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Tuesday 10 December 2019
Staten Island Man Admits Robbery, Identity Theft, and Defrauding Numerous Women and BusinessesRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man has admitted robbing a New Jersey business owner in February 2019, defrauding eight New Jersey businesses from July 2016 through January 2019, and defrauding and stealing the identities of three women, U.S. Attorney Craig Carpenito announced today.
Raymond Scura, 30, pleaded guilty before Judge Claire C. Cecchi in Newark federal court on Dec. 9, 2019, to an information charging him with wire fraud affecting a financial institution, aggravated identity theft, and Hobbs Act robbery.
According to the documents filed in this case and statements made in court:
Scura used bad checks and stolen credit cards to obtain goods and services, such as a country club membership, limousine services, luxury hotel expenses, exotic car rentals, and a Rolex watch, in order to appear wealthy and obtain the confidence of his victims, often targeting women. Once he convinced his victims of his purported wealth, he would then steal their identities and accounts to make additional purchases. As a result of his fraud and aggravated identity theft offenses, Scura caused losses to individuals and businesses in excess of $250,000
In February 2019, Scura was a customer of an internet-based business owned and operated by a New Jersey man. To pay for the services of the business, Scura wrote at least one fraudulent check to the victim. When the victim insisted on cash payment, Scura drove with the business owner to a bank, where Scura brandished a gun, threatened to kill the victim, and demanded that the victim deposit a fraudulent check for $10,000 into the victim’s bank account and then withdraw $10,000. The victim did as Scura directed and then gave Scura the $10,000.
The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud affecting a financial institution charge carries a statutory maximum of 30 years in prison, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentenced imposed. Sentencing is scheduled for April 1, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to the guilty plea. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Christopher Amore of the Organized Crime and Gangs Unit and Elaine Lou of the U.S. Attorney’s Office in Newark.
Defense counsel: Saverio Viggiano Esq., Assistant Federal Public Defender, Newark
Schenectady Man Sentenced to 135 Months for Role in Gun Store BurglaryRead the Press Release
ALBANY, NEW YORK – Jose Fontanez, age 38, of Schenectady, New York, was sentenced today to 135 months in prison for stealing, possessing, concealing, and storing firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County.
The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Norman A. Mordue also sentenced Fontanez to a 3-year term of supervised release and ordered that he pay restitution of $48,775.47.
Fontanez, who has prior felony convictions for robbery and drugs, pled guilty on April 16, 2018. As part of his plea, Fontanez admitted that, on October 22, 2017, he and Christian Roman broke a window to gain entry into Target Sports and then removed dozens of firearms from the store, as well as ammunition and other property, making multiple trips to and from the store with the assistance of Dalmary Morales. Fontanez further admitted that, after making an inventory of the stolen firearms, the two men hid them in a storage unit in Schenectady and, while on the run from law enforcement, enlisted accomplices in Amsterdam, New York, and Rochester, New York, to help retrieve and transport them to various locations in New York. In exchange for their assistance, Fontanez and Roman provided some of the stolen firearms to their accomplices.
Christian Roman, age 25, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports, and other, related charges. He was sentenced to 150 months in prison.
Omar DeJesus, age 32, and Onic Martinez, age 34, both of Amsterdam, pled guilty in 2018 for their roles in stealing, transporting and possessing the firearms. Both men were sentenced to 120 months in prison.
Dalmary Morales, age 24, of Schenectady, pled guilty in 2018 to stealing the firearms from Target Sports. She was sentenced to 57 months in prison.
Juan Saez, age 37, of Rochester, pled guilty in 2018 for his role in stealing, transporting and possessing the firearms. He is scheduled to be sentenced on March 20, 2020.
This case was investigated by the ATF, New York State Police, and the Glenville Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Saint Paul Felon Sentenced to 94 Months in Prison for Heroin Distribution Conspiracy, Illegal Possession of FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DWIGHT CADARIUS LABON, 32, to 94 months in prison for conspiring to possess with intent to distribute and to distribute heroin and illegally possessing firearms. LABON, who pleaded guilty on August 27, 2019, was sentenced on December 9, 2019, before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from approximately December 1, 2017, through November 30, 2018, LABON conspired to buy and sell heroin to individuals throughout the Twin Cities. On August 27, 2018, law enforcement executed a search warrant on a vehicle and recovered a loaded Ruger SR9 semi-automatic pistol, which was later determined to have been stolen. LABON acquired the Ruger from one of his heroin customers, with the assistance of his co-Defendant.
According to the defendant’s guilty plea and documents filed in court, on October 25, 2018, LABON entered the Chick N’ Chips restaurant in St. Paul, Minnesota, with a loaded Smith & Wesson 9mm semi-automatic pistol with an obliterated serial number. LABON dropped the loaded Smith & Wesson in a trash can before exiting the restaurant. LABON then met with one of his heroin customers and arranged for the customer to retrieve the Smith & Wesson in exchange for heroin. Because he has prior felony convictions in Hennepin and Ramsey Counties, LABON is prohibited under federal law from possessing firearms at any time.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and the Saint 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. Attorneys Samantha H. Bates and W. Anders Folk are prosecuting the case.
Defendant Information:
DWIGHT CADARIUS LABON, 32
St. Paul, Minn.
Convicted:
- Conspiracy to distribute and possess with intent to distribute heroin, 1 count
- Felon in possession of firearms, 1 count
Sentenced:
- 94 months in prison
- Four years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rochester Music Teacher Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Philip M. Close, 42, of Rochester, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that the defendant owns the Close School of Music on West Ridge Road in the Town of Parma, which offers private music lessons to children and adults of all ages. Close has been teaching music lessons throughout New York State for over 20 years.
According to the complaint, on December 5, 2019, the Monroe County Sheriff’s Office received information from a mother with two children taking lessons at the Close School of Music, that a video camera was attached to the toilet in the bathroom. The parent indicated that earlier that day, while waiting for her child (Minor Victim 1) to finish her music lesson, she used the bathroom. While in the bathroom, the mother observed a small black camera lens facing towards the toilet seat, and a small metallic-looking piece hanging from a wire off of the toilet. The mother grabbed and pulled the wires and found a camera-device and wires taped to the bottom of the toilet with black electrical tape. After finding this camera device, she removed it from the bottom of the toilet, and proceeded to contact 911.
A Monroe County Sheriff’s deputy reported to the Close School of Music and spoke with the defendant who acknowledged that the device was his. Close was taken into custody.
On December 6, 2019, a search warrant was executed at the music school and multiple digital computing devices were seized, including a laptop computer. A preliminary review of the laptop located three videos of Minor Victim 1. One of the videos included Minor Victim 1 using the toilet. Another video shows Minor Victim 1 laying down on a piano bench and Close’s leg. The defendant is seen moving Minor Victim 1’s shirt up to expose her stomach and touching her stomach. Close then begins to touch other parts of Minor Victim 1’s body. Minor Victim 1 is seen sliding under the piano in what appears to be an attempt to prevent the defendant from touching any further.
The defendant made an initial appearance this afternoon before U.S Magistrate Judge Mark W. Pedersen and was held pending a detention hearing on December 17, 2019.
Members of the public who have specific information related to this case are asked to call the Monroe County Sheriff’s Office Tip-line at 1-585-753-4175.
The complaint is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Poplar woman admits stabbing man in Wolf Point barRead the Press Release
GREAT FALLS – A Poplar woman today admitted assault charges for stabbing a man multiple times while in a bar in Wolf Point, on the Fort Peck Indian Reservation, U.S. Attorney Kurt Alme said.
Emily Kaye Marie Gourneau, 32, pleaded guilty to assault resulting in serious bodily injury. Gourneau faces a maximum penalty of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for April 16, 2020. Gourneau was detained pending further proceedings.
The prosecution said in court records that the assault occurred on July 23 at the Water Hole 1 bar in Wolf Point. Gourneau and the victim, who was playing pool, had been socializing. At some point, when the victim walked toward Gourneau from the pool table, Gourneau pulled out a knife and stabbed the victim multiple times, running around the bar chasing after him. The assault was recorded on a security camera. Gourneau left the bar after the assault.
First responders found the victim lying on the floor and severely wounded and bleeding. The victim underwent surgery for multiple stab wounds at a hospital in North Dakota.
Assistant U.S. Attorney Cassady Adams is prosecuting the case, which was investigated by the FBI, Wolf Point Police Department and the Fort Peck Tribes’ Criminal Investigation.
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Operation Results in Federal Indictment Against Five Defendants in Drug Trafficking ConspiracyRead the Press Release
United States Attorney Brandon J. Fremin announced today that a lengthy federal investigation into an extensive drug trafficking network based in Plaquemine, Louisiana, has resulted in the return of a grand jury indictment charging five (5) individuals with narcotics and firearms-related offenses. As discussed in more detail below, the defendants are charged with conspiring to distribute and to possess with the intent to distribute cocaine and cocaine base and some of the defendants are charged with firearm-related offenses.
The charged defendants are listed below, and each faces significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity:
- Larry Hughes, age 60, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base, and possession of a firearm in furtherance of a drug trafficking offense.
- Eric J. Curtis, age 43, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base.
- Alexander J. Brock, Jr., age 54, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base.
- Malcolm J. Jackson, age 47, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base, possession of a firearm in furtherance of a drug trafficking offense, and felon in possession of a firearm.
- Shaheed Thompson, age 33, of Plaquemine, Louisiana, is charged with conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base.
U.S. Attorney Brandon J. Fremin stated, “This indictment is another example of how coordinated efforts between federal and local law enforcement can remove organized drug traffickers from our streets and protect our communities from their poisonous products. I want to thank our prosecutor, the FBI Capitol Area Gang Task Force, the Iberville Parish Sheriff’s Office, along with ATF, DEA, U.S. Marshal’s Service, and East Baton Rouge Parish Sheriff’s Office for their tremendous work on this case.”
FBI New Orleans Division Special Agent in Charge Bryan A. Vorndran stated, “Whether in a major city, or a small town like Plaquemine, the FBI is focused on public safety and the welfare of our communities. As a result of this joint investigation between the FBI Baton Rouge Capital Area Gang Task Force, Iberville Parish Sheriff’s Office, ATF, DEA, U.S. Marshal’s Service, and East Baton Rouge Sheriff’s Office, a significant amount of illegal narcotics and weapons are off the streets. The FBI New Orleans Field Office will continue to work with our law enforcement partners to aggressively investigate drug and gang activity, as well as violent crime affecting our Louisiana neighborhoods.”
Iberville Parish Sheriff Brett Stassi stated, “I’m very proud of our partnership with U.S. Attorney Fremin. When he took office he made a commitment to join me in protecting the people of Iberville Parish. This indictment is another great step in fulfilling that promise. We look forward to future activities between our offices.”
This matter is being investigated by the Federal Bureau of Investigation Baton Rouge Capitol Area Gang Task Force and the Iberville Parish Sheriff’s Office and is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.
The investigation that led to this indictment is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
NOTE: An indictment is an accusation by a grand jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Ocean Springs Man Sentenced on Drug ChargesRead the Press Release
Gulfport, Miss – Robert Benjamin Jones, 33 of Ocean Springs, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr. to 23 months in federal prison for conspiracy to possess with intent to distribute controlled substances, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Jones was on supervised release for a prior possession with intent to distribute charge when United States Postal authorities found Schedule III and IV narcotics shipped to him from Serbia. On June 27, 2018, agents made a controlled delivery of the drugs to the home Jones was living in with his girlfriend and child. Jones spotted the agents while coming home from work and turned away. Agents seized cash, digital scales, pills, liquid steroids and electronic devices from the home. The devices showed Jones used the internet and had been obtaining the drugs from several foreign countries as far back as 2017. The following day, June 28, 2018, four additional international packages of pills addressed to Jones were seized at the Ocean Springs Post Office.
Jones was convicted of the same offense in 2015 and was on supervised release at the time of his arrest. Jones was revoked and sentenced to an additional 36 months on the 2015 case, the 23 months in the 2018 case were ordered to be served consecutively by Judge Guirola. Following completion of his prison terms Jones will have 3 years of supervised release.
The case was investigated by the United States Postal Service and Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Annette Williams.
North Carolina Man Pleads Guilty to Federal Firearms Charge for the 2002 Murder of an Employee of an Upper Marlboro BusinessRead the Press Release
Greenbelt, Maryland – Levy Steven Moore, age 49, of Pollocksville, North Carolina, pleaded guilty today in U.S. District Court in Maryland to the federal charge of murder resulting from using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Prince George’s County Sheriff Melvin C. High.
According to his plea agreement, on October 25, 2002, Moore and at least one accomplice planned to rob the victim-employee of the cash belonging to a business where the victim worked. As part of his duties, the victim-employee deposited the business’ cash proceeds and obtained money to be used in the operation of the business at a bank in Capitol Heights, Maryland.
As detailed in his plea agreement, Moore and his accomplice drove to the business and waited outside for the victim-employee to leave with the cash deposit. Moore was armed with a firearm and his accomplice was driving their vehicle as they followed the victim-employee from the business in Upper Marlboro, Maryland to the bank in Capitol Heights. The victim-employee made the deposit and was returning to his car with a money bag containing $2,200, which represented the business’ daily operating funds, when he was confronted by Moore. Moore attempted to take the money bag from the victim and shot the victim, who collapsed to the ground. The victim sustained a gunshot wound to the left side of the base of the neck, which caused his death. Moore admitted that he took the money bag, then got into the getaway vehicle driven by his accomplice. According to the plea agreement, while fleeing the scene the robbers struck the victim’s vehicle, ran over the victim, and left the dying victim lying in the bank parking lot.
Moore faces a maximum sentence of life in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for June 29, 2020, at 9:30 a.m. Moore remains detained.
United States Attorney Robert K. Hur commended the FBI, the Prince George’s County Police Department, and the Prince George’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys William D. Moomau and Gregory D. Bernstein, who are prosecuting the case.
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North Carolina Man Charged with Committing 3 Murders in Connecticut in November 2015Read the Press Release
United States Attorney John H. Durham, New Haven State’s Attorney Patrick Griffin, Special Agent in Charge Brian C. Turner of the New Haven Division of the Federal Bureau of Investigation, Hamden Police Chief John Cappiello and New Haven Police Chief Otoniel Reyes today announced that a federal grand jury in New Haven returned an indictment yesterday charging EDWARD MICHAEL PARKS, also known as “Lee” and “Trouble,” 33, of Raleigh, North Carolina, with kidnapping and murdering two individuals in Hamden, and killing a third victim in New Haven to stop him from advising law enforcement what had occurred.
As alleged in statements made in court, on November 16, 2015, Parks was in an apartment on Shelton Avenue in New Haven to conduct an illegal sale of firearms. Damian Connor and Tamar Lawrence were also present in the apartment. When another individual left the apartment with firearms that he had not paid for, Parks, who was armed, held Connor and Lawrence against their will. Parks collected money and valuables from Connor and Lawrence, and then forced them to travel in Connor’s car to Hamden where Connor said he could get more money. They were followed in another vehicle by Devante Williams and another individual. After the vehicles arrived at 676 Mix Avenue in Hamden, Parks shot and killed Connor and Lawrence. Parks then left the scene with Williams and others in the second vehicle and returned to New Haven.
It is further alleged that, when Parks appeared to believe that Williams was anxious about the murders of Connor and Lawrence, Parks shot and killed Williams in the area of Sherman Court in New Haven.
The indictment charges Parks with two counts of kidnapping resulting in death, and one count of witness tampering by killing. If convicted of the charges, Parks faces a maximum term of imprisonment of life, or death if the government seeks the death penalty in this matter.
Parks is currently incarcerated in federal custody following an unrelated conviction for drug and firearm offenses in the Eastern District of North Carolina.
“This prosecution represents a tragic example of how lives can be ruined when firearms are illegally possessed and traded,” said U.S. Attorney Durham. “I thank our partners in the FBI, Hamden Police Department, New Haven Police Department and New Haven State’s Attorney’s Office for their collaborative work in bringing to justice an individual we allege to be responsible for three cold-blooded killings.”
“This case is a great example of the results obtained from cooperative efforts between federal, state and local law enforcement agencies,” said State’s Attorney Griffin.
“The investigation by the Hamden and New Haven police departments into these horrific murders has resulted in justice being served, and today our community is safer for it,” said FBI Special Agent in Charge Turner.
“I would like to thank the families of the victims for their patience and trust,” said Hamden Chief Cappiello. “I hope this indictment gives them some sense of peace and closure. I would also like to thank New Haven Detective Sergeant Bertram Ettienne, Hamden Detective Jomo Crawford, the FBI Safe Street Violent Task Force and the Offices of the U.S. Attorney and New Haven State’s Attorney. This case demonstrates that by working together we were able to get a violent individual off the streets.”
“Today, after 4 years of an in-depth homicide investigation, the New Haven Police Department and our law enforcement partners are able to bring justice to the family of Devante Williams,” said New Haven Assistant Chief Karl Jacobson. “We would like to extend a special thank you to the Williams family for their patience and understanding while investigators worked diligently to make this day a reality. We would also like to thank our law enforcement partners, the New Haven Police homicide detectives, Hamden Police homicide detectives, U.S Attorney’s Office, New Haven State’s Attorney’s Office, Federal Bureau of Investigation and the Department of Correction as justice would not have prevailed without them.”
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, the Hamden Police Department and New Haven Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Jocelyn C. Kaoutzanis, and Assistant State’s Attorney Seth Garbarsky, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Niagara Falls Man Arrested on Child Pornography ChargeRead 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 Carl Anthony, 66, of Niagara Falls, NY, was arrested and charged by criminal complaint with attempted production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, on June 19, 2019, Town of Niagara Police received a complaint regarding a now-13 year old female (Minor Victim) who had been surreptitiously video recorded while changing and showering. The defendant was identified as the individual responsible for making the recording.
On July 9, 2019, a federal search warrant was executed at Anthony's Niagara Falls residence. A hard drive that was seized during the execution of the search warrant was found to contain two videos, both of which showed the Minor Victim changing and showering in a bathroom.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer. Subject to a home inspection, Anthony will be released on a number of conditions, including home detention.
The complaint is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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New York Man Pleads Guilty to Providing Material Support to TerroristsRead the Press Release
St. Louis – Nihad Rosic, 31, of Utica, New York, pleaded guilty today to one count of conspiring to provide material support to terrorists and one count of providing material support to terrorists. Rosic appeared today before Judge Catherine D. Perry who accepted his plea and set his sentencing for April 16, 2020.
Also charged in the indictment are: Ramiz Zijad Hodzic, his wife Sedina Unkic Hodzic, and Armin Harcevic, all of St. Louis County, Missouri, and Mediha Medy Salkicevic, of Schiller Park, Illinois. All defendants were charged and convicted of conspiring to provide material support and resources to terrorists.
According to court documents, Nihad Rosic, agreed with co-defendant Ramiz Hodzic and others that they would provide material support, that being money and materials identified in the indictment, to Abdullah Ramo Pazara and others who engaged in combat against various entities and personnel in Syria and elsewhere. Such combat necessarily involved the unlawful, willful, deliberate, and premeditated killing of persons abroad. In May 2014, Defendant Rosic communicated directly with Pazara concerning Defendant Rosic’s plans to travel to Syria, meet Pazara, and join him in combat against various persons and entities in Syria.
“Nihad Rosic tried twice to travel to Syria to fight with terrorists,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “On both occasions he was prevented from doing so by the FBI Joint Terrorism Task Force. He will now be held accountable for providing assistance to terrorists.”
Rosic faces up to 15 years imprisonment and/or fines of up to $250,000, per count. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Assistant Attorney General Demers and U.S Attorney Jensen commended the St. Louis FBI and all of the Joint Terrorism Task Force Joint partners for their commitment and tenacity in a lengthy and complex investigation as well as their dedication to this successful prosecution.
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Assistant United States Attorney Stephen Green of the United States Attorney’s Office in the Northern District of New York.
New York Man Pleads Guilty to Providing Material Support to TerroristsRead the Press Release
Nihad Rosic, 31, of Utica, New York, pleaded guilty today to one count of conspiring to provide material support to terrorists and one count of providing material support to terrorists. Rosic appeared today before Judge Catherine D. Perry who accepted his plea and set his sentencing for April 16, 2020.
Also charged in the indictment are: Ramiz Zijad Hodzic, his wife Sedina Unkic Hodzic, and Armin Harcevic, all of St. Louis County, Missouri, and Mediha Medy Salkicevic, of Schiller Park, Illinois. All defendants were charged and convicted of conspiring to provide material support and resources to terrorists.
According to court documents, Rosic, agreed with co-defendant Ramiz Hodzic and others that they would provide material support, that being money and materials identified in the indictment, to Abdullah Ramo Pazara and others who engaged in combat against various entities and personnel in Syria and elsewhere. Such combat necessarily involved the unlawful, willful, deliberate, and premeditated killing of persons abroad. In May 2014, Rosic communicated directly with Pazara concerning Rosic’s plans to travel to Syria, meet Pazara, and join him in combat against various persons and entities in Syria.
Rosic faces up to 15 years imprisonment and/or fines of up to $250,000, per count. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Assistant Attorney General Demers and U.S Attorney Jensen commended the St. Louis FBI and all of the Joint Terrorism Task Force Joint partners for their commitment and tenacity in a lengthy and complex investigation as well as their dedication to this successful prosecution.
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Assistant U.S. Attorney Stephen Green of the U.S. Attorney’s Office in the Northern District of New York.
New Jersey Man, Avowed Member of White Supremacist Group, Pleads Guilty to Making False StatementsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Fred Arena, 41, of Salem, NJ, entered a plea of guilty before United States District Court Judge John R. Padova on charges of making false statements to government agents. Arena, who was an employee of a federal contractor at the Philadelphia Navy Yard and as such was required to obtain a federal security clearance, lied to obtain the clearance. He also subsequently lied to federal investigators who asked him about his answers to questions on the security clearance paperwork. He was arrested and detained in October 2019, and is currently in federal custody.
On January 10, 2019, Arena completed the standard Form SF-86 to obtain a federal security clearance for his employment. On that form, he was required to disclose whether he had ever been a member of an organization that used (or advocated the use of) force or violence to prevent others from exercising their constitutional rights. He falsely answered that he had not. In fact, Arena was an avowed member of Vanguard America, a white supremacist group that fits that description. On the same application, Arena was asked whether he had property repossessed within the past seven years. He falsely answered that he had not. In fact, Arena had previously defaulted on a car loan, and his car was repossessed within the seven year window.
“Lying on federal security clearance forms and to government agents will land you in big trouble,” said U.S. Attorney McSwain. “And the nature of Arena’s deception – attempting to conceal his affiliation with a white supremacist group in order to obtain employment with a federal contractor – is extremely disturbing. Furthermore, no employee working for the federal government in any capacity has any business being a member of a white supremacist group or espousing white supremacist views. Employees paid with American taxpayer dollars are held to the highest standards so as to ensure their commitment to serve the public in a fair, lawful manner.”
“Joining a group that espouses extremist ideology is not itself illegal — but lying to the FBI certainly is,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Arena lied about his history to obtain a security clearance he never should’ve had. He then lied to the federal agents who questioned him about it. If the people we interview think they can deceive us without consequence, vital investigations will be stymied and our justice system sorely compromised.”
The case was investigated by the Federal Bureau of Investigation – Joint Terrorism Task Force, the Defense Counterintelligence and Security Agency, the Gloucester County Prosecutor’s Office, the Salem County Prosecutor’s Office, the New Jersey State Police, the Camden County Police Department, the Naval Criminal Investigative Service (NCIS), and the New Jersey Office of Homeland Security and Preparedness, with assistance from the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney for the Eastern District of Pennsylvania Joseph LaBar and Assistant United States Attorney for the District of New Jersey Martha Nye.
New Castle Woman Sentenced for Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA- A resident of New Castle, PA, has been sentenced in federal court to three years’ probation and must pay $26,917.55 in restitution to the Social Security Administration on her conviction of charges related to Social Security fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Shawna Stelter, 37.
According to information presented to the court, Stelter failed to disclose that her husband was part of her household when applying for and receiving Supplemental Security Income ("SSI") benefits, and, as a result, received $26,917.55 in SSI benefits to which she knew she was not entitled, from June of 2014 to September of 2016. The court was further informed that Stelter made a false statement on her Redetermination Summary on October 30, 2014, when she further claimed that her husband was not part of her household, and that her household only consisted of herself and her two children.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
The Social Security Administration, Office of the Inspector General conducted the investigation leading to prosecution of Stelter.
Natchez Man Sentenced to Prison under Project EJECT for Stealing Firearm from Licensed Firearms DealerRead the Press Release
Natchez, Miss. – Javonte Lamar Butler, 20, of Natchez, was sentenced today by Senior U.S. District Judge David C. Bramlette III to 15 months in prison, followed by 3 years of supervised release, for stealing a firearm from a business that is licensed to sell firearms, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Butler was also ordered to pay a $1500 fine and $359 in restitution to the victim.
On December 14, 2018, Butler visited Peddlers Antique Pawn and Salvage, a federally licensed reseller of firearms, located in Natchez, Mississippi. While a store employee assisted two other persons, Butler reached into a glass display case, removed a pistol, and left the store without lawfully purchasing it. Butler was indicted on June 14, 2019 for stealing a firearm from a business licensed to sell firearms. Butler pled guilty before Judge Bramlette on August 1, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
NDTX Round-Up December 10Read the Press Release
On December 3, Severo Elizalde-Abelardo, 39, was sentenced to 33 years and 9 months in federal custody for conspiracy to distribute a controlled substance. Elizalde-Abelardo managed and directed multiple drug deals between his codefendants. He instructed his coconspirators to meet with customers and count the money. When his home was searched, officers found 13 kilograms of methamphetamine, a handgun, and 20 pounds of MSM. This case was investigated by the High Intensity Drug Trafficking Areas Program, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, Fort Worth Police Department, and Dallas Sheriff Office and prosecuted by AUSA Phelesa Guy.
On December 3, Jerson Gutierrez-Ramos, 20, was sentenced to 39 years and 7 months in federal custody for racketeer influenced and corrupt organizations conspiracy. Gutierrez-Ramos was associated with the Irving Loco Salvatruchas clique. Gutierrez-Ramos and other gang members attacked two victims in their home, beating them with a metal bar and machete with the intent to kill. This is one example of ten different victims listed in court documents that Gutierrez-Ramos attacked in order to increase his position within the gang. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, Irving Police Department, and Dallas Police Department, and prosecuted by AUSA Gary Tromblay.
On December 6, Desmond Howard Greer, 26, was sentenced to 10 years in federal custody for the possession of a firearm by a convicted felon. Greer was found to be in the possession of a multi-caliber rifle in violation of the terms of his prior conviction. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by AUSA John Boyle.
Mountain View Woman Indicted for Social Security Fraud, Identity TheftRead the Press Release
SPRINGFIELD, Mo. – A Mountain View, Missouri, woman who is currently a fugitive from justice has been indicted by a federal grand jury for a Social Security fraud scheme that utilized the stolen identity information of another person.
Laura A. Oglesby, 46, was charged in an eight-count indictment returned under seal by a federal grand jury in Springfield, Missouri, on Oct. 1, 2019. That indictment has been unsealed and made public in order to assist in her apprehension.
The public’s assistance is requested in locating Oglesby, who is a fugitive from justice. Individuals who have information regarding her whereabouts are encouraged to call the Social Security Administration, Office of Inspector General, at 855-829-8922.
The federal indictment alleges that on three separate occasions Oglesby fraudulently applied to receive a Social Security card by using the personal identity information of another person, which she claimed was her own. The indictment also alleges that Oglesby used a fraudulent Social Security number in a student account promissory note submitted to an educational institution (identified as “University A”). On each of those four occasions, the indictment alleges, Oglesby used the stolen identity information of another person.
Oglesby is charged with three counts of intentionally furnishing false information to the Social Security Administration, one count of the false representation of a Social Security number, and four counts of aggravated identity theft.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by Social Security Administration – Office of Inspector General and the Mountain View, Mo., Police Department.
Minneapolis Man Sentenced to 265 Months in Prison for Methamphetamine TraffickingRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CARLOS MENDOZA SERRATO, 35, to 265 months in prison for conspiring to distribute methamphetamine. SERRATO, who pleaded guilty on July 9, 2019, was sentenced earlier today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from at least June 2015 through October 2018, SERRATO acted as the facilitator and organizer of a drug trafficking organization. SERRATO conspired with his co-defendants and others to traffic methamphetamine and other controlled substances into and throughout Minnesota. In support of the organization, SERRATO delivered and arranged for the delivery of methamphetamine to his sub-distributors, collected funds, vehicles, and various other items from the sale of methamphetamine and other controlled substances. Throughout the course of the investigation into SERRATO’s drug trafficking organization, which affected multiple states, law enforcement seized more than 85 pounds of methamphetamine as well as additional quantities of cocaine, heroin, and marijuana.
This case was the result of an investigation conducted by Homeland Security Investigations, the Minneapolis Police Department, and the Drug Enforcement Administration.
Assistant U.S. Attorney Allen A. Slaughter is prosecuting the case.
Defendant Information:
CARLOS MENDOZA SERRATO, a/k/a “Michoacan,” a/k/a “Micho,” 35
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
- 265 months in prison
- Five years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Michigan man sentenced for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Delon Phillip Price, of Dearborn, Michigan, was sentenced today to 63 months incarceration for drug distribution, U.S. Attorney Bill Powell announced.
Price, also known as “Pedro,” age 28, pled guilty to one count of “Distribution of Heroin Within 1,000 Feet of a Protected Location” in August 2019. Price admitted to selling heroin near West Virginia University in November 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican citizen admits illegally transporting aliens from Canada into MontanaRead the Press Release
GREAT FALLS – A citizen of Mexico today admitted he illegally transported aliens for compensation after he was arrested in November in Glacier County by Border Patrol agents who were investigating suspected alien smuggling from Canada, U.S. Attorney Kurt Alme said.
Josue Bermudez-Lopez, 26, pleaded guilty to transportation of illegal aliens. Bermudez-Lopez faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for Feb. 13, 2020. Bermudez-Lopez was detained.
The prosecution said in court records filed in the case that on Nov. 17 at about 11:15 p.m., Border Patrol agents conducted traffic stops of two vehicles south of the United States-Canada border in Glacier County. In the first vehicle, which was a Chevrolet Suburban, the agent found the driver and nine passengers. All of the passengers admitted to being in the United States illegally. During the stop of the second vehicle, a Chevrolet Tahoe, all of the occupants ran into a nearby field. Agents found eight individuals within one to two minutes. Each of the individuals admitted to being in the United States illegally.
One of the persons caught in the field and seated on the ground against a Border Patrol vehicle was recognized as Bermudez-Lopez. Bermudez-Lopez initially denied his identity. An agent found nearby a discarded fanny pack that contained a Mexican passport with Bermudez-Lopez’s photo and name.
In all, law enforcement transported 19 suspects to the Sweetgrass Border Patrol Station for processing. Four of the transported illegal aliens told agents they had paid from $4,000 to $4,750 to be smuggled into the United States and identified two of Bermudez-Lopez’s co-defendants as a driver and a foot guide.
Bermudez-Lopez admitted to being in the United States illegally and to knowingly transporting illegal aliens for compensation on Nov. 17 and on a previous occasion.
Three co-defendants indicted with Bermudez-Lopez pleaded not guilty on Tuesday.
Assistant U.S. Attorneys Paulette Stewart, Jeff Starnes and Ethan Plaut are prosecuting the case, which was investigated by the U.S. Customs and Border Protection and the Glacier County Sheriff’s Office.
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Mexican Citizen Sentenced for Attempting to Deliver Methamphetamine Contained in Pizza BoxRead the Press Release
United States Attorney Joe Kelly announced that on December 9, 2019, Senior United States District Judge Laurie Smith Camp sentenced Hugo Lopez-Ortiz, of Mexico, to an 87-month term of imprisonment, to be served in the U.S. Bureau of Prisons. There is no parole in the federal system.
On August 25, 2018, DEA investigators became aware that Lopez-Ortiz would be delivering methamphetamine to a customer on behalf of a Mexican supplier at a Kicks gas station near Eppley Airfield. On August 26, 2018, Omaha Police Department officers approached Lopez-Ortiz as he stood in the parking lot of the gas station holding a pizza box. Lopez-Ortiz consented to a search of his person and of the items he was holding. Officers found close to 3½ pounds of methamphetamine within the pizza box and Lopez-Ortiz was arrested.
Investigators subsequently searched Lopez-Ortiz’s nearby hotel room and recovered more than $13,000.00 from under the bed, which was later forfeited. At sentencing, Lopez-Ortiz claimed that at the time of the offense, he was gainfully employed by the Ford Motor Company at a manufacturing facility in Hermosillo, Mexico. Travel records showed that Lopez-Ortiz had recently traveled to Omaha from Mexico.
Lopez-Ortiz will be removed from the United States by immigration authorities after completing his term of imprisonment.
The case was primarily investigated by the Drug Enforcement Administration – Omaha Field Division, the Omaha Police Department, and the Southwest Iowa Narcotics Task Force.
Mexican Alien with Involuntary Manslaughter Conviction Sentenced for Illegal ReentryRead the Press Release
RICHMOND, Va. – A Mexican national was sentenced today for six years in prison for illegally reentering the United States following removal after a felony conviction.
According to court documents and evidence presented at trial, Rodrigo Martinez-Mendoza, 43, first made illegal entry into the United States in 1993. In 1996 in Texas, he was convicted of forgery. Immigration authorities learned of the matter and commenced removal proceedings. Following processing, Martinez-Mendoza was then released on his own recognizance. In May 1997, Martinez-Mendoza failed to appear at his scheduled hearing, and was ordered deported to Mexico, and a warrant was issued. In August 2005, law enforcement encountered Martinez-Mendoza at Fort Lee Army Base in Petersburg, and he was then processed for deportation. In September 2005, Martinez-Mendoza was removed to Mexico at taxpayer expense. Thereafter on an unknown date, at an unknown location, he illegally returned to the United States.
“Martinez-Mendoza is a serious threat to public safety,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “In addition to an involuntary manslaughter conviction for killing a man during a drunken fight, he has a criminal record that includes DWI, lying to the police, and he has illegally entered the United States on multiple occasions. The Department of Justice is committed to prioritizing criminal immigration enforcement, especially those like Martinez-Mendoza, who enter this country illegally only to commit further crimes. They will be held accountable, prosecuted, and removed.”
In October 2009, Martinez-Mendoza was arrested by officers of the ICE Fugitive Operations Team in Chester, and later pleaded guilty to illegal reentry and served four months before again being deported to Mexico at taxpayer expense. On an unknown date, Martinez-Mendoza illegally returned to the United States.
In December 2017, in Petersburg, Martinez-Mendoza was arrested by law enforcement officers from the U.S. Marshals Capital Area Regional Fugitive Task Force on state charges of felony malicious wounding. In October 2018, he was convicted of involuntary manslaughter in Richmond Circuit Court and sentenced to a term of five years in prison with four years suspended.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney S. David Schiller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-164.
Menominee Man Receives 4-year Prison Sentence for Aggravated Assault and Illegal Firearms Possession on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that Jeremy Nunway (age: 40), a former resident of the Menominee Indian Reservation, received a sentence in separate cases in United States District Court for the Eastern District of Wisconsin in Green Bay. Nunway, an enrolled member of the Menominee Indian Tribe of Wisconsin, pleaded guilty on September 25, 2019, to Possession of a Firearm by a Prohibited Person, and Domestic Assault by Strangulation. At a hearing on December 5, 2019, United States District Judge William C. Griesbach imposed a total sentence of 48 months in prison, followed by 36 months on supervised release.
The investigation revealed that on October 9, 2018. Nunway possessed a loaded SKS 7.62x39mm rifle, which was in the defendant’s residence in a remote area of the Menominee Indian Reservation. A previous felony conviction prohibited Nunway from possession of a firearm. Officers with the Menominee Tribal Police Department and Menominee Conservation Department discovered the rifle while investigating a domestic violence incident involving Nunway and a Menominee woman.
On April 17, 2019, Nunway strangled and assaulted the same woman, with whom he was involved in a domestic relationship, while at a residence in Middle Village, which is on the Menominee Indian Reservation. The woman sustained injuries during the incident that required medical attention.
In sentencing Nunway, Judge Griesbach observed that in both incidents Nunway engaged in violent offenses, where Nunway was “abusive and brutal to others,” which required punishment. Judge Griesbach also observed the need to deter others who might consider engaging in violence against women, or in similar actions despite legal prohibitions against possessing firearms.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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Men Sentenced to Prison for Conspiring to Introduce Narcotics to Federal Prison in Butner, North CarolinaRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr., announced that United States District Judge Louise W. Flanagan sentenced federal inmate CHARLIE MORGAN to a 15-month term of imprisonment followed by a 3-year term of supervised release for conspiracy to distribute and possess with intent to distribute the opiate Buprenorphine, commonly referred to by the brand name Suboxone. The 15-month term was in addition to, and consecutive to MORGAN’S 24-month term of imprisonment imposed for violation of his supervised release for this crime. Judge Flanagan previously sentenced co-defendant JEFFREY NEWKIRK to a term of 12 months and 1 day imprisonment to run consecutive to his current federal sentence. NEWKIRK also received a 3-year term of supervised release.
Beginning in November 2017, MORGAN, who was on supervised release at the time, and then-federal-inmate NEWKIRK began to communicate with the purpose of introducing contraband into the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”). The contraband in question was Buprenorphine, a Schedule III Controlled Substance. Based on information obtained from monitoring the communications, on December 6, 2017, the FCC Butner mailroom intercepted a package mailed to NEWKIRK containing 25 photographs. Upon further inspection of the package, staff discovered two stacks of orange colored film. Pharmacy staff identified the film as Buprenorphine.
Mr. Higdon commented: “The introduction of drugs and contraband into federal correctional institutions is a nationwide concern. The safety and security of both staff and inmates are compromised when inmates have access to dangerous drugs and contraband. As such, the U.S. Attorney’s Office for the Eastern District of North Carolina is dedicated to pursuing prosecution of these introductions of contraband cases in addition to any discipline the Bureau of Prisons may impose.”
Special Assistant United States Attorney Michael Bredenberg represented the government in this case.
McKeesport Felon Charged with Illegally Possessing AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of McKeesport, 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 Curtis Farrar, age 29, as the sole defendant.
According to Indictment, on or about November 19, 2019, Farrar, a convicted felon, was found to be in possession of 20 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.
Marketing Executive for Two Global Companies Sentenced to 41 Months in Federal Prison for Defrauding Her Employers, Resulting in Losses of More Than $855,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Rebecca Jelfo, age 47, of Silver Spring, Maryland, to 41 months in federal prison, followed by three years of supervised release, for a federal wire fraud charge in related to a scheme Jelfo executed to defraud two employers of a total of at least $855,000 by submitting fraudulent and inflated invoices. Judge Messitte also ordered Jelfo to forfeit any proceeds or property obtained as a result of the scheme, and to pay restitution in the full amount of the loss, which is $855,587.25.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, from approximately 2008 until December 2015, Jelfo was Head of Marketing and Communications for the Americas for Company A, a global airline. Between January 4, 2016 and January 31, 2018, Jelfo was a Senior Director of Luxury Brand Marketing – Partnerships and Promotions for Company B, a global hospitality company. As part of Jelfo’s duties at both companies, she contracted with marketing vendors and was responsible for approving certain marketing invoices.
Jelfo admitted that beginning while she was employed at Company A and continuing throughout her employment with Company B, Jelfo participated in an over-invoicing scheme designed to defraud her employers. Specifically, Jelfo submitted or caused to be submitted, false and inflated invoices purported to be for various marketing services or products provided to her employer. Jelfo knew that the invoices did not accurately reflect the products or services provided by the vendors, but nevertheless took steps to make sure that Company A and Company B paid the false invoices. After the companies paid the invoices, Jelfo instructed the vendors to remit payments to cover her personal debts.
As detailed in her plea agreement, Jelfo instructed three separate vendors to remit payments to cover her personal expenses. Specifically, from as early as May 21, 2015 through August 24, 2016, Vendor A remitted payments for Jelfo’s personal expenses totaling $263,697, including a $13,000 payment to Jelfo’s Neiman Marcus credit card account and a $28,000 payment to Jelfo’s Saks Fifth Avenue credit card account. Vendor A also purchased $15,000 in American Express gift cards, some of which Jelfo used to make purchases at a high-end furniture store in Washington, D.C.
Similarly, while employed by Company B, Jelfo submitted false invoices purporting to come from Vendor B. After Company B paid the invoices to Vendor B, Vendor B remitted payments to Jelfo’s personal credit card accounts. For example, on November 14, 2017, Vendor B sent $106,302 to Jelfo’s American Express account, which was received from Company B as part of two fraudulently inflated invoices. On at least one occasion, Jelfo instructed Vendor C to submit an inflated invoice to Company B and provided Vendor C with fraudulent documentation that appeared to justify the inflated invoice. Based on Jelfo’s request, Vendor C sent an invoice to Company B requesting a payment of $74,880. After receiving the payment from Company B, Vendor C made a $64,851.24 payment to Jelfo’s personal credit card account, as instructed by Jelfo.
Jelfo admitted that between May 21, 2016 and January 31, 2018, she stole at least $855,587.25 from Company A and Company B as a result of this scheme.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation and thanked investigators from the victim companies for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Gregory D. Bernstein, who prosecuted the case.
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Man from Roswell sentenced to 207 months in prison for firearm and drug offenses after shooting at police following high-speed chase in 2017Read the Press Release
ALBUQUERQUE, N.M. – Jose Manuel Diaz-Montelongo, 32, of Roswell, New Mexico was sentenced yesterday in federal court to 207 months in prison for discharging a firearm during a drug trafficking crime and possession with intent to distribute methamphetamine.
Diaz-Montelongo pleaded guilty to these offenses on February 21, 2018. According to public court documents, Diaz-Montelongo led police officers in Roswell on a high-speed chase on September 24, 2017. Diaz-Montelongo then barricaded himself inside his car for more than two hours before fleeing to a rifle range where he used a berm as cover while shooting at police officers and deputy sheriffs with an assault rifle. Diaz-Montelongo eventually surrendered to law enforcement. Police recovered the assault rifle, two pistols, and about 54.6 grams of methamphetamine from the scene.
Homeland Security Investigations investigated this case with assistance from the New Mexico State Police, Roswell Police Department, and Chaves County Sheriff’s Office. Assistant U.S. Attorney Aaron O. Jordan of the Las Cruces Branch Office prosecuted the case.
Lincoln Man Sentenced for CyberstalkingRead the Press Release
United States Attorney Joe Kelly announced that Alec Eiland, 20, of Lincoln, Nebraska, was sentenced December 5, 2019, in Lincoln to two years in prison by Chief United States District Judge John Gerrard for cyberstalking. In addition to his prison sentence, Eiland will be required to serve three years on supervised release.
In the fall of 2018, Eiland engaged in a social media campaign to terrorize two primary victims and their close family members. Eiland became fixated on the first victim when they were co-workers. When the victim did not return Eiland’s romantic interest, Eiland took the victim’s image and contact information and posted it online misrepresenting the victim as being interested in forced sexual encounters with strange men. The victim received numerous threats of sexual assault, and Eiland himself threatened to place a bomb in the victim’s vehicle. He invited the victim to kill herself to avoid being raped by himself and others. Eiland engaged in a pattern of surveillance on the victim’s residence and let the air out of the victim’s tires while the victim was at work one day. Eiland expanded his threats and harassment to the victim’s family, focusing on a young child in the family.
This case was investigated by the Federal Bureau of Investigation.
Lewis County Man Sentenced to 60 Months on Drug ConvictionsRead the Press Release
UTICA, NEW YORK – Derek Damuth, age 25, of Lowville, New York, was sentenced today to 60 months in prison by United States District Judge David N. Hurd based on his conviction for possessing with the intent to distribute in excess of 40 grams of a mixture of fentanyl and heroin, announced United States Attorney Grant C. Jaquith, Lewis County District Attorney Leanne K. Moser, Special Agent in Charge of United States Drug Enforcement Administration, New York Division (DEA) Raymond P. Donovan, and New York State Police Superintendent Keith Corlett. Damuth was also ordered to serve four years of supervised release following his release from prison.
As part of his guilty plea in this case, Damuth admitted that in November 2018, he possessed more than forty grams of a substance containing fentanyl, 17 ounces of marijuana, additional quantities of cocaine and heroin, and drug-trafficking paraphernalia. Damuth further admitted that he intended to distribute the drugs.
This case was investigated by the United States Drug Enforcement Administration (DEA) and the New York State Police, with assistance from the Lewis County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Lead defendant pleads guilty in drug conspiracy that produced, distributed powerful synthetic opioidRead the Press Release
AUGUSTA, GA: A Georgia man who operated an industrial-scale illegal pill-manufacturing operation has admitted to the main charge in a drug trafficking conspiracy, representing the final guilty plea among the defendants.
Walker Christian Forrester, 25, of Loganville, Ga., entered a guilty plea in U.S. District Court in Augusta to Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances (Carfentanil, Alprazolam and marijuana), said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The charge carries a penalty of up to life in prison, and there is no parole in the federal system.
“This drug trafficking conspiracy distributed massive amounts of dangerous illegal drugs, including deadly synthetic opioids, throughout the streets of Georgia and through the Dark Web,” said U.S. Attorney Christine. “Our federal, state and local law enforcement agencies did outstanding work in investigating and shutting down these merchants of misery and bringing them to justice, where substantial federal prison terms await.”
Other defendants who have pled guilty in the conspiracy are:
- Kolbie Hadden Watters, 23, of Augusta, Ga., who pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Jonathan Britt Lester, 23, of Loganville, Ga.; who pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances (Carfentanil, Alprazolam and marijuana);
- Armand Sananda Saedi, 28, of Atlanta, Ga., who pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances (Alprazolam); and,
- Morgan McKenzie Slaton, 23, of Hoschton, Ga., who pled guilty to Conspiracy to Distribute and Possession with Intent to Distribute a Controlled Substance (Alprazolam).
According to court documents and testimony, the co-defendants participated in a drug conspiracy dating back to 2016 that imported large amounts of drugs purchased with cryptocurrency on the Dark Web, used industrial-grade machinery to manufacture pills, and sold the drugs on the Dark Web and throughout Georgia. At its peak, the operation produced as many as 200,000 pills per month, yielding profits of up to $18,000 per month.
Forrester first came to the attention of the U.S. Drug Enforcement Administration around Sept. 2017 after he purchased an industrial-grade pill press. Two months later, Forrester, Watters and a juvenile were arrested on state charges in Harlem, Ga., in November 2017 after a traffic stop in which Harlem police officers found more than 5,200 counterfeit Xanax pills, marijuana and a sawed-off shotgun in the vehicle.
In addition to charges in the drug conspiracy, Watters and Lester also face state charges in Walton County of felony murder and aggravated assault in the death of Chase David Loffler, 25, whose body was found buried in the backyard of Lester’s Loganville home in April 2018. The two are accused of beating and suffocating Loffler, a suspected co-conspirator, and burying his body in a shallow grave.
All six defendants face sentencing at a later date.
“Addressing the country’s opioid epidemic continues to be one of DEA’s top priorities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. This defendant ran an industrial illegal pill-manufacturing operation that delivered deadly doses of poison (namely synthetic opioids) to the community. DEA, its law enforcement partners and the U.S. Attorney’s Office will continue to deploy every available resource to stop such criminals like this defendant from distributing these dangerous and potentially deadly substances.”
“This case demonstrates the commitment of law enforcement agencies at every level to end an epidemic in our society that is killing our citizens,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The fact that this defendant faces a potential life sentence is an example how serious this crime is and a warning to anyone else who might contemplate doing the same.”
“Dark Web purchases provide a false sense of anonymity to criminals who believe their actions will be invisible to law enforcement. These illegally imported pill presses, producing thousands of counterfeit pills an hour, can wreak havoc on a community,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “These guilty pleas are a testament to the resolve of the entire law enforcement community to combat the opioid crisis and get these dangerous pills off the streets.”
“The illegal manufacture and distribution of opioids can result in overdoses and deaths, fueling the national opioid crisis,” said Special Agent in Charge Justin D. Green, Food and Drug Administration (FDA) Office of Criminal Investigations Miami Field Office. “The FDA remains committed to working with our law enforcement partners to disrupt and dismantle illegal prescription drug manufacturing and distribution networks, including those that import illicit raw materials from overseas to make counterfeit drugs, and misuse the internet to distribute those drugs with reckless disregard of the risk to public health and safety.”
“Criminals need to clearly understand that law enforcement agencies across the globe work together daily to root out crime,” said Christopher Grey, spokesperson for the U.S. Army Criminal Investigation Command (CID). “We share information and continually support each other's investigations. There is no better example of that interagency cooperation than this case and how one piece of information led to more and more evidence to unravel this dangerous drug trafficking conspiracy.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations. Agencies involved in the investigation include the FBI, the Drug Enforcement Administration (DEA), the U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI), the Internal Revenue Service (IRS), the U.S. Army Criminal Investigative Command (CID), the U.S. Postal Inspection Service (USPIS), Homeland Security Investigations (HSI), the U.S. Marshals Service, and the Harlem Department of Public Safety. The case is being prosecuted for the United States by Assistant U.S. Attorney Patricia Rhodes.
Justice Department Announces Deferred Prosecution Agreement with HSBC Private Bank (Suisse) SARead the Press Release
Bank Admits to Helping U.S. Taxpayers Conceal Income and Assets from the United States;
Agrees to Pay $192.35 Million Penalty
MIAMI – HSBC Private Bank (Suisse) SA (HSBC Switzerland), a private bank headquartered in Geneva, has entered into a deferred prosecution agreement (DPA) with the Department of Justice today in the U.S. District Court for the Southern District of Florida, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division, United States Attorney for the Southern District of Florida Ariana Fajardo Orshan, and Chief Don Fort for Internal Revenue Service (IRS), Criminal Investigation. HSBC Switzerland admitted to conspiring with U.S. taxpayers to evade taxes and, as part of the agreement, HSBC Switzerland will pay $192.35 million in penalties.
“HSBC Switzerland conspired with U.S. accountholders to conceal assets abroad and evade taxes that every American must pay,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division. “Banks, asset managers and other financial firms enable such crimes – and we will hold these institutions to account, right along with the taxpayers that use them to facilitate and disguise illegal activities.”
“Financial institutions that conspire with U.S. accountholders to hide income in undeclared bank accounts abroad, to avoid being held accountable for tax obligations and augment corporate profit, face substantial criminal and civil penalties for their illicit conduct,” said U. S. Attorney Fajardo Orshan for the Southern District of Florida. “In this case, HSBC Switzerland will pay a total civil and criminal fine of more than $192 million, to include a civil forfeiture of $71.8 million, for proceeds illegally derived from their conduct. We remain committed to the investigation and prosecution of individuals who evade their taxes and the financial institutions that assist them in doing so.”
“Taxpayers and financial institutions each have the most basic responsibilities to pay taxes and report suspicious activity regarding financial transactions. When financial institutions devise a massive tax evasion scheme and actually facilitate the activity, they not only must be held accountable, they must take actions to ensure this behavior will not happen again,” said Don Fort, Chief, IRS Criminal Investigation. “The integrity of our nation’s tax system depends on voluntary compliance and fair, consistent enforcement of the law. We owe it to all Americans to hold financial institutions accountable just as we would hold individual taxpayers accountable. Today’s DPA shows that engaging in this type of behavior has consequences.”
According to court documents, HSBC Switzerland admits that between 2000 and 2010 it conspired with its employees, third-party and wholly owned fiduciaries, and U.S. clients to: 1) defraud the United States with respect to taxes; 2) commit tax evasion; and 3) file false federal tax returns. In 2002, the bank had approximately 720 undeclared U.S. client relationships, with an aggregate value of more than $800 million. When the bank’s undeclared assets under management reached their peak in 2007, HSBC Switzerland held approximately $1.26 billion in undeclared assets for U.S. clients.
According to the terms of the DPA, HSBC Switzerland will cooperate fully with the Tax Division and the IRS. The DPA also requires HSBC Switzerland to affirmatively disclose information it may later uncover regarding U.S.-related accounts, as well as to disclose information consistent with the Department’s Swiss Bank Program relating to accounts closed between Jan. 1, 2009 and Dec. 31, 2017. Under the DPA, prosecution against the bank for conspiracy will be deferred for an initial period of three years to allow HSBC Switzerland to demonstrate good conduct. The agreement provides no protection for any individuals.
The $192.35 million penalty against HSBC Switzerland has three parts. First, HSBC Switzerland has agreed to pay $60,600,000 in restitution to the IRS, which represents the unpaid taxes resulting from HSBC Switzerland’s participation in the conspiracy. Second, HSBC Switzerland agreed to forfeit $71,850,000 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2000 and 2010. Finally, HSBC Switzerland agreed to pay a penalty of $59,900,000. This penalty amount takes into consideration that HSBC Switzerland self-reported its conduct, conducted a thorough internal investigation, provided client identifying information to the Tax Division, and extensively cooperated in a series of investigations and prosecutions, as well as implemented remedial measures to protect against the use of its services for tax evasion in the future.
According to court documents filed as part of the DPA, the bank assisted U.S. clients in concealing their offshore assets and income from U.S. taxing authorities. To conceal its clients’ assets and income from the IRS, HSBC Switzerland employed a variety of methods, including relying on Swiss bank secrecy to prevent disclosure to U.S. authorities, using code-name and numbered accounts and hold-mail agreements, and maintaining accounts in the names of nominee entities established in tax haven jurisdictions, such as the British Virgin Islands, Liechtenstein, and Panama, that concealed the client’s beneficial ownership of the accounts.
In an effort to attract new U.S. clients, and maintain existing relationships with U.S. clients, HSBC Switzerland bankers took trips to the United States. Between 2005 and 2007, at least four HSBC Switzerland bankers traveled to the United States to meet at least 25 different clients. One banker also attended Design Miami, a major annual arts and design event in Miami, Florida, in an effort to recruit new U.S. clients to open undeclared accounts with HSBC Switzerland.
In early 2008, in response to a public U.S. criminal investigation into UBS AG, the largest bank in Switzerland, for tax and securities violations in connection with its maintaining undeclared accounts for U.S. clients, HSBC Switzerland began a series of policy changes to restrict its cross-border business with U.S. persons, but the bank did not immediately cease that business. In fact, some HSBC Switzerland bankers assisted clients in closing their accounts in a manner that continued to conceal their offshore assets, such as withdrawing the contents of their accounts in cash.
Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Fajardo Orshan, and Chief Fort commended special agents of IRS-Criminal Investigation, who investigated this case, as well as Senior Litigation Counsel Mark F. Daly, Assistant Chief Jason H. Poole, and Trial Attorney Grace E. Albinson of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Fajardo Orshan also thanked Assistant U.S. Attorneys Thomas P. Lanigan and Danielle N. Croke of the Southern District of Florida, Assistant U.S. Attorney Gordon Kromberg of the Eastern District of Virginia, and agents with the United States Postal Service for their assistance in this case.
Justice Department Announces Deferred Prosecution Agreement with HSBC Private Bank (Suisse) SARead the Press Release
HSBC Private Bank (Suisse) SA (HSBC Switzerland), a private bank headquartered in Geneva, has entered into a deferred prosecution agreement (DPA) with the Department of Justice today in the U.S. District Court for the Southern District of Florida, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division, United States Attorney for the Southern District of Florida Ariana Fajardo Orshan, and Chief Don Fort for Internal Revenue Service (IRS), Criminal Investigation. HSBC Switzerland admitted to conspiring with U.S. taxpayers to evade taxes and, as part of the agreement, HSBC Switzerland will pay $192.35 million in penalties.
“HSBC Switzerland conspired with U.S. accountholders to conceal assets abroad and evade taxes that every American must pay,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division. “Banks, asset managers and other financial firms enable such crimes – and we will hold these institutions to account, right along with the taxpayers that use them to facilitate and disguise illegal activities.”
“Financial institutions that conspire with U.S. accountholders to hide income in undeclared bank accounts abroad, to avoid being held accountable for tax obligations and augment corporate profit, face substantial criminal and civil penalties for their illicit conduct,” said U. S. Attorney Fajardo Orshan for the Southern District of Florida. “In this case, HSBC Switzerland will pay a total civil and criminal fine of more than $192 million, to include a civil forfeiture of $71.8 million, for proceeds illegally derived from their conduct. We remain committed to the investigation and prosecution of individuals who evade their taxes and the financial institutions that assist them in doing so.”
“Taxpayers and financial institutions each have the most basic responsibilities to pay taxes and report suspicious activity regarding financial transactions. When financial institutions devise a massive tax evasion scheme and actually facilitate the activity, they not only must be held accountable, they must take actions to ensure this behavior will not happen again,” said Don Fort, Chief, IRS Criminal Investigation. “The integrity of our nation’s tax system depends on voluntary compliance and fair, consistent enforcement of the law. We owe it to all Americans to hold financial institutions accountable just as we would hold individual taxpayers accountable. Today’s DPA shows that engaging in this type of behavior has consequences.”
According to court documents, HSBC Switzerland admits that between 2000 and 2010 it conspired with its employees, third-party and wholly owned fiduciaries, and U.S. clients to: 1) defraud the United States with respect to taxes; 2) commit tax evasion; and 3) file false federal tax returns. In 2002, the bank had approximately 720 undeclared U.S. client relationships, with an aggregate value of more than $800 million. When the bank’s undeclared assets under management reached their peak in 2007, HSBC Switzerland held approximately $1.26 billion in undeclared assets for U.S. clients.
According to the terms of the DPA, HSBC Switzerland will cooperate fully with the Tax Division and the IRS. The DPA also requires HSBC Switzerland to affirmatively disclose information it may later uncover regarding U.S.-related accounts, as well as to disclose information consistent with the department’s Swiss Bank Program relating to accounts closed between Jan. 1, 2009 and Dec. 31, 2017. Under the DPA, prosecution against the bank for conspiracy will be deferred for an initial period of three years to allow HSBC Switzerland to demonstrate good conduct. The agreement provides no protection for any individuals.
The $192.35 million penalty against HSBC Switzerland has three parts. First, HSBC Switzerland has agreed to pay $60,600,000 in restitution to the IRS, which represents the unpaid taxes resulting from HSBC Switzerland’s participation in the conspiracy. Second, HSBC Switzerland agreed to forfeit $71,850,000 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2000 and 2010. Finally, HSBC Switzerland agreed to pay a penalty of $59,900,000. This penalty amount takes into consideration that HSBC Switzerland self-reported its conduct, conducted a thorough internal investigation, provided client identifying information to the Tax Division, and extensively cooperated in a series of investigations and prosecutions, as well as implemented remedial measures to protect against the use of its services for tax evasion in the future.
According to court documents filed as part of the DPA, the bank assisted U.S. clients in concealing their offshore assets and income from U.S. taxing authorities. To conceal its clients’ assets and income from the IRS, HSBC Switzerland employed a variety of methods, including relying on Swiss bank secrecy to prevent disclosure to U.S. authorities, using code-name and numbered accounts and hold-mail agreements, and maintaining accounts in the names of nominee entities established in tax haven jurisdictions, such as the British Virgin Islands, Liechtenstein, and Panama, that concealed the client’s beneficial ownership of the accounts.
In an effort to attract new U.S. clients, and maintain existing relationships with U.S. clients, HSBC Switzerland bankers took trips to the United States. Between 2005 and 2007, at least four HSBC Switzerland bankers traveled to the United States to meet at least 25 different clients. One banker also attended Design Miami, a major annual arts and design event in Miami, Florida, in an effort to recruit new U.S. clients to open undeclared accounts with HSBC Switzerland.
In early 2008, in response to a public U.S. criminal investigation into UBS AG, the largest bank in Switzerland, for tax and securities violations in connection with its maintaining undeclared accounts for U.S. clients, HSBC Switzerland began a series of policy changes to restrict its cross-border business with U.S. persons, but the bank did not immediately cease that business. In fact, some HSBC Switzerland bankers assisted clients in closing their accounts in a manner that continued to conceal their offshore assets, such as withdrawing the contents of their accounts in cash.
Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Fajardo Orshan, and Chief Fort commended special agents of IRS-Criminal Investigation, who investigated this case, as well as Senior Litigation Counsel Mark F. Daly, Assistant Chief Jason H. Poole, and Trial Attorney Grace E. Albinson of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked Assistant U.S. Attorneys Thomas P. Lanigan and Danielle N. Croke of the Southern District of Florida, Assistant U.S. Attorney Gordon Kromberg of the Eastern District of Virginia, and agents with the U.S. Postal Service for their assistance in this case.
Jury convicts man of methamphetamine trafficking, firearms crimesRead the Press Release
BILLINGS – A jury today convicted a man on drug trafficking and firearms crimes after law enforcement arrested him in Billings and found more than a pound of meth and loaded guns in his vehicle, U.S. Attorney Kurt Alme said.
The jury found Julian Tyler Baughman, 36, guilty of all three crimes as charged, including possession with intent to distribute meth, prohibited person in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
The two-day trial began on Dec. 9, with U.S. District Judge Susan P. Watters presiding. A sentencing date will be set later. Baughman was detained.
Baughman faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug count and a minimum mandatory consecutive five years to life, a $250,000 fine and five years of supervised release for conviction on having a firearm in furtherance of a drug trafficking crime.
“We are pleased with the guilty verdicts. Caught with more than a pound of meth and loaded handguns, Mr. Baughman posed a significant risk to community safety. I want to thank Assistant U.S. Attorneys Tom Godfrey and Karla Painter and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their work on this case,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that Montana Violent Offender Task Force officers got a tip about Baughman’s location and arrested him in a vehicle in a Billings neighborhood on April 10. Baughman admitted he had a gun on him. While searching Baughman, officers found in a belly band holster a .40-caliber semi-automatic pistol loaded with 15 live rounds and a second magazine containing 11 live rounds of ammunition. Baughman also had $1,086 and a cell phone on his person.
Officers found in the vehicle a meth pipe, a loaded 9mm semi-automatic pistol, a loaded .357-caliber semi-automatic pistol, boxes of ammunition, an open U.S. Postal Service envelope containing about 1.6 pounds of meth and other items. The amount of meth found is the equivalent of about 5,800 doses.
A vehicle check by law enforcement determined that a person in Williston, N.D., had sold the vehicle to Baughman a few days earlier.
After getting a search warrant for Baughman’s phone, investigators found multiple photos of the 9mm pistol that Baughman has sent to people, conversations where Baughman had shot himself in the foot with a .357 pistol and multiple messages consistent with Baughman dealing drugs.
Baughman was convicted in 2016 of theft, criminal mischief and criminal endangerment, all felonies, in Roosevelt County, and therefore, was prohibited from possessing firearms.
Assistant U.S. Attorneys Tom Godfrey and Karla Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Jury Convicts Members of 36th Street Bang Squad on Racketeering Related Murders and ShootingsRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted seven Newport News and Hampton men today on charges including racketeering conspiracy, murder, attempted murder, and drug trafficking.
“The 36th Street Bang Squad is a violent and vicious criminal enterprise,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The murders were no random acts of violence, rather they were the product of a deliberate effort of 36th Street Bang Squad to attack rivals and enhance the reputation of the gang. I want to thank our trial team and investigative partners at the ATF, Hampton Police Division, and the Newport News Police for their terrific work on this case.”
According to court records and evidence presented at trial, the defendants carried on the affairs of the 36th Street Bang Squad racketeering enterprise, by committing numerous acts of violence and drug trafficking including the double murder of Jada Richardson and Domingo Davis, on April 6, 2015, and the murder of Dwayne Parker on March 8, 2015, as well as numerous retaliatory shootings against rival gang members. Evidence presented at trial showed their activities occurred in multiple locations in downtown Newport News and Hampton.
“These gang members terrorized people, and brought not only drugs and firearms into their neighborhoods but violence and fear as well," said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division. "They showed repeatedly that they do not value human life or the safety of innocent bystanders. ATF is proud to work alongside our law enforcement partners and the U.S. Attorney’s Office to take dangerous offenders like them off the street. This verdict should be a warning to anyone out there committing violent crime in our communities.”
Name, Age
Hometown
Conviction(s)
Sentencing Date
Martin L. Hunt, 22
Newport News
Racketeering Conspiracy; Murder in Aid of Racketeering; Use of a Firearm Resulting in Death; Attempted Conspiracy to Commit Murder in Aid of Racketeering; Possession/Discharge of a Firearm in Furtherance of a Crime of Violence; Attempted Murder in Aid of Racketeering
May 8, 2020
Xavier Greene, 25
Newport News
Racketeering Conspiracy; Murder in Aid of Racketeering; Use of a Firearm Resulting in Death; Attempted Murder in Aid of Racketeering; Possession/Discharge of a Firearm in Furtherance of a Crime of Violence
May 6, 2020
Deshaun Richardson, 24
Newport News
Racketeering Conspiracy
June 5, 2020
Ryan Taybron, 22
Hampton
Racketeering Conspiracy; Attempted Murder in Aid of Racketeering; Possession/Discharge of a Firearm in Furtherance of a Crime of Violence; Conspiracy to Distribute Marijuana and Cocaine; Possession of a Firearm in Furtherance of Drug Trafficking
June 3, 2020
Eric Nixon, 24
Newport News
Racketeering Conspiracy; Attempted Murder in Aid of Racketeering; Possession/Discharge of a Firearm in Furtherance of a Crime of Violence; False Statement
May 13, 2020
Geovanni Douglas, 24
Newport News
Racketeering Conspiracy; Attempted Murder in Aid of Racketeering; Possession/Discharge of a Firearm in Furtherance of a Crime of Violence
May 28, 2020
Raymond Palmer, 29
Newport News
Racketeering Conspiracy; Attempted Assault with a Dangerous Weapon in Aid of Racketeering; Possession/Discharge of a Firearm in Furtherance of a Crime of Violence
May 19, 2020
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; Terry L. Sult, Chief of Hampton Police Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after Chief U.S. District Judge Mark S. Davis accepted the verdict. Assistant U.S. Attorneys Howard J. Zlotnick and Brian J. Samuels, Special Assistant U.S. Attorney Amy E. Cross, and Trial Attorney Chad W. McHenry of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.
Judge Sentences Man to 10 Years in Prison in Project Safe Childhood CaseRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 10 years in prison on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Kevin Christopher Oldland, 38.
According to information presented to the court, Oldland traveled to Erie, Pennsylvania for the purpose of engaging in illegal sexual activity with a minor and used a means or facility of interstate commerce to persuade, induce and entice the minor to engage in illegal sexual activity.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Millcreek Police Department for the investigation leading to the successful prosecution of Oldland.
Jefferson Parish Building Inspector Sentenced to 3 Years Probation after Previously Pleading Guilty for His Role in Bribery SchemeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ALTON MCCLINTON, age 55, a resident of New Orleans, Louisiana, was sentenced today by United States District Judge Jay C. Zainey to (3) years probation, a $3,000 fine and 200 hours of community service after previously pleading guilty to using a facility of interstate commerce with the intent to promote unlawful activity, in violation of 18 U.S.C. ' 1952(a)(3).
According to court documents, MCCLINTON began working as a building inspector for the Jefferson Parish Department of Inspection and Code Enforcement in about 2014. He was responsible for, among other things, investigating complaints involving zoning violations and inspecting buildings to ensure that the structures complied with parish building codes. On at least ten (10) occasions, MCCLINTON used his position to demand a payment of between $150 and $500 in exchange for issuing either (1) a report reflecting that no zoning violation had occurred when, in fact, one had occurred and (2) an inspection report reflecting that MCCLINTON had inspected a particular building and that the building complied with parish building codes when, in fact, MCCLINTON had not actually inspected the building. Thereafter, MCCLINTON had the pertinent information regarding the fraudulently passed building or zoning inspection entered into one of two internet-based computer systems used by Jefferson Parish to record building inspections and zoning violations. While most of the bribe payments MCCLINTON received were in cash, at least one was in the form of a check drawn on the account of the party seeking a passing report from MCCLINTON. In total, MCCLINTON received a total of not less than $3,000 in bribe payments to influence his conduct.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter, with the assistance of the Jefferson Parish Office of the Inspector General. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, is in charge of the prosecution.
Illegal Alien Residing in Sacramento Sentenced for Aggravated Identity Theft, Passport Fraud, and Voting by an AlienRead the Press Release
SACRAMENTO, Calif. — Today, U.S. District Judge John A. Mendez sentenced Gustavo Araujo Lerma, 64, a Sacramento resident, to three years and nine months in prison for aggravated identity theft, passport fraud, and voting by an alien, U.S. Attorney McGregor W. Scott announced.
“In 1992, Araujo Lerma began fraudulently using the identity of a living United States citizen. He used that identity to commit a long list of other crimes, lying to numerous local, state and federal agencies, and abusing government programs,” U.S. Attorney Scott stated. “Today’s sentence serves to protect the public’s confidence in the immigration system, passport security, and federal elections and will deter others from perpetrating this type of fraud.”
“Today’s sentencing sends a strong message that the Diplomatic Security Service, in partnership with the U.S. Attorney’s office, is committed to successfully prosecuting those criminals who perpetrate U.S. passport fraud,” said Matthew Perlman, Special Agent in Charge of DSS’s San Francisco Field Office.
According to court documents and evidence presented at trial, Araujo Lerma was born in Mexico in 1955. In the early 1990s he acquired and began fraudulently using the identity of a United States citizen named Hiram Velez. Araujo Lerma unlawfully obtained U.S. passports with the stolen identity and used the passports to fly back and forth to his hometown in Leon, Mexico. He lied on immigration applications to obtain legal permanent resident status and eventually United States citizenship for his Mexico-born wife and two children. In addition, he voted in numerous federal elections over the past 20 years. After a three-day trial, a jury convicted Araujo Lerma on all counts.
This case was the product of an investigation by the U.S. Department of State’s Diplomatic Security Service. Assistant U.S. Attorneys Katherine T. Lydon and Shea J. Kenny prosecuted the case.
Ignacio Woman Sentenced to 14 Years in Federal Prison for DUI MurderRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Twyla Casados, age 34, of Ignacio, Colorado, was sentenced today by U.S. District Court Judge Robert E. Blackburn to serve 14 years (168 months) in federal prison, followed by 5 years on supervised release, for murder in the second degree. Casados appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Casados was indicted by a federal grand jury on January 4, 2019 on a charge of murder in the second degree. According to court documents, as well as facts presented during trial and sentencing, on December 18, 2018, Casados drank to intoxication before taking the wheel of a Chevrolet Suburban with several of her children in the car. At approximately 5:30 p.m. near Ignacio, Colorado, Casados veered over a median turn lane into oncoming traffic. Casados’ Suburban crashed into another car, killing the driver instantly.
Prior to the crash, Casados had a lengthy history of alcohol-related offenses, including three convictions for D.U.I. (one of which resulted in serious injuries) and an alcohol-related child abuse conviction. Casados had received extensive treatment and supervision, none of which deterred her from drinking and driving on January 4, 2019. As part of the plea agreement, Casados specifically admitted that she was aware that her actions of driving under the influence posed a serious risk of death or serious bodily injury to herself or others, but stated that she did not care.
“Driving under the influence can be deadly,” said U.S. Attorney Jason Dunn. “The defendant killed another person as a result of her drunk driving. She will have 14 years in federal prison to reflect on that fact.”
According to the National Highway Traffic Safety Administration, approximately one person dies in the United States every 50 minutes in a crash involving an alcohol impaired driver.[1]
This case was investigated by the Southern Ute Police Department. The defendant was prosecuted by Assistant U.S. Attorney Jeff Graves.
[1] NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION, TRAFFIC SAFETY FACTS 2016 DATA: ALCOHOLIMPAIRED DRIVING (2017), available at https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/812450.
Hartford Gang Member Sentenced to More Than 12 Years in Federal Prison for Kidnapping and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JONATHAN OTERO, also known as “Jax,” 26, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 154 months of imprisonment, followed by five years of supervised release, for a kidnapping and violent assault he committed with four other members of the Almighty Latin Kings Nation (“Latin Kings”).
According to court documents and statements made in court, on January 26, 2018, Josue Franco and Anthony Carillo lured an individual (“the victim”) to a residence on Benton Street in Hartford. When the victim entered the residence, Otero and Luis Pitt were waiting. Otero, Pitt, Franco and Carillo then threatened, assaulted and tortured the victim, prevented him from leaving the residence, and demanded a ransom. After the victim was restrained, Pedro Carillo arrived at the residence and participated in the ongoing assault and torture of the victim, which included burning him with cigarettes, pistol-whipping him and throwing a dart into his foot.
The defendants forced the victim to call someone to deliver money in exchange for his release. The victim then called his father. Franco grabbed the phone and told the victim’s father if he did not deliver $500 they were going to kill his son. After the call, Otero put a bullet in the victim’s hand and told him he would use that bullet to shoot him in the head if the victim could not get the ransom money.
Otero and others then drove the victim to different locations in Hartford in an effort to collect ransom.
The victim was eventually released. He was subsequently treated at a hospital for a fractured cheekbone, a facial laceration, a concussion and other injuries.
Otero has been detained in state custody on an unrelated firearm offense since April 19, 2018. On September 13, 2019, he pleaded guilty in federal court to one count of assault with a dangerous weapon in aid of racketeering, and one count of carrying and brandishing a firearm in furtherance of a crime of violence.
The other four defendants have pleaded guilty to related charges and are detained while awaiting sentencing.
Otero’s criminal history includes convictions for assault, firearm, threatening and narcotics offenses.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Major Crimes Division has provided critical assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrison County man sentenced for selling methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Robert Lyons, of Salem, West Virginia, was sentenced today to 20 months incarceration for distributing methamphetamine near a playground, U.S. Attorney Bill Powell announced.
Lyons, age 46, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location” in July 2019. Lyons admitted to selling methamphetamine near Jackson Park playground in Harrison County in February 2017.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gunman Sentenced to 16 Years in Federal Prison for Drive-By Shooting on Southern Ute Indian ReservationRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that Antonio Castro, age 24, of Ignacio, Colorado, was sentenced by U.S. District Court Judge Robert E. Blackburn to serve 16 years (192 months) in federal prison, followed by 3 years on supervised release, for assault with the intent to commit murder and discharge of a firearm in furtherance of a crime of violence. Castro appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Castro was indicted by a federal grand jury on July 9, 2018, on numerous federal felonies related to a drive-by shooting on June 6, 2018 near Ignacio, Colorado, on the Southern Ute Indian Reservation. According to facts presented during sentencing, Castro was in the driver seat of a van when he fired six shots from a handgun at an unarmed man standing in the street. Five of the six shots missed, but one shot struck the man’s elbow, causing significant injuries. As the victim lay bleeding in the street, Castro sped away in the van and later hid in the shower of a nearby friend’s house before being apprehended by officers with the Southern Ute Police Department. At the time of the shooting, Castro was on parole from a state felony burglary conviction out of Alamosa County, Colorado.
“Antonio Castro attempted to kill an unarmed man and flee the scene of the crime,” said U.S. Attorney Jason Dunn. “Thanks to the quick work of our tribal law enforcement partners and prosecutors from my office, Castro will spend significant time in federal prison.”
"Today's sentencing should send a strong message that the FBI will hold those who threaten the safety of our communities accountable for their actions," said FBI Denver Special Agent in Charge Dean Phillips. "Thanks to the efforts of our investigators and law enforcement partners, Antonio Castro will now face the consequences of his actions."
This case were investigated by the Southern Ute Police Department, with assistance of the Federal Bureau of Investigation. The defendant was prosecuted by Assistant U.S. Attorney Jeff Graves.
Gates Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gary Zeitvogel, 45, of Gates, NY, pleaded guilty to receipt of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in June 2019, Facebook alerted the National Center for Missing and Exploited Children (NCMEC) that the defendant appeared to be engaged in sexually explicit conversations with a 15 year old female. Utilizing information provided by Facebook, NCMEC determined that Zeitvogel and the minor victim were both located in Rochester.
NCMEC forwarded the tip to the New York State Police, who located the victim and discovered that the defendant was serving a term of probation with the Monroe County Probation Department. Zeitvogel had been convicted of Endangering the Welfare of a Child. On July 1, 2019, State Police investigators and Monroe County Probation Officers searched the defendant’s residence in Gates and recovered a cell phone which contained the Facebook application, in violation of his probation conditions. Zeitvogel was taken in to custody violating his probation.
A search warrant was executed on both the phone and Facebook account. Investigators observed over 1,500 images of child pornography on the phone, some of which depicted prepubescent minors, including the minor victim. Investigators also discovered sexually explicit conversations between Zeitvogel and the minor victim on Facebook, which took place between March and June 2019. Investigators also determined that the two had been in contact at the defendant’s home.
The plea is the result of an investigation by the National Center for Missing and Exploited Children; the New York State Police, under the direction of Major Eric Laughton; Monroe County Child Protective Services; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly
Sentencing is scheduled for March 17, 2020, before Judge Siragusa.
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GBK Gang Member Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
Delrico Clyburn, age 28, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the Greenway Boy Killas (GBK) street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, GBK gang member Delrico Clyburn and his co-conspirators conspired to distribute quantities of heroin.
Judge Schwab scheduled sentencing for May 7, 2020 at 10:00 a.m. The law provides for a total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Delrico Clyburn.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Four Mexican citizens charged in illegal transportation caseRead the Press Release
GREAT FALLS – Four Mexican citizens who were arrested in Glacier County on suspicion of smuggling aliens into the United States or illegal reentry pleaded not guilty today to immigration-related crimes, U.S. Kurt Alme said.
Alberto Guillen-Gordillo, 22, Omero Banderas-Rodriguez, 39, and Samuel Velasco-Tovar, 28, all citizens of Mexico, pleaded not guilty to an indictment charging them with conspiracy to transport illegal aliens and transportation of illegal aliens. If convicted of the most serious crime, the defendants face a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
The indictment alleges the defendants conspired from 2018 to Nov. 17, 2019 to transport at least six, but not more than 25, illegal aliens into the United States.
Ma Mercedes Rivera-Gutierrez, 39, of Mexico, pleaded not guilty to a separate indictment charging her with illegal reentry. If convicted of the most serious crime, Rivera-Gutierrez faces a maximum two years in prison, a $250,000 fine and three years of supervised release. The indictment alleges that Rivera-Gutierrez illegally reentered the United States after having been deported.
All of the defendants were arrested on Nov. 17 in Glacier County by Border Patrol agents who were investigating suspected alien smuggling.
U.S. Magistrate Judge John T. Johnston presided. All of the defendants remain detained pending further proceedings.
The indictments are merely accusations and defendants are presumed innocent until proven guilty.
The case was investigated by U.S. Customs and Border Protection.
Pacer case reference. 19-84 and 19-85.
If any of the above cases are of interest to you, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Former college student pleads guilty to threatening professorsRead the Press Release
HONOLULU, Hawaii – Neill Ong Tumulac, 27, of Honolulu, Hawaii, pleaded guilty today in federal court to one count of transmitting a threat in interstate commerce. Sentencing is scheduled for April 9, 2020 before U.S. District Judge Leslie E. Kobayashi.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, from February 2018 to October 2018, Tumulac sent hundreds of threatening email messages to two of his professors at a local community college. The threats escalated and Tumulac threatened to murder one of the professors. The professors believed that they were potential targets of violence, and obtained temporary restraining orders against Tumulac. The professors suffered significant stress, anxiety, and one of them stopped teaching because of the threats.
Tumulac was declared incompetent to stand trial on April 3, 2019, and was sent to a facility on the mainland for rehabilitation. After receiving mental health treatment and responding favorably, Tumulac returned to Hawaii and was declared competent to stand trial on December 3, 2019. As part of his plea agreement, Tumulac acknowledged that he is in need of mental health treatment, and agreed that a condition of his supervised release shall require him to meaningfully participate in such treatment, including by cooperating with his treating physicians and taking any prescribed medications. According to information presented in court, Tumulac plans to re-enroll in college on the mainland following his release, with the support of his parents, who plan to reside with him.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Marc A. Wallenstein.
Former Owner of Trailblazers, Inc. Sentenced to 18 Months for Bankruptcy FraudRead the Press Release
LEXINGTON, Ky. – Barry E. Sanders, 64, the former owner and CEO of Trailblazers, Inc., an auto and truck parts supply business formerly located in Lexington, was sentenced today, by Senior U.S. District Judge Joseph M. Hood, to 18 months imprisonment for bankruptcy fraud.
Sanders had previously admitted in U.S. District Court that, while Trailblazers, Inc. was in the process of contemplating bankruptcy in the summer of 2013, he transferred $315,000 from the business to his personal banking accounts, using four cashier’s checks. Sanders then knowingly concealed the receipt of those funds, by failing to report the cash transfers on Trailblazers’ corporate bankruptcy filings in August 2013, as required by federal bankruptcy law.
Under federal law, Sanders must serve 85 percent of his prison sentence. Sanders will be under the supervision of the U.S. Probation Office for three years, following his release.
Robert M. Duncan, Jr., U. S. Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence.
The investigation leading to Sanders’ conviction was conducted by the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorneys Erin Roth and Will Moynahan.
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Former Mexican Secretary of Public Security Arrested for Drug-Trafficking Conspiracy and Making False StatementsRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Genaro Garcia Luna, the former Secretary of Public Security in Mexico from 2006 to 2012, with three counts of cocaine trafficking conspiracy and one count of making false statements. In exchange for multimillion-dollar bribes, the defendant allegedly permitted the Sinaloa Cartel to operate with impunity in Mexico. Garcia Luna was arrested yesterday by federal agents in Dallas, Texas, and the government will seek his removal to the Eastern District of New York to face these charges.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the charges.
“Garcia Luna stands accused of taking millions of dollars in bribes from ‘El Chapo’ Guzman’s Sinaloa Cartel while he controlled Mexico’s Federal Police Force and was responsible for ensuring public safety in Mexico,” stated United States Attorney Donoghue. “Today’s arrest demonstrates our resolve to bring to justice those who help cartels inflict devastating harm on the United States and Mexico, regardless of the positions they held while committing their crimes.” Mr. Donoghue thanked the Drug Enforcement Administration (DEA) offices in New York and Houston, Homeland Security Investigations, New York Field Office (HSI), New York City Police Department (NYPD) and New York State Police (NYSP) for their work on the case.
According to the indictment and other court filings by the government, from 2001 to 2012, while occupying high-ranking law enforcement positions in the Mexican government, Garcia Luna received millions of dollars in bribes from the Sinaloa Cartel in exchange for providing protection for its drug trafficking activities. From 2001 to 2005, Garcia Luna led Mexico’s Federal Investigation Agency, and from 2006 to 2012, he served as Mexico’s Secretary of Public Security, controlling Mexico’s Federal Police Force. In exchange for the payment of bribes, the Sinaloa Cartel obtained safe passage for its drug shipments, sensitive law enforcement information about investigations into the Cartel, and information about rival drug cartels, thereby facilitating the importation of multi‑ton quantities of cocaine and other drugs into the United States. On two occasions, the Cartel personally delivered bribe payments to Garcia Luna in briefcases containing between three and five million dollars. According to financial records obtained by the government, by the time Garcia Luna relocated to the United States in 2012, he had amassed a personal fortune of millions of dollars.
Garcia Luna continued to take steps in the United States to conceal his corrupt assistance to drug traffickers. Specifically, he allegedly submitted an application for naturalization in 2018, in which he lied about his past criminal acts on behalf of the Sinaloa Cartel.
If convicted of the drug conspiracy charge, Garcia Luna faces a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.
The investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, NYPD, NYSP, HSI, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, United States Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Eastern District’s International Narcotics and Money Laundering Section and Public Integrity Section. Assistant United States Attorneys Michael P. Robotti, Ryan Harris and Erin Reid are in charge of the prosecution.
The Defendant:
GENARO GARCIA LUNA
Age: 51
Residence: FloridaE.D.N.Y. Docket No. 19-CR-576 (RJD)
Former Manager of Heating and Cooling Company Pleads Guilty to Embezzling from her EmployerRead the Press Release
St. Louis, MO – Tracy Lee Cernicek, 48, of St. Charles, Missouri, pleaded guilty to one felony count of wire fraud. Cernicek appeared in federal court today before U.S. District Judge Stephen R. Clark who accepted her plea and set her sentencing date for March 10, 2020.
According to court documents, Cernicek formerly worked as a credit and collection supervisor for Nortek Global HVAC and Nordyne Distributing. Between September 2016 and April 2019, Cernicek devised and executed a scheme wherein she fraudulently diverted company funds to herself. As one part of her scheme, she altered company systems in a manner that caused company refund transactions, which were properly due and owing to customers, to be paid to her own bank account. As another part of her scheme, she directed third parties to include her name on checks that were properly payable to the company, and thereafter, deposited those checks into her own personal bank account. As part of her effort to conceal the scheme, Cernicek thereafter manipulated company accounting software to write off the transactions as bad debt. In total, Cernicek attempted to embezzle $179,750.96 from her employer and their customers, and successfully embezzled $134,834.56.
Cernicek faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The U.S. Secret Service is investigating this case. Assistant U.S. Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Former GE Engineer Sentenced for Stealing Trade SecretsRead the Press Release
ALBANY, NEW YORK – Miguel Sernas, age 41, of Mexico City, Mexico, was sentenced today to time served (approximately 12 months in jail) for conspiring to steal trade secrets from the General Electric Company (GE). Sernas was also ordered to pay restitution to GE in the amount of $1.4 million.
The announcement was made by 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).
Sernas, who pled guilty in May, admitted to conspiring with his business partner and co-defendant, Jean Patrice Delia, to compete against GE using trade secrets Delia stole from GE. Among the stolen trade secrets were advanced computer models created and used by GE to calibrate its turbines. Sernas and Delia used these trade secrets, as well as stolen marketing data and pricing information, to compete against GE while operating as Thermogen Power Services, a power plant performance evaluation company based in Montreal, Canada.
Sernas has been in custody since he was arrested in Detroit, Michigan, on December 3, 2018, after entering the United States on an international flight from Mexico.
Delia, age 44, and a citizen of Canada, pled guilty today to conspiring to steal trade secrets. He is scheduled to be sentenced on April 10, 2020.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Former GE Engineer Pleads Guilty to Conspiring to Steal Trade SecretsRead the Press Release
ALBANY, NEW YORK – Jean Patrice Delia, age 44, of Montreal, Canada, pled guilty today to conspiring to steal trade secrets from the General Electric Company (GE).
The announcement was made by 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).
As part of his plea, Delia, a former engineer with GE, admitted that he conspired with his business partner and co-defendant, Miguel Sernas, to compete against GE using trade secrets Delia stole from GE while employed by GE in Schenectady, New York. Delia admitted that he and Sernas, operating as ThermoGen Power Services, used the stolen trade secrets, as well as stolen marketing data, pricing information, and other confidential GE documents, to compete against GE around the world.
Delia faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on April 10, 2020 by Senior United States District Judge Norman A. Mordue. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Sernas, who pled guilty in May 2019, was sentenced today to time served (approximately 12 months in jail) and ordered to pay $1.4 million in restitution.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.