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Wednesday 11 December 2019
Founder of the Blood Hound Brims Sentenced to 30 Years in Prison for Racketeering and Related OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LATIQUE JOHNSON, a/k/a “La Brim,” a/k/a “Straight 2 Business,” a/k/a “Breezy,” a/k/a “Boss Dog,” 39, of the Bronx, New York, was sentenced today to 30 years in prison in connection with his leadership of the Blood Hound Brims, a violent street and prison gang that operated in New York City and elsewhere, and his participation in narcotics trafficking and acts of violence, including two shootings in 2012. JOHNSON was convicted on March 27, 2019, following a five-week jury trial before Judge Gardephe, who also imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Latique Johnson founded a notoriously violent and lawless gang from within the New York State prison system that grew to terrorize communities across New York City and New York State. As the founder and leader of the Blood Hound Brims, Johnson recruited members based on their violent reputations and willingness to follow his orders. Together with other members of the Blood Hound Brims, Johnson is responsible for several heinous acts of violence. Today’s lengthy sentence sends an important message to gang members who commit violent crimes that they will be apprehended and prosecuted to the fullest extent of the law.”
According to court documents, the evidence at trial, and statements made in court proceedings:
The Blood Hound Brims (“BHB”) were a criminal enterprise that operated principally in the greater New York area, from at least 2005 up to and including 2016. The BHB was a faction of the Bloods street gang, which operates nationwide, and is under the New York Blood Brim Army (“NYBBA”). The BHB operated within and around various locations in New York, including New York City, Westchester County, Elmira, and in Pennsylvania, as well as within and outside federal and state penal systems.
The BHB used a hierarchical structure that was organized, in part, by New York City borough, and that was maintained, in part, through the payment of dues. The founder and leader of the gang was LATIQUE JOHNSON, and other members and associates of the BHB referred to JOHNSON as the “Godfather.” The gang was divided into several “pedigrees,” each of which had its own leadership structure that was approved by JOHNSON. Leadership positions within the pedigrees included, among others, treasurers who collected dues from members of a particular pedigree, and individuals who performed security and disciplinary functions for the pedigree.
Members of the BHB had regular meetings, sometimes called “pow wows” or “9-11s,” at which members were required to pay dues. Some of the meetings were among members of a particular pedigree, and other meetings were for all members of the enterprise. Word of the meetings was disseminated via text message, word-of-mouth, and flyers. The BHB’s business, including rivalries with other gangs, shootings, the arrest of gang members, guns, and drugs, was regularly discussed at these meetings. “Kitty dues” – money that paid for commissary funds, lawyers, guns, and drugs, and that served as tribute to JOHNSON – were collected at these meetings. The BHB maintained its own rules and constitution that new members were required to learn. Members of the BHB also used code words and secret phrases to communicate with each other both while in prison and on the street in order to avoid detection by law enforcement.
One of the BHB’s principal objectives was to sell cocaine base – commonly known as “crack cocaine” – powder cocaine, and heroin, which members and associates of the BHB sold throughout the greater New York area and in Pennsylvania.
Members and associates of the BHB engaged in multiple acts of violence against rival gangs. These acts of violence included assaults and attempted murders, and were committed to protect the BHB’s drug territory, to retaliate against members of rival gangs who had encroached on the territory controlled by the BHB, and to otherwise promote the standing and reputation of the gang vis-à-vis rival gangs. These acts of violence also included assaults and attempted murders against members and associates of the BHB itself, as part of internal power struggles within the gang.
For example, on or about January 28, 2012, in the Bronx, New York, JOHNSON, aided and abetted by his co-defendant Donnell Murray, used an AK-47 assault rifle to fire into a fried chicken restaurant where rival gang members were gathered, injuring two individuals who survived the shooting. The violence continued in fall of 2012 when JOHNSON ordered the shooting of two other members of a rival gang, who survived.
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Donnell Murray, 39, of the Bronx, New York, was convicted following a jury trial of racketeering conspiracy, assault in aid of racketeering, narcotics conspiracy, and firearms offenses. Murray was sentenced in November 2019 to 20 years in prison.
Brandon Green, 36, of the Bronx, New York, was convicted following a jury trial of racketeering conspiracy, narcotics conspiracy, and firearms offenses. Green is facing a mandatory minimum of 20 years in prison and will be sentenced in 2020.
David Cherry, 39, of the Bronx, New York, was convicted following a guilty plea to a firearms offense. Cherry faces a mandatory minimum of seven years in prison and will be sentenced in 2020.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The prosecution is being handled by the Violent and Organized Crime Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Jessica Feinstein, Allison Nichols, Andrew Chan, and Abigail Kurland are in charge of the prosecution.
Former elementary school paraprofessional sentenced for possessing child pornographyRead the Press Release
ROME, Ga. - Adam Brent Nesbitt has been sentenced for possessing approximately 800 images, and approximately 600 videos, of child pornography, depicting mostly children under 12 years old. Prior to his arrest, Nesbitt was a paraprofessional at an elementary school in Sandy Springs, Georgia, working with special needs children.
“It is disturbing when we learn that a person entrusted to care for our children engages in this type of disgusting behavior,” said U.S. Attorney Byung J. “BJay” Pak. “Tragically, possession of child pornography continues to victimize and abuse the children in the images every time they are disseminated.”
“It is disheartening to see yet another person in a position of public trust, especially someone who works with special needs children, peddle in child pornography,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “We as a society expect more from those who care for our children than this and the law enforcement community is ready to vigorously uphold the law to protect the children of our community.”
“It is scary to think that someone like this could get a job this close to our children. I am very grateful for organizations like (NCMEC) who are able to identify these types of criminals so they can be removed from society,” said Polk County Police Chief Kenny Dodd.
According to U.S. Attorney Pak, the charges and other information presented in court: Officials from Dropbox and Facebook notified the National Center of Missing and Exploited Children (NCMEC) in September 2018, when they discovered suspected child pornography stored in Nesbitt’s accounts. NCMEC then notified law enforcement authorities in Georgia. Eventually, Homeland Security Investigations, and Polk County, Georgia, Police Department investigators searched Nesbitt’s residence and Dropbox account. They seized approximately 800 images and 600 videos of child pornography on and within Nesbitt’s accounts.
Adam Brent Nesbitt, 41, of Rockmart, Georgia, has been sentenced to two years, nine months in prison, followed by ten years of supervised release. Nesbitt pleaded guilty to possession of child pornography on August 8, 2019.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Polk County Police Department investigated this case.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Walton Co. Probate Judge Sentenced to 15 Years in Prison for Attempted Online Enticement of A MinorRead the Press Release
ATHENS, Ga. – A former Associate Probate Judge and Family Law attorney in Walton County, Georgia was sentenced to prison for attempted online enticement of a minor, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. George Randolph “Randy” Jeffery, 59, of Monroe, Georgia was sentenced to 180 months in prison and ten years supervised release today by U.S. District Judge C. Ashley Royal after pleading guilty on September 10, 2019 to one count attempted online enticement of a minor. Defendant Jeffery will have to register as a sex offender, and comply with all sex offender requirements, when he is released from prison. There is no parole in the federal system.
In October 2018, the FBI was notified of a cyber-tip from the Louisiana Bureau of Investigation (LBI) involving a possible juvenile female engaging in an online sexual relationship with an adult male based in Monroe, Georgia. Investigators discovered Jeffery communicated with an individual from February 2018 to August 2018 that he believed to be a 14-year-old girl, discussing various sexual acts in detail, her molestation by her father, as well as exchanging several nude photographs of the minor, plus an additional seven photos of others who appeared to be minors. Jeffery, who worked as an attorney practicing in the areas of child support, adoption and family law, sometimes communicated with the victim from the child support office located behind DFACS in Covington, Georgia and while he was at church. In actuality, Jeffery was unknowingly communicating with the girl’s father, who was contemporaneously molesting his daughter and posing as her online, sending pornographic images of her to Jeffery. A search warrant executed at Jeffery’s home recovered multiple electronic devices with numerous images and videos of child pornography, including prepubescent minors and items portraying the sexual abuse of an infant or toddler.
“I believe this multi-agency investigation ultimately stopped a deviant criminal, posing as a law-abiding Judge, from doing additional irreparable damage to innocent children,” said U.S. Attorney Charlie Peeler. “Defendant Jeffery, who once swore to uphold the law, will experience the full weight of justice for his unconscionable crimes. I want to thank the GBI, LBI and the FBI for their excellent investigative work and partnership.”
“This case is particularly disturbing because it is an example that child predators come from all walks of life, even from a position in our justice system,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now, instead of sitting behind a bench judging right from wrong, Jeffery will be sitting on the other side of the bench in a prison cell paying for what he did wrong.”
“One of the worst types of offenders we come in contact with are those that hold a position of trust in our community. This case proves once again there is no demographic for people who hurt children. When someone with whom we have placed our trust violates that trust in this manner, a child and a community are damaged,” said Vic Reynolds, Director of the Georgia Bureau of Investigations (GBI). “The GBI and the Georgia Internet Crimes Against Children Task Force will continue to work diligently to ensure all people who seek to harm our children and our communities are found and stopped.”
The case was investigated by the GBI, LBI and FBI. Assistant U.S. Attorney Lyndie Freeman prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former Clymer School Teacher Going to Prison for Possession of Child PornographyRead 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 Scott Aikens, 61 of Clymer, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve 54 months in prison and five years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Charles M. Kruly, who handled the case, stated that in late June 2018, Homeland Security Investigations in Buffalo received information that a user, identified as "EJD," was active on the Thai based child pornography open website "Boyxzeed2.net.” Investigators traced the email address utilized by “EJD” to Scott Aikens.
On September 14, 2018, Homeland Security Investigations and the New York State Police executed a search warrant at the defendant’s residence on Route 474 in Clymer and interviewed Aikens, who admitted that he viewed child pornography and that child pornography would be found on his computer. Investigators seized the computer and other electronic devices, which were found to contain a total of 683 videos and 22 images of child pornography.
Some of the child pornography possessed by the defendant depicted prepubescent minors or minors less than 12 years of age, and some of the child pornography possessed by the defendant contained sadistic or masochistic conduct or other depictions of violence.
At the time of his arrest, Aikens was a school teacher with the Clymer Central School District.
Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the New York State Police, under the direction of Major Edward Kennedy.
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Florida Man Pleads Guilty to Life Sentence for Plot to Kidnap Children and Murder ParentsRead the Press Release
Harrisonburg, VIRGINIA – A Florida man, who conspired with others in a failed attempt to kidnap five children and kill their parents, pleaded guilty today in U.S. District Court in Harrisonburg to a series of charges related to his conduct, United States Attorney Thomas T. Cullen and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division, announced today.
Frank Jesse Amnott, 31, pleaded guilty today to one count of conspiracy to commit the offense of kidnapping, one count of conspiracy to kill witnesses, and one count of brandishing, carrying, and using a firearm in commission of a federal crime of violence. The crime of conspiracy to kill witnesses carries a statuary sentence of mandatory life in prison.
“Although the facts of this case read like the script of a bad horror movie, the defendants’ murderous plot was real and it posed a grave risk to their intended victims,” U.S. Attorney Cullen stated today. “I appreciate the diligence of the FBI and the Rockingham County Sheriff’s Office in investigating this case and bringing these conspirators to justice.”
“If not for the quick thinking of a parent, and the immediate dispatch and response of a Rockingham County Sheriff's Office deputy this incident could have evolved into something much worse,” Special Agent in Charge Archey said today. “We are grateful for the partnership of the United States Attorney's Office (WDVA) and the Rockingham County Sheriff's Office, and the assistance of our international partners regarding the work on this case.”
According to court documents, in 2014 Frank Amnott and his wife Jennifer Amnott befriended Valerie Perfect Hayes. Hayes consistently claimed to the Amnotts and others that she worked for the U.S. government and that her work included services for the intelligence community or some other clandestine capacity.
In July 2018, the Amnotts were living in Florida when they were contacted by Hayes, who was living with her boyfriend, Gary Blake Reburn, in Maryland. Hayes claimed to the Amnotts that three of her children had been kidnapped and were in the custody of two separate Mennonite families in Dayton, Virginia. Hayes asked the Amnotts for assistance in recovering these children, as well as two additional children. Hayes knew the Amnotts could not conceive their own children and promised that if they helped Hayes kidnap the children, then the Amnotts could keep one of the other children as their own.
Frank Amnott, Jennifer Amnott, Hayes, and Reburn devised a plan to travel from Maryland to Dayton, Va. to kidnap the children from these two homes. To effectuate the kidnapping, the conspirators planned to kill the parents. According to the plan, Hayes, Reburn, and Frank Amnott would enter the first house and hold the parents at gunpoint. After the two children were secured by Hayes, Reburn and Amnott would execute the parents. Then, they would drive to the second house, force entry, and perform a similar execution. In planning to kill the parents at both houses, the conspirators sought to eliminate witnesses to the abductions. Afterwards, all of the children would be taken from Virginia to Maryland and the Amnotts would return to Florida with the child promised to them by Hayes.
All five children to be kidnapped were younger than eight years old. The conspirators were not family members to any of the children. Moreover, none of the conspirators had legal custody, nor did they have any colorable claim to legal custody – based on fact or law – over any of the children.
On the evening of July 29, 2018, the conspirators put their plan into action. Jennifer Amnott remained in Maryland watching Hayes’ other children, but remained in contact, receiving updates from Virginia. Hayes, Reburn, and Frank Amnott waited until the evening, at which time they drove to the first house. There, Parents A and B, who are husband and wife, were preparing to retire for the evening while their two young children were already asleep.
Hayes approached the door, disguised in clothing to appear as a Mennonite. After Parent A opened the door, the group forced their way inside and held Parent A at gunpoint. With Parent A subdued, Hayes began to look for Parent B and the two children. Unbeknownst to Hayes, Reburn, and Amnott, when they forced their way into the home, Parent B had grabbed the cordless phone and ran outside of the house, hiding in a cornfield near the home. Parent B dialed 9-1-1 to report the incident and a deputy with the Rockingham County Sheriff’s Office was immediately dispatched.
Inside the home, Amnott and Reburn took Parent A – at gunpoint – to the basement, where they bound his wrists together behind his back. Reburn went upstairs as Amnott stayed and held Parent A at gunpoint.
Shortly after the 911 call, a deputy with the Rockingham County Sheriff’s Office arrived on the scene and was met by Parent B, who had emerged from the cornfield. At the same time, Hayes, who was also outside the house and still disguised in Mennonite clothing, approached the deputy and falsely claimed to be a neighbor who was passing by and saw an armed man run inside the house. Parent B was confused and suspicious, as Hayes appeared to be the same woman who she saw at the front door and forced entry into her home. Reburn joined Hayes at the front of the house and the deputy told Parent B to go with Hayes and Reburn. At the deputy’s direction, Parent B entered a vehicle with Hayes and Reburn, who drove her to a nearby convenience store and dropped her off.
Meanwhile, the deputy entered the house and located the children, who were unharmed and still in their bedroom. The deputy proceeded to the basement where he encountered the defendant, Frank Amnott, holding Parent A at gunpoint in the basement. Amnott was taken into custody without incident.
Because their planned abduction and murders at the first house were thwarted by Parent B and law enforcement, the conspirators did not make their way to the second house as planned. Instead, Hayes and Reburn returned to Maryland where they re-joined Jennifer Amnott. In early August 2018, Hayes, Reburn, and Jennifer Amnott all fled the United States to the United Kingdom.
They have since been apprehended and are pending extradition to the United States.
The investigation of the case is being conducted by the Federal Bureau of Investigation and the Rockingham County Sheriff’s Office. Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.
Florida Man Arrested in St. Paul and Charged with Illegal Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging RAIVON TREYSHAN BALENGER, 28, with being a felon in possession of a firearm. BALENGER will be arraigned on this charge before Magistrate Judge Elizabeth Cowan Wright in U.S. District Court at a later date.
According to documents filed in court, on November 9, 2019, St. Paul police officers were dispatched to an apartment complex on Concordia Avenue in St. Paul, Minnesota, following a 911 call reporting a man pacing back and forth holding a gun with a green laser sight. During the 911 call, the caller reported that the man had fired a shot. When officers arrived they saw a man, later identified as BALENGER, standing alone next to the apartment building. BALENGER, who appeared to be hiding, began to run when one officer turned on his spotlight. The officers pursued and were able to apprehend BALENGER, who had in his back pocket a Smith & Wesson model M&P Shield .40 caliber semi-automatic pistol with a green laser sight attached to it. The firearm had been reported stolen from Oakdale, Minnesota. Because BALENGER has prior felony convictions in Ramsey County, he is prohibited under federal law from possessing firearms at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
Defendant Information:
RAIVON TREYSHAN BALENGER, 28
Clearwater, Fla.
Charges:
- Felon in possession of a firearm, 1 count
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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.
Fifteen Individuals Charged for Roles in Fraud and Bribery Scheme at Two South Florida VA HospitalsRead the Press Release
Fifteen South Florida residents have been charged by federal authorities in connection with a kickback and bribery scheme involving employees and vendors of U.S. Department of Veterans Affairs (VA) Medical Centers located in West Palm Beach and Miami, Florida. Court filings allege that in exchange for cash bribes and kickback payments, medical center employees, using government credit cards, ordered medical and other hospital supplies through corrupt vendors. In some cases, the prices of the supplies were grossly inflated, while in other cases the orders were only partially fulfilled or not fulfilled at all.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida stated, “It is a very sad day when public employees are alleged to have violated their duty to provide honest services to the VA, a federal agency that furnishes critical medical services to our military veterans. These charges do not reflect the hard work and integrity of the hundreds of thousands of law abiding VA employees throughout the United States. Together, alongside our VA partners, we will continue to protect our federal programs, combat public corruption, and ensure that our veterans receive the care and quality services that they are owed.”
Michael Missal, Inspector General, and David Spilker, Special Agent in Charge at the VA Office of Inspector General (OIG) stated, “VA OIG will vigorously investigate alleged instances when government employees unjustly enrich themselves by soliciting and accepting bribes and kickbacks from vendors for preferential treatment. The defendants’ actions, as alleged in the indictments and informations, breach the public trust, undermine the integrity of VA’s operations, and tarnish the important work that honest VA employees do every day in support of our nation’s veterans.”
West Palm Beach VA employees Clinton Purvis, 52, of West Palm Beach, Christopher Young, 44, of West Palm Beach, and Kenneth Scott, 59, of Riviera Beach, as well as former West Palm Beach VA employee Robert “Bob” Johnson, 62, of West Palm Beach, were charged in a single indictment with offenses that include conspiracy to commit health care fraud, substantive counts of health care fraud, and bribery. Miami VA Medical Center employees Waymon Melvon Woods, 58, of Miami, Don Anderson, 59, of Port St. Lucie, Jose Eugenio Cuervo, 53, of Miramar, Donnie Shatek Hawes, 35, of Cutler Bay, and Robert Lee James Harris, 44, of Miami Gardens, as well as former employee Eugene Campbell, 60, of Miami Gardens, were each charged in separate indictments with bribery offenses. VA supply vendors Jorge Flores, 45, of Delray Beach, Earron Starks, 49, of Hallandale Beach, Carlicha Starks, 40, of Hallandale Beach, and Robert Kozak, 73, of Boca Raton, have been charged in criminal informations with conspiracy to commit health care fraud. Separately, Lisa M. Anderson, 48, of Delray Beach, has been charged with making false statements in connection with an application filed with the VA to have one of the vendor companies falsely designated as a Service Disabled Veteran Owned Small Business.
According to the facts alleged in the indictments and criminal informations, the charged employees worked in logistics departments of the West Palm Beach and the Miami VA Medical Centers and were responsible for ensuring that medical and other hospital supplies were purchased and received. It is alleged that at the West Palm Beach VA, Purvis, Johnson, and Scott would place orders for supplies with the complicit vendors that were either fictitious or contained inflated quantities. The vendors would then invoice the VA for the fictitious or inflated orders. Purvis, Johnson, and Scott would authorize the payment of VA funds to the vendors, who would then kick-back a portion of the proceeds to Purvis, Johnson, and Scott. Purvis and Johnson paid a portion of those proceeds to Young, in exchange for his agreement to falsely enter the supplies as having been received in the VA computer system. At the Miami VA Medical Center, Campbell, Woods, Anderson, Cuervo, Hawes, and Harris each accepted cash bribe payments in exchange for placing orders for supplies with Flores’ and Earron and Claricha Starks’ companies. As a result of these schemes, the defendants caused the U.S. Department of Veterans Affairs to pay millions of dollars for inflated or unfulfilled purchase orders.
Indictments and criminal informations are charging instruments containing allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
These cases were investigated by Special Agents of VA OIG and are being prosecuted by Assistant U.S. Attorneys Roger H. Stefin and Amanda Perwin.
In November of this year, the Justice Department announced the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding. The PCSF is an interagency partnership, including the U.S. Attorney’s Office for the Southern District of Florida and federal law enforcement partners.
To learn more about the PCSF or how to report suspected criminal activity affecting public procurement, please visit https://www.justice.gov/procurement-collusion-strike-force. Anyone with information concerning anticompetitive conduct involving federal taxpayer dollars is encouraged to contact the PCSF directly by emailing [email protected].
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.
Felon Sentenced to Federal Prison for Firearm PossessionRead the Press Release
A Sioux City man was sentenced December 4, 2019 to more than a year in federal prison for possessing a loaded handgun while being a felon, and on parole.
Ronald Warner, age 47, from Sioux City, Iowa, received the prison term after a February 15, 2019, guilty plea to possession of a firearm by a prohibited person.
Evidence produced by the United States at the change of plea and sentencing hearings in this case, and the related case against Mr. Troy Cooke, showed that Cooke allowed felons, including Warner, regular access to guns and on one occasion gave Warner a gun as collateral on a debt. Warner, as a felon, could not lawfully possess the gun and Cooke and Warner both knew it. Warner’s firearm possession was discovered when Probation and Parole Officers conducted a search of Warner’s home and found the weapon hidden, loaded, and cocked.
Warner was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Warner was sentenced to 20 months’ imprisonment and ordered to pay a special assessment of $100. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Cooke was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand on November 22, 2019. Cooke was sentenced to one month’s imprisonment and ordered to pay a special assessment of $100 for providing an employee, Warner, a firearm knowing that employee was a felon. He was fined $15,000. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Warner is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa, Police Department and the United States Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4072.
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Federal Jury Finds Akron Man Guilty of Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A federal jury convicted an Akron, Ohio man yesterday after a day-long trial, announced United States Attorney Mike Stuart. The jury found Devon Alexander, 30, guilty of being a felon in possession of a firearm on August 16, 2018.
“An Akron felon with a gun in Charleston,” said United States Attorney Mike Stuart. “This has become an all too common occurrence, particularly in Charleston and Huntington. Federal gun laws are straight-forward – persons convicted of felonies, whether they be federal or state offenses, are prohibited from possessing firearms. I applaud the work of the law enforcement agencies involved and my entire team for their work in securing this conviction.”
Alexander was previously indicted on a single count of being a felon in possession of a firearm due to previous convictions for tampering with evidence and having weapons under disability in Summit County, Ohio. At trial, evidence revealed that during a search of a house in Charleston, police witnessed Alexander toss a Citadel 1911 semi-automatic handgun into the yard while attempting to flee.
Alexander faces up to ten years in prison when sentenced on March 5, 2020.
The investigation was the result of a joint effort by the Metro Drug Enforcement Network Team (MDENT), the Drug Enforcement Administration, the Kanawha County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the West Virginia Department of Corrections and Rehabilitation.
United States District Judge Joseph R. Goodwin presided over the trial. Assistant United States Attorneys Stefan Hasselblad and Monica Coleman handled the prosecution.
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Federal Jury Convicts Lakeland Man Who Battered Police OfficersRead the Press Release
Tampa, Florida – A federal jury has found Felix Antequera Rivera, Jr. (33, Lakeland) guilty of possessing a firearm and ammunition as a convicted felon. He faces a minimum mandatory penalty of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for March 10, 2020.
Rivera was indicted on July 11, 2018.
According to evidence presented at trial, in the late evening of June 15, 2018, officers from the Lakeland Police Department were patrolling an apartment complex when they observed Rivera, who appeared to have a large object concealed at his waistband. When the officers approached Rivera, he turned, walked in the opposite direction, and attempted to enter a friend’s apartment. Rivera then tried to slip out of a backpack that he was wearing and attempted to flee. A prolonged struggle involving Rivera and four police officers ensued, during which Rivera reached for a firearm in his pants, struck a police officer in the head with handcuffs, and grabbed at the officers’ firearms and tasers. Officers eventually seized from Rivera a Sig Sauer pistol that was loaded with 11 rounds.
At the time of the incident, Rivera was a convicted felon on probation, with a long and violent criminal history, including armed robbery with a firearm, felony battery, and aggravated assault with a deadly This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Frank Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Federal Grand Jury Criminal Indictments Announced- extendedRead the Press Release
United States Attorney Trent Shores announced today the results of the December 2019 Federal Grand Jury B extended.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Maria Isabel Gonzalez and Jorge Alberto Moreno. Maintaining a Drug-Involved Premises (Count 1); Distribution of Methamphetamine (Counts 2-9); Drug Conspiracy (Count 10); Possession of Methamphetamine With Intent to Distribute (Count 11); Possession of Cocaine With Intent to Distribute (Count 12). (superseding) In this superseding indictment, three additional counts of distribution of methamphetamine have been added as well as possession of methamphetamine with intent to distribute and possession of cocaine with intent to distribute.
Gonzalez, 49, of Commerce, is charged with maintaining a place for the purpose of manufacturing, distributing and using methamphetamine. Gonzalez is further charged with knowingly distributing methamphetamine on Aug. 23, 2018; she is charged with knowingly distributing 5 grams or more of methamphetamine on Aug. 5, 2019; and she is charged with knowingly distributing 5 grams or more of methamphetamine on Sept. 12, 2019. Gonzalez is also charged with distributing 50 grams or more of methamphetamine on Sept. 16, 2019.
Moreno, 39, of Commerce, is charged with knowingly distributing 5 grams or more of methamphetamine on March 21, 2019; he is also charged with knowingly distributing 50 grams or more of methamphetamine on March 27, 2019; he is charged with knowingly distributing 50 grams or more of methamphetamine on April 22, 2019; and he is also charged with knowingly distributing 50 grams or more of methamphetamine on Sept. 16, 2019. Moreno is also charged with knowingly possessing with intent to distribute methamphetamine and with knowingly possessing with intent to distribute cocaine. Finally, both Gonzalez and Moreno are charged with conspiring to possess with intent to distribute methamphetamine and distributing methamphetamine. The Oklahoma Bureau of Narcotics and Dangerous Drugs and the Drug Enforcement Administration are the investigative agencies.
Enrique Beltran Prado. Drug Conspiracy (Count 1); Possession of Methamphetamine With Intent to Distribute (Count 2); Maintaining a Drug-Involved Premises (Count 3); Use of a Communication Facility in Committing, Causing, and Facilitating the Commission of a Drug Trafficking Felony (Counts 4-41). (superseding) Prado, 32, of Commerce, is charged with conspiring to possess with intent to distribute 50 grams or more of methamphetamine from October to November 2017. He is further charged with knowingly possessing with intent to distribute 500 grams or more of methamphetamine on Dec. 20, 2017, and with knowingly maintaining a place for the purpose of manufacturing, distributing and using methamphetamine. In this superseding indictment Prado is also charged with using a telephone when committing, causing and facilitating the commission of a drug trafficking felony. The Oklahoma Bureau of Narcotics and Dangerous Drugs and the Drug Enforcement Administration are the investigative agencies.
Ellington Man Pleads Guilty to Producing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SIMON HESSLER, 47, formerly of Ellington, waived his right to be indicted and pleaded guilty today in Bridgeport federal court to one count of production of child pornography.
According to court documents and statements made in court, between July 2016 and November 2018, Hessler engaged in sexually explicit conduct with a minor female, and he used a used a cellular phone to produce images of the sexual abuse. The minor victim was under the age of 12 at the time of Hessler’s conduct. Hessler kept dozens of these images on a USB drive. Forensic analysis of the USB drive also revealed hundreds of other images and videos of suspected child pornography, including images depicting sadistic or masochistic conduct, and thousands of images of child erotica.
The charge of production of child pornography carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
Hessler is also facing charges in two state jurisdictions. In the Hartford Judicial District, he is charged with commercial sex abuse of a minor under the age of 15, and attempt to commit sexual assault in the first degree. In the Tolland Judicial District, he is charged with four counts of risk of injury to a minor, and sex assault in the fourth degree. Under the terms of his federal plea agreement, Hessler will not argue for a sentence less than the statutory maximum of 30 years, to run concurrent with any sentence to be imposed in the state courts.
Hessler is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on March 4, 2020.
Hessler has been detained in state custody since November 13, 2018.
This matter is being investigated by the Connecticut State Police and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
U.S. Attorney Durham thanked the Hartford and Tolland State Attorney’s Offices for their cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Eagle Butte Man Sentenced for False StatementRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of False Statement was sentenced on December 11, 2019, by U.S. District Judge Roberto A. Lange.
Paul Stands For, age 24, was sentenced to 12 days in federal prison, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Stands For was indicted by a federal grand jury on July 16, 2019. He pled guilty on September 17, 2019.
The conviction stemmed from an incident on April 18, 2019, where Stands For willfully and knowingly made a materially false statement to a Task Force Officer with the Federal Bureau of Investigation’s Northern Plains Safe Trails Drug Enforcement Task Force, by stating that a stolen handgun was his, when he in fact knew this statement was false. Stands For lied in order to obstruct an investigation into whether a convicted felon unlawfully possessed the stolen handgun.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Stands For was immediately remanded to the custody of the U.S. Marshals Service.
EPA and Justice Department Announce $245 Million Agreement for Cleanup at the Allied Paper Inc./Portage Creek/Kalamazoo River Superfund SiteRead the Press Release
The U.S. Environmental Protection Agency (EPA), U.S. Department of Justice, the Kalamazoo River Natural Resource Trustee Council, and Michigan Department of Environment, Great Lakes, and Energy (EGLE) today announced a proposed consent decree that would require NCR Corp. to clean up and fund future response actions at a significant portion of the Allied Paper Inc./Portage Creek/Kalamazoo River Superfund site. The consent decree also includes payments related to natural resource damages and past cleanup efforts at the site. The consent decree is subject to a 30-day public comment period.
“This agreement marks a milestone in efforts to clean up Superfund sites in the Great Lakes region, and especially to address the legacy of paper mill generated PCB contamination in the Kalamazoo River watershed,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Under this settlement, cleanup and restoration efforts will be accelerated and that’s really good news for communities in the region and the environment.”
“This is a terrific settlement,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “It not only ensures that responsible parties will continue to clean up contamination at the Kalamazoo River Superfund site, but also ensures that both past and future costs incurred by the EPA and the state will be recovered.”
“Today’s agreement is a big step towards cleaning up the Kalamazoo River,” said EPA Regional Administrator Cathy Stepp. “This Administration is committed to cleaning up and restoring contaminated sites so they can be put back to productive use in the community.”
“This settlement is an important step for the State and the federal government in cleaning up contamination in and near the Kalamazoo River,” said Michigan Attorney General Dana Nessel. “I look forward to continued cooperation with our federal partners on this site to benefit our communities – including the cities of Plainwell and Otsego, and the townships of Gun Plain, Otsego, and Trowbridge – and to protect public health, safety, and welfare.”
“This settlement represents substantial progress in the cleanup and restoration of the Kalamazoo River,” said Liesl Clark, Director of EGLE. “The agreement requires NCR Corporation to take specific cleanup actions to address PCB contamination in and near the Kalamazoo River that will protect the public health and the environment. It also provides funds for the selection of natural resource projects to restore natural resources and help compensate the public for lost recreational opportunities within this important Southwest Michigan watershed.”
This Superfund site has been listed on the EPA Administrator’s Emphasis List of Superfund sites targeted for immediate, intense action. Each site on the list has a short-term milestone to provide the basis for tracking the site’s progress.
The Allied Paper Inc./Portage Creek/Kalamazoo River Superfund site is in Allegan and Kalamazoo counties and is divided into six segments, or operable units (OUs), that require cleanup. According to the settlement terms, NCR Corporation has agreed to spend approximately $135.7 million cleaning up three areas of OU 5. OU 5 includes 80 miles of the Kalamazoo River and three miles of Portage Creek. In addition, NCR will pay:
- $76.5 million to EPA for past and future costs in support of river cleanup activities;
- $27 million to natural resource trustees of the Kalamazoo River Natural Resource Trustee Council for natural resources damage assessment and claims; and
- $6 million to State of Michigan for past and future costs.
Historically, the Kalamazoo River was used as a power source for paper mills that were built along the river and a disposal site for the paper mills and the communities adjacent to the river. NCR arranged for disposal of carbonless copy paper contaminated with chemicals called polychlorinated biphenyls (PCBs) at the site. In the early 1970’s, PCBs were identified as a problem in the Kalamazoo River. In 1990, in response to the nature and extent of PCB contamination, the site was added to the National Priorities List, which includes the nation’s most serious uncontrolled or abandoned hazardous waste releases. EPA, working along with EGLE, has cleaned up three of the six operable units, removed nearly 450,000 cubic yards of contaminated material from the site, cleaned up and restored seven miles of the Kalamazoo River and banks, and capped 82 acres worth of contaminated material.
To learn more about this site, visit http://www.epa.gov/superfund/allied-paper-kalamazoo.
To view the government’s complaint and the consent decree, go to https://www.justice.gov/enrd/consent-decrees.
Background
EPA established the Administrator’s Emphasis List in December 2017 in response to recommendations from EPA’s Superfund Task Force. The list is comprised of sites identified by Administrator Wheeler and the EPA regional offices that will benefit from the administrator’s immediate attention or action.
The list serves as a mechanism to address delays in the cleanup of significant Superfund sites by specifying milestones that will facilitate and accelerate a site’s cleanup progress. EPA will consider removing a site from the list once the milestone is achieved and the cleanup activities at that site are back on track. The list is updated quarterly with sites moving on and off the list as needed. Removal from the Administrator’s Emphasis List does not change the site’s status on the NPL.
EPA remains committed to addressing risks at all Superfund sites, not just those on the Administrator’s Emphasis List. EPA continues to accelerate progress at all Superfund sites across the country.
The updated Administrator’s Emphasis List is available on the agency’s website at https://www.epa.gov/superfund/administrators-emphasis-list.
EPA and Justice Department Announce $245 Million Agreement for Cleanup at the Allied Paper Inc./Portage Creek/Kalamazoo River Superfund SiteRead the Press Release
WASHINGTON – The U.S. Environmental Protection Agency (EPA), U.S. Department of Justice, the Kalamazoo River Natural Resource Trustee Council, and Michigan Department of Environment, Great Lakes, and Energy (EGLE) today announced a proposed consent decree that would require NCR Corp. to clean up and fund future response actions at a significant portion of the Allied Paper Inc./Portage Creek/Kalamazoo River Superfund site. The consent decree also includes payments related to natural resource damages and past cleanup efforts at the site. The consent decree is subject to a 30-day public comment period.
“This agreement marks a milestone in efforts to clean up Superfund sites in the Great Lakes region, and especially to address the legacy of paper mill generated PCB contamination in the Kalamazoo River watershed,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Under this settlement, cleanup and restoration efforts will be accelerated and that’s really good news for communities in the region and the environment.”
“This is a terrific settlement,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “It not only ensures that responsible parties will continue to clean up contamination at the Kalamazoo River Superfund site, but also ensures that both past and future costs incurred by the EPA and the state will be recovered.”
“Today’s agreement is a big step towards cleaning up the Kalamazoo River,” said EPA Regional Administrator Cathy Stepp. “This Administration is committed to cleaning up and restoring contaminated sites so they can be put back to productive use in the community.”
“This settlement is an important step for the State and the federal government in cleaning up contamination in and near the Kalamazoo River,” said Michigan Attorney General Dana Nessel. “I look forward to continued cooperation with our federal partners on this site to benefit our communities – including the cities of Plainwell and Otsego, and the townships of Gun Plain, Otsego, and Trowbridge – and to protect public health, safety, and welfare.”
“This settlement represents substantial progress in the cleanup and restoration of the Kalamazoo River,” said Liesl Clark, Director of EGLE. “The agreement requires NCR Corporation to take specific cleanup actions to address PCB contamination in and near the Kalamazoo River that will protect the public health and the environment. It also provides funds for the selection of natural resource projects to restore natural resources and help compensate the public for lost recreational opportunities within this important Southwest Michigan watershed.”
Since 2017, this Superfund site has been listed on the EPA Administrator’s Emphasis List of Superfund sites targeted for immediate, intense action. Each site on the list has a short-term milestone to provide the basis for tracking the site’s progress.
The Allied Paper Inc./Portage Creek/Kalamazoo River Superfund site is in Allegan and Kalamazoo counties and is divided into six segments, or operable units (OUs), that require cleanup. According to the settlement terms, NCR Corporation has agreed to spend approximately $135.7 million cleaning up three areas of OU 5. OU 5 includes 80 miles of the Kalamazoo River and three miles of Portage Creek. In addition, NCR will pay:
* $76.5 million to EPA for past and future costs in support of river cleanup activities;
* $27 million to natural resource trustees of the Kalamazoo River Natural Resource Trustee Council for natural resources damage assessment and claims; and
* $6 million to State of Michigan for past and future costs.
Historically, the Kalamazoo River was used as a power source for paper mills that were built along the river and a disposal site for the paper mills and the communities adjacent to the river. NCR arranged for disposal of carbonless copy paper contaminated with chemicals called polychlorinated biphenyls (PCBs) at the site. In the early 1970’s, PCBs were identified as a problem in the Kalamazoo River. In 1990, in response to the nature and extent of PCB contamination, the site was added to the National Priorities List, which includes the nation’s most serious uncontrolled or abandoned hazardous waste releases. EPA, working along with EGLE, has cleaned up three of the six operable units, removed nearly 450,000 cubic yards of contaminated material from the site, cleaned up and restored seven miles of the Kalamazoo River and banks, and capped 82 acres worth of contaminated material.
To learn more about this site, visit http://www.epa.gov/superfund/allied-paper-kalamazoo.
Background
EPA established the Administrator’s Emphasis List in December 2017 in response to recommendations from EPA’s Superfund Task Force. The list is comprised of sites identified by Administrator Wheeler and the EPA regional offices that will benefit from the administrator’s immediate attention or action.
The list serves as a mechanism to address delays in the cleanup of significant Superfund sites by specifying milestones that will facilitate and accelerate a site’s cleanup progress. EPA will consider removing a site from the list once the milestone is achieved and the cleanup activities at that site are back on track. The list is updated quarterly with sites moving on and off the list as needed. Removal from the Administrator’s Emphasis List does not change the site’s status on the NPL.
EPA remains committed to addressing risks at all Superfund sites, not just those on the Administrator’s Emphasis List. EPA continues to accelerate progress at all Superfund sites across the country.
The updated Administrator’s Emphasis List is available on the agency’s website at https://www.epa.gov/superfund/administrators-emphasis-list.
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Dodge County Strip Club Owner & Former Manager Charged with Federal OffensesRead the Press Release
United States Attorney Matthew D. Krueger announced that on December 10, 2019, a federal grand jury indicted Michael C. Siegel (age 52) formerly of Clyman and currently of Fox Lake, Wisconsin, and Scott D. Hoeft (age 40) of Watertown, Wisconsin, for offenses related to the operation of the Hardware Store, a strip club located in Dodge County.
The indictment contains two counts. Count One alleges that between 2009 and 2018, Siegel (an owner of the club) and Hoeft (a former bartender and manager) conspired with each other and others to use facilities in interstate commerce to promote, manage, and carry on unlawful prostitution offenses, in violation of Title 18, United States Code, Sections 371 & 1952(a)(3). Count Two alleges that in April 2018 Siegel made false statements to law enforcement investigating human trafficking offenses, in violation of Title 18, United States Code, Section 1001.
According to the indictment, the purpose of the conspiracy was to generate revenue for the Hardware Store by making the club’s lap dance and champagne rooms available for unlawful prostitution activity, including oral sex, full intercourse, and fetish activities. The indictment alleges that as a part of the conspiracy, Hoeft, Siegel, and others: (1) hired and employed dancers willing to perform sex acts, including women that they knew were working for pimps; (2) sent text messages in interstate commerce and used Facebook Messenger to communicate with dancers and pimps; and (3) allowed customers to use credit cards to pay for lap dances and champagne rooms and to obtain cash back to pay dancers directly for sex acts. The indictment also describes a series of acts by Siegel, Hoeft, and other designed to carry on the unlawful activity.
United States Attorney Krueger commented: “These charges send a warning to any business owner who works with a pimp to facilitate illegal prostitution. When a pimp is involved, women are often being trafficked by force, fraud, and coercion. The Justice Department is committed to prosecuting sex trafficking aggressively.”
Special Agent in Charge Robert E. Hughes, of the FBI Milwaukee Field Office, stated: “The collaborative efforts of the FBI working closely with our law enforcement partners makes it possible to bring offenders to justice who work with pimps who victimize women, often forced by violence into the unlawful act of prostitution.”
“I am thankful for the partnership with the federal government in developing this case regarding the human trafficking, prostitution, and other serious crimes. The charges brought against Siegel and Hoeft send a strong and clear message that we will not tolerate this criminal activity and we will use all resources available to us to hold offenders accountable,” said Dodge County Sheriff Dale J. Schmidt.
If convicted of Count One, Siegel and Hoeft would face up to 5 years in prison. If convicted of Count Two, Siegel would face up to 8 years in prison. Each count of conviction also carries a maximum fine of $250,000 and a maximum term of 3 years of supervised release following any prison sentence.
This case was investigated by the Federal Bureau of Investigation, Dodge County Sheriff’s Office, Internal Revenue Service – Criminal Investigations, Racine Police Department, United States Department of Labor – Office of Inspector General, Hartford Police Department, and Federal Deposition Insurance Corporation – Office of Inspector General, with the assistance of the Wisconsin Department of Justice –Division of Criminal Investigation, Watertown Police Department, Milwaukee Police Department and United States Department of Homeland Security – Homeland Security Investigations.
The case has been assigned to Assistant United States Attorneys Erica J. Lounsberry and Richard G. Frohling for prosecution.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Dallas Man Sentenced to 30 Years on Terrorism ChargesRead the Press Release
A 42-year-old Dallas man has been sentenced to 30 years in federal prison following a conviction for multiple terrorism charges, announced Assistant Attorney General for National Security John C. Demers and U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a three-and-a-half day trial, Said Azzam Mohamad Rahim, a 42-year-old United States citizen, was convicted in May of one count of conspiracy to provide material support to a designated foreign terrorist organization (FTO), one count of attempting to provide material support to an FTO, and six counts of making false statements involving international terrorism to federal authorities.
“Mr. Rahim embraced a warped ideology on social media, promoting violence against innocent people, including Americans,” said U.S. Attorney Erin Nealy Cox. “The Justice Department is committed to combatting terror at home and abroad.”
“Rahim spread the violent message of ISIS online,” said Assistant Attorney General for National Security John Demers. “He also attempted to travel to support ISIS and then lied to FBI when questioned about his activities. This sentence is the consequence of his criminal activities and a clear message to others who would consider following in his footsteps: don’t.”
According to evidence presented at trial, Mr. Rahim moderated a social media channel dedicated to recruiting fighters for the Islamic State of Iraq and al-Sham, or ISIS, a State Department designated terror group.
Mr. Rahim used Zello, a push-to-talk direct messaging application, to promote violence in ISIS’s name, prosecutors said.
Records showed he spent years on Zello’s “State of the Islamic Caliphate” channel, where he touted acts of terror under various monikers:
“Kill and do not consult anyone,” he said in July 2016. “Kill by any means, smash his head on the wall, spit in his face, burn -- I mean anything, anything – poison, anything.”
“Brothers! What are you waiting for?” he said a month later. “Mobilize and perform jihad for the cause of Allah…. Some of the brothers mobilized from this channel, they were amongst us.”
He even praised several terrorist attacks after the fact.
“I was happy for this act,” Rahim said after a truck barreled into a crowd of people in Nice, France, killing 86. “Those dogs.”
Mr. Rahim was arrested on March 5, 2017 at the Dallas Fort Worth International Airport, where he was attempting to board a flight to Amman, Jordan. Asked by agents if he had ever supported ISIS, advocated travel for the purposes of jihad, promoted violence on ISIS’s behalf, or encouraged anyone to kill infidels at the urging of ISIS spokesman Abu Mohammed al-Adnan, Mr. Rahim said “no.”
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of State – Diplomatic Security Services, and the Joint Terrorism Task Force conducted the investigation. Assistant United States Attorney Errin Martin and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section prosecuted the case. U.S. District Judge Jane Boyle presided over the trial.
Dallas Man Sentenced to 30 Years on Terrorism ChargesRead the Press Release
A 42-year-old Dallas, Texas, man has been sentenced to 30 years in federal prison following a conviction for multiple terrorism charges.
Following a three-and-a-half day trial, Said Azzam Mohamad Rahim, a 42-year-old United States citizen, was convicted in May of one count of conspiracy to provide material support to a designated foreign terrorist organization (FTO), one count of attempting to provide material support to an FTO, and six counts of making false statements involving international terrorism to federal authorities.
“Rahim spread the violent message of ISIS online,” said Assistant Attorney General for National Security John C. Demers. “He also attempted to travel to support ISIS and then lied to FBI when questioned about his activities. This sentence is the consequence of his criminal activities and a clear message to others who would consider following in his footsteps: don’t.”
“Mr. Rahim embraced a warped ideology on social media, promoting violence against innocent people, including Americans,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “The Justice Department is committed to combatting terror at home and abroad.”
According to evidence presented at trial, Rahim moderated a social media channel dedicated to recruiting fighters for the Islamic State of Iraq and al-Sham, or ISIS, a State Department designated terror group.
Rahim used Zello, a push-to-talk direct messaging application, to promote violence in ISIS’s name, prosecutors said.
Records showed he spent years on Zello’s “State of the Islamic Caliphate” channel, where he touted acts of terror under various monikers:
“Kill and do not consult anyone,” he said in July 2016. “Kill by any means, smash his head on the wall, spit in his face, burn -- I mean anything, anything – poison, anything.”
“Brothers! What are you waiting for?” he said a month later. “Mobilize and perform jihad for the cause of Allah…. Some of the brothers mobilized from this channel, they were amongst us.”
He even praised several terrorist attacks after the fact.
“I was happy for this act,” Rahim said after a truck barreled into a crowd of people in Nice, France, killing 86. “Those dogs.”
Rahim was arrested on March 5, 2017, at the Dallas Fort Worth International Airport, where he was attempting to board a flight to Amman, Jordan. Asked by agents if he had ever supported ISIS, advocated travel for the purposes of jihad, promoted violence on ISIS’s behalf, or encouraged anyone to kill infidels at the urging of ISIS spokesman Abu Mohammed al-Adnan, Rahim said “no.”
The FBI, the U.S. Department of State – Diplomatic Security Services, and the Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorney Errin Martin and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section prosecuted the case. U.S. District Judge Jane Boyle presided over the trial.
Cooperstown Man Sentenced to 78 Months for Money Laundering, Filing False Tax ReturnRead the Press Release
ALBANY, NEW YORK – Thomas K. Lagan, age 61, of Cooperstown, New York, and formerly of Slingerlands, New York, was sentenced today to 78 months in prison, to be followed by 2 years of supervised release, for money laundering and filing a false tax return in connection with the theft of approximately $11.8 million from estates for which he served as a fiduciary.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York Attorney General Letitia James;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
- Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of IRS- Criminal Investigation.
Senior United States District Judge Lawrence E. Kahn also ordered Lagan to pay $7,707,450 in restitution, and to forfeit the following as proceeds of his crimes: 10 bank and brokerage accounts; an additional $255,000 already paid to the Government; three properties in Otsego County; a 2016 Mercedes Benz S550; a 2015 Jeep Wrangler Sport; a 2015 Lexus RX450; and a 2015 Sea-Doo jet ski and accompanying trailer.
In a related case prosecuted by the New York Attorney General’s Office, Lagan pled guilty, in Albany County Court, to grand larceny in the first degree, and was sentenced to 4 to 12 years in prison. The federal and state terms of imprisonment will run concurrent to one another.
In pleading guilty, Lagan admitted that between November 2011 and February 2018, he conspired with Richard J. Sherwood to launder the proceeds of a scheme to defraud the estates of three sisters: Pauline Bruggeman, Anne Urban, and Julia Rentz.
Sherwood pled guilty in June 2018 to federal and state charges. He is scheduled to be sentenced on December 19, 2019.
United States Attorney Grant C. Jaquith stated: “Fueled by insatiable greed, Thomas Lagan stole millions of dollars earmarked for churches and civic organizations. Lagan was trusted to carry out his victims’ charitable endeavors, but betrayed them after they died. Today’s sentence holds him accountable for his despicable behavior and ensures that his crimes won't pay.”
FBI Special Agent in Charge James N. Hendricks stated: “Thomas Lagan chose to steal millions of dollars from estates meant for churches and charitable organizations. The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously. We will continue working with our law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”
IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “Mr. Lagan failed to comply with some of the most basic taxpayer responsibilities. Even worse, his self-seeking actions have deprived charitable organizations of funds intended to serve individuals in need. IRS-CI, along with its law-enforcement partners, is committed to impartially enforcing our country’s tax laws. Today’s sentencing should serve as a deterrent to criminals looking to enrich themselves by stealing charitable contributions donated by well-intended citizens.”
Lagan was an investment advisor and attorney. Sherwood, an attorney who served as Guilderland Town Justice, practiced primarily in the area of trusts and estates.
Starting in 2006, they provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York. They were advising the Bruggemans when, in 2006, the Bruggemans signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s sisters.
Warren Bruggeman died in April 2009, and Pauline died in August 2011. At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.
In pleading guilty, Lagan admitted that after Pauline Bruggeman’s death, he and Sherwood conspired to steal, and did steal, millions of dollars from her estate as well as from Anne Urban, who died in 2013. Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013.
Lagan admitted that he and Sherwood stole $11,831,563, and that nearly $6.3 million was transferred outright to him.
Lagan admitted that he and Sherwood induced Anne Urban to create a trust whose purpose, unknown to her, was to allow them to transfer Bruggeman/Urban assets to themselves. Sherwood and Lagan also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves.
Lagan also admitted to filing false federal tax returns in 2013 and 2015. These returns were false because he did not report, as other income, millions of dollars that he received from the fraudulent scheme.
The federal case was investigated by the FBI and IRS-CI, and was prosecuted by Assistant U.S. Attorney Michael Barnett. Assistant U.S. Attorneys Adam J. Katz and Alicia G. Suarez prosecuted the asset forfeiture aspects of the case.
The state case was prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Travis Hill. The Criminal Justice Division is led by Chief Deputy Attorney General Jose Maldonado. The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam. The Investigations Bureau is led by Acting Chief John Reidy. Financial analysis was provided by Principal Auditor Investigator Meaghan Scotellaro of the Forensic Audit Section under the supervision of Deputy Chief Auditor Sandy Bizzarro and Chief Auditor Edward J. Keegan, Jr. Senior Analyst Sara Pogorzelski assisted in the investigation.
Convicted Felon Sentenced to More Than 17 Years in Prison on Federal Firearm and Narcotics ChargesRead the Press Release
WASHINGTON – Victor A. Brown, Jr., 29, of Washington, D.C., was sentenced today to 210 months in prison for his unlawful possession of a loaded firearm with an extended magazine, as well as his possession of distribution-level quantities of fentanyl and cocaine base, Jessie K. Liu, United States Attorney for the District of Columbia, and Chief Peter Newsham, Metropolitan Police Department announced.
The sentence followed a jury trial in September in the U.S. District Court for the District of Columbia before the Honorable Thomas F. Hogan. Due to two prior qualifying convictions – one for a crime of violence and one for a drug trafficking offense – Judge Hogan sentenced the defendant to enhanced sentencing penalties as a Career Offender.
According to the government’s evidence, on the evening of March 22, 2019, officers of MPD’s Fourth District Crime Suppression Team executed a search warrant at a rowhouse in the Petworth neighborhood. Inside of Brown’s bedroom, officers located a 9 millimeter pistol with an extended magazine in his night stand. Officers recovered fentanyl and cocaine base from on top of his bed and recovered various items used for drug distribution throughout Brown’s bedroom (including digital scales, ziplocks, a tray with residue, cutting agents, and razor blades). Officers also recovered more than $2,800 in U.S. currency from Brown’s person.
At the time of his arrest this spring, Brown was under supervision for a robbery charge to which he had pled guilty in Howard County, Maryland.
In announcing the sentence, U.S. Attorney Liu commended the work of the Fourth District Crime Suppression Team who worked on the case from the Metropolitan Police Department, as well as the fingerprint analysts from the D.C. Department of Forensic Science. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Rommel Pachoca, Legal Assistant Peter Gaboton, and Assistant U.S. Attorney Daniel Lenerz. Finally, U.S. Attorney Liu commended the work of Assistant U.S. Attorneys Steven Wasserman and Laura Crane, who investigated and prosecuted the matter.
California Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
A man who sexually exploited a child was sentenced on December 10, 2019, to 30 years in federal prison.
David Vogelpohl, age 22, of Vista, California, received the sentence after a June 20, 2019, guilty plea to one count of sexual exploitation of a child. At the plea hearing, Vogelpohl admitted that, in 2018, he persuaded, induced, or enticed a female under 18 years old to engage in sexually explicit conduct for the purpose of producing visual depictions.
Vogelpohl was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Vogelpohl was sentenced to 360 months’ imprisonment. A special assessment of $100 was imposed, and Vogelpohl must also serve a 5-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Mason City Police Department, the North Platte, Nebraska, Police Department, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 18-3053.
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Buffalo Man Sentenced for Bank Fraud and I-D TheftRead 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 Ricky Butler, 43 of Buffalo, NY, who was convicted of conspiracy to commit bank fraud and aggravated identity theft, was sentenced to serve 96 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys MaryEllen Kresse and Jonathan Cantil, who handled the case, stated that between July 2013 and January 2014, the defendant conspired with others, including Randy Jarrett, Tamika Favors, Catherine Jarrett, Teria Baker, and Danielle Hamilton, fraudulently to obtain and use unauthorized access devices, namely credit cards, without the knowledge or authorization of the true account holders. Butler used the true account holder’s personal identifying information and account access information to contact financial institutions and have new or replacement credit cards issued to addresses in the Western District of New York and elsewhere. During the course of the scheme, Butler took over 59 credit card accounts. Those credit cards were used by the defendant and the other conspirators to make, and to attempt to make, purchases at Walmart stores and other retail establishments totaling nearly $1,084,000.
Throughout the scheme, the defendant controlled all credit cards, determined where all credit cards would be used to make purchases, and directed Tamika Favors, Teria Baker, Danielle Hamilton, and others to forge the signature of the name on each card to finalize purchases. Butler also maintained control of all gift cards purchased, directed all subsequent sales of the gift cards, and received the majority of the proceeds from the gift card sales.
All six defendants in this case have all been convicted.
The sentencing is the result of an investigation by the United States Postal Service Inspection Service, Boston Division, under the direction of Inspector-in-Charge Joseph W. Cronin; and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
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Bridgeport Man Guilty of Crack and Cocaine Distribution OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found ROCKY SAMAS, also known as “Twin,” 48, of Bridgeport, guilty of one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”), and one count of possession with intent to distribute cocaine. The verdicts were returned this afternoon before U.S. District Judge Jeffrey A. Meyer.
According to the evidence disclosed during the two-day trial, between August and October 2018, investigators conducted three controlled purchases of crack cocaine from Samas in Bridgeport. On November 6, 2018, Samas was arrested on a federal criminal complaint. On that date, investigators searched his Bridgeport residence and seized approximately 80 grams of crack cocaine, approximately 200 grams of powder cocaine, approximately $14,000 in cash, and two digital scales.
Judge Meyer scheduled sentencing for March 19, 2020, at which time Samas faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Samas is released on a $200,000 bond pending sentencing.
Samas’ criminal history includes multiple drug convictions, including a federal conviction in 2005 for possession with intent to distribute and distribution of crack and powder cocaine. On September 21, 2005, he was sentenced to 240 months of imprisonment for those offenses. He was subsequently resentenced to 96 months of imprisonment, pursuant to changes in the federal sentencing guidelines for crack cocaine offenses, and was released from federal prison in December 2011.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, and the Stamford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez, Hal Chen and Joseph Vizcarrondo.
Brazilian National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Brazilian national previously convicted of murder in state court, pleaded guilty yesterday in federal court in Boston to illegal reentry.
Walter Gomes DaSilva, 48, a Brazilian national illegally residing in New Bedford, pleaded guilty to illegal reentry. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for April 2, 2020.
DaSilva was deported to Brazil in 1999 following a conviction for domestic assault and battery. Sometime after his removal, DaSilva illegally reentered the United States. In 2003, DaSilva was convicted of armed assault to murder in the Middlesex Superior Court and was sentenced to 8-10 years in prison. Upon completion of his sentence, DaSilva was placed into removal proceedings and on March 27, 2012, he was deported to Brazil.
Sometime after his 2012 removal, DaSilva again illegally reentered the United States. DaSilva was charged in 2016 in Bristol County with illegal possession of a firearm and the murder of his daughter. In 2018, DaSilva was convicted of murder and sentenced to 25-years-to-life in prison.
In February 2019, DaSilva was charged in this case.
The charge of illegal reentry carries a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Marcos D. Charles, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Boyle County Man Sentenced to 100 Years in Prision for Production of Child Pornography and Distribution of MethamphetamineRead the Press Release
LEXINGTON, Ky. – Richard Eugene Derringer, 47, previously of Junction City, Kentucky, was sentenced to 100 years in federal prison, on Wednesday, before Chief United States District Judge Danny C. Reeves, for the production of child pornography and distribution of methamphetamine.
In August 2019, Derringer was convicted by a jury of using a minor to engage in sexually explicit conduct, for the purpose of producing child pornography; conspiracy to use a minor to engage in sexually explicit conduct, for the purpose of producing child pornography; possession of child pornography; and distribution of methamphetamine. Derringer was acquitted of one count of attempted distribution of child pornography.
According to the evidence at trial, Jacquolyn Walls-Land, who previously pleaded guilty to one count of using a minor to engage in sexually explicit conduct for the purpose of producing child pornography, took videos of the minor female victim while Derringer sexually abused the victim. The sexual abuse, and recording of it, occurred on March 11, 2018. The evidence established that Derringer forced the minor victim to smoke methamphetamine with him, on multiple occasions, during an approximate 3-hour period while the sexual abuse occurred. Derringer even took hits of the methamphetamine himself and then exhaled into the minor victim’s mouth. The minor victim reported the sexual abuse and forced drug use to her mother, approximately 8 hours after the abuse ended, and the minor victim was taken to a local hospital, where she tested positive for methamphetamine.
Derringer’s co-defendant, Jacquolyn Walls-Land, will be sentenced on December 16, 2019. She faces a mandatory minimum sentence of fifteen years in prison, and up to 30 years, and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
“The production of child pornography is one of the most despicable crimes that law enforcement investigates and our Office prosecutes,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The facts of this case are particularly egregious and the defendant’s abuse of the victim certainly warrants the life sentence he received. It should present a clear message that we are committed to holding accountable those who commit acts of abuse and who manufacture child pornography. Because the victim showed remarkable bravery in reporting the crime, law enforcement was able to prevent the defendant from preying on others.”
United States Attorney Duncan; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Richard Sanders, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI and Kentucky State Police. Assistant U.S. Attorneys David Marye and Mary Melton represented the United States.
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Boston Man Sentenced to 12 Years for Sex TraffickingRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for transporting a minor for prostitution.
Corey Smith, 35, was sentenced by U.S. District Court Senior Judge George A. O’Toole Jr. to 146 months in prison and five years of supervised release. In July 2019, Smith pleaded guilty to one count of transportation of a minor for purposes of prostitution and two counts of transportation of an individual with intent to engage in prostitution.
Between January 2015 and March 2015, Smith transported a minor girl between Massachusetts, Georgia and Connecticut, with the intent that she would engage in prostitution. Smith also transported another woman from November 2014 to June 2015, between Massachusetts, Georgia and Connecticut with the intent that she would engage in prostitution, and used force and threats to coerce her to do so. Between January and February 2015, he transported a third woman between Massachusetts and Connecticut with the intent that she would also engage in prostitution.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Timothy Moran of Lelling’s Civil Rights Enforcement Team prosecuted the case.
Beaver County Man Admits Robbing PNC Bank in Cranberry TownshipRead the Press Release
PITTSBURGH, Pa - A resident of Patterson Township, (Beaver County) Pennsylvania, pleaded guilty in federal court to a charge of bank robbery, United States Attorney Scott W. Brady announced today.
Michael Ryan Neppach, 40, pleaded guilty to one count before Senior United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that, on August 28, 2019, Neppach had robbed the PNC Bank at 20940 Route 19 in Cranberry Township of approximately $1,400.
Judge Fischer scheduled sentencing for April 15, 2020 at 9:00 a.m. The law provides for a total sentence of not more than twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Cranberry Township Police Department conducted the investigation that led to the prosecution of Neppach.
Baltimore Man Facing Federal Charges Related to Two CarjackingsRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Michael Wedington, Jr., age 19, of Baltimore, Maryland, with conspiracy, taking a motor vehicle by threats or violence, and with possession of a firearm in furtherance of a crime of violence, in connection with two carjackings. The criminal complaint was returned on November 6, 2019, and was unsealed at Wedington’s initial appearance in U.S. District Court in Baltimore today. At today’s initial appearance, Chief U.S. Magistrate Judge Beth P. Gesner ordered that Wedington be detained pending a detention hearing scheduled for December 18, 2019 at 2:00 p.m.
The federal charges were 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; and Commissioner Michael Harrison of the Baltimore Police Department.
“Armed criminals jeopardize lives and they must be held accountable,” said United States Attorney Robert K. Hur. “Police and prosecutors are working to identify armed criminals who deserve to be charged in federal court where, if convicted, you could be sentenced to more years in federal prison than you’ve been alive. And there is no parole—ever. Please put down the gun and save a life, maybe even your own.”
According to the affidavit filed in support of the criminal complaint, Wedington allegedly participated in two carjackings that occurred on June 8 and June 10, 2019. In each instance, the victim was picking up tools as part of a transaction set up through a cellular phone-based application, “OfferUp,” which connects local buyers and sellers of various products. When the victims arrived at the designated meeting spot, they were then directed to a second location, where the victims were robbed and their vehicles taken.
As detailed in the affidavit, in the carjacking on June 8, 2019, the victim arrived in the area of Washington Boulevard and South Monroe Street in Baltimore and was then directed to the 2400 block of West Lexington Street. Upon arriving, the victim was waived down and approached by three men. At first the men appeared to load the victim’s Ford van with the purported tools they were purportedly selling. However, one suspect was armed with a handgun and allegedly forced the victim into the rear of his vehicle, then all three suspects also entered the vehicle. The suspects allegedly stole the victim’s wallet and cash, a driver’s license, debit card and his cellular phone. As they drove away, the affidavit alleges that one suspect placed a handgun in the victim’s mouth and demanded the PIN number to the victim’s debit card. The suspects drove to a gas station in Northwest Baltimore with the victim still in the van, and one of the suspects used the PIN number the victim had provided to obtain cash from an ATM. The victim escaped from the van in the area of the 7000 block of Park Heights Avenue and called the Baltimore Police Department to report the incident. The stolen vehicle was recovered five days later in that area of the 2700 block of Tivoly Avenue in Baltimore.
According to the affidavit, in the second carjacking on June 10, 2019, the victim was lured to the 2400 block of West Lexington Street through the OfferUp application by a user who was purportedly selling tools and equipment at this location. When the victim arrived, he was directed to the back alley behind West Fayette Street, where two suspects approached him—both armed with handguns. The two men allegedly took the victim’s wallet, containing over $1,000 in cash, the victim’s two cell phones, and the victim’s Toyota Sienna.
The affidavit alleges that both victims identified Wedington in a photo array, and Wedington’s fingerprint was recovered from the van stolen in the second carjacking, when it was located in Southwest Baltimore. On November 1, 2019, federal search warrant was executed at Wedington’s primary residence, which is located between the scenes of the two carjackings, and law enforcement recovered a Toyota car key, firearms, replica pellet guns, clothing, and cellular phones.
If convicted, Wedington faces a maximum sentence of five years in federal prison for conspiracy to take a motor vehicle by threats or violence; a maximum of 15 years in federal prison for taking a motor vehicle by threats or violence; and a mandatory minimum of seven years in federal prison, consecutive to any other sentence, and up to life in federal prison for each of two counts of possession of a firearm in furtherance of a crime of violence. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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BISD VP indictedRead the Press Release
BROWNSVILLE, Texas – The vice president of the Brownsville Independent School District (BISD) Board of Trustees is now in custody on charges of conspiracy and corruption, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the eight-count indictment Dec. 10 against Sylvia P. Atkinson, 48, of Brownsville. It was unsealed as authorities took her into custody upon her arrival for a scheduled BISD meeting last night. She is expected to make her initial appearance before U.S. Magistrate Judge Ronald G. Morgan today at 10 a.m.
The charges allege Atkinson was elected to the BISD Board Nov. 4, 2016, and appointed vice president in 2018. During her career in education, she has served as the superintendent of Socorro, Santa Rosa and Los Fresnos school districts, assistant superintendent of BISD and Rio Hondo ISD (RHISD) and is currently the executive director of High School Programs and Community Outreach at Texas Southmost College, according to the indictment.
The charges allege a long-running criminal scheme to solicit bribes from vendors seeking to obtain contracts with BISD and RHISD. The contracts would provide various goods and services to the school districts, including computer tablets, medical teleconferencing services and tutorial services, according to the indictment. In 2018, Atkinson also allegedly solicited and received a $10,000 bribe from an undercover agent related to a film crew’s potential use of BISD facilities for filming a purported Hollywood movie.
Atkinson is charged with one count each of conspiracy, bribery concerning programs receiving federal funds as well as six counts of violation of the Travel Act. For the conspiracy and each Travel Act violation, she faces up the five years in prison, while the bribery charge carries a possible 10-year term of imprisonment, upon conviction.
The FBI conducted the investigation. Assistant U.S. Attorneys Jody Young and Robert S. Johnson are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Attorney for Municipalities in Puerto Rico Convicted of BriberyRead the Press Release
A former attorney for three municipalities in Puerto Rico was convicted of bribery today.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan Field Office made the announcement.
Alejandro Carrasco, 63, of San Juan, Puerto Rico, was convicted of four counts of bribery with respect to programs receiving federal funds. A sentencing hearing has been scheduled for March 12, 2020.
According to the indictment and evidence introduced at trial, at various times between July 2009 and June 2012, Carrasco was an attorney providing legal services to the Puerto Rican Municipalities of Barceloneta, Rio Grande and Juncos. During that time, he accepted bribes, disguised as legal fees, from a contractor in exchange for assisting the contractor in obtaining contracts with the three municipalities. The evidence introduced at trial revealed that, in total, Carrasco was paid approximately $180,000 in bribes in exchange for helping the contractor obtain more than approximately $2.3 million in municipal contracts.
The FBI’s San Juan Field Office investigated the case. The U.S. Attorney’s Office for the District of Puerto Rico indicted the case. Trial Attorneys James I. Pearce and Nicole R. Lockhart of the Criminal Division’s Public Integrity Section (PIN) prosecuted the case. PIN Trial Attorney Amanda Vaughn and former PIN Trial Attorney Charles R. Walsh assisted in the prosecution.
Appleton Man Indicted on Methamphetamine and Ammunition ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on December 10, 2019, a two-count federal indictment was issued against Kou Lee (age: 30) of Appleton, Wisconsin.
The indictment alleges that Kou Lee possessed in excess of 50 grams of methamphetamine with the intent to distribute the controlled substance and also possessed ammunition as a convicted felon, contrary to Title 21, United States Code, Sections 841(a), (b)(1)(A) and Title 18 United States Code, Section 922(g).
If convicted of the charges alleged, Lee faces at least a mandatory 10-year prison sentence and a maximum sentence of life imprisonment.
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case was investigated by the Lake Winnebago Area MEG Unit and the United States Probation Office for the Eastern District of Wisconsin. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Anderson Man Sentenced to 10 Years for Federal Firearms OffenseRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today, Keith Irwin, 33, Anderson, Ind., was sentenced to 10 years in federal prison, by U.S. District Judge James R. Sweeney III, in the federal courthouse in Indianapolis. Irwin was indicted and previously pleaded guilty to being a felon in possession of a firearm. "If you choose to illegally possess, manufacture, or alter firearms, you will be prosecuted federally, and to the full extent of the law," said Minkler. "The U.S. Attorney’s Office is committed to reducing violent crime by prosecuting those individuals who choose to engage in violent crime and commit firearms offenses." On January 16, 2018, the Anderson Police Department received a tip that Irwin, a convicted felon, was maintaining a machine shop in his garage where he altered AK-47 rifles from semi-automatic to full automatic for eventual distribution. On January 17, 2018, Anderson Police Department detectives along with a SWAT (Special Weapons and Tactics) and EOD (Explosive Ordnance Disposal) team executed a search warrant of the garage, where they saw an elaborate and well-equipped machine shop consisting of various lathes, presses, drills, and other heavy machines. During the search, officers seized 16
handguns, 20 rifles, 4 shotguns, approximately 53,383 rounds of ammunition in various calibers, and a body armor set. They also seized unfinished AR-15 type receives, unfinished AK-47 type receivers, and unfinished Uzi type receivers in various stages of manufacturing.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Indiana State Police, and the Anderson Police Department.
"The defendant not only illegally possessed firearms, he manufactured and sold them to others, putting the entire community at risk," stated ATF Special Agent in Charge Jonathan McPherson. "The combined investigative efforts of the Anderson Police Department, the Indiana State Police, and ATF hopefully ensures that the defendant will not be a threat to the community for quite some time."
According to Assistant U.S. Attorney Abhishek S. Kambli, who prosecuted this case for the government, Irwin must serve three years of supervised release following his prison sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to targeting the District’s most violent geographic areas for the adoption of reactive federal drug and firearm prosecutions. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2.
Alien Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Greenville has returned an indictment charging SIMON LOPEZ-MARIANO, age 46, of Mexico with Illegal Reentry of an Aggravated Felon.
LOPEZ-MARIANO, previously deported and found in Wake County, is alleged to have been previously removed subsequent to an aggravated felony conviction (first-degree attempted robbery). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.
Afghan Senator Convicted of Federal Welfare FraudRead the Press Release
NEWS RELEASE SUMMARY – December 11, 2019
SAN DIEGO – This morning, Ahmad Yusuf Nuristani pleaded guilty in federal court to Theft of Public Money, admitting that he received over $100,000 in government benefits by concealing foreign travel and residency between July 2015 and December 2018.
During a hearing before U.S. Magistrate Judge Karen S. Crawford, Nuristani admitted that he applied for Supplemental Security Income (SSI) from the Social Security Administration in July 2015. Nuristani acknowledged that he knew an SSI recipient must reside within the United States, and that he was required to report any travel outside of the United States lasting more than thirty days. Nuristani admitted to concealing and repeatedly lying to the Social Security Administration about his foreign travel and residency, and to receiving $27,492.44 in SSI payments and to causing a loss of $73,090.34 to the State of California for health care payments and services as a result of his fraud.
Nuristani, 71, is a former Fulbright Scholar and has been a prominent politician in Afghanistan for many decades. He has previously served as the governor of Herat province, and was the chairman of the Independent Election Commission of Afghanistan during their last presidential election. In September 2018, President Ashraf Ghani appointed Nuristani to the Meshrano Jirga, the upper body of parliament in Afghanistan. Nuristani served as both the head of Afghanistan’s Independent Election Commission and as an Afghan senator even as he received SSI at his claimed address in El Cajon, California.
This case was brought through the Travel and Residency Enforcement Co-Op (TREC), a pilot project of the Social Security Administration, its Office of Inspector General, the California Department of Health Care Services Investigations Division, and the United States Attorney’s Office for the Southern District of California. TREC is designed to detect and prevent misuse of the SSI program, a needs-based program administered by the Social Security Administration and designed to provide a floor of income for the aged, blind or disabled who have little or no income and resources. An individual approved to receive SSI automatically becomes eligible to receive Medi-Cal health benefits from the State of California. Since its formation in 2017, TREC has resulted in 25 federal convictions of individuals who fraudulently concealed foreign travel, foreign residency, and foreign financial resources from the Social Security Administration. To date, TREC has obtained over $2 million in court-ordered restitution to state and federal agencies, and has resulted in a savings of millions more.
Criminal investigators with the Special Inspector General for Afghanistan Reconstruction (SIGAR) also assisted with this investigation.
“I am proud of the work of this office, especially AUSA Jeffrey Hill, and our law enforcement partners for stopping this decades-long fraud, and ending the exploitation of government programs intended to help our country’s most vulnerable,” said United States Attorney Robert S. Brewer, Jr. “Those who abuse the trust of the taxpayer will be brought to justice.”
“Supplemental Security Income provides a lifeline for the elderly and disabled residing within the United States. The Social Security Administration’s Office of the Inspector General and its TREC partners vigorously investigate allegations of foreign travel and residency fraud, and prosecute those who steal from the American taxpayer. My office is pleased to see charges brought in this case, and appreciate that the U.S. Attorney’s Office shares our determination to protect the integrity of this vital income security program,” said Robb Stickley, Special Agent in Charge of the Inspector General’s Office of Investigations in San Francisco.
As a part of his plea agreement, Nuristani has agreed to make full restitution to the Social Security Administration and the California Department of Health Care Services. He faces up to 10 years in federal prison and a fine of up to $250,000 at his sentencing before the Hon. Cynthia A. Bashant on March 9, 2020.
DEFENDANT Case Number 19-cr-4967-BAS
Ahmad Yusuf Nuristani El Cajon, California.
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment, $250,000 fine, restitution
AGENCIES
Social Security Administration Office of Inspector General
California Department of Health Care Services Investigations Division
Special Inspector General for Afghanistan Reconstruction (SIGAR)
2 ex-credit union employees get prison for stealing $1MRead the Press Release
HOUSTON – Two suburban women have been ordered to federal prison following their conviction for embezzling from their former employer, announced U.S. Attorney Ryan K. Patrick.
Susanna Guajardo, 43, Pearland, and Grace Garza aka Grace Valencia, 49, Pasadena, pleaded guilty June 19 and Feb. 17, respectively.
Today, U.S. District Judge Lake handed Guajardo and Garza a total of 33 and 21 months in prison, respectively, each to be immediately followed by three years of supervised release. At the hearing, Judge Lake also ordered Guarjardo and Garza o pay $1,154,876 and $1,163,673 in restitution, respectively. In handing down the sentence, the court noted the sentence was appropriate given the long duration of the scheme and the amount of money involved.
Guajardo and Garza were long-time employees at a local credit union. Guajardo was a supervisor in the Accounting Department and Garza was a teller/vault supervisor. Both women admitted to embezzling $1,154,876 by depositing worthless checks from other banks into their credit union accounts. When the checks were returned for insufficient funds, Guajardo failed to deduct the “bounced” amounts from their credit union accounts and concealed the theft by making false entries in the bank’s books and records. Garza also stole $110,000 from the credit union’s vault.
Previously released on bond, Guajardo and Garza were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
18th Street Gang Leader Indicted for Ordering Murder of 15-Year-Old Victim on Long IslandRead the Press Release
Junior Zelaya-Canales, a regional leader of the 18th Street gang, will be arraigned this afternoon before United States Magistrate Judge Robert M. Levy in federal court in Brooklyn on a fourth superseding indictment charging him with murder in aid of racketeering in connection with the September 2016 fatal shooting of 15-year-old Josue Guzman in Hempstead, New York; conspiracy to murder rival gang members; and attempted murder of rival gang members. The superseding indictment also charged 18th Street gang members Jonathan Zelaya-Diaz with conspiracy to commit murder and attempted murder in aid of racketeering, and Eric Chavez with attempted murder and assault in aid of racketeering. Chavez was arrested on Tuesday and ordered detained pending trial. Zelaya-Diaz remains at large.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
As alleged in the superseding indictment and other court filings, the 18th Street gang is a violent street gang with members and associates in Jamaica, Queens, and in various locations across the United States.
“The superseding indictment and arrests announced today are a significant step in dismantling a violent street gang in our district,” stated United States Attorney Donoghue. “This Office, with the assistance of local and federal law enforcement partners, will not relent until violent street gangs that endanger communities have been eradicated.” Mr. Donoghue expressed his grateful appreciation to the Nassau County District Attorney’s Office, Nassau County Police Department, Queens District Attorney’s Office and the New York City Police Department (NYPD) for their assistance with the investigations.
"It defies comprehension these gang members are allegedly murdering and attempting to murder human beings for respect in their gang or in retaliation for some perceived slight,” stated FBI Assistant Director-in-Charge Sweeney. “Josue Guzman was just 15-years-old when he was shot and killed because someone deemed him to be disrespectful. We may never be able to change the mindlessness of a teenager being killed for no reason, but we can certainly make sure anyone who commits such a grotesque act will suffer the consequences.”
The Guzman Murder
In September 2016, Zelaya-Canales allegedly directed two lower-level gang members to kill Josue Guzman to demonstrate their allegiance to 18th Street gang. The murder was ordered, in part, because Guzman was believed to have offended 18th Street gang members. On September 12, 2016, at approximately 1:00 a.m., the Hempstead Police Department responded to a report of shots fired near the intersection of Linden Avenue and Laurel Avenue in Hempstead. There, the police officers found Guzman’s body lying near the curb, shot once in the back of the head. Guzman was pronounced dead at the scene.
Attempted Murder of Rival Gang Members
On July 9, 2017, Zelaya-Canales, Zelaya-Diaz and another 18th Street gang member allegedly directed the shooting of rival gang members over a turf dispute in Woodhaven, Queens. At approximately 10:30 p.m., NYPD officers responded to a 911 call about shots fired in the vicinity of 86th Road in Woodhaven. There, the police officers recovered nine 9-millimeter shell casings.
On August 9, 2017, NYPD detectives investigating the shooting executed a search warrant at Zelaya-Canales’s apartment and recovered a 9-millimeter Ruger handgun with a defaced serial number, four rounds of 9-millimeter ammunition, 56 rounds of .357 magnum ammunition, 34 rounds of .380 caliber ammunition and 23 rounds of .38 ammunition. Ballistic tests subsequently revealed that the Ruger handgun was the weapon that fired the 9-millimeter shell casings found at the scene of the shooting in Woodhaven.
Attempted Murder of “John Doe”
On September 20, 2017, in Jamaica, Queens, Eric Chavez allegedly shot “John Doe” for the purpose of maintaining and increasing his own position in the 18th Street gang, incorrectly suspecting that “Doe” was a member of the rival MS-13 gang. Chavez and another gang member approached “Doe” with guns drawn and searched him for MS-13 gang tattoos, but discovered none. Nevertheless, they shot and wounded “Doe” as he fled.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Soumya Dayananda and Jonathan P. Lax.
The Defendants:
JUNIOR ZELAYA-CANALES (also known as “Terco”)
Age: 23
Queens, New YorkJONATHAN ZELAYA-DIAZ (also known as “Scooby”)
Age: 25
Hempstead, New YorkERIC CHAVEZ (also known as “Lunatico”)
Age: 20
Queens, New YorkE.D.N.Y. Docket No. 18-139 (S-4) (LDH)
Tuesday 10 December 2019
Ute Mountain Ute Man Sentenced to over 23 Years in Federal Prison for Two Violent CrimesRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Wambli Mills, age 23, of Towaoc, Colorado, was sentenced by U.S. District Court Judge Robert E. Blackburn for convictions in two separate cases, to serve, combined, over 23 years (278 months) in federal prison, followed by 7 years on supervised release. Mills appeared at the sentencing hearing in custody, and was remanded at its conclusion. A federal jury found Mills guilty of aggravated sexual assault following a week-long trial before Judge Blackburn on July 18, 2019, in case 18-cr-00415. Separately, Mills pled guilty to assault resulting in serious bodily injury of a federal police officer on September 27, 2019, before Magistrate Judge James Candelaria.
In the first case Mills was sentenced to 200 months in federal prison following an indictment by a federal grand jury, for one count of Sexual Abuse of an Incapable Victim and one count of Aggravated Sexual Abuse within the exterior boundaries of the Ute Mountain Ute Indian Reservation. According to court documents, as well as facts presented during trial and sentencing, Mills anally raped the victim, who was then able to escape and report the incident to the police. Law enforcement located Mills hiding in a nearby field with the victim’s leggings wrapped around his neck and the victim’s underwear on his person. DNA testing conducted by the FBI showed the victim’s DNA on the interior of Mills’ underwear.
In the second case Mills was sentenced to 78 months in federal prison after he and his brother, Wendell Mills, Jr., were indicted by a federal grand jury, for attempted murder and assault charges. According to court documents, as well as facts presented during sentencing, on April 8, 2018, Mills and his brother tackled a Bureau of Indian Affairs Police Officer who was attempting to effectuate an arrest in Towaoc, Colorado, on the Ute Mountain Ute Indian Reservation. While on the ground, Mills attempted to choke the officer while yelling “goodnight officer!” During the struggle, Mills’ brother grabbed the officer’s holstered pistol, causing the gun to discharge into the officer’s leg. As Mills held the officer down, Mills’ brother attempted to murder the officer by aiming what he believed to be a loaded gun at the officer’s head and pulling the trigger several times. A bystander intervened long enough for the officer to deploy his taser weapon and subdue Mills and his brother. Wendell Mills, Jr. was previously sentenced on June 3, 2019, to 121 months imprisonment by Judge Blackburn.
“Wambli Mills has twice demonstrated that he is a significant danger to the Ute Mountain Ute community,” said U.S. Attorney Jason Dunn. “As these sentences show, our office is committed to holding violent offenders in Indian Country accountable for their crimes.”
"The conduct in this case indicates a blatant disregard for the safety of those in our community," said FBI Denver Special Agent in Charge Dean Phillips. "The FBI and our partners are committed to pursuing and bringing justice to those who commit such egregious acts of violence."
These case were investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation. The defendant was prosecuted by Assistant U.S. Attorneys Jeff Graves, R. Josh Player, and Peter McNeilly.
United States and Croatia Sign Bilateral Agreements Enhancing Law Enforcement CooperationRead the Press Release
On Tuesday, United States Attorney General William P. Barr and Croatia’s Minister of Justice Dražen Bošnjaković signed an extradition and mutual legal assistance agreement on behalf of their nations at the U.S. Department of Justice in Washington, DC.
Attorney General Barr signed the bilateral U.S.-Croatia extradition and mutual legal assistance instruments, which were negotiated this year by the Department of State’s Office of the Legal Adviser and the Criminal Division’s Office of International Affairs.
Croatia’s Minister of Justice Dražen Bošnjaković and U.S. Attorney General William P. Barr“I commend the negotiators from our countries for their work on U.S.-Croatia law enforcement cooperation agreements, and for expeditiously preparing these texts for signature before Croatia begins its EU presidency next month,” said Attorney General Barr. “The instruments will further strengthen our bilateral law-enforcement relationship, improving the ability to extradite fugitives and exchange evidence needed for prosecutions.”
“This is a great achievement which will further strengthen relations between our two countries,” said Minister of Justice Bošnjaković. “These two new agreements respond to the challenges of fighting cross-border crime in a more efficient manner.”
Present at the signing were officials from the U.S. Department of State and the Ministry of Justice of the Republic of Croatia.
Croatia’s Minister of Justice Dražen Bošnjaković and U.S. Attorney General William P. BarrThe new agreements enhance bilateral relations by affording both nations with better information-sharing and cooperative capabilities. The new extradition agreement modernizes the extradition relationship between the countries, which had been governed by a 1901 treaty. The instrument provides a dual-criminality basis for extradition, and it streamlines the procedures to be followed in pursuing extradition. The mutual legal assistance instrument, the first such bilateral instrument between the countries, will better enable prosecutors to exchange information facilitating the prevention, investigation, and prosecution of crime. It will improve cooperation in the fight against terrorism, organized crime, corruption, cybercrime, and other serious transnational criminal offenses.
The instruments stem from the legal framework of the U.S.-European Union Agreements on Extradition and Mutual Legal Assistance signed on June 25, 2003, prior to Croatia entering the EU.
United States Files Complaint Seeking Forfeiture of Ancient Sculpture Stolen from Italy and Smuggled into the United StatesRead the Press Release
The United States has filed a civil complaint seeking the forfeiture of an Attic Etruscan votive statuette that was recovered by the FBI and HSI years after it was illegally excavated and smuggled out of Italy. The United States intends to return the artwork to its rightful owner.
The announcement was made by U.S. Attorney for the District of Columbia Jessie K. Liu, Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office, and Raymond Villanueva, Special Agent in Charge of HSI’s Washington Field Office.
The artwork, an unusually detailed bronze statuette of a young woman, measures approximately 4.5 inches tall. The figurine’s features are believed to be reminiscent of the fifth century B.C.E., when historical Etruria covered what is now Tuscany, in Northern Italy. The statuette has been described as “among the best known examples of small scale Etruscan bronze sculpture.”
The complaint was filed in the U.S. District Court for the District of Columbia and seeks forfeiture of the sculpture on the basis that it represents the proceeds of the interstate transportation of stolen property and possession of stolen goods.
“The recovery of this artwork stolen from Italy and its people reflects our commitment to pursue justice for victims of crime here and abroad,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “The looting of cultural heritage for profit is unacceptable, and we will continue to assist in the efforts to return such items to their rightful owners.”
“The FBI works to return stolen art to preserve the culture and history of countries around the world,” said Timothy R. Slater, Assistant Director in Charge FBI Washington Field Office. “This action sends a clear message to art dealers and galleries that trafficking in stolen art ultimately does not pay. We encourage those who suspect that a piece of art is stolen to report it to law enforcement so we can return it to its rightful owners. The FBI worked closely with our HSI partners to recover this important piece, and will continue to aggressively investigate theft of cultural property.”
According to the complaint, the statuette is allegedly part of a trove of objects discovered during an illegal excavation in the Tuscan region of Italy. It was allegedly smuggled out of Italy in violation of Italian law to a prominent art gallery in Switzerland that allegedly dealt in antiquities trafficking. In approximately 1989, an American art gallery purchased the statuette and later sold it to a private collector. The statuette resurfaced when the collector tried to sell it using another American art gallery in New York. The offering price for the sculpture was $95,000.
HSI obtained custody of the statuette, and the U.S. Attorney’s Office commenced forfeiture proceedings. The government plans to return the statuette to the Italian Republic upon its filing of a claim of ownership.
The lawsuit is captioned United States v. One Attic Etruscan Votive Statuette of a Female Figure.
This case is being investigated by HSI’s Washington Field Office, the FBI’s Washington Field Office, and U.S. Customs and Border Protection. Assistant U.S. Attorneys Zia M. Faruqui and Arvind Lal, Special Assistant U.S. Attorney Stephanie Williamson, and Supervisory Paralegal Specialist Elizabeth Swienc, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government.
U.S. Citizen Extradited from Brazil Sentenced for Wire Fraud ChargesRead the Press Release
BOSTON – A former accountant was sentenced today in federal court in Boston in connection with a $2 million wire fraud scheme.
Christopher Morris, 48, formerly of Lowell and Chelsea, Mass., was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to time served (approximately 32 months). Morris was ordered to pay $2,057,874 in restitution and to forfeit approximately $60,000 in cash and jewelry seized from him at the time of his arrest in Brazil. In September 2019, Morris pleaded guilty to four counts of wire fraud and 12 counts of unlawful monetary transactions. In May 2019, Morris was extradited from Brazil to the United States to face charges handed down by a grand jury in the District of Massachusetts in November 2014.
Morris admitted that he participated in a wire fraud scheme targeting his employer PBS Distribution (PBSd), a media distribution business with operations in Allston and elsewhere. Morris’ position gave him access to U.S. mail addressed to PBSd’s accounting department, including checks payable to PBSd. Beginning as early as January 2008 and continuing through September 2012, Morris took more than $2 million in checks under the guise of depositing them into PBSd’s bank accounts, but he instead endorsed them to himself and deposited them into a personal bank account. Morris used his access to PBSd’s accounting system to conceal the theft by, among other steps, fraudulently causing credits to be issued to the accounts of customers whose checks he stole, and by causing PBSd’s general ledger to be altered to show that the same customers had made payments. Morris spent the proceeds of the scheme on a lavish lifestyle that included, among other expenses, year-long apartment rentals in New York City’s Greenwich Village and Tribeca neighborhoods, the down payment, purchase and upkeep of a waterfront condominium in Chelsea, and luxury clothing, dining and travel, including a $16,000 two-week South American cruise.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement today. The U.S. Marshals Service for the District of Massachusetts and the U.S. Department of Justice’s Office of International Affairs provided assistance with Morris’ extradition to the United States. The U.S. Attorney’s Office would also like to acknowledge Brazilian authorities for their cooperation in this matter. Assistant U.S. Attorney Seth B. Kosto, of Lelling’s Cybercrime Unit, prosecuted the case.
Two Service Members Charged with Distributing Narcotics to Overdose Victim at Electric Zoo Music Festival in 2018Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrests of LAGARIA SLAUGHTER and TANNER HOWELL, both of whom are service members stationed at a base in New York State, and the unsealing of a Complaint charging SLAUGHTER and HOWELL with distributing Molly on September 1, 2018, to a young woman attending the Electric Zoo music festival in New York, who subsequently died of a drug overdose. The Complaint also charges SLAUGHTER with conspiring to distribute Molly and LSD between May 2018 and March 2019. SLAUGHTER and HOWELL were arrested this morning and will be presented later today in federal court in Manhattan before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Lagaria Slaughter and Tanner Howell supplied the dangerous drug Molly to a young concert-goer, who overdosed and died after using Molly and other drugs. Tragically, this is not the first time my Office has charged people in connection with the overdose death of a concert-goer at the Electric Zoo festival. Today’s arrests should serve as a dual-purpose reminder: To those who peddle dangerous and potentially lethal drugs, this Office and the NYPD are committed to apprehending and prosecuting you. To prospective users of these drugs, there is nothing ‘recreational’ about drugs that can kill you.”
NYPD Commissioner Dermot Shea said: “The NYPD is committed to bringing those who commit these acts to justice. I commend the members of the Detective Borough Bronx Overdose Squad, the U.S. Attorney’s Office for the Southern District, and the FBI, who dedicated themselves to help move this case forward.”
According to the allegations in the Complaint[1]:
On September 1, 2018, a young woman (“Victim-1”) began experiencing the effects of a drug overdose after using drugs while attending the Electric Zoo music festival (the “Festival”) on Randall’s Island in Manhattan. Victim-1 died on September 3, 2018, after being treated for the overdose at a hospital in Manhattan. Following an investigation by the NYPD, law enforcement identified SLAUGHTER and HOWELL, both members of the U.S. military stationed at a base located in New York State (the “Base”), as individuals who distributed Molly (3,4-methylenedioxymethamphetamine) to Victim-1 on September 1, 2018, while she was attending the Festival and shortly before she fatally overdosed. Medical records show that Victim-1’s death was caused by acute intoxication from the combined effects of multiple drugs, including Molly.
Days earlier, SLAUGHTER had organized a trip to New York City with other service members to attend the Festival. At that time, SLAUGHTER was involved in trafficking both Molly and LSD (lysergic acid diethylamide). From May 2018 to March 2019, SLAUGHTER worked with others to sell Molly and LSD to customers on and off the Base. While in New York City for the Festival, SLAUGHTER and another individual met HOWELL at a nightclub. HOWELL told SLAUGHTER that he was going to the Festival the following day with a large group of friends and they wanted to buy Molly to take while at the Festival. SLAUGHTER agreed to supply the Molly for distribution to the group. The following day, September 1, 2018, HOWELL arranged to purchase 57 capsules of Molly from SLAUGHTER, at a total price of $560. SLAUGHTER and another individual traveled to the Festival to sell the Molly. HOWELL had two female members of his group – Victim-1 and her friend – meet SLAUGHTER and the other individual outside the concert entrance to retrieve the Molly to be used by the group. HOWELL paid for the Molly via electronic payment, and SLAUGHTER provided the 57 capsules of Molly to Victim-1 and her friend. Upon completion of the transaction, Victim-1 and her friend entered the Festival with the Molly. Victim-1 overdosed later that day and died two days later.
On April 24, 2019, law enforcement searched SLAUGHTER’s barracks at the Base. Law enforcement recovered, among other things, approximately 10 capsules of Molly, 55 doses of LSD, and drug packaging materials. Text messages recovered from SLAUGHTER’s cellphone show SLAUGHTER offering to sell hundreds of capsules of Molly to other service members on the Base.
* * *
SLAUGHTER, 25, of Jefferson County, New York, is charged with one count of conspiring to distribute Molly and LSD, and one count of distributing and possessing with intent to distribute Molly. Both counts carry a maximum sentence of 20 years in prison.
HOWELL, 22, of Jefferson County, New York, is charged with one count of distributing and possessing with intent to distribute Molly, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Dominic A. Gentile and Peter J. Davis are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Men Arrested During Operation Independence Day Plead GuiltyRead the Press Release
Two men have pleaded guilty in U.S. District Court to child sex crimes charges, announced U.S. Attorney Trent Shores.
The two defendants were arrested as part of Operation Independence Day, a month-long operation led by the FBI to apprehend child predators and recover victims of child exploitation and sex trafficking. The operation was executed during the month of July.
“There is no more righteous cause than protecting our children from sex predators. Investigators and prosecutors are ever vigilant and act with urgency to bring these predators to justice,” said U.S. Attorney Trent Shores. “Operation Independence Day was a success because of the men and women of law enforcement who came together in a common cause and mission.”
Carnell Lovette Matthews, 43, of Tulsa, pleaded guilty Dec. 5, 2019, to receipt of child pornography. In his plea agreement, Matthews admitted that from April 30, 2019, to May 2, 2019, he used his smart phone to persuade and entice a minor to send him sexually explicit photographs. He also tried to persuade the minor victim to meet with him to engage in sexual activity. Matthews stated that he knew the victim was under 18 years of age. Chief U.S. District Judge John E. Dowdell scheduled sentencing for March 10, 2020. The Broken Arrow Police Department, Tulsa Police Department, and FBI conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
JJason Ray Smith, 40, of Sapulpa, pleaded guilty Dec. 10, 2019, to attempted coercion and enticement of a minor. Smith admitted to using a social media app to communicate with a person he believed to be 14 years of age but who was an undercover officer. He arranged to meet the “girl” in Tulsa with the intent of engaging in sexual activity with her. Smith was arrested on July 3, 2019. U.S. District Judge Gregory K. Frizzell scheduled sentencing for March 5, 2020. The Tulsa Police Department, Tulsa County Sheriff’s Office and FBI conducted the investigation. Assistant U.S. Attorneys Reagan Reininger and Shannon Cozzoni prosecuted the case.
Operation Independence Day is part of the broader Project Safe Childhood initiative. PSC combats the growing epidemic of child sexual exploitation and abuse and was launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Two Brooklyn Men Charged in Strongarm Extortion SchemeRead the Press Release
TRENTON, N.J. – Two New York men were charged today with conspiracy to commit extortion using threats of force, violence, and fear, U.S. Attorney Craig Carpenito announced.
Francis A. Garzon, 30, and Endrit Kllogjeri, 26, both of Brooklyn, New York, are each charged by complaint with one count of conspiracy to commit extortion. Both individuals appeared today before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to documents filed in this case and statements made in court:
From Dec. 1, 2019, through Dec, 9, 2019, Garzon and Kllogjeri, along with another unidentified individual, conspired to extort a resident of Monmouth County, New Jersey, -- “Victim 1” – and the resident’s son, who resided in Brooklyn. Victim 1 was allegedly threatened with physical harm if Victim 1 did not recover a bag containing property allegedly valued at $100,000 from Victim 1’s son, identified in the complaint as “Victim 2.” Garzon further demanded an additional payment of $100,000 as “interest” for Victim 2’s possession of the bag. In connection with issuing oral threats against Victim 1, including assuring that Victim 1 did not “know who [Victim 1 was] dealing with,” Garzon additionally brandished a revolver, pointing the weapon at Victim 1 before cocking the revolver’s hammer. In a series of telephone and in-person conversations over several days following the visit to Victim 1’s home, Garzon continued to threaten Victim 1, even sending Victim 1 cellphone messages containing photographs and videos of Victim 2 and Victim 2’s family.
The count of conspiracy to commit extortion carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, New Jersey, and the Marlboro Township Police Department, under the direction of Police Chief Peter Pezzullo, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Trenton Office.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Turtle Creek Man Charged with Firearms Law ViolationRead the Press Release
PITTSBURGH, PA – A resident of Turtle Creek, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Sean Johnson, Jr., age 25, as the sole defendant.
According to Indictment, on or about November 19, 2019, Johnson, a convicted felon, was found to be in possession of a firearm and 16 rounds of 9mm ammunition. Federal law prohibits a convicted felon from possessing a firearm and/or ammunition..
The law provides for a maximum total sentence of not more than ten years in prison, a fine of not more than $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway and Brian M. Czarnecki are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Monroeville Police Department, the Attorney General’s Office, the Drug Enforcement Agency’s Maryland Office, and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Toledo man sentenced for planning terrorist attack in Toledo’s entertainment districtRead the Press Release
Vincent Armstrong, 24, was sentenced today to 72 months of incarceration for his involvement in planning a terrorist attack at a local Toledo bar. His co-defendant and live-in girlfriend, Elizabeth Lecron, was previously sentenced to 180 months of incarceration and lifetime supervised release.
“This defendant admitted to helping plot and plan a mass-casualty attack in Toledo,” said U.S. Attorney Justin Herdman. “His sentence reflects the seriousness of the charges against him and should serve as a reminder to all who live in our District and beyond - we will never stop working to protect our families, friends and neighbors.”
"Vincent Armstrong's sentence will ensure he remains safely away from the public for some time,” said FBI Special Agent in Charge Eric Smith. “He and his fellow conspirator, Elizabeth LeCron, planned to attack and murder their fellow citizens for no other reason than their infatuation with violence. The FBI once again applauds the public for bringing LeCron and Armstrong's plans to the attention of law enforcement. Without the reporting of their dangerous plans one of our communities could have suffered a horrendous mass shooting. Law enforcement depends on the public's vigilance to counter insidious plots like these."
Toledo Police Chief George Kral said: “With the sentencing of this potential mass murderer, as was the case in his co-conspirators, residents of Toledo and NW Ohio are safer. Sadly, these individuals reside not only in our major cities, but also much closer to home. I commend the relationships and collaborations we have with of local, state and federal law enforcement partners. Toledoans can sleep soundly knowing that law enforcement will never cease in the identification, investigation, and prosecution of those who want to hurt innocent people.”
As set out in court filings and during court hearings, Lecron and Armstrong met and started dating in early 2018. The two became immersed in a subculture that fixated and lionized mass murderers known as the “True Crime Community.” Their obsession included a trip in August 2018 to visit the sights related to the Columbine High School shooting to pay tribute to the shooters.
Lecron and Armstrong privately discussed committing their own mass murder in the Toledo area and referred to this attack as “D-day.” They discussed using bombs and guns to kill, maim, and injure innocent people. They took several steps in preparation for “D-day.” They purchased guns and went to the shooting range to practice their firearm skills. They also printed instructions to make pipe bombs and bought some the necessary components. They detailed their plan and feelings in personal journals. For instance, Armstrong wrote that he had “a vision to kill” and Lecron wrote, “D-day will be my salvation.”
This conduct took place between April 2018 and December 10, 2018.
This case was investigated by the FBI Joint Terrorism Task Force and prosecuted by Assistant U.S. Attorneys Michael Freeman and Tracey Tangeman.
Three South Florida Residents Indicted on Federal Sex Trafficking ChargesRead the Press Release
Law Enforcement Seize www.fosterscareinc.com, an Internet Forum Believed to Facilitate Sex Trafficking
Three South Florida residents face federal charges related to their alleged involvement with a sex trafficking organization. Law enforcement seized a website, www.fosterscareinc.com, which is alleged to have facilitated the sex trafficking.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations’ (HSI) Miami Field Office made the announcement.
William D. Foster, 48, of Delray Beach, Ashleigh Holloway, 36, of Fort Lauderdale, and Hanah Chan, 30, of Delray Beach, were charged in an indictment unsealed yesterday (Case No. 19-CR-20804). Foster was charged with one count of conspiracy to commit sex trafficking, one count of sex trafficking of a minor and by force, fraud, or coercion, and two counts of sex trafficking by force, fraud, or coercion. Foster, Holloway, and Chan were charged with one count of sex trafficking by fraud and coercion. Foster and Chan were charged with one count of transportation of an individual for prostitution.
Foster was previously arrested on a criminal complaint, following the execution of three residential search warrants in Delray Beach, Florida.
According to the court record, including allegations contained in a criminal complaint, Foster was the leader of a sex trafficking organization. A victim was allegedly recruited into Foster’s sex trafficking organization in or around August 2007 as a minor, and was commercially sex trafficked by Foster both as a minor, and then as an adult, from approximately November 2007 through May 2010.
A second victim was allegedly recruited into Foster’s organization and was commercially sex trafficked by Foster from approximately May 2004 through August 2011.
It is alleged that these victims were moved across state lines for purposes of prostitution. When they were minors, it is alleged Foster arranged for the victims to obtain false identification. In addition, Foster is alleged to have had sex with the victims on multiple occasions, beginning when they were minors.
The court documents allege that at any given time approximately five to fifteen females lived with, and worked for, Foster. The females worked at exotic dance venues in Miami-Dade, Broward, and Palm Beach Counties, and engaged in commercial sex at Foster’s direction. It is alleged that the females were not able to keep any proceeds derived from their prostitution or exotic dancing but instead were compelled to turn over the money to Foster based on his false promises to invest their earnings. The females also reported incidences of domestic violence while living with Foster.
The court filings allege that a third victim contacted law enforcement in September 2019 because she was being pressured to engage in commercial sex by Foster and his organization after being flown from Fort Lauderdale, Florida, to Detroit, Michigan.
Holloway and Chan were charged with Foster in the indictment with sex trafficking by fraud and coercion in connection with the third victim, and Chan and Foster were charged with the transportation of an individual for prostitution in connection with the third victim.
During the course of this investigation, law enforcement identified a website, www.fosterscareinc.com. On November 21, 2019, law enforcement seized the website www.fosterscareinc.com, based on a finding by a U.S. Magistrate Judge that there was probable cause to believe that the website was used, or intended to be used, to commit or facilitate the commission of sex trafficking of children, or by force, fraud, or coercion. It is alleged that Foster had another individual create the website in order to facilitate the sex trafficking enterprise.
On November 19, 2019, Foster was ordered detained pending trial based on a finding by U.S. Magistrate Judge Bruce E. Reinhart in West Palm Beach, Florida, that the defendant poses a danger to the community. Holloway and Chan are scheduled to have their pre-trial detention hearings on December 13, 2019 and to be arraigned on December 19, 2019.
An indictment and criminal complaint are charging documents containing allegations. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, HSI Miami Field Office, HSI Detroit Field Office, Florida Office of Financial Regulation, Delray Beach Police Department, Palm Beach County Sheriff's Office, Hollywood Police Department, Miami-Dade Police Department, and Sebastian Police Department. This case is being prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Jessica Kahn Obenauf. Assistant U.S. Attorney Peter A. Laserna is handling the asset forfeiture aspects of the case.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
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.
Three Men Arrested in $722 Million Cryptocurrency Fraud SchemeRead the Press Release
NOTE: A fourth defendant, Silviu Catalin Balaci, was arrested in Germany after the issuance of this press release. The attached indictment has been amended to reflect this.
NEWARK, N.J. – Three men were arrested today in connection with a cryptocurrency mining scheme that defrauded investors of $722 million, U.S. Attorney Craig Carpenito announced.
Matthew Brent Goettsche, 37, of Lafayette, Colorado, and Jobadiah Sinclair Weeks, 38, of Arvada, Colorado, are charged by indictment with conspiracy to commit wire fraud and Goettsche, Weeks, and Joseph Frank Abel, 49, of Camarillo, California, are charged by indictment with conspiracy to offer and sell unregistered securities. Goettsche was arrested in Colorado, Weeks in Florida, and Abel in California. All three are scheduled to have their initial appearances in the districts of their arrests. Two defendants remain at large and their identities remain under seal.
“The indictment describes the defendants’ use of the complex world of cryptocurrency to take advantage of unsuspecting investors,” U.S. Attorney Carpenito said. “What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars. Working with our law enforcement partners here and across the country, we will ensure that these scammers are held to account for their crimes.”
“Those arrested today are accused of deploying elaborate tactics to lure thousands of victims with promises of large returns on their investments in a bitcoin mining pool, an advanced method of profiting on cryptocurrency,” Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office said. “The defendants allegedly made hundreds of millions of dollars by continuing to recruit new investors over several years while spending victims' money lavishly.”
“Today’s indictment alleges the defendants were involved in a sophisticated Ponzi scheme involving hundreds of millions of dollars that preyed upon investors all over the world,” John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “This was a classic con game with a virtual twist; false promises of large returns for investing in the mining of Bitcoin. IRS Criminal Investigation will continue to work with our law enforcement partners, including the Joint Chiefs of Global Tax Enforcement, to investigate and bring to justice cyber criminals.”
According to documents filed in this case and statements made in court:
From April 2014 through December 2019, the defendants operated BitClub Network, a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors. Goettsche, Weeks, and others conspired to solicit investments in BitClub Network by providing false and misleading figures that BitClub investors were told were “bitcoin mining earnings,” purportedly generated by BitClub Network’s bitcoin mining pool. Goettsche discussed with his conspirators that their target audience would be “dumb” investors, referred to them as “sheep,” and said he was “building this whole model on the backs of idiots.” Goettsche directed others to manipulate the figures displayed as “mining earnings” during the course of the conspiracy.
For example, in February 2015, Goettsche directed another conspirator to “bump up the daily mining earnings starting today by 60%,” to which his conspirator warned “that is not sustainable, that is ponzi teritori [sic] and fast cash-out ponzi . . . but sure.” In September 2017, Goettsche sent an email to another conspirator in which he suggested that Bitclub Network “[d]rop mining earnings significantly starting now” so that he could “retire RAF!!! (rich as fuck).” Weeks sent an email in June 2017 to Goettsche and another conspirator in which he remarked that BitClub selling shares in BitClub and then not using the money to purchase mining equipment was “not right.” Goettsche, Weeks, and others obtained the equivalent of at least $722 million from BitClub Network investors.
Goettsche, Weeks, Abel, and others also conspired to sell BitClub Network shares – which were securities – notwithstanding that BitClub Network did not register the shares with the U.S. Securities and Exchange Commission. Weeks and Abel created videos and traveled around the United States and the world to promote BitClub Network. In one video, a conspirator espoused that BitClub Network was “the most transparent company in the history of the world that I’ve ever seen.” In another video, Abel assured investors that BitClub Network was “too big to fail.”
The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison, and a fine of up to $250,000. The conspiracy to sell unregistered securities charge carries a maximum penalty of five years in prison and a fine up to $250,000.
U.S. Attorney Carpenito credited special agents and task force officers of the FBI’s Los Angeles Division’s West Covina Resident Agency, under the direction of Acting Assistant Director in Charge Delacourt; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the IRS Los Angeles Field Office, under the direction of Special Agent in Charge Ryan L. Korner, with the investigation leading to today’s charges.
Anyone who believes they may be a victim may visit www.justice.gov/usao-nj/bitclub or the Department of Justice’s large case website www.justice.gov/largecases. There, victims can find more information about the case, including a questionnaire for victims to fill out and submit.
The government is represented by Unit Chief David W. Feder and Assistant U.S. Attorneys Anthony P. Torntore and Jamie L. Hoxie, of the Cybercrime Unit, and Unit Chief Sarah Devlin of the Asset Recovery and Money Laundering Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Syracuse Man Sentenced to Prison for Sophisticated Fraud SchemesRead the Press Release
SYRACUSE, NEW YORK – Donald M. Geiss, Jr., age 44, of Syracuse, was sentenced yesterday to 65 months in prison after previously pleading guilty to four counts of wire fraud and two counts of aggravated identity theft in relation to various schemes to defraud he perpetrated on victims in multiple states, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In previously pleading guilty, Geiss admitted that between approximately August 2016 through August 2017 he perpetrated various fraud schemes on victims in multiple states, including by collecting money from his victims by (1) posing as an investor and pretending to go through the process of buying a business in the Syracuse area in order to gain access to the business; (2) pretending to negotiate the sale of a non-existent computer algorithm for insurance claims to a well-known multinational finance and insurance corporation in New York; (3) convincing a victim to purchase several online video game profiles from other people on Geiss’s behalf; and (4) selling fake and fraudulent “discount” airline tickets over the internet. In perpetrating these various crimes, Geiss used at least one alias, one false identity, and two stolen identities. Geiss ultimately obtained a total of more than $167,000 from his various victims.
Geiss was on supervised release related to a prior federal fraud conviction when he committed all of the crimes for which he was sentenced yesterday. In addition to the 65-month prison sentence, Geiss was also sentenced to serve an additional 6 months in prison for violating the terms of his supervised release by committing the fraud and aggravated identity theft offenses. In total, Geiss will serve 71 months in prison. The Court also ordered Geiss to pay money judgments totaling over $153,000, and to pay restitution to his victims of more than $167,000. Following his release from prison, Geiss will be on supervised release for 3 years.
This case was investigated by the Federal Bureau of Investigation (FBI), and was prosecuted by Assistant U.S. Attorney Michael F. Perry.
Swissvale Man Facing Drug and Gun Possession Charges in Project Safe Neighborhoods CaseRead the Press Release
PITTSBURGH, PA - A resident of Swissvale, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on federal narcotics and firearms charges, United States Attorney Scott W. Brady announced today.
The six-count superseding indictment named Kevin Darwin-Sewell, 31, as the sole defendant.
According to the Superseding Indictment presented to the court, Darwin-Sewell is charged with possession with intent to distribute heroin and cocaine base, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crimes which occurred on July 19, 2016 and February 1, 2017.
The law provides for a maximum total sentence of not less than ten years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Police Department, and the Wilkinsburg Police Department conducted the investigation leading to the superseding indictment in this case. Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Stock Promoter Sentenced to 7 Years in Prison in Multi-Million Dollar Securities Fraud CaseRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Dino Paolucci, age 42, of Mississauga, Ontario, was sentenced to 84 months’ imprisonment by United States District Judge Eduardo C. Robreno for participating in five stock manipulation schemes in 2012 and 2013. In addition, the Court also ordered Paolucci to pay $2 million in forfeiture.
Paolucci’s sentence arose from what is commonly referred to as a “pump and dump” scheme, stemming from his manipulation of the price and trading volume of the stock of five public companies: AGR Tools, Inc. (“AGRT”), LiveWire Ergogenics (“LVVV”), YaFarm Technologies (“YFRM”), Resource Ventures (“REVI”), and Medical Cannabis Payment Solutions (“REFG”). As part of these manipulations, Paolucci and his co-schemers obtained control over the companies, distributed shares of stock to themselves and their nominees through fraudulent means, issued false and misleading press releases and promotions regarding the companies in order to artificially inflate the price and/or trading volume of the stocks, and then sold their shares into the manipulated markets – thereby reaping millions. For good measure, they also concealed all of their illegal activity from the U.S. Securities and Exchange Commission (the “SEC”).
Paolucci played a critical role in the scheme by orchestrating the false and misleading promotions used to “pump up” the stocks in question. He issued most of his promotions by widely distributing email newsletters (“email blasts”) touting the stocks under various business names, including the Bull Exchange, Market Bulls, Best Penny Newsletter, Gain the Green, Insane Pennies, OTC Market Alerts, and Penny Players Club. While Paolucci was disseminating the email blasts, he was also coordinating with his co-schemers regarding the press releases being issued and the stock that they were selling. All of this coordination, however, was hidden from the market and the SEC. For example, Paolucci and his fellow schemers used offshore corporations and brokerage accounts, as well as fake corporations, intermediaries, and even fake names, causing tens of millions of dollars of losses to investors while gaining millions in profits for themselves.
“The United States’ securities laws exist to safeguard the integrity of the markets and to protect individual investors who play by the rules. Accordingly, they must be vigorously enforced,” said U.S. Attorney McSwain. “Schemers like Paolucci and his co-conspirators work hard to cover their tracks, while defrauding investors and harming our securities markets. But we will work even harder to track them down and bring them to justice.”
“Paolucci tricked people into investing under false pretenses, and those victims’ losses became his ill-gotten gains,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “While investors know they’re taking a chance when buying securities, they don’t anticipate the odds being stacked against them from the get-go. This case underscores the FBI’s commitment to protecting the investing public and bringing ‘pump and dump’ fraudsters to justice.”
The case was investigated by the Federal Bureau of Investigation - Philadelphia and Boston Field Offices, with assistance from the Securities and Exchange Commission Offices in Chicago and Boston, the U.S. Department of Justice's Office on International Affairs, the Alberta Securities Commission, and the United States Attorney's Office for the District of Massachusetts. It is being prosecuted by Assistant United States Attorneys Patrick Murray and Judy Smith.