ahmed’s arrest was executed by the FBI Phoenix Field Office, HSI Phoenix Field Office and the U.S. Marshals Service. The extradition case will be handled by the U.S. Attorney’s Office for the District of Arizona and the Criminal Division’s Office of International Affairs.
If you have questions, please call the Office of Public Affairs at 202-514-2007.
Fugitive Wanted by Iraq for Murder of Iraqi Police Officers Arrested in ArizonaRead the Press Release
A Phoenix-area resident, who is alleged to have been the leader of a group of Al-Qaeda terrorists in Al-Fallujah, Iraq, appeared today before a federal magistrate judge in Phoenix, Arizona in connection with proceedings to extradite him to the Republic of Iraq. He is wanted to stand trial in Iraq for two charges of premeditated murder committed in 2006 in Al-Fallujah.
The arrest was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Michael Bailey for the District of Arizona.
An Iraqi judge issued a warrant for the arrest of Ali Yousif Ahmed Al-Nouri, 42, on murder charges. The Government of Iraq subsequently requested Ahmed’s extradition from the United States. In accordance with its treaty obligations to Iraq, the United States filed a complaint in Phoenix seeking a warrant for Ahmed’s arrest based on the extradition request. U.S. Magistrate Judge John Z. Boyle issued the warrant on January 29, 2020, and Ahmed was arrested the following day.
According to the information provided by the Government of Iraq in support of its extradition request, Ahmed served as the leader of a group of Al-Qaeda terrorists in Al-Fallujah, Iraq, which planned operations targeting Iraqi police. Ahmed and other members of the Al-Qaeda group allegedly shot and killed a first lieutenant in the Fallujah Police Directorate and a police officer in the Fallujah Police Directorate, on or about June 1, 2006, and October 3, 2006, respectively.
The details contained in the complaint are allegations and have not yet been proven in court. If Ahmed’s extradition is certified by the court, the decision of whether to surrender him to Iraq will be made by the U.S. Secretary of State.
Ahmed’s arrest was executed by the FBI Phoenix Field Office, HSI Phoenix Field Office and the U.S. Marshals Service. The extradition case will be handled by the U.S. Attorney’s Office for the District of Arizona and the Criminal Division’s Office of International Affairs.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fraudster Sentenced for Scamming 350 Victims over Seven YearsRead the Press Release
ALEXANDRIA, Va. – A Colombian national was sentenced today to 87 months in prison for his leadership of a seven-year fraud and identity theft conspiracy that victimized more than 350 people and caused losses of nearly $2 million.
“Alberto Cortes Gomez’s crime was successful precisely because it targeted one of the most admirable qualities of its hundreds of victims: their desire to help others,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Cortes Gomez and his co-conspirators targeted innocent retail shoppers by feigning questions or a need for assistance, thus exploiting those victims’ generosity and willingness to give their time and attention to a total stranger. In doing so, Cortes Gomez and his co-conspirators broke society’s trust in a particularly pernicious way, by relying on the best in people in order to do them harm.”
According to court documents, Cortes Gomez, 39, orchestrated a nationwide scheme that targeted unsuspecting retail shoppers in order to steal their credit cards and other identity information. Cortes Gomez would travel from Florida to locations with high volumes of retail activity, such as the I-95 corridor through Virginia. While at a retail location, Cortes Gomez and co-conspirators would distract shoppers with questions seeking assistance, and other conspirators would steal the shoppers’ wallets. After altering means of identification to show the victims’ names but pictures of those working with Cortes Gomez, Cortes Gomez would direct purchases of expensive electronics and other retail goods. The members of the conspiracy would then ship the goods for resale.
“Cortes Gomez exhibited vicious and predatory greed, turning theft into a moneymaking operation at the expense of ordinary people,” said Raymond Villanueva, Washington D.C. Homeland Security Investigations (HSI) Special Agent in Charge. “HSI is committed to investigating fraudsters like Cortes Gomez, whose crimes impacted hundreds of unsuspecting victims.”
“Cortes Gomez planned, schemed, and defrauded hundreds of innocent people for his own personal gain,” said Timothy M. Dunham, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “I'd like to thank the men and women of the FBI who work hard every day to identify and apprehend those responsible for breaking the public's trust and taking advantage of people’s altruistic instincts to steal from them.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorney Ryan S. Faulconer and Assistant U.S. Attorney Laura M. Grimes prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-189.
Fort Defiance Man Sentenced to 4 Years’ Prison for Domestic ViolenceRead the Press Release
PHOENIX – On January 27, 2020, Bruce Robertson, 40, of Fort Defiance, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 4 years’ imprisonment. Robertson had previously pleaded guilty to two counts of Domestic Assault Resulting in Substantial Bodily Injury.
On multiple occasions in 2015 and 2016, Robertson engaged in acts of domestic violence against his then-girlfriend, repeatedly punching her in the face, shoving her, and threatening to smother her. In one assault, when Robertson attempted to hit his infant child with a large metal belt, his girlfriend shielded the baby with her own body. As a result, Robertson beat her with the belt. The matter was eventually referred to the Federal Bureau of Investigation, and agents promptly began an investigation, which led to Robertson’s prosecution. Robertson is a member of the Navajo Nation, as was the victim, and the crimes occurred near Chinle, Ariz., on the Navajo Nation Indian Reservation.
The investigation was conducted by agents of the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
Former Oakland County Lawyer Sentenced in Scheme to Obtain Fraudulent Mortgage Loans from Fifth ThirdRead the Press Release
A former Oakland County lawyer was sentenced yesterday, January 30, 2020, to serve 70 months in federal custody on one count of conspiracy to commit bank fraud, and three counts of bank fraud, United States Attorney Matthew Schneider announced today.
Paul Nicoletti, age 60, received the sentence from the Honorable Victoria A. Roberts, United States District Judge, in Detroit, Michigan. Judge Roberts also ordered that the defendant serve two years on supervised release after his release from federal custody and pay restitution totaling $5,299,751.58. A jury returned guilty verdicts against Mr. Nicoletti on May 5, 2019 after a seven-day trial.
According to the evidence introduced during the trial, Mr. Nicoletti, a lawyer and owner of a title company in Bloomfield Hills, Michigan, became involved in a scheme to obtain large mortgage loans from Fifth Third Mortgage, Michigan, a lending arm of Fifth Third Bank. Although somewhat complicated, the essence of the scheme involved real estate developers, a corrupt loan officer and Mr. Nicoletti working together to obtain large mortgage loans from Fifth Third Mortgage, Michigan, purportedly for the purchase and development of high-end properties in Bloomfield Hills and Birmingham, Michigan, based on numerous false statements both in the application and closing process of the loans, resulting in Fifth Third Mortgage, Michigan releasing over eight million dollars in loan proceeds.
More specifically, one or more of the conspirators would find and recruit “straw buyers” to serve as mortgage loan applicants for the purchase of real property which the conspirators wanted to purchase and develop. The straw buyers, who viewed themselves as “investors,” were paid a fee for the use of their names and credit histories in the loan applications and real estate transactions, and were promised a portion of the expected profit after the property was developed and resold. The straw buyers had no intention of living at or actually exercising ownership and control of the property, despite representations to the contrary in their applications, and in closing documents. Despite their good credit ratings, the straw buyers did not have the assets or income necessary to qualify for mortgages in the substantial amounts sought. Thus, false information pertaining to their income and assets was included in the mortgage loan applications to qualify them. Mr. Nicoletti’s role was to facilitate the fraudulent loans as the title agent by, among other things, falsely verifying that the borrowers made substantial down payments on the properties. To do so, Mr. Nicoletti obtained cashiers checks, issued after the loan proceeds were released to his Continental Title account and which were funded by the loan proceeds themselves, bearing the names of the straw buyers as “remitters,” which he then re-deposited into his Continental Title account, making it appear as though the borrowers funded the substantial down payments. In fact, the borrowers brought no money to the closings. When the fraud was discovered by authorities, Mr. Nicoletti counseled the destruction of evidence of the fraud and also personally destroyed relevant electronic and paper records.
Mr. Nicoletti was the sixth person convicted as a result of this investigation. The loan officer, a mortgage broker, an appraiser and several of the real estate developers have previously been sentenced after entering guilty pleas relating to the scheme. The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Craig Weier and John Neal.
Former Major at Angola Prison Convicted of Beating a Handcuffed and Shackled InmateRead the Press Release
Daniel Davis, 44, a former major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury yesterday in federal court for his participation in the beating of an inmate who was handcuffed, shackled, and not resisting and for failing to intervene to stop his subordinates from participating in the same beating. In a previous trial in January 2018, Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath. Davis was also previously convicted of this beating in November 2018, but was granted a new trial based on juror misconduct.
Four other officers—former LSP Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up. At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.
After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment. The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a dislocated shoulder, a hematoma, a collapsed lung, and broken ribs.
“The Constitution and its Bill of Rights protect all people in our nation from unlawful abuse by the government, and the Department of Justice will continue to prosecute officers who willfully violate the Constitution by abusing their power over those in custody,” said Attorney General Eric Dreiband for the Civil Rights Division. “This officer violated his oath and the law, and the Department of Justice will not tolerate this kind of criminal misconduct by correctional officers.”
U.S. Attorney Brandon Fremin stated, ““Corrections officers are charged with the duty of protecting the public, not abusing those who have been lawfully incarcerated. This district contains several penal institutions, and this should serve as a warning to those who would abuse their power that federal, state, and local law enforcement agencies will relentlessly pursue those who violate the public trust. I commend all of the agencies responsible for this conviction, and want to thank them for their partnership in this important matter.”
“Correctional officers have an obligation to protect inmates serving their sentences as ordered by the court,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “Daniel Davis abused his authority by inflicting physical harm upon an inmate that was restrained and non-combative. His actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. I commend the men and women of the FBI’s Baton Rouge Resident Agency Office, Louisiana Office of the State Inspector General, and the Department of Justice Civil Rights trial attorneys for their commitment to uphold the constitution and protect all Americans.”
“This is a just verdict,” said Louisiana Inspector General Stephen Street. “We cannot and will not tolerate the abuse of the considerable power afforded corrections officers. Whenever it does occur, it is critical to hold offenders criminally accountable in order to protect the integrity of the system. The jury did exactly that with Mr. Davis, and it was worth the time and effort to obtain this result. Thanks again to our federal partners at the FBI and DOJ.”
No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. It was prosecuted by Trial Attorneys Zachary Dembo and Anita Channapti of the Civil Rights Division’s Criminal Section. Trial Attorney Christopher J. Perras of the Civil Rights Division and Assistant U.S. Attorney Frederick A. Menner Jr., of the Middle District of Louisiana also assisted in the case.
Former Castroville Animal Control Officer Pleads Guilty to Role in Fraudulent Insurance Claim Plot Involving Former Castroville Police ChiefRead the Press Release
In San Antonio this afternoon, former Castroville Animal Control Officer Ambrose Rymers admitted his role in a fraudulent insurance claim scheme involving 54-year-old former Castroville Police Chief Chris Filline and a third individual, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before U.S. Magistrate Judge Elizabeth S. Chestney, Rymers pleaded guilty to one count of conspiracy. By pleading guilty, Rymers admitted to assisting Filline and a third individual in a fraudulent scheme to collect insurance proceeds. Rymers, who faces up to five years in federal prison, is scheduled for sentencing at 1:30pm on April 29, 2020, before U.S. District Judge Xavier Rodriguez.
A one-count federal grand jury indictment--unsealed on Monday following Filline’s arrest—alleges that between June 2016 and December 2016, Filline schemed to defraud Farmers Insurance Group regarding his 2007 Lincoln Navigator. According to court records, Filline conspired with Rymers and a third individual, to destroy the vehicle in order to collect insurance proceeds. Rymers admitted to following the third individual, who was allegedly driving Filline’s SUV, to a location in Bexar County on July 15, 2016. According to the indictment, the third individual doused the SUV with an accelerant and lit it on fire. The indictment further alleges that on July 18, 2016, Filline went to the Lytle Police Department and reported that his SUV had been stolen. Three days later, Filline electronically submitted an insurance claim to Farmers Insurance Group. That filing resulted in the processing and payment of a fraudulent claim for $14,388.25 to Filline.
The indictment charges Filline and the third individual with one count of conspiracy to commit wire fraud. Upon conviction, Filline and the third individual face up to 20 years in federal prison. Filline is on bond pending trial scheduled for 9:30am on March 30, 2020, before U.S. District Judge Xavier Rodriguez in San Antonio. The third individual is not in custody at this time.
The FBI, together with the Bexar County Fire Marshal’s Office, investigated this case. Assistant U.S. Attorney Greg Surovic is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
First Annual Mississippi Human Trafficking Summit Held in JacksonRead the Press Release
Jackson, Miss. – The U.S. Attorney’s Offices for the Southern and Northern Districts of Mississippi and the Mississippi Department of Public Safety presented the first annual Mississippi Human Trafficking Summit today at the Jackson, Mississippi, Convention Center. More than 400 participants, including local, state tribal, and federal law enforcement officers, prosecutors, victim service providers, nonprofits, policy makers and social workers, attended and participating in the Summit.
“Human trafficking is here in Mississippi, and sadly, it is significantly and adversely impacting the lives of many Mississippians,” said U.S. Attorney Hurst. “Our intent with the Mississippi Human Trafficking Council and with this summit is to train and raise awareness among the public, our nonprofits, and our law enforcement in order to prevent future trafficking, rescue and protect victims, and swiftly prosecute these evildoers. The Department of Justice and the U.S. Attorney’s Offices in Mississippi have made combatting this horrific and reprehensible crime one of our highest priorities in order to keep the public safe.”
“Today has been such a powerful and important day in the fight against human trafficking here in Mississippi,” said U.S. Attorney Lamar. “We have seen a large, diverse and committed group of people come together to hear about the work that has been done so far, to celebrate the successes and milestones of those engaged in the fight, and to make plans for combatting human trafficking crimes in our Stare in the future. With the continued and combined efforts of those present and others who are willing to work together, we can make a difference in the lives of victims and combat these heinous crimes that strike at the heart of basic human dignity.”
The Mississippi Human Trafficking Council was formed in September 2019, and is chaired by an Assistant U.S. Attorney from Northern District of Mississippi, an Assistant U.S. Attorney from Southern District of Mississippi, and the Mississippi Human Trafficking Coordinator, who works for the Mississippi Bureau of Investigation at the Mississippi Department of Public Safety. The mission of the Council is to use a victim-centered, collaborative, and multi-disciplinary model to prevent trafficking, protect victims, and prosecute criminals in all forms of domestic and international human trafficking, to include commercial sex trafficking and labor trafficking for the protection of both adult and minor victims.
Today’s Summit began with opening remarks from Mississippi Governor Tate Reeves, Lieutenant Governor Delbert Hosemann, Mississippi Attorney General Lynn Fitch, Colonel Chris Gillard, Assistant Commissioner of the Mississippi Department of Public Safety, Mississippi Band of Choctaw Indians Tribal Chief Cyrus Ben, U.S. Attorney Chad Lamar of the Northern District of Mississippi, and U.S. Attorney Mike Hurst of the Southern District of Mississippi.
Summit attendees also heard from:
- Bill Woolf, Human Trafficking Programs Director at the Office of Justice Programs within the U.S. Department of Justice;
- Alexandra Perron with A21’s Freedom Center in Charlotte, North Carolina, regarding the upcoming Mississippi Human Trafficking Council Billboard Campaign;
- Council Co-Chairs Kathlyn Van Buskirk - Assistant US Attorney, Southern District of MS, Susan Bradley - Deputy Criminal Chief US Attorney, Northern District of MS, and Ashlee Lucas - Statewide Human Trafficking Coordinator, MS Bureau of Investigation
- Council Subcommittee Chairs:
- Outreach and Public Awareness - Chair: Mandy Davis, Chief of Staff, MSDPS
- Strategic Planning and Trafficking Protocol - Chair: Dr. Tamara Hurst, School of Social Work, University of Southern Mississippi
- Policy and Legislation - Co-Chairs: Angela Cockerham, MS House of Representatives; Lora Hunter, General Counsel, MS Department of Public Safety
- Training - Chair: Paula Broome, MS Attorney General’s Office
- Victim Service - Co-Chairs: Hollie Jeffery, Children’s Advocacy Centers of Mississippi; Heather Wagner, Mississippi State Department of Health, Office Against Interpersonal Violence
- A Human Trafficking Survivor
- U.S. Department of Justice Grantees Relating to Human Trafficking:
- Heather Wagner - Grant - Victim Services
- Ashlee Lucas - Grant - Law Enforcement
- Those Involved in Mississippi Initiatives Addressing Human Trafficking:
- Heather Collins - Statewide Human Trafficking Analyst, Mississippi Bureau of Investigation
- Guy Collins - Master Sergeant, Mississippi Bureau of Investigation, Human Trafficking Special Victim’s Unit
- Nick Brown - Hinds County Sheriff’s Office, FBI Task Force Officer
- Mike Hurst - US Attorney, Southern District of Mississippi
- Chad Lamar - US Attorney, Northern District of Mississippi
- Leslie Williams Fisher, Trial Attorney, U.S. Department of Justice, Criminal Division Child Exploitation & Obscenity Section
The Department of Justice continues to fight human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs. Information on the Department of Justice’s efforts to combat human trafficking can be found here. An update on human trafficking prosecution statistics can be found here.
Information about the Mississippi Human Trafficking Council can be found here.
Financial Advisor Sentenced to More Than 11 Years in Prison for Defrauding More Than a Dozen Clients in $8.1 Million Ponzi SchemeRead the Press Release
SANTA ANA, California – A former Ameriprise financial advisor who ran a Ponzi scheme that defrauded 20 of her clients – including some of her relatives – out of more than $8.1 million was sentenced today to 136 months in federal prison.
Li Lin Hsu, a.k.a. Yilin Hsu Lee, 42, of Diamond Bar, was sentenced by United States District Judge Andrew J. Guilford, who also ordered her to pay $5,274,277 in restitution to her victims. Hsu pleaded guilty in February 2019 to one count of wire fraud.
Between February 2014 and May 2018, Hsu lured in her victims with the promise that she would safely invest their money. She gained the trust of her victims – nearly all of whom are members of Southern California’s Chinese community – by speaking to them in their native language and telling them she was part of their community. Other victims included Hsu’s relatives.
In reality, Hsu failed to invest any of her victims’ money. Instead, she used their funds to buy homes in Diamond Bar and Irvine, a luxury Tesla automobile, a vacation at the Peninsula Hotel in Paris, and thousands of dollars’ worth of luxury goods at high-end stores such as Harry Winston, Chanel and Hermes. In the hallmark of a Ponzi scheme, Hsu also used money she stole from later investors to make lulling payments to early investors.
Hsu began her scheme while employed at Ameriprise Financial, Inc., as a financial advisor. Ameriprise fired her in 2015 after discovering her misconduct. In 2016, the Financial Industry Regulatory Authority (FINRA) barred Hsu from working in the investment business.
Shortly after Ameriprise terminated her, Hsu founded her own companies – American Capital Trading Group LLC and, in 2016, American Capital Republic, Inc. – where she sought out additional victim investors and swindled them.
Hsu told these new clients that their funds would be invested in low-risk municipal bonds. As with her Ameriprise accounts, Hsu failed to invest the funds as promised, but rather spent the funds on herself. She fabricated account statements that showed her victims’ funds were safely invested and lulled her victims into believing the account statements by making nominal “interest payments” that originated from the funds of other victims. She also lied to one of her victims when she said American Capital Trading Group – which she controlled – was an Ameriprise affiliate.
Through these two companies, Hsu caused losses of $8,191,554 to her victims.
In 2016, Hsu repeatedly lied under oath to the Securities and Exchange Commission, which had begun investigating her. After the FBI arrested Hsu in April 2018 and in violation of a court order, Hsu met with two of her victims and told them to lie to the FBI that her plan had always been to invest in the two properties she had purchased. She also induced them to give her an additional $450,000, which she then used to pay back another victim.
The FBI investigated this matter.
This case was prosecuted by Assistant United States Attorneys Poonam G. Kumar and Alexander C.K. Wyman of the Major Frauds Section, and Katharine Schonbachler and Victor A. Rodgers of the Asset Forfeiture Section.
Final Defendant Sentenced to over 30 Years for Role in Armed Robbery Crew and Drug Trafficking OrganizationRead the Press Release
5 Defendants Sentenced to a Total of 95 Years in Prison for Federal Violent Crime and Drug Offenses
Memphis, TN – Shuntario Johnson, 38, has been sentenced to 371 months in federal prison for his role in a conspiracy to possess with intent to distribute cocaine, the possession of a firearm in furtherance of a crime of violence, carjacking and aiding and abetting an attempted robbery. Overall, a five members and associates of an armed robbery crew and drug trafficking organization have been sentenced to a total of 1,143 months imprisonment for their various roles in a drug conspiracy, possession of a firearms in furtherance of a Violent Crimes and Drug Trafficking Crimes, carjacking and being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee, announced the sentences today.
On August 8, 2019, a federal grand jury returned an 11-count fifth superseding indictment against the following individuals:
Marcus Danner, 39
Quintez Agnew, 34
Shuntario Johnson, 38
John Lott, 30
Crystal Deener. 26
According to information presented in court, Danner, Agnew, Lott, and Johnson were members of an armed robbery crew that targeted narcotics traffickers in the Memphis area. The indictment followed a four-month investigation involving agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as well as other state and local agencies, in which Johnson and his co-defendants were alleged to have participated
in a conspiracy to rob drug dealers in Memphis. Lott and Deener were also indicted for their roles in a conspiracy to tamper with evidence in the case. During the investigation,
agents seized multiple firearms, approximately $2,000 in U.S. currency, and approximately 28 grams of crack cocaine. See announcement of original indictment: https://www.justice.gov/usao-wdtn/pr/four-members-armed-robbery-crew-have-been-indicted-committing-robberies-throughout
On September 9, 2019, Shuntario Johnson demanded a jury trial on the fifth superseding indictment. Accordingly, the United States presented the following proof at trial:
On January 09, 2018, the victim "R.S." drove Johnson and an unknown male subject, identified as Johnson’s brother-in-law, to acquire marijuana from an apartment complex in Memphis, Tennessee. After acquiring the marijuana, "R.S." stopped at a stop sign at the intersection of Castalia Street and East Mclemore at which time Johnson who was in the front seat, displayed a silver semi-automatic handgun and pointed it at "R.S." head and said "give me what you got." "R.S." stated that the second suspect, sitting in the back seat, also pulled out a black semi-automatic handgun and pointed it at the victim. "R.S." advised Memphis Police Department officers that he gave the suspects his wallet and five dollars and was ordered out of the vehicle. "R.S." stated that once he exited his vehicle he began to run on foot as Johnson exited the vehicle, Johnson fired "multiple shots" at "R.S."
At the crime scene, MPD officers recovered two 9mm shell casings at the location of the shooting. A ballistics examination of the two 9mm shell casings from the crime scene were compared to a firearm recovered from Johnson on January 25, 2019.
On January 25, 2019, during Johnson’s arrest for his involvement in a drug conspiracy, he pointed a firearm at an ATF Agent then fled from the officers, throwing the firearm to the ground before his apprehension. The firearm was recovered during a search of the area, revealing that the firearm was a 9mm Ruger handgun. A ballistics examination of the firearm and the two shell casings recovered from the crime scene of the carjacking revealed that the 9mm Ruger handgun had fired the bullets and matched the 9mm shell casings. Later, Johnson stated to ATF Agents that Danner had given him the 9mm Ruger handgun.
Evidence was also presented that Danner, Agnew, Lott and Johnson attempted to rob "B.B" of his drug proceeds as stated in count six. During this incident, Johnson shot "V.R." "V.R." was not fatally injured and recovered from the gunshot. However, "V.R." died of an unrelated health issue prior to Johnson’s trial.
Evidence was also presented that Danner, Agnew, Lott and Johnson conspired to rob a stash house of cocaine. On January 25, 2019, Danner, Agnew, Lott and Johnson arrived at a location in Shelby County to rob what they believed to be a drug dealer. During this sting operation by the ATF, Danner, Agnew, Lott and Johnson were arrested.
On September 17, 2019, Johnson was convicted by a jury of counts 2, 3, 4 and 8 of the fifth superseding indictment.
On January 30, 2020, United States District Court Judge John T. Fowlkes Jr., sentenced Johnson to a total sentence of 371 months imprisonment followed by 3 years of supervised release for his involvement in these multiple crimes.
On January 10, 2019, John Lott was sentenced to a total sentence of 420 months imprisonment followed by five years’ supervised release, by United States District Court Judge John T. Fowlkes Jr. https://www.justice.gov/usao-wdtn/pr/john-lott-sentenced- 420-months-imprisonment-member-armed-robbery-crew-and-drug
On January 16, 2019, Quintez Agnew pled guilty to counts 5, 7, 8, 9 and 10, before United States District Court Judge John T. Fowlkes Jr. However, prior to sentencing, Agnew died of suicide.
On March 1, 2019, Marcus Danner was sentenced to 352 months imprisonment followed by five years’ supervised release, by United States District Court Judge John T. Fowlkes Jr. https://www.justice.gov/usao-wdtn/pr/marcus-danner-sentenced-352-months-imprisonment-leader-armed-robbery-crew-and-member
On February 21, 2019, Crystal Deener was sentenced to 1 day time served, followed by two years’ supervised release, by United States District Court Judge John T. Fowlkes Jr.
U.S. Attorney Dunavant said, "Armed Robbery crews made up of violent felons will NOT continue to terrorize and endanger our communities in West Tennessee with impunity. We use all available law enforcement and prosecutorial resources to pursue, disrupt, and dismantle groups and conspiracies that are most responsible for violence and drug dealing, and to remove dangerous offenders with firearms from our streets. I commend the great investigative work of ATF and our local partners in neutralizing this violent recidivist and this crew of trigger-pullers and traffickers."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Multi-Agency Gang Unit (MGU) comprised of investigators from the Memphis Police Department and Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorneys Jerry Kitchen and Gregory Allen prosecuted this case on behalf of the government.
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Felon Sentenced for Multiple Fraud ChargesRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield in connection with various fraud schemes.
Talal H. Soffan, 46, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison, five years of supervised release and ordered to pay $573,624 in forfeiture. In February 2019, Soffan pleaded guilty to making false statements to a federally insured financial institution, wire fraud, aggravated identity theft, conspiracy and bank fraud.
In March 2007, Soffan applied for two bank loans totaling $45,000 for his company, All Waste Management LLP. In the process of securing the loans, Soffan concealed his and an associate’s prior felony convictions. After receiving the loans, Soffan then misspent the loan proceeds, defaulted on the loans, and exploited both accounts in connection with a series of credit card bust-out schemes. In those schemes, Soffan defrauded various banks and credit card companies through 27 different accounts obtained in his name, the name of his business, other businesses, and other individuals, resulting in an overall loss of approximately $528,624.
In addition, Soffan conspired with a local real estate broker to defraud various banks relating to foreclosed properties owned by the banks. Soffan sent the broker e-mails containing his company’s genuine bid and false bids from other companies to ensure that his company received contracts to perform repair and maintenance work on the foreclosed properties. In exchange for receiving approximately $75,186 in contracts for his company, Soffan allowed the broker to keep approximately five percent of his company’s invoiced amounts.
United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office prosecuted the case.
Federal Jury Finds Duquesne Man Guilty of Drug Law ViolationRead the Press Release
PITTSBURGH - After deliberating for two hours, a federal jury found Donte Taylor guilty of one count of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Taylor, 37, formerly of Duquesne, was tried before Senior United States District Judge David S. Cercone in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Shanicka L. Kennedy, who prosecuted the case, the evidence presented at trial established that on May 10, 2018, Donte Taylor was on parole. When parole agents went to his house for a routine visit, they smelled marijuana. Agents tested Taylor, and he tested positive for marijuana and cocaine. He also had $540.00 on his person. Parole agents noticed that his girlfriend, Ericka Smith, appeared to be extremely nervous. Parole agents then contacted the local police.
When the police responded, Smith advised that there was a small amount of marijuana in the house and gave verbal and written consent to search. Smith provided a conflicting statement about Taylor’s drug trafficking activities. Smith admitted that it was her house and that it was Taylor’s approved residence with parole.
Officers recovered approximately 279 grams of crack cocaine with a street value of $22,000 to $28,000. They also discovered cocaine, heroin, fentanyl and marijuana, as well as $14,466.00 in a safe, scales and other drug packaging materials.
Judge Cercone scheduled sentencing for June 5, 2020. The law provides for a total sentence of not less 10 years in prison and up to life, a fine not to exceed $8,000,000.00, a term of supervised release of at least eight years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered Taylor to remain in custody.
The Drug Enforcement Administration and the City of Duquesne Police Department conducted the investigation that led to the prosecution of Donte Taylor.
Federal Jury Convicts Colombian National for International Cocaine Smuggling ConspiracyRead the Press Release
Tampa, FL – A federal jury has found Emiro Hinestroza-Newbbooll (48, Colombia) guilty of one count of conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States, and one count of possession with the intent to distribute five kilograms or more of cocaine on that vessel. Hinestroza-Newbbooll faces a maximum penalty of life in federal prison. His sentencing is scheduled for April 30, 2020.
According to evidence presented at trial, Hinestroza-Newbbool was part of an international maritime drug smuggling operation involving at least 600 kilograms of cocaine worth approximately $18 million. Hinestroza-Newbbooll was the captain of a four-man, Colombia-based cocaine smuggling crew. Prior to their interdiction by the U.S. Coast Guard (USCG), Hinestroza-Newbbooll and his crew were transporting approximately 30 to 40 bales of cocaine onboard a go-fast vessel from Colombia to Honduras following a known smuggling route known as the “Honduras Rise.”
On December 1, 2018, a USCG HC-130J aircraft deployed from Air Station Elizabeth City, North Carolina spotted and recorded Hinestroza-Newbbooll and his crew onboard a go-fast vessel traveling at a high rate of speed, approximately 110 nautical miles southwest of Jamaica. In an attempt to destroy evidence and evade capture, Hinestroza-Newbbooll and his crew jettisoned all of the cocaine bales onboard the vessel and sank them to the ocean bottom, by tying the bales to their outboard engines and throwing the engines (their only means of propulsion) overboard. The USCG aircrew thwarted that attempt and was able to observe and record the jettison.
Later that day, Hinestroza-Newbbooll, his crew, and their now engine-less vessel were interdicted and boarded by USCG law enforcement officers from Tactical Law Enforcement Team (TACLET) Pacific. That boarding yielded crucial evidence consistent with cocaine trafficking, including trace amounts of cocaine present on the smuggling vessel and Hinestroza-Newbbooll and his crew.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. 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. The case was prosecuted by Special Assistant United States Attorneys Nicholas DeRenzo and Toni Goodin.
Farmington Man Sentenced to 6 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Christopher Hauser, age 33, of Farmington, Arkansas, was sentenced yesterday to 72 months in federal prison followed by fifteen years of supervised release for one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in March 2018, members of the Internet Crimes Against Children (ICAC) Task Force identified an IP address that was using a peer-to-peer file sharing network to obtain suspected child pornography files. The IP address was traced to Hauser. On May 31, 2018, a federal search warrant was executed at Hauser’s residence in Farmington, Arkansas. Law enforcement confiscated a digital device that had been connected to the internet with intent to view child pornography. A forensic analysis of that device revealed that it did in fact contain images of child pornography.
Hauser was indicted in May 2019 on federal charges and entered his guilty plea in September 2019.
This case was investigated by Homeland Security Investigations (HSI) and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
FCI Danbury Inmate Sentenced to 2 More Years in Prison for Possessing WeaponsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JULIAN DE JESUS CASTILLO, 35, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for possessing weapons while incarcerated at the Federal Correctional Institution in Danbury, Connecticut (FCI Danbury).
According to court documents and statements made in court, on February 8, 2018, Castillo, while an inmate at FCI Danbury, possessed a razor blade and a 7.5 inch piece of flat metal that had sharpened edges and a point at one end. The razor blade was discovered taped to the underside of Castillo’s assigned bunk and the metal blade was concealed at the base of a pillar adjacent to Castillo’s bunk. The objects were designed or intended to be used as weapons.
On September 24, 2019, Castillo pleaded guilty to possession of contraband in a federal prison.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Anastasia E. King.
East Stroudsburg Financial Planner Convicted of Scheme to Defraud His ClientsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Diaz, age 52, formerly of East Stroudsburg, Pennsylvania, was convicted on January 30, 2020 following a jury trial, of wire fraud and mail fraud offenses. The 12-day trial was held before United States District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney David J. Freed, the jury returned the guilty verdict on all counts charged in the superseding indictment after approximately eight hours of deliberation. Diaz was convicted of seven counts of wire fraud and four counts of mail fraud, all stemming from the same scheme.
“Schemes like this one committed by unscrupulous investment advisors seeking to line their own pockets by selling high-risk and high-commission securities to unsophisticated investors based on lies about the safety of the security and net worth of the investor are fraud, pure and simple,” said U.S. Attorney Freed. “I hope this case sends a message to others in the industry that similar misconduct will not be tolerated and will have potential criminal consequences as well as the more common civil consequences.”
The evidence presented at trial showed that from approximately 2008 through April 2015, Diaz owned and operated Financial Planners Group of America, a financial planning business in East Stroudsburg and Scotrun, Pennsylvania. Diaz persuaded his clients to invest in high risk, illiquid “alternative investment products,” including real estate investment trusts, business development companies, oil and gas drilling companies, and equipment leasing companies.
A dozen of Diaz’s former clients testified at trial that Diaz convinced them to invest their life savings in the alternative investments through a series of false representations, including that the investments were low-risk, with guaranteed protection of principle and guaranteed rates of return, and that the investments were liquid, giving investors access to their funds in an emergency. Evidence introduced at trial showed that the investments were high-risk and speculative, with no guarantees, and that in some instances, investors lost all of their money. Evidence at trial also showed that the investments had lengthy holding periods, with no access to funds, and that could be extended indefinitely at the unilateral discretion of the investment company. Some witnesses testified to having invested money over a decade ago that they still could not liquidate.
At trial, jurors saw extensive client documentation bearing false information about the clients’ assets, risk tolerance, investment experience, and investment objectives. Clients testified that Diaz regularly had them sign blank documents, with the promise that missing information would be filled in by his office. Former employees of Diaz testified that he ordered them to add false information to the account forms, inflating clients’ assets, risk tolerance, and investment experience to qualify them as suitable investors for the alternative investments.
Jurors also learned that Diaz was terminated by five broker-dealers and permitted to resign by a sixth broker-dealer. Clients who asked about the frequent changes to new broker-dealers were told that it was for their benefit. Diaz’s former employees testified that they were ordered to conceal his firings and lie to the clients about his changes between broker-dealers.
Jurors also learned that Diaz was suspended by the Certified Financial Planners Board of Standards in 2013, and under investigation by the Financial Industry Regulatory Authority and the Pennsylvania Department of Banking, both of whom ultimately barred Diaz from the securities industry in 2015. Diaz’s clients testified that he failed to disclose his suspension from the Certified Financial Planners Board of Standards, and concealed the nature and severity of the regulatory investigations.
Various industry witnesses testified that Diaz earned commissions on the alternative investments that were often double, or even quadruple the commissions earned on more conventional investments, such as stocks, bonds, and mutual funds. Documents at trial showed that Diaz regularly earned in excess of $1.5 million in commissions annually. Witnesses described how Diaz spent his money on expensive automobiles, a dozen properties across the United States, and frequent vacations to exotic locales.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Phillip Caraballo and Robert O’Hara prosecuted the case.
The combined maximum penalty under federal law for Diaz is up to 220 years of imprisonment. There is also a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Drug Trafficker Sentenced to 24 YearsRead the Press Release
CHARLOTTE, N.C. – Late yesterday, U.S. District Judge Max O. Cogburn Jr. sentenced Garlin Raymond Farris, 57, of Mathews, N.C. to 288 months in prison and five years of supervised release for trafficking large amounts of methamphetamine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2016 through the summer of 2017, Farris trafficked significant amounts of methamphetamine throughout Western North Carolina. Court records show that Farris supervised a network of distributors, who sold his drugs throughout Mecklenburg, Watauga, Catawba, and Alexander Counties. Farris and his distributors made frequent trips to supply sources located in Atlanta, Georgia. During those trips, Farris personally picked up at least 50 kilograms of methamphetamine and then brought the drugs back into North Carolina for distribution.
In April 2019, a federal jury convicted Farris of conspiracy to traffic methamphetamine. He is currently in 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 the ATF for handling the investigation.
Assistant U.S. Attorney Erik Lindahl, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Dominican National Sentenced for Role in Large-Scale Heroin Trafficking OrganizationRead the Press Release
BOSTON – A Dominican national previously residing in Springfield was sentenced on Tuesday, Jan. 28, 2020, in federal court in Springfield for his role in a large-scale heroin trafficking organization.
Juan Perez, 32, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison and five years of supervised. Perez will face deportation proceedings upon completion of his sentence. In July 2019, Perez pleaded guilty to conspiracy to distribute and possession with intent to distribute more than one kilogram of heroin. Perez and 17 co-defendants were indicted on heroin conspiracy charges in August 2017.
Perez worked with Alberto Marte, the leader of the Springfield-based drug trafficking organization, to distribute vast amounts of heroin in the Springfield area. Perez admitted to travelling to Bronx, N.Y. with Marte and other members of the organization where they purchased three kilograms of heroin, which they intended to distribute in Springfield. Agents seized the heroin on Sept. 22, 2016, when they searched a vehicle on Marte’s property.
The Marte drug trafficking organization had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area.
Marte and 11 other co-conspirators have pleaded guilty and are awaiting sentencing. The remaining defendants have pleaded not guilty.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the cases.
District Man Sentenced to 25 Years in Prison for Sexually Assaulting 12-Year-Old Girl Walking to Metro StationRead the Press Release
WASHINGTON – Rakim Davis, 30, of Washington, D.C. was sentenced today by Judge Ronna L. Beck of the Superior Court of the District of the Columbia to 25 years in prison for sexually assaulting a 12-year-old girl who was walking to a D.C. metro station, U.S. Attorney Jessie K. Liu announced.
Davis pled guilty in November 2019 to first degree sexual abuse of a child. Upon completion of his prison term, Davis will be placed on lifetime supervised release. He will also be required to register as a sex offender for the rest of his life.
According to the government’s evidence, on October 12, 2019, the 12-year-old victim was walking to the Congress Heights Metro Station in Washington, D.C. As she entered the 1300 block of Alabama Ave. SE, Davis approached her and asked if he could take her to a traphouse for a massage. When the victim said no, the defendant grabbed her by the arm and told her not to make a scene and that he didn’t want to hurt her. Davis took the victim across the street to an old elementary school that had been converted to a community recreation center. In an isolated corner of the breezeway, he sexually assaulted her. The victim immediately reported the assault to her family members, who brought her to the hospital, at which point the Metropolitan Police Department was notified.
In announcing the sentence, U.S. Attorney Liu commended the work of the Metropolitan Police Department, including the Youth Division, which investigated the case. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist T.J. McPhail and Victim/Witness Advocate Juanita Harris. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Caroline Burrell, who investigated and prosecuted the case.
David City Man Sentenced for Conspiracy to Possess Methamphetamine with Intent to DistributeRead the Press Release
United States Attorney Joe Kelly announced that David Rogers, 35, of Omaha Nebraska, was sentenced today by Judge Robert F. Rossiter to 120 months (10 years) incarceration for conspiracy to possess methamphetamine with intent to distribute. There is no parole in the federal system. His term of incarceration will be followed by a five-year term of supervised release.
On October 18, 2018, a Dodge County Deputy Sheriff conducted a traffic stop on a vehicle driven by Rogers for crossing a fog line. During the stop, a K9 indicated to the odor of narcotics coming from within the vehicle. A search of the vehicle revealed pipes, a scale, multiple baggies, several knives, and a personal safe containing more than 110 grams of actual methamphetamine. During a post-arrest interview, Rogers admitted to distributing half-pound quantities of methamphetamine in the previous month.
This case was investigated by the Dodge County Sheriff’s Department.
Cuban National Sentenced to Prison for Alien Smuggling OperationRead the Press Release
MIAMI - On January 28, 2020, Tomas Vale Valdivia, 45, a Cuban national who was living in Isla Mujeres, Mexico, was sentenced to 57 months in prison by U.S. District Kathleen M. Williams in Miami, Florida for his participation in a for-profit alien smuggling conspiracy that transported Cuban nationals to Mexico and then into the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to the court record, including the agreed upon factual proffer and evidence presented during the sentencing hearing, beginning at least as early as October 2013, and continuing through at least July 2018, a group of individuals, including Vale Valdivia and additional unnamed associates, were members of an alien smuggling conspiracy operating in Miami, Florida, Mexico, the Dominican Republic, and Haiti. Vale Valdivia admitted to being the leader and organizer of the alien smuggling conspiracy, which included five or more participants. Through this conspiracy in excess of 100 migrants were smuggled from Cuba to Mexico and then ultimately to the border of the United States. Generally, the migrants were charged approximately $10,000. Vale Valdivia admitted to knowing that the migrants coming to, entry, and residence in the United States was a violation of law. Vale Valdivia further admitted that this alien smuggling conspiracy, at times, smuggled aliens in a manner that intentionally or recklessly created a substantial risk of death or serious bodily injury to another person. For example, at times vessels used to smuggle migrants were overloaded or were used during foul weather so as to risk capsizing. In addition to smuggling migrants, Vale Valdivia smuggled baseball players from Cuba to the United States. Vale Valdivia also admitted to being involved in a conspiracy that stole engines in the United States and then shipped the engines through a freight forwarding company in Miami to Mexico to be used to further the alien smuggling conspiracy.
This prosecution is the result of the ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership to combat Caribbean based organized crime that includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami. In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones.
If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-866-347-2423 or visit https://www.ice.gov/tipline. The toll-free phone number is available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, and additional languages.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ICE-HSI, FBI, U.S. Customs and Border Protection (CBP), and U.S. Coast Guard Investigative Service (CGIS), Southeast Region in this matter. This case is being prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Ignacio J. Vázquez, Jr. Assistant U.S. Attorneys Adrienne Rosen and Annika Miranda are assigned to the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Convicted Felon Sentenced to 10 Years in Prison on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sean Humby, 31, of Rochester, NY, who was convicted of possession of child pornography involving prepubescent minors, after having sustained a conviction for child sexual abuse, was sentenced to serve 10 years in prison, and 10 years of supervised release, by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that Humby was convicted of sexually abusing three minors in Monroe County in 2008, and sentenced to serve 108 months in prison. The defendant was released to parole supervision in 2016. On August 24, 2018, while conducting a routine search of Humby’s residence, New York State Parole Officers discovered the defendant to be in possession of a cellular phone, in violation to his parole conditions. Humby was taken into custody and the phone was turned over to the FBI. A forensic analysis recovered images of child pornography on the phone.
The sentencing is the result of an investigation by members of New York State Parole, under the direction of Acting Commissioner Anthony J. Annucci; the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
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Congress Must Act to Permanently Ban Lethal DrugsRead the Press Release
A Grain Valley, Missouri, teenager ingested what he thought was just half of an oxycodone pill, and it nearly cost him his life.
The teenage victim didn’t know the pill he bought on the street in the Westport area of Kansas City was laced with a synthetic drug called carfentanil, which is 10,000 times more potent than morphine. Carfentanil is an analogue, or a chemically altered version, of the potent opioid fentanyl, and has been linked to a significant number of overdose deaths across the country.
In this case, the victim was fortunate to receive emergency medical treatment and survived his overdose. The man who sold him the pill, Gage Lankas, was recently sentenced to 15 years in prison.
This tragic scenario is repeated too often in communities from Springfield to Columbia and throughout the state. Fatal drug overdose deaths are on the rise in Missouri. In 2018, 1,635 Missourians died from drug overdose deaths. The vast majority of drug overdose deaths (1,132) were opioid overdoses.
Fentanyl and its analogues (like carfentanil) pose a greater risk of overdose than many other opioids. Only a couple of milligrams – the size of a few grains of salt – is enough to kill the average person. Drug dealers lace their products with fentanyl (which is 50 times more powerful than heroin) to make them more potent. Their customers, like the teenager in Grain Valley, often don’t know they are ingesting fentanyl, or how much.
It’s no secret where fentanyl is coming from — laboratories in China and Mexico manufacture huge amounts of fentanyl and smuggle it into the United States. For example, Edgar Reyes-Toscano was sent to prison last November after he was caught at a Kansas City bus station carrying a duffel bag that contained more than 3.5 kilograms of fentanyl and more than 2.3 kilograms of methamphetamine. When a few grains of fentanyl can be lethal, imagine the danger of more than seven pounds of fentanyl distributed on the streets of our community.
Law enforcement must have the resources to combat this deadly crisis of opioid overdose deaths caused by an influx of fentanyl and fentanyl analogues smuggled into our country. Congress this week voted to temporarily preserve one critical tool, however, there is more that must be done.
Until recently, fentanyl manufacturers could evade federal laws by making small adjustments to the chemical formula and thus creating a new, unregulated drug. These fentanyl analogues, because of their molecular variations, took advantage of a coverage gap in U.S. drug control laws.
In 2018, the DEA took emergency action. Rather than racing to schedule each of these new drugs as they are created and discovered, the DEA scheduled the entire class of fentanyl-like drugs. This authorized federal law enforcement to combat newly emerging fentanyl analogues as aggressively as fentanyl. As a result, there has been a marked decrease in the production of fentanyl analogues over the past two years.
That emergency order would have expired next week; fortunately, the U.S. House of Representatives authorized an extension yesterday of the DEA’s scheduling action controlling fentanyl analogues. The U.S. Senate unanimously approved an identical bill earlier this month, so the measure now awaits the president’s signature.
This is a step in the right direction, but further steps are still needed.
Beyond this temporary extension, a permanent legislative solution for class-wide fentanyl scheduling is necessary so that we don’t find ourselves in this position again, on the brink of opening the floodgates to drug traffickers. The proposed Stopping Overdoses of Fentanyl Analogues legislation has been introduced in Congress and endorsed by the attorneys general in all 50 states.
Missouri has a significant stake in Congressional action. Even as the Centers for Disease Control reports that drug overdose deaths are declining nationally, Missouri is one of the few states where overdose deaths have actually increased. Overdose deaths increased by 16.3 percent in 2018, the latest statistics available, ranked second in the nation only to Delaware (which increased by 16.7 percent). This increase is primarily due to opioids like fentanyl and its analogues. Missouri’s opioid epidemic affects all genders, all races, and many age groups in both rural and urban Missouri communities.
These deadly drugs should be made permanently illegal. The passage of this legislation is quite literally a matter of life and death.
Colebrook Man Pleads Guilty to Distributing Methamphetamine Near a SchoolRead the Press Release
CONCORD - Michael R. Haynes, 39, of Colebrook, pleaded guilty in federal court to distribution of methamphetamine within a school zone, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on February 15, 2019, Haynes sold methamphetamine to an individual who was cooperating with law enforcement officers. The sale occurred within 1,000 feet of an elementary school.
Haynes is scheduled to be sentenced on May 8, 2020.
“Methamphetamine presents a growing threat to people throughout New Hampshire,” said U.S. Attorney Murray. “Communities in all parts of our state have been impacted. In order to maintain public safety, we will continue to work closely with our law enforcement partners to identify and prosecute those who distribute this dangerous drug.”
This matter was investigated by the DEA, with assistance from the Colebrook Police Department, the New Hampshire State Police, U.S. Customs and Border Protection, the Office of Inspector General of the U.S. Department of Health and Human Services, the Coos County Sheriff’s Office, the New Hampshire Liquor Commission’s Division of Enforcement and Licensing, and the New Hampshire Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Charles Rombeau and John S. Davis.
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Citizen of El Salvador Pleads Guilty to Reentering U.S. after Being Removed 3 TimesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILIAN ALEXANDER ORELLANA-LUNA, 40, a citizen of El Salvador last residing in West Haven, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to reentry of a removed alien.
According to court documents and statements made in court, Orellana-Luna had encounters with the U.S. Border Patrol in Texas in March 2013, November 2015 and February 2019. He was removed to El Salvador after each encounter.
On October 22, 2019, Orellana-Luna was arrested by West Haven Police and charged with evading responsibility resulting in injury or property damage. A biometric match alerted Immigration and Customs Enforcement (ICE) that Orellana-Luna, who had been released after his arrest, was present in Connecticut. ICE arrested Orellana-Luna on December 5, 2019.
Immediately following the guilty plea proceeding, Judge Underhill sentenced Orellana-Luna to time served. Orellana-Luna was then released into ICE custody for removal to El Salvador.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Citizen of Ghana Pleads Guilty to Assaulting A Federal Officer and Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nana Dwomah Yeboah, 36, a citizen of the Republic of Ghana, pleaded guilty, before U.S. District Judge Charles J. Siragusa, to assaulting a federal officer and possession of a controlled substance. The charges carry a maximum sentence of eight years in prison, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that that on the morning of December 24, 2017, U.S. Customs and Border Protection Officers were conducting a routine patrol of the Greyhound Bus Station on Cumberland Street in Rochester. Officers observed the defendant enter the bus station and place a package on a bench in the lobby area. Yeboah then exited the station, leaving the package unattended. After several minutes, officers searched the abandoned package to ensure that it did not pose a threat to the public. Inside, officers discovered a quantity of marijuana that appeared to be packaged for sale.
After several minutes, the defendant returned to the area and was questioned by officers, who quickly determined that he was not a U.S. Citizen. As they attempted to detain and further identify Yeboah, he fled the station, leading officers on a short chase. Yeboah was ultimately apprehended, but proceeded to fight with officers for several minutes. One of the officers suffer facial injuries that required treatment at Rochester General Hospital. The defendant was ultimately brought under control with the assistance of civilian bystanders. Subsequent investigation determined that Yeboah was in possession of an additional quantity of marijuana that was packaged for sale.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Special Agent in Charge Vance Kuhner, with assistance from the U.S. Border Patrol under the direction of Chief Edwardo Payan, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Sentencing is scheduled for May 7, 2020, before Judge Siragusa.
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Christopher Hasson Sentenced to More Than 13 Years in Federal Prison on Federal Charges of Illegal Possession of Silencers, Possession of Firearms by an Addict to and Unlawful User of a Controlled Substance, and Possession of a Controlled SubstanceRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Christopher Paul Hasson, age 50, of Silver Spring, Maryland, to 160 months in federal prison, followed by four years of supervised release, on four federal charges, including unlawful possession of unregistered silencers, unlawful possession of firearm silencers unidentified by serial number, possession of firearms by an addict to and unlawful user of a controlled substance, and possession of a controlled substance. Hasson has been detained since his arrest on February 15, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Art Walker of the U.S. Coast Guard Investigative Service; and Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
“Preserving our nation’s security against terrorist threats continues to be the Justice Department’s top priority. Lives were saved due to the skill and dedication of law enforcement in this case. Christopher Hasson intended to inflict violence on the basis of his racist and hateful beliefs. As long as violent extremists take steps to harm innocent people, we will continue to use all of the tools we have to prevent and deter them,” said United States Attorney Robert K. Hur.
“The FBI remains committed to combatting terrorism, both domestic and international, and we remain fully prepared to take those actions necessary to safeguard our communities,” said Special Agent in Charge Jennifer Boone. “We will use every tool given to us by the Department of Justice and Congress to disrupt Racially Motivated Violent Extremist activity. However, protection of our communities and our nation is a shared responsibility, and we must combat terrorism as a united force against all forms of violent hate.”
According to his plea agreement, Hasson was a Lieutenant in the United States Coast Guard. Prior to June 2016, Hasson owned a residence and lived in Currituck, North Carolina. In approximately June 2016, Hasson moved to a residence in Silver Spring, Maryland, and worked at Coast Guard Headquarters in Washington, D.C.
As detailed in the government’s sentencing memo and presented to the Court during the sentencing hearing, Christopher Hasson self-identified as a “White Nationalist” for over 30 years and in writings advocated for “focused violence” in order to establish a white homeland. Review of Hasson’s e-mail accounts, saved documents, text messages, and Internet searches show that he was inspired by racist murderers, stockpiled assault weapons, studied violence, and intended to exact retribution on minorities and those he considered traitors.
Hasson admitted that from at least March 2016 through early February 2019, he used various e-mail accounts, including an overseas encrypted e-mail account, to order Tramadol, which is an opioid, from various illegal Internet-based distributors. Hasson usually paid for the Tramadol by wiring money to individuals in Mexico, at the direction of the Mexico-based distributor, who then had the Tramadol shipped to Hasson, typically in 100mg pills, at addresses Hasson provided, including his North Carolina and Maryland residences. Hasson admitted that he then concealed the Tramadol in other packaging at his residence and work and personally took the pills, usually daily, including while he was at work.
As detailed in his plea agreement, at the time of Hasson’s arrest on February 15, 2019, agents recovered 196 Tramadol pills from Hasson’s backpack. Search warrants executed the same day recovered 106 Tramadol pills from Hasson’s desk at Coast Guard Headquarters and 122 Tramadol pills from Hasson’s residence. From Hasson’s residence, law enforcement also recovered the following firearms: seven rifles; two shotguns; four pistols; two revolvers; an assembled firearm silencer; and a disassembled firearm silencer. In close proximity to the guns, agents found multiple magazines that could accept more than 15 rounds of ammunition, as well as hundreds of rounds of ammunition. Hasson ordered the components of the firearm silencers from a company in California and used a drill to complete and assemble one firearm silencer. Hasson knew the firearm silencers were not registered in the National Firearms Registration and Transfer Record, and that they did not have serial numbers, as required by law.
As detailed in court documents, to prepare himself to take action, in addition to the firearms and silencers referenced above, Hasson purchased holsters, knives, magazines, ammunition, handguards, camping supplies, Meals-Ready-to-Eat, steel body armor plates, plate carriers, tactical vests and pouches, firearm repair kits, and smoke grenades. Hasson also e-mailed to his Coast Guard computer the manifestos of mass murderer Anders Breivik and Unabomber Ted Kaczynski, as well as the memoir of Eric Rudolph, the 1996 Atlanta Olympics bomber, titled “Between the Lines of Drift: The Memoirs of a Militant.” Hasson referred to those documents in his own writings. Hasson registered for an online sniper and sharpshooter forum, studied sniper tactics, and purchased high-end scopes and a sniper rifle. Internet searches performed by Hasson show that he targeted potential victims, including media personalities and current and former elected officials.
United States Attorney Robert K. Hur commended the FBI, the U.S. Coast Guard Investigative Service, and the ATF for their work in the investigation. Mr. Hur thanked his office’s national security prosecutors, who handled the case.
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California man who hacked into Nintendo servers to steal video games and other proprietary information pleads guiltyRead the Press Release
Seattle – A 21-year-old Palmdale, California, man pleaded guilty today in U.S. District Court in Seattle to federal crimes related to his computer hacking scheme and his possession of child pornography found on his digital devices, announced U.S. Attorney Brian T. Moran. RYAN S. HERNANDEZ, aka Ryan West, who used the online moniker “RyanRocks,” pleaded guilty to a two-count information. HERNANDEZ is scheduled for sentencing by U.S. District Judge John C. Coughenour on April 21, 2020.
According to records filed in the case, in 2016, while still a minor, HERNANDEZ and an associate used a phishing technique to steal credentials of a Nintendo employee, which were exploited to gain access to and download confidential Nintendo files related to its consoles and games. That stolen information, including pre-release information about the anticipated Nintendo Switch console, was leaked to the public. In October 2017, following an investigation into the hack, FBI agents contacted HERNANDEZ and his parents at their California residence. HERNANDEZ promised to stop any further malicious activity and confirmed that he understood the consequences of any future hacking.
Nevertheless, from at least June 2018 to June 2019, HERNANDEZ returned to his malicious activities, hacking into multiple Nintendo servers and stealing confidential information about various popular video games, gaming consoles, and developer tools. HERNANDEZ boasted about his hacking exploits on several online and social media platforms, such as Twitter and Discord, and leaked some of the stolen information to others. HERNANDEZ further operated an online chat forum called “Ryan’s Underground Hangout” in which he and others discussed Nintendo products and shared information about possible Nintendo network vulnerabilities, and on which he shared some of the confidential information he had stolen.
In June 2019, FBI agents searched HERNANDEZ’s home and seized numerous electronic devices, including computers, hard drives, and circumvention devices used to access pirated video games and software. On those devices, they discovered thousands of confidential Nintendo files. Forensic analysis of his devices also revealed that HERNANDEZ had used the internet to collect more than one thousand videos and images of minors engaged in sexually explicit conduct, stored and sorted in a folder directory he labeled “Bad Stuff.”
Under the terms of the plea agreement, prosecutors and defense attorneys, will recommend three years in prison. However, the ultimate sentence is up to the judge and could be up to the statutory maximums of 5 years in prison for computer fraud and abuse, and 20 years in prison for possession of child pornography.
HERNANDEZ has agreed to pay $259,323 in restitution to Nintendo for the remediation costs caused by his conduct. Under the terms of the plea agreement, HERNANDEZ also will be required to register as a sex offender following his conviction.
The case was investigated by the FBI, Seattle Cyber Task Force. The case is being prosecuted by Assistant United States Attorney Steven Masada.
C-Block Gang Leader Convicted of Drug and Firearms OffensesRead the Press Release
DES MOINES, Iowa – On January 30, 2020, following a four-day trial, a jury found Daeron Johnson Merrett guilty of conspiracy to distribute 500 grams or more of cocaine, 8 counts of distribution of a controlled substance, one count of possession with intent to distribute cocaine, and one count of possessing a firearm as a felon. The case was presided over by United States District Court Judge Rebecca Goodgame Ebinger. Sentencing is scheduled for May 29, 2020, at 9:00 a.m.
Merrett was arrested on March 27, 2019, during the coordinated execution of search and arrest warrants in Des Moines. Merrett was identified from the criminal complaint affidavit as a leader of C-Block, a criminal street gang based in Des Moines. In December 2018, law enforcement obtained authorization to intercept Merrett’s telephone communications, which led to the identification of Merrett’s cocaine trafficking network.
During trial, the government presented evidence that Merrett began traveling to Chicago, Illinois in January 2019 to obtain cocaine for distribution in Des Moines. Over the course of a one-month period, Merrett made four separate trips to Chicago to obtain cocaine, totaling over 500 grams. The evidence also showed that Merrett developed a Texas-based cocaine source of supply, from which he arranged to receive a kilogram of cocaine. Merrett had numerous cocaine customers and co-conspirators in Des Moines, many of whom were charged in the same Indictment and have entered guilty pleas.
On March 27, 2019, during a search warrant executed at Merrett’s Des Moines residence, law enforcement located cocaine, numerous digital scales, packaging materials, a loaded firearm, and various rounds of ammunition.
Merrett has a prior conviction for a serious drug felony, that is, a 2011 conviction in the Iowa District Court for Polk County for delivery of a controlled substance.
Conspiracy to distribute more than 500 grams of cocaine following a conviction for a serious drug felony carries a mandatory minimum term of imprisonment of ten years and a maximum term of imprisonment of life.
The case was investigated by the Federal Bureau of Investigation’s Central Iowa Gang Task Force, Des Moines Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, Dallas County Sheriff’s Office, Polk County Sheriff’s Office, Story County Sheriff’s Office, and the Altoona Police Department. The case was prosecuted by Assistant United States Attorneys Mikaela J. Shotwell and Adam J. Kerndt.
Bulk Trafficker of Heroin and Crystal Methamphetamine Is Sentenced to 20 YearsRead the Press Release
CHARLOTTE, N.C. – Otequise Lenard Miller, 34, of Concord, N.C. was sentenced today to 240 months in prison and five years of supervised release on drug trafficking conspiracy resulting in an overdose death and money laundering charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte; Chief Gary J. Gacek of the Concord Police Department; and Interim Chief Terry Spry of the Kannapolis Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from 2015 until his arrest on August 22, 2018, Miller was part of a drug conspiracy that trafficked bulk crystal methamphetamine and heroin into Mecklenburg County. During the relevant time period, Miller trafficked approximately seven to nine kilograms of heroin, and 14 to 18 kilograms of crystal methamphetamine. In addition to drug trafficking, Miller concealed and laundered the drug proceeds.
Court records show that, in December 2017, Miller sold heroin to a victim identified in court documents as “W.M.,” which resulted in the victim’s overdose death. As described further in court documents, Miller continued to sell narcotics even after he became aware of the victim’s death. Miller is a repeat offender, and was previously convicted of drug trafficking charges.
Miller is currently in 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.
This case is part of the U.S. Attorney’s Office initiative to combat the opioid abuse epidemic in the Western District of North Carolina through prosecution, enforcement and prevention.
In June 2019, U.S. Attorney Murray announced the formation of the Western District’s Heroin and Opioid Prevention and Enforcement (H.O.P.E.) Task Force. This multi-agency team of experienced federal and state investigators located in the Western District of North Carolina work with federal prosecutors to identify abusive practices by participants in the opioid pharmaceutical supply chain, and to prosecute drug trafficking networks that distribute lethal heroin and opioids into our communities.
The Task Force focuses on coordinating investigations, information sharing, identifying trends throughout the region, investigating whistleblower complaints, and the creation of cross-agency investigative teams so each agency task force member can bring its area of expertise on investigations.
The Task Force builds upon existing partnerships between the agencies, and its work reflects a heightened effort to reduce heroin and opioid abuse, to increase prevention through outreach efforts, and to educate the public about the dangers of counterfeit drugs, heroin abuse and opioid addiction.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), targeting the importation of narcotics from Mexico into Western North Carolina.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
DEA, HSI, the Concord Police Department, and the Kannapolis Police Department investigated the case.
Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Buffalo Man Going to Prison for His Role in Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Devincio K.D. James, 30, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 500 grams or more of cocaine, was sentenced to serve 87 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between July 2017 and September 29, 2017, the defendant conspired with others to distribute cocaine in the Niagara Falls area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa.
James was a mid-level distributor of cocaine for Rivera-Figueroa. James picked up the cocaine from either Rivera-Figueroa or another co-defendant, then sold it in Niagara Falls. On September 29, 2017, James was arrested inside his residence at 1080 99th Street in Niagara Falls. Investigators searched the residence and recovered approximately $29,260 in U.S. currency; a loaded 20 gauge shotgun; 23 live 20 gauge shotgun shells; and five digital scales.
A total of 12 defendants were charged and convicted in this case. James is the seventh defendant to be sentenced.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
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