Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
24 January 2020
Three Aliens Indicted on Illegal Reentry Charges, Illegal and Unlawful Alien in Possession of a Firearm, Visa Fraud, and False Representation of a Social Security NumberRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina announces that a federal grand jury in Raleigh has returned indictments charging CARLOS ROBERTO VAZQUEZ-MORALES, age 27, of Mexico, and JOSE PARTIDA-COYT, age 51, of Mexico with Illegal Reentry of a Deported Alien.
Additionally, the grand jury returned a superseding indictment charging ESTUARDO CAMEY-GONZALEZ, age 50, of Guatemala, with illegal and unlawful alien in possession of a firearm, visa fraud and false representation of a social security number.
If convicted of illegal reentry, VAZQUEZ-MORALES, previously deported twice and found in Carteret County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to a felony conviction (identity theft), PARTIDA-COYT, previously deported and found in Johnston County, would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal alien in possession of a firearm, visa fraud, and false representation of a social security number, CAMEY-GONZALEZ would face maximum penalties of 65 years imprisonment, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.
****
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Streamwood Man Sentenced to Nearly 7 Years in Prison for Enticing Underage Boy to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — A Streamwood man was sentenced today to nearly seven years in federal prison for enticing a 16-year-old boy to produce sexually explicit videos of himself.
MICHAEL LIEDTKE, 35, pleaded guilty last year to one count of receipt of child pornography. U.S. District Judge Elaine E. Bucklo imposed a sentence of six years and eleven months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Douglas S. Beidler, Acting Deputy Special Agent-in-Charge of the Chicago office of the FBI; and Robert Berlin, DuPage County State’s Attorney. The Carol Stream Police Department provided valuable assistance. The government was represented by Assistant U.S. Attorneys Abigail Peluso and Matthew McCrobie.
Liedtke admitted in a plea agreement that in December 2016 he enticed the 16-year-old boy to create two sexually explicit videos and send them to Liedtke via cellphone. During a court-authorized search of Liedtke’s home last year, law enforcement discovered an external disk drive that contained 29 images and six videos of children engaged in sexually explicit conduct. Each of the children depicted in the images and videos was identified as a known child victim by the National Center for Missing and Exploited Children.
Liedtke also admitted in the plea agreement that in January 2019 he possessed and operated a video camera that he intentionally hid in the ceiling of a public restroom at the DuPage County Training Academy in Carol Stream. Recordings from the camera depicted the unclothed body parts of approximately 400 people using the restroom, including approximately 300 children under the age of 18. Liedtke acknowledged in the plea agreement that he placed the video camera in the restroom to obtain the images.
After Liedtke pleaded guilty in federal court, the DuPage County State’s Attorney’s Office moved to dismiss the parallel state criminal charges filed against Liedtke.
“My office will continue to prosecute and hold accountable those individuals who prey upon our youth,” said U.S. Attorney Lausch. “We appreciate the outstanding work of our colleagues at the DuPage County State’s Attorney’s Office, as well as our federal, state, and local law enforcement partners, who worked together to bring justice on behalf of the victims in this case.”
“Thanks to the coordinated efforts of law enforcement and prosecutorial partners at all levels, Mr. Liedtke will be held accountable for victimizing hundreds of our community’s most vulnerable citizens,” said FBI Acting Deputy SAC Beidler. “The FBI will always strive to safeguard our youth from those who seek to exploit them.”
“I would like to thank the U.S. Attorney’s Office for their work in removing this sexual predator from society,” DuPage County State’s Attorney Berlin said. “Mr. Liedtke’s deviant actions demonstrate his complete disregard for others and society as a whole. While this has been a very disturbing case, Mr. Liedtke’s guilty plea and nearly seven-year sentence underscores the close partnership shared by local and federal authorities working together to keep our communities safe.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com/home or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
St. Croix Resident Who Supplied over 20 Kilos of Cocaine at the Cyril E. King Airport for Transport Pleads Guilty to Drug Possession with Intent to DistributeRead the Press Release
St. Thomas, USVI –Jakwaan Sweeny, Jr., 21, of St. Croix, pleaded guilty in District Court before Judge Curtis Gomez, to possession with intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert announced.
According to court records, on September 24, 2018, Sweeney provided Shahime Ludvig, Jr. with 22.78 kilos of cocaine at the Cyril E. King Airport and a plane ticket to Atlanta. The cocaine was packaged as 20 individualized bricks and placed in a checked bag. Once in Atlanta, the coconspirator was to deliver the cocaine to another member of the cocaine conspiracy.
On the day of travel, Sweeney’s co-conspirator entered the Cyril E. King Airport and checked the bag for the flight. During a routine screening, a specially trained narcotics detection canine "alerted" on the bag. Customs and Border Protection officers in St. Thomas opened the bag and discovered the cocaine. Homeland Security Investigations arrested Ludvig prior to him boarding the flight. Ludvig entered a guilty plea in federal court in 2018.
Under federal law, Sweeney faces a minimum sentence of 10 years in prison and a maximum fine of $10,000,000.
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
South Bend, Indiana Man Entered Plea of GuiltyRead the Press Release
SOUTH BEND – United States Attorney Thomas L. Kirsch, II announced that Christopher Kinds, 34, of South Bend, Indiana pled guilty before United States District Court Judge Damon Leichty, sitting in South Bend. Kinds admitted to possessing over 500 grams of methamphetamine with the intent to distribute, and he admitted to possessing a firearm after having been convicted of a felony.
According to documents filed in this case, on September 5, 2019, investigators searched Mr. Kinds’ home and storage units at a rental facility, all in South Bend. Investigators arrested Mr. Kinds the same day. Investigators recovered over 2 kilograms of methamphetamine from his home and 37 firearms from him, his home, and his storage units. Mr. Kinds has a 2006 felony conviction in St. Joseph County where he was sentenced to 4 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department, St. Joseph County Drug Investigations Unit, and St. Joseph County SWAT Team. The case was handled by Assistant U.S. Attorneys Molly Donnelly and Kim Schultz.
###
Sixth and Final Defendant Sentenced to Prison for Sophisticated International Cellphone Fraud SchemeRead the Press Release
A citizen and resident of the Dominican Republic was sentenced today in Miami, Florida, to 65 months in prison for multiple criminal charges in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts in the United States and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edgar Estarlin Peralta Lopez, 42, pleaded guilty earlier to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. He was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, Peralta and his co-conspirators participated in a scheme to steal access to existing cellphone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
Peralta admitted that he played at least two roles in the conspiracy. First, he was a telecommunications trafficker. Specifically, Peralta would contract with telecommunication companies to transmit international calls for them for payment and then route those calls through cellphones reprogrammed with stolen or compromised telecommunications identifying information located at “call sites” in the United States. Peralta and other co-conspirators transmitted thousands of calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were later billed to United States customers’ compromised accounts. Second, Peralta was a “line” supplier, providing his co-conspirators with stolen or compromised telecommunications identifying information that they then used to reprogram the cellphones they controlled at call sites.
In addition, Peralta admitted to trafficking in approximately 3,158 combinations of stolen or compromised telecommunications identifying information, which were found in around over 1,390 emails he exchanged with co-conspirators. Verizon Wireless reported that fraudulent use of just three of these combinations resulted in a loss of over $33,000. Peralta admitted to a loss amount of at least $315,800.
Peralta is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States and then, in August 2019, extradited to Miami where he is currently in custody.
Peralta is the sixth and last defendant to be sentenced in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, Ramon Batista and Braulio de la Cruz pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section is prosecuting the case.
Seaford Man Pleads Guilty to Tax ChargeRead the Press Release
WILMINGTON, Del. – A Seaford man pleaded guilty today to filing a false tax return.
According to court documents, Lorne “Bob” Adams, 49, filed a false 2015 Federal Income Tax Return, omitting approximately $165,000 in income. Pursuant to his plea agreement, Adams further admitted to outstanding tax liabilities for 2013, 2014, and 2016. In total, Adams agreed to make restitution to the Internal Revenue Service totaling $112,628.00.
Adams pleaded guilty to Making False Statements on a Tax Return, and faces a maximum penalty of 3 years in prison when sentenced on May 29, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
“Lorne Adams’ failure to report all of his income is a felony offense that carries severe consequences,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “As we approach the beginning of tax filing season, would-be tax cheats are reminded that engaging in similar criminal behavior could result in a prison sentence.”
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after U.S. District Judge Richard G. Andrews accepted the plea. Assistant U.S. Attorney Lesley F. Wolf is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-cr-143.
San Francisco Man Sentenced to More Than 16 Years in Prison for Crimes Related to Illegal Fentanyl Pill Manufacturing OperationRead the Press Release
SAN FRANCISCO - Kia Zolfaghari was sentenced today to 200 months in prison for conspiring to distribute fentanyl, announced United States Attorney David L. Anderson and Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux. The sentence was handed down by the Honorable Susan Illston, Senior United States District Judge.
Zolfaghari, 43, of San Francisco, pleaded guilty to the fentanyl conspiracy charge as well as weapons and money laundering charges on July 12, 2019. According to his plea agreement, Zolfaghari admitted that from May of 2014 until June of 2016 he agreed with others to distribute and possess with intent to distribute fentanyl.
Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that attempt to mimic the effects of oxycodone. Typically, counterfeit pills made with fentanyl can be obtained at a lower cost than genuine oxycodone. However, small variations in the amount or quality of fentanyl can have significant effects on the potency of the counterfeit pills, raising the danger of overdoses. The San Francisco medical examiner’s office recently reported a large spike in fentanyl-related deaths—in 2019, 234 deaths in San Francisco are estimated to have involved fentanyl, compared with 90 in 2018.
In this case, Zolfaghari admitted that his role in the conspiracy included buying a pill press, using it to manufacture pills, and selling the pills, principally online. Zolfaghari admitted he stamped the pills in a manner consistent with genuine oxycodone and advertised the pills as oxycodone, but that the pills did not contain oxycodone and instead contained fentanyl.
In his plea agreement, Zolfaghari also described the roles of two of his co-conspirators in the drug trafficking conspiracy. For example, Zolfaghari acknowledged that one of his co-conspirators assisted him in the operation by packaging and mailing pills as well as cleaning up after he manufactured the pills. Additionally, Zolfaghari explained that another co-conspirator assisted him by maintaining a post office box for the delivery of the fentanyl powder that he used to make pills and by delivering the powder that arrived in that post office box. Zolfaghari admitted that over the course of the conspiracy he made over $400,000 through his sales, and sold at least 13,000 fentanyl pills. As described below, Zolfaghari spent the proceeds of his drug trafficking enterprise on luxury goods.
Zolfaghari also pleaded guilty to conspiring to launder the proceeds of the drug trafficking operation. Specifically, Zolfaghari admitted that sometime before May 1, 2014, he agreed with others to engage in several financial transactions to conceal the source and ownership of the proceeds of his drug sales. For example, he arranged to be paid in the digital currency bitcoin; he used unlicensed bitcoin brokers to exchange the bitcoin for cash; and he directed a co-conspirator to purchase gift cards with the cash. Zolfaghari further admitted that these transactions were intended to conceal the source and ownership of the funds. Zolfaghari also admitted he used the proceeds from his drug trafficking operation to make a $40,000 down payment (and additional monthly payments) on a 2015 Audi RS5 Coupe, which retailed for close to $80,000; to make payments on an apartment in San Francisco; and to purchase luxury goods such as high-end watches, designer shoes, and jewelry.
Zolfaghari was arrested on June 10, 2016. At the time of his arrest, Zolfaghari was found in possession of a Smith & Wesson handgun and 500 pills containing fentanyl.
On November 29, 2016, a federal grand jury returned a superseding indictment against Zolfaghari, charging him with four counts of distribution and possession with intent to distribute fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B); four counts of distribution and possession with intent to distribute 40 grams or more of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B); four counts of engaging in money laundering in violation of 18 U.S.C. § 1957; and one count each of conspiracy to manufacture, to possess with intent to distribute, and to distribute 400 grams or more of fentanyl, in violation of 21 U.S.C. § 846; using, carrying, or possessing a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c); and conspiracy to launder drug proceeds, in violation of 18 U.S.C. § 1956(h). Also charged in the case were King Edward Harris, II, 37, of Oxnard, and Zolfaghari’s wife, Candelaria Dagandan Vazquez, 44.
In April 2017, Zolfaghari and Vazquez jumped bail and failed to appear for hearings in this case. In February 2019, the United States Marshals Service and the Mexican Federal Police located Zolfaghari and Vazquez in Mexico and returned them to the United States.
In addition to the prison term, Judge Illston sentenced Zolfaghari to a five-year period of supervised release to follow his prison term, and ordered him to pay a $300 special assessment.
On February 9, 2018, Judge Illston sentenced Vazquez to 151 months imprisonment for her role in the conspiracy. On September 22, 2017, Judge Illston sentenced Harris to five years in prison for possession and distribution of 40 grams or more of fentanyl.
Assistant U.S. Attorney Nikhil Bhagat is prosecuting the case with the assistance of Linda Love. The prosecution is the result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Internal Revenue Service Criminal Investigation Division, the United States Postal Inspection Service, and U.S. Customs and Border Protection, with assistance from the United States Marshals Service, the San Francisco Police Department, the San Francisco Fire Department, and the Mexican Federal Police. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Real Estate Developer Pleads Guilty to Bank Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE, RI – A former construction project manager for a Newport-based real estate development company pled guilty in federal court in Providence on Thursday to twelve counts of bank fraud and two counts of aggravated identity theft charges, admitting that he created a scheme that defrauded banks, construction companies, and his employer of more than $200,000.
Gregory Meeker, 57, of Barrington, who oversaw various real estate development projects for Landings Real Estate Group (Landings), including the Newport Beach Club and Long Meadow Landings projects, admitted that two months after being employed by Landings in December 2015, he devised a scheme to submit invoices to Landings, many of which were false or inflated, in the names of subcontractors. Landings made checks payable to the subcontractors that were then provided to Meeker for delivery. Instead of delivering the checks to the subcontractors, Meeker forged endorsements on the back of the checks and deposited them into his own bank account.
Meeker admitted that in some instances, false invoices and subsequently forged endorsements on checks bore the names of individual subcontractors as opposed to business names, including at least two individuals known to him.
Meeker also admitted that he provided Landings with false paperwork related to GMC Construction, an entity he previously operated, including a false name and address, and a Social Security number of an unrelated individual. He prompted Landings to issue over $12,000 in checks to GMC Construction, which he endorsed and deposited into his own bank accounts.
Additionally, Meeker admitted that he forged the endorsement of the Town of Portsmouth on the back of three checks made payable to “Town of Portsmouth – Inspection Department.” He deposited the checks into one of four bank accounts he used for his fraudulent activity.
Gregory Meeker’s guilty plea before U.S. District Court Judge Mary S. McElroy to twelve counts of bank fraud and two counts of aggravated identity is announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Meeker is scheduled to be sentenced on April 7, 2020.
Bank Fraud is punishable by statutory penalties of up to thirty years' imprisonment, five years' supervised release, and a fine of $1,000,000. Aggravated identity theft is punishable by a term of imprisonment of two years, to be served consecutive to any other term of incarceration ordered in this matter, to be followed by one year supervised release.
The case, investigated by the Federal Bureau of Investigation, is being prosecuted by Assistant United States Attorneys Sandra R. Hebert and Christine D. Lowell.
###
Press Conference to Follow Sentencing of Pair from West Virginia in Kidnapping of Elderly VictimsRead the Press Release
Knoxville, Tenn. – Joshua Small, 52, and Joni Amber Johnson, 36, both of Princeton, West Virginia, are scheduled for sentencing on January 27, 2020, for their roles in a conspiracy to assault, kidnap and rob elderly victims The sentencing hearing is scheduled for 10:00 a.m. before the Honorable Chief Judge Pamela Reeves in the United States Courthouse in Knoxville.
From May 2018 to July 2018, Small and Johnson went on a spree of armed home invasions and kidnappings throughout West Virginia, Virginia, and East Tennessee. Small and Johnson targeted the homes of elderly victims, forcing entry into their residences, holding victims at gunpoint, and binding their hands and feet. Small and Johnson would then ransack the homes, stealing jewelry, valuables, heirlooms, and cash.
The home invasions were noteworthy for the egregious amount of violence directed towards the victims. In a home invasion in Dandridge, Tennessee, Small struck a 72-year-old male victim in the neck, bound his hands and feet with power cords, and shoved him down a flight of stairs into the basement. During a home invasion in Princeton, West Virginia, the two surreptitiously entered the home of an 88-year-old woman, holding her at gunpoint and ripping off her Life Alert necklace. Small then struck her in the head, knocking her unconscious and causing a substantial injury before fleeing the home with her pocket book. In Jefferson County, Tennessee, Small and Johnson forced their way into an 81-year-old man’s home, struck him in the head and neck, bound his hands and feet, gagged him, robbed him of $3,200 and fled. In total, Small and Johnson attacked, terrorized, kidnapped and robbed seven elderly victims.
Immediately following the sentencing hearing in this matter, U.S. Attorney J. Douglas Overbey and FBI Special Agent in Charge Joseph Carrico will make a statement and take questions from the media outside the Courthouse.
Assistant United States Attorneys Alan Kirk and Kevin Quencer represented the United States at trial and will continue to do so at sentencing.
###
Plummer Man Pleads Guilty to StrangulationRead the Press Release
COEUR D’ALENE – Brian Quilly Lozon, 40, of Plummer, Idaho, pleaded guilty to strangulation of an intimate partner, U.S. Attorney Bart M. Davis announced today. Sentencing for Lozon is set for April 10, 2020, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
According to court records, Lozon and the victim were in multiple altercations in June 2019. During one of these altercations, Lozon used his hands to grab the victim by the throat and impeded her ability to breathe. Later, during the same altercation, Lozon used his forearm to again apply pressure to her throat. Eventually the victim was able to get away from Lozon and seek help.
Strangulation is punishable by up to 10 years in federal prison, a fine of up to $250,000, and a term of supervised release of up to three years.
This case was investigated by Federal Bureau of Investigation and Coeur d’Alene Tribal Police Department.
# # #
Pittsburgh Felon with Nazi Obsession Charged with Illegal Possession of a FirearmRead the Press Release
PITTSBURGH, PA - A criminal complaint has been filed in federal court against a resident of Pittsburgh, Pa., charging him with possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Criminal Complaint named Dennis Alan Riggs, 50, as the sole defendant. Riggs made his initial appearance in federal court on Wednesday. Today he appeared before U.S. Magistrate Judge Lisa Pupo Lenihan. Riggs waived his preliminary exam and was ordered detained following the presentation of evidence by the government during his detention hearing.
According to the Criminal Complaint, on January 22, 2020 at approximately 6 a.m., FBI Special Agents and Task Force Officers executed a federal search warrant at 1540 Hatteras Street on Pittsburgh’s North Side as part of an ongoing investigation. During the search, law enforcement located seven firearms: a Ruger .223 Caliber AR-15 style rifle; a Ruger .22 caliber revolver; a Harrington & Richardson shotgun; a .38 special revolver; a Colt .38 Caliber revolver; a US revolver, 32 Caliber, which was loaded and with the hammer cocked; and a Harrington & Richardson shotgun. Agents also located multiple rounds of ammunition in the residence. Riggs is prohibited from possessing a firearm because he was convicted on March 30, 1994, of Aggravated Assault in the Court of Common Pleas of Allegheny County. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
According to information presented at the detention hearing, Riggs was aware that he was prohibited from possessing a weapon due to a prior felony conviction. Agents found on his phone a video depicting Riggs wearing Nazi apparel, offering Nazi salutes and loading and unloading an AR-15 style rifle; a video of the 2019 Christchurch, New Zealand mosque shootings which killed 51; images of the defendant with firearms; and a photograph of Dylann Roof with his current Bureau of Prisons contact information. Roof was convicted in the 2015 massacre at Emanuel African Methodist Episcopal Church in Charleston, South Carolina. Riggs decorated his house with Nazi and Hitler posters and pictures; possessed numerous other weapons, knives and daggers; and had hundreds of bottles of liquor and alcohol. The government also presented evidence showing six of the seven guns found during the search were loaded.
"Riggs’s Nazi videos, photos and paraphernalia clearly show his obsession with hate-based violence. His cache of firearms clearly shows his capability to act on that obsession," U.S. Attorney Brady said. "Our Office is committed to identifying, disrupting and preventing such potential threats to our community."
"This is a coordinated effort to keep our community safe," said FBI Pittsburgh Special Agent in Charge Robert Jones. "I commend our Joint Terrorism Task Force (JTTF), which includes our local, state and federal partners, for their investigative efforts in identifying and arresting this suspect. The FBI uses all of our resources to make sure firearms are kept out of the hands of those prohibited from having them."
The law provides for a maximum term of imprisonment of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica L. Smolar is prosecuting this case on behalf of the government.
The FBI Pittsburgh Joint Terrorism Task Force conducted the investigation leading to the criminal complaint in the case. Members of the FBI’s Joint Terrorism Task Force who were directly involved in this investigation include: FBI, Pennsylvania State Police, Allegheny County Police Department, Allegheny County Probation, and the Pittsburgh Bureau of Police.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that the defendant is guilty of an offense.
Pittsburgh Felon with Nazi Obsession Charged with Illegal Possession of a FirearmRead the Press Release
PITTSBURGH, PA - A criminal complaint has been filed in federal court against a resident of Pittsburgh, Pa., charging him with possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count Criminal Complaint named Dennis Alan Riggs, 50, as the sole defendant. Riggs made his initial appearance in federal court on Wednesday. Today he appeared before U.S. Magistrate Judge Lisa Pupo Lenihan. Riggs waived his preliminary exam and was ordered detained following the presentation of evidence by the government during his detention hearing.
According to the Criminal Complaint, on January 22, 2020 at approximately 6 a.m., FBI Special Agents and Task Force Officers executed a federal search warrant at 1540 Hatteras Street on Pittsburgh’s North Side as part of an ongoing investigation. During the search, law enforcement located seven firearms: a Ruger .223 Caliber AR-15 style rifle; a Ruger .22 caliber revolver; a Harrington & Richardson shotgun; a .38 special revolver; a Colt .38 Caliber revolver; a US revolver, 32 Caliber, which was loaded and with the hammer cocked; and a Harrington & Richardson shotgun. Agents also located multiple rounds of ammunition in the residence. Riggs is prohibited from possessing a firearm because he was convicted on March 30, 1994, of Aggravated Assault in the Court of Common Pleas of Allegheny County. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
According to information presented at the detention hearing, Riggs was aware that he was prohibited from possessing a weapon due to a prior felony conviction. Agents found on his phone a video depicting Riggs wearing Nazi apparel, offering Nazi salutes and loading and unloading an AR-15 style rifle; a video of the 2019 Christchurch, New Zealand mosque shootings which killed 51; images of the defendant with firearms; and a photograph of Dylann Roof with his current Bureau of Prisons contact information. Roof was convicted in the 2015 massacre at Emanuel African Methodist Episcopal Church in Charleston, South Carolina. Riggs decorated his house with Nazi and Hitler posters and pictures; possessed numerous other weapons, knives and daggers; and had hundreds of bottles of liquor and alcohol. The government also presented evidence showing six of the seven guns found during the search were loaded.
"Riggs’s Nazi videos, photos and paraphernalia clearly show his obsession with hate-based violence. His cache of firearms clearly show his capability to act on that obsession," U.S. Attorney Brady said. "Our Office is committed to identifying, disrupting and preventing such potential threats to our community."
"This is a coordinated effort to keep our community safe," said FBI Pittsburgh Special Agent in Charge Robert Jones. " I commend our Joint Terrorism Task Force (JTTF), which includes our local, state and federal partners, for their investigative efforts in identifying and arresting this suspect. The FBI uses all of our resources to make sure firearms are kept out of the hands of those prohibited from having them."
The law provides for a maximum term of imprisonment of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica L. Smolar is prosecuting this case on behalf of the government.
The FBI Pittsburgh Joint Terrorism Task Force conducted the investigation leading to the criminal complaint in the case. Members of the FBI’s Joint Terrorism Task Force who were directly involved in this investigation include: FBI, Pennsylvania State Police, Allegheny County Police Department, Allegheny County Probation, and the Pittsburgh Bureau of Police.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that the defendant is guilty of an offense.
Pawtucket Man Admits to Foreign Travel to Engage in Sex with a Minor, Transferring Obscene Material, Receiving Child PornographyRead the Press Release
PROVIDENCE – A Pawtucket man appeared in U.S. District Court in Providence today and admitted to a judge that he traveled to Canada in April 2019, to engage in illicit sexual activity with a 13-year-old female he befriended on social media.
Herbert J. Rodas, 23, also admitted that he sent the girl obscene photographs of himself and that he successfully encouraged her to send him sexually explicit photographs of herself.
Appearing before U.S. District Court Judge Mary S. McElroy, Rodas pleaded guilty to engaging in illicit sexual conduct with a minor in foreign places, transferring obscene material to a minor, and receipt of child pornography, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge Jason Molina, and Rhode Island State Police Superintendent Colonel James M. Manni.
In June 2019, the Winnipeg Police Service contacted the Rhode Island State Police Internet Crimes Against Children Task Force (ICAC) and Homeland Security Investigations (HSI) in Providence to report the sexual assault of a 13-year-old female. Winnipeg Police developed information that Rodas had travelled from the United States to Canada to engage in sexual activity with the minor victim with whom he had been communicating online since January 2019.
Today, Rodas admitted to the court that on April 25, 2019, he flew to Canada, rented a hotel room in his name for which he paid cash, and over the next three days he met with the victim on several occasions to engage in illicit sexual activity.
On July 11, 2019, ICAC Task Force members and HSI agents arrested Rodas. A court-authorized search of Rodas’ Pawtucket residence that day resulted in the seizure of Rodas’ passport, an airline boarding pass from Toronto to Boston for Rodas’ return trip from Canada in April 2019, a Super 8 Motel receipt, and several electronic devices.
He is scheduled to be sentenced on April 25, 2020.
Engaging in illicit sexual conduct with a minor in foreign places is punishable by up to 30 years imprisonment and lifetime supervised release. Transferring obscene material to a minor is punishable by up to 10 years’ imprisonment and 5 years’ supervised release. Receipt of child pornography is punishable by a term of incarceration of 5-30 years, to be followed by lifetime supervised release.
The case is being prosecuted by Assistant United States Attorney John P. McAdams.
United States Attorney Aaron L. Weisman thanks the Winnipeg Police Service for their assistance in the investigation of this matter.
###
Owner of Kitsap County guardianship business pleads guilty to stealing from disabled and elderly clientsRead the Press Release
Tacoma – A Kitsap County man who ran a business serving as a financial guardian for elderly or disabled clients pleaded guilty today in U.S. District Court in Tacoma to Social Security Fraud – Representative Payee Fraud. WAYNE JEROME HOUSTON, 61, of Port Ludlow, Washington owned and operated Cross Point Services LLC, a guardianship organization for disabled and vulnerable adults. Between November 2010 and December 2018, HOUSTON stole as much as $280,000 from client accounts and used the money for his own expenses. HOUSTON is scheduled for sentencing by U.S. District Judge Ronald B. Leighton on April 17, 2020.
“This defendant stole from those he was supposed to protect at least 240 separate times,” said U.S. Attorney Brian T. Moran. “He betrayed the clients who needed his help, as well as the Kitsap County Superior Court Judges who appointed him, believing he could be trusted to make sure disabled and vulnerable adults were protected.”
According to the plea agreement, HOUSTON and his company were responsible for managing the financial affairs of 15-20 clients a month. HOUSTON had access to the clients’ bank accounts so he could pay rent, utilities and other bills for them. Social Security benefits were paid into some of the accounts, for at least 13 clients who required a representative payee to manage their benefits. HOUSTON was the representative payee for at least 13 disabled clients. Beginning in 2010, HOUSTON used his position as guardian to write checks from the victim accounts to himself, to Cross Point Services, or to cash, and used ATMs to withdraw money from client accounts and used it for his own expenses. HOUSTON targeted clients who had significant income or resources so that the theft was less likely to be detected.
The amount stolen is still under investigation but is between $150,000 and $280,941. Of that, approximately $83,000 was Social Security Administration benefit funds.
Social Security Fraud – Representative Payee Fraud is punishable by up to 5 years in prison and a $250,000 fine. Under the terms of the plea agreement prosecutors will recommend no more than 40 months in prison. Judge Leighton is not limited by the recommendation and the ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and the Kitsap County Sheriff’s Office. The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.
Owings Mills Man Pleads Guilty to Federal Charge of Possessing A Firearm in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – Timothy Herndon, age 29, of Owings Mills, Maryland, pleaded guilty on January 22, 2020 to possession of a firearm in furtherance of a drug trafficking crime.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
United States Attorney Robert K. Hur stated, “Timothy Herndon brought danger to our community through the deadly combination of guns and drugs. Now he likely eight years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to the plea agreement, on the morning of May 16, 2019, ATF Special Agents executed a search warrant at Herndon’s residence in Owings Mills. After being read his Miranda warnings, Herndon told agents that he had placed a firearm in a shoebox in the second-floor bedroom. Agents recovered that firearm, then searched the rest of the residence.
In the living room, agents recovered one clear bag containing multiple black plastic zip lock baggies of cocaine base (crack) and approximately $2,000 in U.S. currency. In the kitchen trashcan under the trash bag, they found additional small black zip lock baggies of cocaine base (crack), a black shopping bag containing razor blades, multiple clear plastic bags, and one round of 9-millimeter ammunition.
From underneath the dishwasher, agents recovered the following: three loaded firearms; two clear plastic sandwich bags containing cocaine; additional drug paraphernalia; and a paper bag containing a large amount of United States currency. Agents found a total of nearly $40,000 in cash inside of the residence.
Herndon and the government have agreed that, if the Court accepts the plea agreement, Herndon will be sentenced to 96 months (8 years) in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for March 27, 2020 at 2:00 p.m.
United States Attorney Robert K. Hur commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary Stendig and Lindsey McCulley, who are prosecuting the case.
# # #
Operation Shutdown Corner Update: Two Defendants Enter Guilty Pleas to Federal Drug CrimesRead the Press Release
BECKLEY, W.Va. – Two men pled guilty today for their participation in a drug trafficking operation in Raleigh County, announced United States Attorney Mike Stuart. David Dove, 49, of Scarbro, pled guilty to conspiracy to distribute 50 grams or more of a substance containing methamphetamine, while Christopher Redden, 40, of Beckley, entered guilty pleas to conspiracy to distribute a quantity of a substance containing methamphetamine and being an unlawful drug user in possession of a firearm. Dove and Redden were charged as a result of a long-term investigation known as Operation Shutdown Corner.
“Operation Shutdown Corner did just that – it shut down a significant meth trafficking organization,” announced United States Attorney Mike Stuart. “Meth is now the most pressing drug problem in my District. We’re fighting back through successful joint law enforcement efforts like this that dismantle significant drug trafficking organizations bringing large amounts of meth into our region.”
Dove admitted that between June 2018, and September 17, 2019, he worked with other members of a drug trafficking organization (DTO) operating in Raleigh County, West Virginia to distribute methamphetamine. Dove admitted that during this time period he supplied other members of the drug trafficking organization with distribution quantities of methamphetamine knowing that it the other members would resell the methamphetamine illegally. Dove admitted he was participating in recorded conversations regarding drug activity and to meeting with other members of the DTO to distribute and exchange controlled substances. Dove also admitted that when he was arrested, law enforcement officers found two “eight-balls” of methamphetamine that he intended to distribute. Dove admitted that he was responsible for distributing between 1.5 kilograms and 5 kilograms of methamphetamine during this time period.
Christopher Redden admitted that between January 2019 and September 17, 2019, he participated in the drug trafficking organization by working with Stephanie McClung and others to distribute methamphetamine and heroin within the Southern District of West Virginia. During this time period, Redden admitted to obtaining approximately 50 grams of methamphetamine a month and a quantity of heroin that he intended to re-distribute. Redden admitted that at times he was “fronted” the drugs, or given drugs without paying for them, and then selling the drugs for profit to pay back the supplier. Other times he admitted to paying for the drugs up front. Additionally, Redden admitted that on September 18, 2019 when he was arrested, he was in possession of a Taurus, model G2C, 9mm semi-automatic pistol that he had received as payment for methamphetamine. He also admitted that at the time he possessed the firearm he knew he was an unlawful user of controlled substances and therefore prohibited from possessing any firearms.
Stuart commended the cooperative investigative efforts of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department, and the West Virginia State Police.
Both Dove and Redden are scheduled to be sentenced on May 4, 2020. Dove faces a mandatory minimum period of five years and up to forty years in prison and a $5 million fine. Redden faces up to thirty years for the drug and gun charge and a fine of up to $1,250,000.
Assistant United States Attorney Timothy D. Boggess is in charge of the prosecutions. United States District Judge Frank W. Volk presided over the hearings.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Operation Fall of the House of Usher Helps Dismantle Multi-State Methamphetamine Drug Trafficking OrganizationRead the Press Release
WILMINGTON – United States Attorney Robert J. Higdon, Jr. announced that over the course of the last several months in federal court, 32 defendants have been sentenced in a large-scale methamphetamine trafficking investigation.
The investigation was part of an Organized Crime Enforcement Task Force (OCDETF) investigation entitled Operation “Fall of the House of Usher,” which was undertaken in direct response to the explosion of kilogram amounts of extremely potent methamphetamine (with purities as high as 99%) being imported into Duplin, Sampson and New Hanover Counties. According to the DEA, the methamphetamine was so pure that some users reported consuming heroin to counter balance the effects. The initial focus of the investigation was WILLIAM USHER who imported multiple kilograms of methamphetamine from at least four separate Drug Trafficking Organizations in California and Georgia.
An OCDETF investigation is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is a classic example of the combining of an OCDETF operation with our Take Back North Carolina Initiative. DEA and FBI task force officers were able to identify members and associates of this large scale organization and then partner with the United States Attorney’s Office to develop a strategy to dismantle this organization. After being armed with local intelligence, law enforcement was able to utilize the substantial resources and tools of the federal government to help break the back of this organization. The success of this case would not have been possible without these partnerships.
The defendants’ convictions and sentencings were the culmination of an investigation that started in early 2017 focusing on the shift from local clandestine methamphetamine labs to high purity methamphetamine produced on a large scale outside North Carolina and being smuggled into Eastern North Carolina. As part of the investigation, federal and local law enforcement conducted controlled purchases of methamphetamine and heroin, executed search warrants and conducted traffic stops. Information was also used to make arrests in California and South Carolina.
Forty-one defendants were charged in this investigation, forty have pled guilty in federal court, and thirty-two have been sentenced to date. One defendant, Brandon Dudley, went to trial and was convicted by a jury. He is currently pending sentencing. Of the thirty-two defendants sentenced, the combined sentence for all defendants is 3,351 months, which equates to an average sentence for this operation to 104 months. According to law enforcement, the organization was responsible for the importation and distribution of more than 50 kilograms of methamphetamine. A total of 40 firearms and more than $400,000.00 in currency and property have been seized.
Some of the defendants include:
- WILLIAM USHER, 33, of Duplin County, NC. USHER pled guilty to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, Possession with intent to distribute 50 grams or more of methamphetamine, distribution of a quantity of methamphetamine (aiding and abetting) and possession of a firearm in furtherance of a drug trafficking crime. USHER was sentenced to 180 months’ imprisonment.
- KEVIN WHITE, 42, of Duplin County, NC. WHITE pled guilty to Conspiracy to Possess With Intent to Distribute 50 Grams or More of Methamphetamine, Distribution of a Quantity of Methamphetamine, Possession With Intent to Distribute a Quantity of Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. WHITE was sentenced to 132 months’ imprisonment.
- KEVIN FAIRCLOTH, 38, of Duplin County, NC, pled guilty to Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine, Possession With Intent to Distribute a Quantity of Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. FAIRCLOTH was sentenced to 144 months’ imprisonment.
- ERIC HERNANDEZ, 24, of Sampson County, NC, pled guilty to Possession With Intent to Distribute a Quantity of Methamphetamine and Conspiracy to Possess With the Intent to Distribute 50 Grams or More of Methamphetamine. HERNANDEZ was sentenced to 102 months’ imprisonment.
- BRIAN SHOLAR, 53, of Duplin County, NC, pled guilty to Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine and Possession With Intent to Distribute a Quantity of Methamphetamine. SHOLAR was sentenced to 120 months’ imprisonment.
- MARCUS SPANN, 19, of South Carolina, pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute 28 Grams or More of Cocaine Base (Crack) and a Quantity of Heroin, Distribution and Possession With Intent to Distribute a Quantity of Heroin and Aiding and Abetting and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. SPANN was sentenced to 48 months’ imprisonment.
- ERIC DUDLEY, 39, of Duplin County, NC, pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute 50 Grams or More of Methamphetamine and Possession With Intent to Distribute and Distribute a Quantity of Methamphetamine. DUDLEY was sentenced to 220 months’ imprisonment.
- HECTOR MENOCAL-RUIZ, 28, of Duplin County, NC, pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute 5 Kilograms or More of Cocaine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. MENOCAL-RUIZ was sentenced to 180 months’ imprisonment.
- DAVID GIGUIERE, 61, of Duplin County, NC, pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute 50 Grams or More of Methamphetamine and Distribution of a Quantity of Methamphetamine and Aiding and Abetting. GIGUIERE was sentenced to 120 months’ imprisonment.
- JAVIER MERCADO, 41, of California, pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute 50 Grams or More of Methamphetamine. MERCADO was sentenced to 168 months’ imprisonment.
- JESUS RIOS, 39, of California, pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute More Than 50 Grams of Methamphetamine. RIOS was sentenced to 120 months’ imprisonment.
- AARON ROBICHAUX, 37, of New Hanover County, NC, pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute 500 Grams or More of Methamphetamine, Possession With Intent to Distribute a Quantity of Methamphetamine and a Quantity of Cocaine and Felon in Possession of a Firearm. ROBICHUAX was sentenced to 252 months’ imprisonment.
- JULIO NAJERA, 26, of Sampson County, NC, pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute 50 Grams or More of Methamphetamine, Distribution of 50 Grams or More of Methamphetamine and Possession With Intent to Distribute 50 Grams or More of Methamphetamine. NAJERA was sentenced to 144 months’ imprisonment.
The remaining defendants are scheduled to be sentenced over the course of the next few months.
The Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Duplin, New Hanover County and Sampson County Sheriffs’ Office, and the North Carolina State Bureau of Investigation conducted the investigation of this case. Assistant United States Attorneys Timothy Severo, Murphy Averitt and Bradford Knott prosecuted this case on behalf of the government. This OCDETF operation was nominated and received the Eastern District of North Carolina OCDETF Operation of the Year.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
One-day prison sentence vacated as result of U.S. Attorney’s Office appealRead the Press Release
DAYTON – Today the Sixth Circuit Court of Appeals filed an opinion vacating a one-day sentence that the U.S. Attorney’s Office appealed as unreasonably low in a child exploitation case.
Andrew Demma, 41, of Dayton, pleaded guilty in June 2017 to possessing child pornography involving pre-pubescent minors.
According to the Court of Appeal’s opinion, the FBI obtained and executed a search warrant in August 2015 at Demma’s residence and seized several electronic devices from the residence, finding more than 3,600 images and 230 videos of child pornography in Demma’s possession. Many of the images depicted adult men raping and otherwise sexually abusing pre-pubescent girls.
Demma was sentenced in October 2018 to one day in prison (under Bureau of Prison rules, the day on which Demma was processed by the Marshals following his arrest would have constituted the “one day” in prison).
At sentencing, psychologists testifying on behalf of the defense stated Demma’s use of child pornography stemmed from results of combat trauma during deployments with the United States military in Iraq. The Court of Appeals in its ruling specifically noted, however, “that there is no evidence in the record to support the proposition that military veterans suffering from PTSD typically become addicted to child pornography.”
Following sentencing, the government appealed, arguing that the effectively non-custodial sentence was unreasonably low.
The Sixth Circuit Court of Appeals took note of the size and nature of Demma’s child pornography collection and the fact he accessed child pornography on a daily basis by the use of complex software. The Sixth Circuit opinion also emphasized the serious and continuing harm inflicted upon victims of child pornography, and the need for sentences in this area to deter similar offenses.
Today’s opinion vacates Demma’s sentence, and the case has been sent back to the district court for re-sentencing. No re-sentencing date has been set as yet.
Appellate Chief Mary Beth Young argued the appeal on behalf of the United States. Demma’s criminal case was investigated by the FBI and prosecuted by Assistant Deputy Criminal Chief Laura I. Clemmens and Assistant United States Attorney Andrew J. Hunt.
# # #
Omaha Man Sentenced to 50 Months for Transporting an Explosive with Intent to Injure and Interstate StalkingRead the Press Release
United States Attorney Joe Kelly announced that Craig Niedbalski, age 61, was sentenced on January 22, 2020, in federal court in Omaha, Nebraska, for Transporting an Explosive with Intent to Injure and Interstate Stalking. United States District Court Judge Robert F. Rossiter, Jr., sentenced Niedbalski to 50 months’ imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Niedbalski will begin a three-year term of supervised release.
Niedbalski, met his victim, G.J., at a Catholics single club in Omaha in about 1986. G.J. and Niedbalski knew each other because of their membership in the club. Beginning in the mid-1990s, Niedbalski began sending unwanted letters and post cards to G.J. The letters and postcards were threatening and contained sexually explicit statements involving G.J. and her family. The letters and postcards were generally hand written or produced using a typewriter. From about 1996 to September of 2018, Niedbalski sent G.J. more than 100 threatening and unwanted letters and postcards. G.J. reported the conduct to the police
On July 23, 2003, Niedbalski sent a package in the mail to G.J. containing an object appearing to be a pipe bomb. On August 31, 2018, Niedbalski sent G.J. a package in the mail containing an incomplete improvised explosive device (“IED”). The IED consisted of a mobile phone connected by tape and wire to a galvanized steel pipe nipple, with galvanized steel endcaps, and a pyrotechnic mixture of gray powder and other materials, which, when properly confined and ignited, may explode. On the outside of the package was written, “CALL 402 680 [XXXX] FOR OPENING INSTRUCTIONS.”
During the 20 years of stalking, G.J. became involved in various civil lawsuits with Niedbalski to try and get him to stop stalking her. G.J. also had protective orders placed against Niedbalski. However, Niedbalski still refused to admit that he was sending the letters and postcards in the mail. The United States Postal Inspection Service was finally able to prove that Neidbalski was stalking G.J. when he sent the IED on August 31, 2018. The Postal Inspection Service forensically confirmed that the postage label on the envelope containing the IED matched images of postage labels that Niedbalski had saved in his digital devices. Niedbalski used a postage label that he had previously received in the mail, he digitally altered it, and he then placed the altered postage label on the envelope containing the IED. Despite Niedbalski’s attempt to alter the postage label, Postal Inspection Service was able to confirm that the postage label on the IED mailing matched the images saved on Niedbalski’s devices.
United States Attorney Joe Kelly recognized the excellent work and efforts of the United States Postal Inspection Service for solving this escalating, 20-plus-year course of conduct terrorizing the victim. USA Kelly added, “The district court’s sentence, which was above the advisory guidelines, should be a warning to those who stalk and terrorize others.”
The case was investigated by the United States Postal Inspection Service.
Oklahoma City Man Convicted in Two-Month Bank Robbery SpreeRead the Press Release
OKLAHOMA CITY – Yesterday afternoon, a federal jury found DWAYNE EDWARD RASMUSSEN, 55, of Oklahoma City, guilty of committing three bank robberies in Oklahoma City and Chickasha, announced U.S. Attorney Timothy J. Downing.
According to evidence at trial, Rasmussen robbed three banks in the course of two months: on March 5, 2019, he robbed the Weokie Credit Union at 2727 Southwest 15th Street in Oklahoma City; on March 18, 2019, he robbed the Bank of the West at 1600 Southwest 89th Street in Oklahoma City; and on April 30, 2019, he robbed the Community Bank of Oklahoma at 1227 West Grand Avenue in Chickasha. Mark Drew Wilson, Rasmussen’s accomplice for the robberies, testified to driving the getaway vehicle and the preparation for each robbery. Evidence further showed that in each of the robberies, Rasmussen wore gloves and disguised his appearance to avoid apprehension. Trial evidence from bank surveillance video and identifications by bank employees tied Rasmussen to each bank robbery. In the robberies, Rasmussen used the same terminology demanding "100s and 50s," and threatened "That’s not enough. Give me all your money." During the trial, nine bank employees and one bank customer testified about the use or intimation of a dangerous weapon during the commission of the bank robberies.
The trial lasted six days, and the jury deliberated approximately nine hours before finding Rasmussen guilty of three counts of bank robbery. He was acquitted on one additional bank-robbery count.
At sentencing, Rasmussen faces a maximum potential penalty on each of the bank robbery counts of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution. If, however, the court determines his criminal history includes two or more serious violent felonies, he could be subject to mandatory life in prison.
Last November, Mark Drew Wilson pleaded guilty to a conspiracy to commit bank robbery. Wilson is currently awaiting sentencing, where he faces up to five years in prison, three years of supervised release, a fine of $250,000, and restitution to four banks.
This case is the result of an investigation by the FBI—Oklahoma City Field Office and Laboratory Division in Quantico, the Oklahoma City Police Department, the Yukon Police Department, and the Chickasha Police Department. Assistant U.S. Attorneys Wilson D. McGarry and Mary E. Walters prosecuted the case.
Nine East Texans Arrested for Trafficking MethamphetamineRead the Press Release
TYLER, Texas - U.S. Attorney Joseph D. Brown announced today that nine individuals have been arrested pursuant to a federal indictment charging them with drug and firearms violations in the Eastern District of Texas.
A federal grand jury returned the 42-count indictment on Jan. 15, 2020, charging the following individuals with being involved in a conspiracy to traffic methamphetamine in Smith, Cherokee, and Rusk counties:
Alexa Leigh Brown, 50, of Tyler;
Stanley Wayne Hunter, 43, of Troup, Texas;
David Raymond Lusk, 41, of Jacksonville, Texas;
Johnathan Rudy Duke, 30, of Recklaw, Texas;
Anthony Russell Hamilton, 42, of Tyler;
Donald Ray Carr, 55, of Tyler;
Justin Ray Carr, 32, of Tyler;
Joseph Paul Melancon, 46, of Henderson, Texas; and
Tonya Hudson Hammonds, 46, of Troup.
The indictment alleges that the arrested individuals conspired with others to distribute large quantities of methamphetamine in the Eastern District of Texas, and that several of the defendants possessed firearms while being convicted felons and in furtherance of their drug trafficking activities. The defendants appeared before U.S. Magistrate Judge K. Nicole Mitchell on Jan. 22 and 24, 2020, to be arraigned on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, and use, carrying, or possession of a firearm during and in furtherance of a drug trafficking crime. Many of the charged offenses carry a statutory penalty range that includes life in prison.
This case is the result of a nearly two-year joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Texas Department of Public Safety; Smith County Sheriff's Office, Tyler Police Department, Troup Police Department, Cherokee County Sheriff's Office, Jacksonville Police Department, Rusk County Sheriff's Office, Henderson Police Department, and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Lucas Machicek.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Women Plead Guilty in Credit Card Fraud ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that LAKISHA WILLIAMS, age 38, and her spouse BRITTANY WHITE, age 33, both of New Orleans, pleaded guilty today before U.S. District Judge Barry W. Ashe to charges stemming from their participation in a credit card fraud ring that operated in the New Orleans area.
According to court documents, WILLIAMS and WHITE and the other defendants engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own own bank accounts.
Court documents also detail how WILLIAMS took flights with other co-conspirators to perform fraudulent credit card transactions in various cities in the United States, including Charleston, South Carolina; Chicago, Illinois; Ft. Lauderdale, Florida; Nashville, Tennessee; St. Louis, Missouri; Richmond, Virginia; and Charlotte, North Carolina. WILLIAMS and WHITE admitted that they caused between $150,000.00 and $250,000.00 in losses through their own conduct and that of their co-conspirators.
WILLIAMS pleaded guilty to four counts of the Third Superseding Indictment: conspiracy to commit access device fraud, possession of fifteen or more counterfeit or unauthorized access devices, possession of device-making equipment, and aggravated identity theft. WHITE pleaded guilty to two counts: conspiracy to commit access device fraud and possession of fifteen or more counterfeit or unauthorized access devices.
As to the conspiracy charge, both WILLIAMS and WHITE face a maximum of five years in prison. As to the charge of possession of fifteen or more counterfeit or unauthorized access devices, WILLIAMS and WHITE may receive a maximum of ten years in prison. As to the charge of possession of device making equipment, WILLIAMS may receive a maximum of up to fifteen years in prison. As to the charge of aggravated identity theft, WILLIAMS must be sentenced to two years in prison to be served consecutively to any other sentence. Each defendant may also be fined up to $250,000.00 or twice the gross gain or gross loss for each count. Sentencing is set for both defendants on April 30, 2020, before Judge Ashe.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Strasser also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.
* * *
Nekoosa Man Sentenced to 72 Months for Possessing Sawed-Off ShotgunRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jere Wipfli, 48, Nekoosa, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 72 months in federal prison for illegally possessing a sawed-off shotgun. Wipfli pleaded guilty to this charge on August 16, 2019.
On May 24, 2018, Wipfli failed to appear for a jury trial in Adams County, Wisconsin. Law enforcement officers traveled to Wipfli’s Nekoosa home where they arrested him. While at Wipfli's residence, officers observed freshly fired shell casings on the deck and driveway. A condition of Wipfli's bond prohibited him from possessing weapons. Officers obtained a search warrant for Wipfli's residence and seized a sawed-off Remington 12-gauge shotgun, as well as evidence of drug distribution. During an interview with law enforcement, Wipfli admitted to possessing the weapon and knowing it was illegal due to its length.
The charge against Wipfli was the result of an investigation conducted by the Rome Police Department, Juneau County Sheriff’s Office, Necedah Police Department, Nekoosa Police Department, Adams County District Attorney’s Office, Juneau County District Attorney’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Chadwick M. Elgersma handled the prosecution.
This case was brought as part of the Project Safe Neighborhoods (PSN) initiative, the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
NYC Restaurateur Pleads Guilty in Manhattan Federal Court to Tax Evasion SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, and Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that ADEL KELLEL, owner of Raffles Bistro, formerly a restaurant located in New York City, pled guilty today for his role in a tax evasion scheme. KELLEL pled guilty before Chief Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court, restaurateur Adel Kellel cooked his books for years, skimming money from his restaurant and salting it away in personal accounts or using it for personal expenses. His scheme was a recipe for making millions in unreported income, but now he will have to pay for his gluttony.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “The defendant funded his lavish lifestyle by failing to pay legally obligated taxes thus causing harm to all Americans. We remain committed to prosecuting tax criminals who refuse to pay their fair share.”
IRS-CI Chief Jonathan D. Larsen said: “When Mr. Kellel chose to hide millions of dollars from the IRS, he unfairly shifted the tax burden to honest American taxpayers. As we start the tax filing season, this is a stark reminder of the serious consequences of tax evasion, including potential imprisonment. IRS-CI will continue to be relentless in our mission to root out tax fraud.”
According to the Information to which KELLEL pled guilty and statements made in court:
In 2011, KELLEL was the President and a 45 percent owner of K&H Restaurant, Inc. (“K&H”), which operated Raffles Bistro (“Raffles”), a restaurant then located in a hotel (the “Hotel”) in Manhattan. From 2012 through 2015, KELLEL was the 100 percent owner of K&H. The gross receipts of K&H consisted primarily of: (a) credit card payments by Raffles’ customers; (b) cash payments by Raffles’ customers; and (c) check payments by the Hotel for various services that Raffles provided to hotel guests and patrons, including room service, banquets, and catering.
KELLEL concealed and did not report to the Internal Revenue Service (“IRS”) a substantial portion of K&H’s gross receipts for the calendar years 2011 through 2015. As part of his tax evasion scheme, KELLEL deposited substantial cash income received from Raffles’ customers into personal bank accounts or spent it directly on personal expenses, without disclosing it to his accountants or paying taxes on it. KELLEL also diverted over 150 Hotel checks, totaling over $2 million in gross receipts, by depositing the checks into approximately a dozen bank accounts that KELLEL did not disclose to his accountants.
KELLEL used the diverted income for various personal expenses, including overseas transfers; condominium fees; rent for a high-end Manhattan apartment; college tuition payments from his children; shopping at luxury retailers, such as Hugo Boss and Saks Fifth Avenue; payments for luxury cars manufactured by Mercedes, Porsche, and Maserati; and payments for domestic and international travel.
By fraudulently concealing from his accountants the cash and a portion of the Hotel checks received by Raffles, KELLEL caused K&H’s corporate income tax returns and KELLEL’s own individual income tax returns for the calendar years 2011 through 2015 to be materially false. As a result of his conduct, KELLEL admitted to causing a combined tax loss of at least approximately $771,195 to the IRS and the New York State Department of Taxation and Finance (“NYSDTF”).
* * *
KELLEL, 62, of New Hyde Park, New York, pled guilty to one count of tax evasion and faces a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. As part of his plea, KELLEL agreed to pay at least $771,195 in restitution to the IRS and the NYSDTF. KELLEL is scheduled to be sentenced by U.S. District Judge Paul G. Gardephe on April 23, 2020.
Mr. Berman praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case. Mr. Berman also thanked the U.S. Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Olga I. Zverovich and Special Assistant U.S. Attorney Jorge Almonte of the Department of Justice’s Tax Division are in charge of the prosecution.
Manhattan Restauranteur Pleads Guilty to Tax Evasion SchemeRead the Press Release
The owner of a former New York City restaurant pleaded guilty to tax evasion today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, and Chief of Internal Revenue Service- Criminal Investigation (IRS-CI) Jonathan D. Larsen.
“The defendant funded his lavish lifestyle by failing to pay legally obligated taxes thus causing harm to all Americans,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “We remain committed to prosecuting tax criminals who refuse to pay their fair share.”
“As he admitted in court, restaurateur Adel Kellel cooked his books for years, skimming money from his restaurant and salting it away in personal accounts or using it for personal expenses,” said U.S. Attorney Geoffrey S. Berman for the Southern District of New York. “His scheme was a recipe for making millions in unreported income, but now he will have to pay for his gluttony.”
“When Mr. Kellel chose to hide millions of dollars from the IRS, he unfairly shifted the tax burden to honest American taxpayers,” said IRS-CI Chief Jonathan D. Larsen. “As we start the tax filing season, this is a stark reminder of the serious consequences of tax evasion, including potential imprisonment. IRS-CI will continue to be relentless in our mission to root out tax fraud.”
According to the Information and statements made in court, in 2011, Adel Kellel was the President and a minority owner of K&H Restaurant Inc. (K&H), which operated Raffles Bistro (Raffles), a restaurant located at a New York City-based hotel. From 2012 through 2015, Kellel was the sole owner of K&H. K&H’s gross receipts consisted primarily of: (1) credit card payments by Raffles customers; (2) cash payments by Raffles customers; and (3) check payments by the hotel for services that Raffles provided to hotel guests and patrons, including room service, banquets, and catering.
From 2011 through 2015, Kellel concealed a substantial portion of K&H’s gross receipts by not fully reporting the cash received from Raffles’ customers. Kellel further hid the gross receipts by depositing cash into personal bank accounts, by spending funds directly on personal expenses, and by diverting checks paid by the hotel to K&H into non-business bank accounts that Kellel hid from his accountants. During this time, Kellel diverted more than 150 hotel checks, totaling more than $2 million, to more than a dozen bank accounts.
Kellel used the diverted income for personal expenses, including: overseas transfers; condominium fees; rent for a high-end Manhattan apartment; college tuition payments from his children; shopping at luxury retailers, such as Hugo Boss and Saks Fifth Avenue; payments for luxury cars manufactured by Mercedes, Porsche, and Maserati; and to pay for domestic and international travel.
By fraudulently concealing from his accountants the cash and a portion of the hotel checks received by Raffles, Kellel caused K&H’s corporate tax returns, and Kellel’s own tax returns from 2011 through 2015 to be materially false. Kellel admitted that his conduct caused a tax loss of at least $771,195 to the Internal Revenue Service (IRS) and the New York State Department of Taxation and Finance (NYSDTF).
U.S. District Judge Paul G. Gardephe set sentencing for April 23, 2020. At sentencing, Kellel faces a maximum sentence of five years in prison. He also faces a term of supervised release and monetary penalties. As part of his plea agreement, Kellel agreed to pay restitution of $613,478 to the IRS, and to pay restitution of $157,717 to NYSDTF.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Berman, and IRS-CI Chief Larsen praised the efforts of IRS-CI, who conducted the investigation, and Assistant Chief Jorge Almonte of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich, who are in charge of the prosecution.
Man from Las Vegas, Nevada sentenced to 3 years in federal prison for wire fraud targeting military memberRead the Press Release
ALBUQUERQUE, N.M. – Richard E. Sipe, 39, of Las Vegas, Nevada was sentenced in federal court in Albuquerque on January 23 to three years (36 months) in prison for wire fraud after executing a scheme to steal money from a member of the Army by convincing her to accept worthless checks in exchange for cash.
Sipe previously pleaded guilty to this offense on June 11, 2019. According to public court records, Sipe met the victim at Sky City Casino near Grants, New Mexico. Sipe gave the victim a false name and convinced her he had adequate money in the bank but had reached his limit to withdraw money from his account. Sipe asked the victim to give him cash in exchange for checks written on his bank account. She agreed and gave Sipe cash in exchange for checks totaling $6000 between approximately December 2017 and April 2018. The victim withdrew the cash from an ATM. The victim tried to deposit the checks in her bank account but the bank rejected the checks because Sipe’s account was closed. When the victim confronted Sipe over the phone, he admitted he had been defrauding people for approximately ten years. Sipe said he specifically targeted military members because he believed they usually had quick access to cash.
Sipe’s sentence also included an order to pay restitution to the victim. Sipe must also serve a three-year term of supervised release after completing his prison sentence.
The Bureau of Indian Affairs and New Mexico State Police investigated the case. U.S. Attorney John C. Anderson prosecuted the case.
Man Sentenced to 50 Years in Prison for Orchestrating Snapchat Sextortion Ring that Targeted ChildrenRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Chief W. Howard Harrison of the Planation Police Department, and Chief Dale Engle of the Davie Police Department, announced that Joseph Isaiah Woodson, Jr., 30, of Ashburn, Virginia, was sentenced yesterday to a total of 600 months in federal prison and a lifetime of supervised release by U.S. District Judge Jose E. Martinez, after having been convicted at trial of using the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses.
On September 27, 2019, Woodson, Jr. was convicted at trial on three counts of Production of Child Pornography, one count of Distribution of Child Pornography, one count of Sending Extortionate Threats, and one count of Conspiracy.
According to the evidence presented at trial, beginning in October 2017 through September 2018, Woodson. Jr. persuaded, induced, enticed and coerced numerous minor female children across the country to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct using the camera on their cellular telephones. Woodson, Jr. infiltrated the Snapchat accounts of these children by pretending to be one of their friends on social media. Once given the passwords, Woodson, Jr. took over the victims’ Snapchat accounts and demanded the children send him sexually explicit videos and images of themselves using the web based texting application “KIK” in order to get back and regain control of their accounts. Woodson, Jr. conspired with others to systematically extort and exploit children using the internet.
“Child predators beware - anyone who uses social media and the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses risks spending the rest of their lives in prison,” stated U.S. Attorney Ariana Fajardo Orshan. “We implore the community to help us protect our loved ones by monitoring our children’s social media accounts and reporting all suspected offenses to law enforcement. The U.S. Attorney’s Office stands united with our federal, state and local law enforcement partners to root out child exploitation.”
“Joseph Isaiah Woodson, Jr. is a menace who preyed on the most vulnerable among us, children,” said George L. Piro, Special Agent in Charge, FBI Miami. “Using social media, Woodson would befriend, then coerce numerous minor female victims to send him sexually explicit videos and images. His sentence of 50 years in prison should serve as a warning to others involved in sextortion. Rooting out this type of crime is a cooperative effort. I commend the hard work and professionalism of our partners including; Davie Police Department, Plantation Police Department, Coral Springs Police Department, Fairfax City Police Department, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, U.S. Army Criminal Investigation Command and FBI Miami’s Child Exploitation Task Force.”
“It is through partnerships such as this, that we are able to extend the arm of law enforcement to ensure predators such as Joseph Isaiah Woodson, Jr. are no longer a threat to our children,” stated Davie Police Chief Dale Engle. “We are grateful here at the Davie Police Department that the resources needed were made available to see this case through to a conclusion.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI Miami’s Child Exploitation Task Force, in partnership with the Davie Police Department and Plantation Police Department. Coral Springs Police Department, Fairfax City Police Department, FBI Dallas, FBI Indianapolis, FBI Operation Rescue Me, FBI Technical Analysis Unit, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, and the U.S. Army Criminal Investigation Command all assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Pleads Guilty to Opioid Overdose Resulting in DeathRead the Press Release
ALEXANDRIA, Va. – A former Northern Virginia resident pleaded guilty today to distribution of heroin that resulted in the death of a Leesburg man in March 2016.
According to court documents, John Jacob Stapleton, 33, who most recently resided in Fort Pierce, Florida, regularly obtained illegal opioids from sources of supply that he and others distributed to customers within Loudoun County and the greater Washington, D.C. Metropolitan area. In March 2016, Stapleton distributed heroin that resulted in the death of E.L., a former Loudoun County resident. A forensic toxicologist determined that E.L.’s blood and vitreous humor each contained a combination of morphine and 6-acetylmorhpine, and a forensic pathologist determined that E.L. died of heroin poisoning. Further investigation by law enforcement officials revealed that E.L. overdosed on heroin that another individual obtained directly from Stapleton.
Stapleton pleaded guilty to distribution of heroin resulting in serious bodily injury and death. He faces a mandatory minimum penalty of 20 years and a maximum penalty of life in prison when sentenced on April 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; Michael L. Chapman, Loudoun County Sheriff; and Gregory C. Brown, Leesburg Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys David A. Peters and Raj Parekh are prosecuting the case.
This matter was investigated by the Washington Field Office’s Safe Streets/HIDTA Task Force which is composed of Agents and Task Force Officers from the Leesburg PD, the Loudoun County Sheriff’s Office, the Fairfax County Police, the Prince William County Police, the Alexandria City Police, the Vienna Police Department, the Herndon Police Department, the Fauquier County Sheriff’s Office, the Department of Homeland Security, and in cooperation with the DEA, ATF and USMS.
The task force’s mission is to effectively identify, disrupt and dismantle the most egregious gangs and criminal enterprises engaged in violence and narcotics distribution within Northern Virginia.
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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-340.
Major Drug Dealer Found Guilty of Conspiracy and Narcotics TraffickingRead the Press Release
Jackson, Miss. – Daniel Robert, 43, of Meridian, was found guilty yesterday by a federal jury after a three day trial before Chief U.S. District Judge Daniel P. Jordan III in Jackson. Robert was found guilty of two counts of conspiracy to possess cocaine with intent to distribute, one count of possession of cocaine with intent to distribute, and one count of attempted possession of cocaine with intent to distribute, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation.
“This case proves that law enforcement and prosecutors will always get their man. Criminals can run, but they cannot hide, as the long arm of the law will always grab them wherever they are and bring them to justice. I applaud our men and women in law enforcement for their tenacity and fortitude in ensuring this drug dealer is taken off our streets and sent to prison where he belongs,” said U.S. Attorney Hurst.
"The amount of time it takes to bring someone to justice does not deter our commitment to protect our communities," said SAC Sutphin. "This case is a great example of the resolve of the Special Agents and prosecutors, along with our law enforcement partners, to rid our streets of those who are intent on flooding it with illicit drugs."
From 2007 through 2009, Robert was being investigated by the FBI along with several other individuals. The FBI’s investigation showed that Robert directed the sale of multiple kilograms of cocaine and took in tens of thousands of dollars. Robert organized the transport of cocaine from Houston, Texas, and sold the narcotics in Lauderdale County, Mississippi. Robert’s criminal organization involved numerous people and utilized vehicles with custom built hidden compartments for transportation of drugs and money.
An undercover operation specifically showed that Robert received $16,000 in exchange for over a kilogram of cocaine. Robert used two different individuals, who were both charged as co-conspirators, to receive money and distribute cocaine.
On June 26, 2009, Robert, along with another co-conspirator, were stopped in Vidor, Texas, driving a truck with a hidden compartment containing almost 8 kilograms of cocaine. Robert was released from custody in Vidor, Texas, and traveled back to Mississippi. With the help of his girlfriend, Robert attempted to reclaim his cocaine, which he believed had not been discovered in the hidden compartment.
Robert believed his girlfriend was arranging to purchase the truck from insurance adjusters who had taken possession of the truck on the basis that it was reported stolen. The insurance adjusters were actually undercover FBI agents with the consent of the insurance company that actually owned the truck. Video recordings and pictures were taken of Robert and his girlfriend when they came to the insurance “sale.” After “purchasing” the truck, Robert returned to Meridian, and proceeded to attempt to recover the cocaine he thought was still inside the hidden compartment.
FBI and SWAT officers descended on the location and arrested most of the organization, but Robert was able to elude capture by fleeing into a nearby field. Robert remained at large for a decade before he was taken into custody by the FBI.
Robert has an additional pending charge for witness tampering in the Federal District Court for the Southern District of Mississippi. Robert also faces charges in Illinois for narcotics distribution and witness tampering.
Robert was indicted by a federal grand jury on September 3, 2009. He is currently in custody and will be sentenced on May 1, 2020, by Judge Jordan. Robert faces a maximum penalty of life in prison and a $10,000,000.00 fine.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Erin O. Chalk and Chet Kirkham.
MS-13 Gang Member Pleads Guilty to Conspiracy to Commit Murder and ExtortionRead the Press Release
SAN FRANCISCO – Tomas Rivera, a/k/a Profugo, a/k/a Caballo, a/k/a Jonas Portillo Escobar pleaded guilty to racketeering conspiracy and conspiracy to commit murder and extortion for his role as an MS-13 gang member, announced United States Attorney David L. Anderson and Homeland Security Investigations (“HSI”) Special Agent in Charge Tatum King. The guilty plea was received by the Honorable Edward J. Davila, United States District Judge.
“Rivera’s arrest was a criminal arrest, although it was erroneously criticized at the time as being part of an immigration sweep,” stated United States Attorney David L. Anderson. “As the plea agreement shows, Rivera was a high-ranking participant in a criminal conspiracy perpetrating murder, extortion, and drug trafficking, and a member of the notorious transnational gang MS-13. Federal and local law enforcement need to work together to combat the threat of violence from street gangs like MS-13. We are all safer when law enforcement is allowed to work together.”
“Bringing this gang member to justice is a direct result of the strong partnerships between HSI agents and local law enforcement, most especially the Santa Cruz Police Department, in this complex federal criminal investigation,” said Tatum King, special agent in charge, HSI San Francisco. “Our agents will not rest until our communities are safe and these dangerous criminals are brought to justice.”
Chief Andrew Mills of the Santa Cruz Police Department said, “We are grateful to our federal partners for assisting Santa Cruz with taking a very violent criminal off our streets.”
The transnational street gang La Mara Salvatrucha, also known as MS-13, has local chapters, or “cliques,” throughout the world, including El Salvador, Honduras, Mexico, and the United States. MS-13 members and associates engage in crimes such as murder, narcotics trafficking, extortion, and obstruction of justice. The Santa Cruz Salvatrucha Locos (“SCSL”) is an MS-13 clique that operates in and around Santa Cruz, California.
According to his plea agreement, Rivera, 27, of El Salvador, arrived in Santa Cruz in April 2016, where he quickly stepped in as second in command of the SCSL clique of the MS-13 gang. From April 2016 through January 2017, Rivera and SCSL members engaged in drug trafficking and extortion. Rivera coordinated with MS-13 members in El Salvador and other places to carry out the directives of the gang’s leadership in and around Santa Cruz. Rivera acknowledged that he pushed for strict adherence to MS-13 rules, including the rule that required all people who wanted to join the gang to commit a murder to qualify for membership.
The plea agreement describes Rivera’s role in patrolling the area over which SCSL gang members asserted their control. Rivera admitted in the plea agreement that on one occasion he and other SCSL members beat up a suspected rival gang member they found in their territory. On another occasion, Rivera and other MS-13 members were in a car, when they spotted people they suspected of being rival gang members. One of the MS-13 members shot at and attempted to kill a member of the group.
In the plea agreement, Rivera admitted that he played a key role in a murder committed by SCSL gang members. Rivera admitted that in April 2016 he discussed seeking approval from El Salvador to kill a suspected rival gang member. The murder of the rival gang member was committed by SCSL members on September 22, 2016, and Rivera collected the murder weapons. At an October 2016 SCSL meeting, Rivera took charge of organizing the day-to-day efforts of SCSL members to kill additional rivals. The plea also describes Rivera’s involvement in burning clothing and a car involved in another murder by MS-13 members.
A federal grand jury returned a second superseding indictment against Rivera and others on August 16, 2018. The indictment charged Rivera with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit extortion by force, in violation of 18 U.S.C. § 1951(a); and one count of conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5). Rivera pleaded guilty to all three counts.
Judge Davila scheduled Rivera’s sentencing hearing for April 13, 2020, at 1:30 p.m. Pursuant to the terms of his plea agreement, Rivera has agreed that a reasonable and appropriate disposition of his case would include a term of 27 years in prison. The court also may order an additional term of supervised release, payment of a fine and restitution, and forfeiture. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Seven of the other charged defendants have already pleaded guilty for their roles in the SCSL and MS-13 criminal enterprise and six have been sentenced as reflected in the following chart:
Name
Charges
Sentence
Ismael Alvarenga-Rivera, a/k/a Casper
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 23, 2019, to 90 months in prison
Willfredo Ayala-Garcia, a/k/a Chino
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 17, 2019, to 80 months in prison
Jose David Abrego-Galdamez, a/k/a Largo
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a)
Sentenced on September 16, 2019, to 36 months in prison, consecutive to his sentence in CR 17-567 BLF
Gerber Morales, a/k/a Choco
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on September 17, 2019, to 72 months in prison
Emilio Escobar-Albarnga, a/k/a Diablo
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on January 20, 2020, to 60 months in prison
Josue Alcedis Escobar Cerritos, a/k/a Penguino
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii)
Sentenced on July 30, 2019, to 72 months in prison
Melvin Lopez, a/k/a Sharky
Racketeering Conspiracy, 18 U.S.C. § 1962(d); Conspiracy to Commit Extortion by Force, 18 U.S.C. § 1951(a); Conspiracy to Commit Murder, 18 U.S.C. § 1959(a)(5).
Sentencing currently scheduled for January 27, 2020
The United States Attorney’s Office’s Organized Crime Strike Force is prosecuting the case. This prosecution is the result of an investigation conducted by HSI with the assistance of the Santa Cruz Police Department.
Lowell Woman Pleads Guilty to Stealing Approximately $182,000 from EmployerRead the Press Release
BOSTON – A Lowell woman pleaded guilty yesterday in connection with embezzling approximately $182,000 from a veterinary hospital that employed her.
Sasha A. Saulnier, 32, pleaded guilty to six counts of wire fraud before U.S. District Court Judge Nathaniel M. Gorton who scheduled sentencing for April 24, 2020. In August 2019, Saulnier was charged by criminal complaint.
Saulnier was employed by a full-service animal hospital as a client relations specialist from October 2011 until September 2018. During that time, she had various client responsibilities, including selling retail products to customers at the hospital. Saulnier also served in a temporary supervisory role, which gave her access to management software and the ability to manipulate account transactions and accounting data.
From March 2014 through August 2018, Saulnier entered false refund transactions into the company’s management software, and then credited her own personal debit cards, which linked directly to her personal checking account. Specifically, Saulnier occasionally entered a fictitious refund for merchandise that was legitimately purchased by a customer, but never returned, and then credited the bogus refund to her own debit card. Saulnier also fabricated refunds for wholly fictitious retail purchases that were never actually made, and then credited that amount to her own debit card. In an effort to conceal her fraud, Saulnier used dormant accounts of inactive hospital clients, such as those with deceased pets and so-called “test accounts,” set up solely for training purposes. In addition, Saulnier fabricated discounts which she applied to purchases of retail products.
Over the course of the scheme, Saulnier used her position to falsify approximately 482 transactions resulting in refunds and credits totaling more than $182,800 to her own bank account. Saulnier used this money for personal expenses and travel, including trips to Las Vegas, New York City and the Bahamas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or up to twice the loss involved, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
Leader of Alien Smuggling Operation Sentenced to 9 Years in PrisonRead the Press Release
On January 22, 2020, George Ferrer Sanchez, 46, of Miramar, Florida, was sentenced to 108 months in prison by U.S. District Judge Marcia G. Cooke in Miami, Florida for orchestrating a conspiracy to launder proceeds of alien smuggling operation that transported Cuban nationals to Mexico, into the United States. As part of the Court’s sentence, Ferrer Sanchez was ordered to pay a $5.4 million forfeiture money judgment and to forfeit two real properties to the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
Ferrer Sanchez previously pled guilty to participating in a conspiracy to commit money laundering (Case No. 19cr20085).
According to the court record, including the agreed upon factual proffer and evidence presented during the sentencing hearing, from or around January 2009 or earlier, and continuing to at least June 2015 or later, Ferrer Sanchez was the leader of an alien smuggling conspiracy operating in Miami, Florida and elsewhere. Ferrer Sanchez directed an operation that stole vessels used to smuggle Cuban nationals to the United States through Mexico. Conspirators brought the migrants out of Cuba, in exchange for payment for their smuggling services. Once migrants were in Mexico, the conspiracy utilized phone calls to family members and friends in South Florida to secure payment for their release. Ferrer Sanchez also conspired with others to acquire funds from the migrants’ family members in South Florida, which were laundered through the business and real property, in order to promote and further their alien smuggling conspiracy.
This prosecution is the result of the ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership to combat Caribbean based organized crime that includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami. In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones.
If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-866-347-2423 or visit https://www.ice.gov/tipline. The toll-free phone number is available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, and additional languages.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ICE-HSI and FBI in this matter. This case is being prosecuted by Assistant U.S. Attorneys Ignacio J. Vázquez, Jr., and J. Mackenzie Duane. Assistant U.S. Attorneys Adrienne Rosen and Annika Miranda are assigned to the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Kirkville Man Charged with Transportation of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Timothy B. Pease, 30, of Kirkville, New York, was arrested yesterday on charges of transportation of child pornography following the execution of a search warrant at his residence by Special Agents of the Federal Bureau of Investigation ("FBI"), announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The defendant appeared today in Federal Court in Syracuse, New York, before United States Magistrate Judge Miroslav Lovric on a criminal complaint charging him with posting image and video files containing child pornography to an on-line group, and remanded into custody.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted of transporting child pornography, Pease faces a mandatory minimum sentence of 5 years, and a maximum term of 20 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. 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.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Jury Convicts Davenport Man for Sexual Exploitation of a ChildRead the Press Release
ROCK ISLAND, Ill. – A federal jury deliberated for less than thirty minutes before returning a guilty verdict late Wednesday afternoon, Jan. 22, 2020, against Timothy Brandon Fredrickson, 30, of Davenport Iowa, for sexual exploitation of a child. Sentencing for Fredrickson has been scheduled for June 2, 2020, at the U.S. Courthouse in Peoria.
Over two days of testimony, the government presented evidence that Fredrickson had been communicating with a sixteen year-old girl over the internet. Throughout the course of their conversations, Fredrickson directed the girl to produce and send to him sexually explicit content. Fredrickson then saved their communications and the content she created at his direction.
Fredrickson remains in the custody of the U.S. Marshals Service. At sentencing, Fredrickson faces statutory penalties of a minimum of 15 years and up to 30 years in prison.
The Moline Police Department and the U.S. Secret Service investigated the charges. Assistant U.S. Attorneys Jennifer Mathew and Donald Allegro represented the government at trial.
The case was brought as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jeffersonville Man Charged with Two Federal Firearm OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Christopher Mesick, 38 of Jeffersonville, was indicted yesterday by a federal grand jury sitting in Burlington with being a felon in possession of a firearm and with being an unlawful user of a controlled substance in possession of a firearm. Mesick was arrested on these charges on January 13, 2020 and was detained. Mesick waived his appearance yesterday at his arraignment before U.S. Magistrate Judge John M. Conroy and Mesick’s defense attorney entered pleas of not guilty on his behalf.
According to a federal criminal complaint, on January 5, 2020, troopers with the Vermont State Police (VSP) conducted a welfare check on Christopher Mesick at his residence on Main Street in Jeffersonville. When troopers arrived at his residence, they observed Mesick unsteady on his feet and slurring his speech. Mesick made several threatening comments toward the troopers and was handcuffed for his safety and the safety of the troopers. During the interaction with Mesick, one of the troopers observed four rifles in the living room. The trooper recognized three of the rifles as AR-15 style rifles with bayonets attached. One rifle had a 50-round drum magazine inserted. Mesick is a convicted felon by virtue of a 2017 conviction for aggravated assault.
On January 13, 2020, VSP executed a state search warrant at Mesick’s residence. During the search, law enforcement recovered approximately 16 firearms, including several AR-15 and AK-style assault rifles. Law enforcement officers also located several cases of various ammunition, a footlocker full of knives and machetes, body armor and a few ounces of marijuana. Mesick told law enforcement he was a marijuana user.
If convicted of being a felon in possession of a firearm, Mesick faces a maximum sentence of 10 years of imprisonment and up to a $250,000 fine. Mesick also faces a maximum sentence of 10 years of imprisonment and up to a $250,000 fine if he is convicted of being an unlawful user of a controlled substance in possession of a firearm. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
This case was investigated by the Vermont State Police, ATF and Customs and Border Protection Air and Marine Operations (Plattsburgh Air Unit). This case is part of the Department of Justice’s Project Safe Neighborhoods (PSN) Program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
The United States is represented in this matter by Assistant U.S. Attorney Wendy Fuller. Christopher Mesick is represented by Federal Public Defender Michael Desautels.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 21 was:
Darren Samuel Whiteman, 36, of Billings, on charges of robbery affecting commerce and possession of a firearm in relation to a crime of violence. If convicted of the most serious crime, Whiteman faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release, and a minimum mandatory 10 years to life consecutive to any other crime if convicted of discharge of the firearm. Whiteman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department investigated the case. Pacer case reference. 20-10.
Rodney George Plentyhawk, Jr., 42, of Lame Deer, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Plentyhawk faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Plentyhawk was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-148.
Appearing on Jan. 24 was:
Nicholas Dale Jennings, 35, of Minot, N.D., on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Jennings faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Jennings was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-156.
Robert Hal Hanson, 59, of Lavina, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Hanson faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hanson was detained pending further proceedings. The FBI West task force investigated the case. Pacer case reference. 19-132.
Frank Agedious Gun Shows, 41, a transient, on charges of failure to register as a sex offender. If convicted of the most serious crime, Gun Shows faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release. The U.S. Marshals Service investigated the case. Pacer case reference. 19-130.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 22 was:
Santiago Marron, 37, of San Bernardino, CA, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Marron faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Marron was detained pending further proceedings. The Northwest Drug Task Force and Homeland Security Investigations investigated the case. Pacer case reference. 20-2.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Indiana Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS, La. - U.S. Attorney Peter Strasser announced that DANIEL J. KUESPERT, age 30, of LaPorte County, Indiana, was sentenced on January 23, 2020, for failing to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
United States District Court Judge Barry Ashe sentenced KUESPERT to nineteen (19) months incarceration to be followed by five (5) years of supervised release.
According to court records, KUESPERT was convicted for two counts of Child Molesting in La Port Circuit, Indiana. KUESPERT was sentenced to twelve years in jail with the Indiana Department of Corrections. In addition to the jail sentence, KUESPERT was ordered to register as a sex offender for a period of life. In September 2018, law enforcement officers in Indiana discovered that KUESPERT had left the state without notification. Accordingly, they issued a warrant for his arrest. On January 7, 2019, KUESPERT was discovered on South Claiborne and Canal Street by the U.S. Marshals. KUESPERT admitted to the Marshals that he knew he was required to register as a sex offender with the New Orleans Police Department, but he decided not to because he did not want the authorities in Indiana to know his whereabouts.
U.S. Attorney Strasser praised the work of the United States Marshals Service, the Orleans Parish Sheriff’s Office, the New Orleans Police Department, and the LaPorte County Sheriff’s Office in this matter. He also extended his thanks to the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Indian National Sentenced to 5 Years in Federal Prison for Scamming Victims of over $377,000Read the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Safder Iqbal, age 28, an Indian national, was sentenced to serve 60 months (5 years) in federal prison followed by 3 years on supervised release for participating in several scams involving call centers. Iqbal was also ordered to pay $377,889.35 in restitution to the victims. He was remanded into custody immediately after the sentencing hearing. The Denver FBI joined in today’s announcement.
According to court records, including the stipulated facts contained in the defendant’s plea agreement, Safder Iqbal travelled to the United States from his native country of India in April 2018 to work at a hotel in Colorado Springs through the J-1 visa program. Iqbal then implemented a number of different scams. The first scam involved call centers where he and others falsely notified victims that they had erroneously received, or would receive, a refund for computer tech-support services. Victims were called by India-based call center agents who claimed to work for tech support companies. In many instances, the victims were persuaded to allow the agents to access their computer via remote access software. Once inside the computer, the agents collected information about the victims’ bank accounts, accessed victim bank accounts online, and generated statements falsely claiming the victims had received a deposit when, in fact, they had not.
For example, the defendant opened a bank account that he used to deposit money from an elderly victim that he tricked into providing money to the defendant and others through the refund scam. The victim, was defrauded out of approximately $20,000. Iqbal also took money from another out-of-state victim who was defrauded of $50,000 through a combination of the refund scam and another scam involving tech support.
The tech support scam involved deceiving victims believing that they had a serious computer problem. Sometimes these victims would encounter a “pop up” on their computer while browsing the internet. These pop ups would falsely tell the victim that there was a problem with their computer and would provide a number for tech support. Calls to that number would be answered by an India-based scheme participant. These agents would then offer to diagnose the problem and persuade the victim to provide access to the victim’s computer through remote access software. Once inside the victim’s computer, the agents would use simple commands to make it appear that there was a problem with the computer when, in fact, there was not. The agents would then ask for money to perform tech support services.
Victims of both the refund and tech support scams were directed to pay the participants of the scheme using a variety of means. Some victims were persuaded to purchase gift cards at retail stores and then provide the gift card number directly to the calling agents. Others were told to use a money transfer service to send the money to “receivers” (including defendant Safder Iqbal) with established bank accounts in the United States and elsewhere. Members of the scheme also simply commandeered the victims’ computer, accessed their bank accounts using the internet, and used the illicit access to transfer money. It is estimated that the defendant and others took over $377,000 from their victims.
Court records show that even before coming to the United States to work as a receiver, the defendant had several roles in various India-based fraud schemes. He had previously worked as a call center agent working to defraud victims in the United States and around the world, including in the United Kingdom, Canada, Australia and South Africa. He had also served as a “broker” helping to connect the India-based owners of scam call centers with receivers who could accept money from victims in their native countries. At one point, the defendant used proceeds of the scheme to run his own call center in India.
“Stealing from the elderly and vulnerable is a crime that can threaten the victim’s ability to pay their most basic living expenses,” said U.S. Attorney Jason Dunn. “Prison is an appropriate place for those like this defendant who come to this country for no other reason than to scam people.”
"The FBI is committed to proactively and thoroughly investigating criminal activities that harm our elderly community members," said FBI Special Agent in Charge Dean Phillips. "Thanks to the diligence and perseverance of our investigators, law enforcement partners, and U.S. Attorney's Office, Safder Iqbal will no longer victimize senior citizens with his fraud scheme.”
The prison sentence was pronounced by U.S. District Court Judge William J. Martinez. Co-defendant Danish Rashid, who pleaded guilty in August 2019 to participating in the scheme, is due to be sentenced on February 5, 2020.
Anyone who believes they may be a victim of tele-fraud is encouraged to contact the FTC via this website.
Additional resources providing information about the Department of Justice’s efforts to combat these scams can be found at the website for the Department’s Elder Justice Initiative.
The case was investigated by the Federal Bureau of Investigation (FBI) with substantial assistance from the Thornton Police Department’s Economic Crimes Unit.
The defendant was prosecuted by Assistant United States Attorney Bryan D. Fields.
Illegal Alien Sentenced to 10 Years in Federal Prison for Role in Drug Trafficking OrganizationRead the Press Release
Memphis, TN – An illegal alien from Mexico, Jesus Vega, 38, has been sentenced to 121 months in federal prison for conspiracy and possession with intent to distribute methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, in August 2018, investigators with the DEA and the 24th Judicial District Drug Task Force recovered 11 pounds of methamphetamine from a driver in Decatur County during a routine traffic stop. The driver identified Jesus Vega as the leader of a Memphis drug trafficking organization supplying methamphetamine and heroin into and through West Tennessee.
On October 1, 2018, investigators intercepted and seized 31 pounds of methamphetamine in Vega's house located in Memphis. Other co-conspirators in the drug trafficking organization were also indicted, and have already been convicted and sentenced in this matter. Over the course of the investigation, agents in multiple states recovered over 400 pounds of methamphetamine and 5 kilograms of heroin, all either in Memphis or destined for the Memphis area.
On January 22, 2020, U.S. District Court Judge Thomas L. Parker sentenced Vega to 121 months in federal prison followed by 5 years supervised release. After completion of his custodial sentence, Vega will be subject to deportation by U.S. Immigrations & Customs Enforcement (ICE) and Enforcement & Removal Operations (ERO).
U.S. Attorney D. Michael Dunavant said, "West Tennessee is a major logistics hub for the country, and drug trafficking organizations transport large quantities into and through our communities. Because distribution of illegal narcotics is NOT a victimless crime, we use every available resource to disrupt and dismantle these conspiracies and hold them accountable for distributing poisonous illegal drugs that cause addiction, injury, and death. We commend the outstanding investigative work of our federal and local law
enforcement partners in this important case involving significant seizures of dangerous narcotics."
The Drug Enforcement Administration (DEA) and the 24th Judicial District Drug Task Force investigated this case.
This case was part of the Organized Crime Drug Enforcement Task Force Program (OCDETF), which seeks to investigate and prosecute large-scale drug trafficking and violence involving multiple districts across the United States.
Special Assistant United States Attorney Joseph Griffith prosecuted this case on behalf of the government. This case is part of the Heroin Initiative in collaboration with the Shelby County District Attorney General’s Office.
###
Hubert Dupigny Convicted in Manhattan Federal Court of Sex Trafficking OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that a federal jury yesterday found HUBERT DUPIGNY, a/k/a “Fox,” guilty of sex trafficking of minors and conspiracy to commit sex trafficking of minors, following an eight-day jury trial before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Hubert Dupigny recruited girls who were in foster care, then sexually exploited them for financial profit. Such predatory conduct is repugnant and, as the jury found, deserving of a guilty verdict. Dupigny now awaits sentencing for his crimes.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
From at least in or about August 2016 through in or about May 2017, HUBERT DUPIGNY, a/k/a “Fox,” the defendant, engaged in a conspiracy to commit sex trafficking of minors. The defendant recruited, enticed, harbored, transported, advertised, provided, obtained, and maintained two minor victims (“Victim-1” and “Victim-2”) for the purpose of commercial sex.
The defendant recruited Victim-1 and Victim-2 when they were living in foster care facilities or homes in New York City. The defendant used Backpage.com to post advertisements of Victim-1 and Victim-2 for commercial sex, and then directed Victim-1 and Victim-2 to meet customers to engage in commercial sex out of an abandoned home in Brooklyn, New York.
The conviction of HUBERT DUPIGNY is the culmination of the prosecution of 19 defendants, set forth in eight indictments, for the sex trafficking of at least 20 minor girls and young adults in New York State’s social services system. With DUPIGNY’s conviction, all 19 of the defendants have now been convicted, either via guilty plea or following trial.
* * *
DUPIGNY, 36, of Brooklyn, New York, was convicted of two counts of sex trafficking of a minor and one count of conspiracy to commit sex trafficking. The defendant faces a mandatory minimum sentence of 10 years in prison on each count of sex trafficking of a minor, and faces a maximum sentence of life in prison on each of the three counts of conviction. The maximum potential sentences are prescribed by Congress and provided for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing will take place before Judge Furman on May 13, 2020, at 3:30 p.m.
Any individuals who believe they have information that may be relevant to this investigation should contact the Federal Bureau of Investigation (“FBI”) at (212) 384-1000 or https://tips.fbi.gov/.
Mr. Berman thanked the FBI and the New York City Police Department (“NYPD”) for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Mollie Bracewell, Elinor Tarlow, Jacob Gutwillig, Michael Herman, and Alison Moe are in charge of the prosecution.
Honduran National with History of Illegally Reentering the United States Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon Fremin announced that United States District Court Judge John W. deGravelles sentenced Ivan Alexi Mejia-Alvarado, age 44, of Honduras, to serve 21 months in federal prison following his conviction for illegal re-entry into the United States by a removed alien. The Court specified that Mejia-Alvarado’s federal sentence would run consecutively to any sentence he may receive on a pending state charge for simple battery. During the sentencing hearing, the Court found that Mejia-Alvarado was subject to enhanced statutory penalties based on his 2002 prior conviction in California for forcible rape and stalking.
On June 4, 2019, Mejia-Alvarado was found at the East Baton Rouge Parish Prison by a Department of Homeland Security Deportation Officer. After obtaining Mejia-Alvarado’s biometric data, the deportation officer confirmed his true identity and his status as a citizen and national of Honduras, who had been previously removed from the United States on at least two occasions, at or near Chandler, Arizona, on or about February 23, 2005, and December 29, 2008.
U.S. Attorney Fremin stated, “Aliens who have previously been convicted of violent felonies in our country and who return after being removed pose a serious threat to the safety of our citizens. Our office is committed to working with our federal, state, and local partners to apprehend, convict, and remove this menace from our country. I want to thank our prosecutor and U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.”
“This case is an excellent example of ICE’s ongoing focus to prioritize its enforcement efforts toward individuals who pose the greatest threat to public safety and egregiously violate our nation’s immigration laws,” said ICE Enforcement and Removal Operations Acting New Orleans Field Office Director Bill Joyce. “Despite attempts by some groups to confuse the public, it is a federal crime to illegally enter the U.S. and those who reenter after having been previously removed commit a federal crime as this case clearly shows.”
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana and U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. This case was prosecuted by Assistant United States Attorney Caroline Gardner.
Grayson County Woman Sentenced for Wire Fraud ConspiracyRead the Press Release
SHERMAN, Texas – A 57-year-old Collinsville, Texas woman has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Rosemary Wolf pleaded guilty on June 12, 2019, to conspiracy to commit wire fraud and was sentenced to 51 months in federal prison by U.S. District Judge Amos L. Mazzant on Jan. 2, 2020.
According to information presented in court, Wolf conspired with James Michael Murray to defraud Brakebush Brothers, Inc., a food services company formerly known as Trinity Valley Foods, Inc., out of $1,207,163.32 from March of 2014 through November 2015. Wolf, in her role as Executive Assistant, conspired with Murray to set up fake business entities with similar names of legitimate Brakebush customers in order to divert company funds to bank accounts held by Wolf and Murray. Wolf caused checks to be issued by Brakebush to the fraudulent businesses and provided the checks to Murray. Murray deposited the checks in accounts he controlled and shared the ill-gotten funds with Wolf. Murray and Wolf used the funds to pay for lifestyle expenses including gambling at Oklahoma-based casinos and costs associated with owning horses.
“Businesses are vulnerable to insider thefts like this because we all want to trust our employees, especially in smaller companies,” said U.S. Attorney Joseph D. Brown. “While companies have to rely on their employees, cases like this confirm that they should follow the old saying of ‘Trust, but verify’ as much as possible.”
On Aug. 13, 2019, Murray was sentenced to 36 months in federal prison for his role in the scheme. Both Wolf and Murray were ordered to pay full restitution to Brakebush of $1,207,163.32.
Anyone with information on other participants in this scheme are asked to contact law enforcement.
This case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Lesley Davis Brooks.
Georgia Optician Sentenced in Identity Theft CaseRead the Press Release
NEW ORLEANS, La. - U.S. Attorney Peter G. Strasser announced that JOHN ANTHONY MARSH, age 56, a resident of Lawrenceville, Georgia was sentenced on January 22, 2020 by U.S. District Judge Martin L.C. Feldman to three years’ probation, with a condition that the first 45 days be served on home confinement, in connection with his guilty plea to identity theft. In addition, MARSH agreed to pay restitution to the Medicare and Medicaid programs.
According to court documents, in 2016, MARSH opened a business in New Orleans called Magazine Medical Group & Associates, LLC (“Magazine Medical”) that provided ophthalmological services. MARSH opened Magazine Medical at the same location as another medical clinic that had provided ophthalmological services, Business 1. Between June 2016 and September 2016, MARSH used Business 1’s name when submitting claims for medical services to Medicare and other health care benefit programs to make it appear is those purported medical services were performed at Business 1.
Additionally, according to court documents, during that same time period, MARSH used the National Provider Identifier of a physician, who previously worked for Business 1, to submit claims to Medicare and other health care benefit programs making it appear as though that physician performed medical services at Magazine Medical. That physician neither worked for MARSH or Magazine Medical nor treated any patients for ophthalmological services at that clinic.
As reimbursement for the fraudulent claims that MARSH was responsible for submitting through Magazine Medical, Medicare and other health care benefit programs issued checks to Business 1 and the physician. MARSH received and deposited these checks into his bank account. In total, between June 2016 and September 2016, MARSH fraudulently caused billings to Medicare and other health care benefit programs totaling approximately $77,198 for medical services that were not provided by that physician, and received approximately $20,669.67 for these claims. MARSH agreed to repay $20,669.67 in restitution to the Medicare and Medicaid programs.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, the Department of Health and Human Services, and the Louisiana Attorney General’s Office’s Medicaid Fraud Control Unit for their work investigating the case.
The case is being prosecuted by Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Duane A. Evans.
# # #
Fugitive Coachella Valley Doctor Extradited from Israel to Face 20-Year Prison Term Imposed in Cosmetic Surgery SchemeRead the Press Release
SANTA ANA, California – A cosmetic surgeon who oversaw a long-running health care fraud scheme that conned insurance companies into paying tens of millions of dollars for unnecessary cosmetic procedures has been extradited from Israel to serve a 20-year federal prison sentence issued while he was a fugitive.
Dr. David M. Morrow, 75, a former Rancho Mirage resident, arrived late Thursday night at Los Angeles International Airport. During a court hearing this morning, United States District Judge Josephine L. Staton ordered that Morrow immediately begin serving his prison sentence.
In September 2017, Judge Staton sentenced Morrow in absentia to 240 months in federal prison for running a scheme that duped health insurance companies into paying tens of millions of dollars for cosmetic procedures with false claims that procedures being performed were medically necessary. When the sentence was issued, Morrow had been on the run for four months after pleading guilty to conspiracy to commit mail fraud and filing a false tax return.
Morrow fled the United States along with his wife, Linda Morrow, 67, who was deported by Israel last July. Linda Morrow is facing a 31-count grand jury indictment that charges her with participating in the $50 million scheme run through The Morrow Institute (TMI) in Rancho Mirage. In a separate case, she faces contempt of court charges for fleeing the United States while free on bond in the health care fraud case. Her trial date in the contempt of court case is June 16.
Linda Morrow was the executive director of TMI, while David Morrow, a dermatologist-turned-cosmetic-surgeon, was the owner. The Morrows oversaw a scheme in which TMI submitted millions of dollars in claims for procedures that were certified as “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs” and breast augmentations. In some cases, according to court documents, patients underwent procedures they did not want in exchange for promises from Morrow that he would perform the cosmetic procedures that they really wanted. In other cases, Morrow performed procedures on certain patients who had not given informed consent, which “resulted in ongoing medical problems or disfigurement.” Evidence presented during Morrow’s sentencing hearing also showed that Morrow had paid a patient for undergoing surgeries that were billed to insurance.
Authorities believe the Morrows fled in May 2017. Prior to becoming fugitives, they failed to report to court officials, among other things, the sale of their $9.45 million home in Beverly Hills.
Court records show that, prior to the Morrows fleeing to Israel, they transferred more than $4 million dollars to Israeli bank accounts using the names of third parties. Recently filed court documents detail how both Morrows used fraudulent Mexican passports – with their photos, but other persons’ names – to enter Israel, and after they entered Israel they applied for Israeli citizenship using those fraudulent identities.
When the Morrows were arrested in Israel last year, they were no longer using the fraudulent Mexican identities, but were living under different fake identities and were using fraudulent Guatemalan passports. When Israeli law enforcement arrested Linda Morrow, she falsely claimed that her name was “Hannah.” Court documents also show that FBI agents have determined that the Morrows used an Israeli attorney and others in Israel in an attempt to launder more than $2 million.
Morrow was transported from Israel by the United States Marshals Service.
The investigation into the Morrows and TMI was conducted by the FBI, IRS Criminal Investigation, and the California Department of Insurance.
The Israeli National Police; the FBI’s Legal Attachés in Jerusalem, Mexico City, and Guatemala; the United States Marshals Service; the United States Border Patrol’s Northern Border Coordination Center; and the Department of Justice’s Office of International Affairs provided considerable assistance in the location, apprehension, and extradition of defendant David Morrow.
The matter is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
Four-Time Felon Sentenced to Prison for Heroin DistributionRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to over nine years in prison for supplying over 770 grams of heroin to a distributer between March 2017 and December 2017.
According to court documents, Jeffrey Moten, 46, provided approximately 770 grams of heroin to an individual for redistribution. This individual then dealt out the heroin to others, including to an undercover law enforcement officer, and totaled a profit of over $60,000. Moten is a career offender with four prior drug related felony convictions.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Karolina Klyuchnikova prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-325.
Fort Mitchell Man Pleads Guilty to Bankruptcy FraudRead the Press Release
COVINGTON, Ky. - A Fort Mitchell, Kentucky man, Joseph Shockey, 53, pleaded guilty to bank fraud in federal court Friday, before U.S. District Court Danny C. Reeves.
In his guilty plea agreement, Shockey admitted to applying for and receiving a one-year line of credit for from Stock Yards Bank and Trust Company. Prior to receiving the line credit, Shockey executed loan documents and personally guaranteed the line of credit, failing to inform the bank that a default judgment had been entered against him in Salt Lake County, Utah and that he was liable for a judgment $579,428, plus interest. This material omission led the bank to extend the line of credit to him, ultimately resulting in a loss to Stock Yards Bank and Trust. Shockey will be required to repay $449,496.07.
Shockey was indicted in October 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the guilty plea.
The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Elaine Leonhard.
Shockey is scheduled to be sentenced on April 29, 2020. He faces up to 30 years in prison and a maximum fine of $1,000,000. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —
Former scientist from Los Alamos National Laboratory pleads guilty in federal court to making false statement about involvement with Chinese government technology programRead the Press Release
ALBUQUERQUE, N.M. – Turab Lookman, 67, of Sante Fe, New Mexico, and a former scientist at Los Alamos National Laboratory, pleaded guilty in federal court in Albuquerque today to a charge of making a false statement to a government investigator about his involvement in the Thousand Talents Program, an initiative by the Chinese government to recruit people with access to and knowledge of foreign technology and intellectual property.
A grand jury previously indicted Lookman on May 22, 2019, on three counts of making false statements to the federal government. In his plea agreement, Lookman admitted to lying to a counterintelligence investigator from Los Alamos National Laboratory on June 6, 2018. The investigator asked Lookman if he had been recruited by or applied for a job with the Thousand Talents Program. Lookman knowingly made a false statement by answering “no” when he knew that he had in fact been recruited by, applied for, and been accepted for participation in the Thousand Talents Program for monetary compensation.
Lookman is currently out of custody awaiting sentencing. He faces up to five years in prison and a $250,000 fine.
The FBI investigated this case with support from the Los Alamos National Laboratory. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Former Rosemont Resident Charged with Producing Child PornographyRead the Press Release
CHICAGO — A former Rosemont resident has been indicted on federal child pornography charges for allegedly exploiting a minor to produce sexually explicit images.
MARCOS GERMAN MENDEZ, 32, is charged with two counts of using a minor to produce child pornography, one count of transporting child pornography, and one count of possession of child pornography on his cell phone.
The indictment was returned in 2016 in U.S. District Court in Chicago. Mendez was arrested in July of last year in León, Guanajuato, Mexico, and recently extradited to Chicago. He made an initial court appearance here on Thursday before U.S. Magistrate Judge Jeffrey I. Cummings. Mendez pleaded not guilty to the charges and will remain in custody pending a detention hearing on Feb. 3, 2020, at 2:00 p.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago. Substantial assistance was provided by the U.S. Postal Inspection Service, U.S. Customs and Border Protection, Cook County Sheriff’s Office, and U.S. Marshals Service. The government is represented by Assistant U.S. Attorney Misty N. Wright.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com/home or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Former Mexican Federal Police Commander Arrested for Drug-Trafficking ConspiracyRead the Press Release
An indictment was filed yesterday in federal court in Brooklyn charging Ivan Reyes Arzate, a former Mexican Federal Police Officer and Commander of the Mexican Federal Police’s Sensitive Investigative Units (“SIU”), with three counts of cocaine trafficking conspiracy. Reyes Arzatel allegedly received bribes in exchange for assisting El Seguimiento 39, a Mexican Cartel associated with the Sinaloa Cartel, the Beltran Leyva Organization and other Mexican cartels, ship cocaine from Mexico to the United States. Earlier today, federal agents arrested Reyes Arzate in Brooklyn, and he was arraigned this morning before United States Magistrate Judge Cheryl L. Pollak. Reyes Arzate was remanded pending trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI); Dermot F. Shea, Commissioner, New York City Police Department (NYPD); and Keith M. Corlett, Superintendent, New York State Police (NYSP), announced the charges.
“By choosing to align himself with drug traffickers instead of the people of Mexico that he was sworn to protect, Reyes Arzate’s corruption ensured the safe passage of massive quantities of illegal narcotics into the United States,” stated United States Attorney Donoghue. “This Office will continue working tirelessly with our law enforcement partners to make enablers of drug cartels answer for their crimes, whoever they are and wherever they operate.” Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Offices for the Southern District of California and the Northern District of Illinois for their assistance on the case.
“Collective law enforcement efforts to cut off drug cartels’ supply chain into the United States has led to worldwide arrests, including Ivan Reyes Arzate,” stated DEA Special Agent-in-Charge Donovan. “I applaud our federal, state, local and international law enforcement partners for their diligent work on this significant investigation.”
“As a Commander in the Mexican Federal Police, Arzate allegedly offered protection of the cartel’s criminal activities in exchange for hundreds of thousands of dollars in bribes,” stated HSI Special Agent-in-Charge Fitzhugh. “Arzate’s corruption as the highest-ranking officer in the MFP’s Sensitive Investigative Unit allowed violent cartels to continue the flow of drugs through the region without consequence, but it is clear today that no one is exempt from justice.”
"This case shows no one is exempt from the law, and those who choose a life of crime, no matter their rank or employment, will be brought to justice,” stated NYSP Superintendent Corlett. “This suspect gave in to greed, putting people and communities at risk, when he should have been doing his job to protect them. I commend the great work of the New York Strike Force in this case. We will continue to make it our priority to find and dismantle violent enterprises and partnerships to make our streets safer.”
According to the indictment and other court filings, Mexican SIU officers routinely work with U.S. law enforcement to combat narcotics trafficking, money laundering and other criminal activities. From 2003 to 2016, Reyes Arzate was a Mexican Federal Police Officer assigned to SIU. In 2008, he was appointed SIU Commander, making him the its highest ranking officer and principal point of contact for information sharing between U.S. and Mexican law enforcement personnel assigned to the SIU.
From approximately September 2016 to November 2016, while serving as SIU commander, Reyes Arzate received hundreds of thousands of dollars in bribes from El Seguimiento 39 in exchange for providing protection for the cartel’s drug trafficking. Specifically, in exchange for a $290,000 bribe, he disclosed to the cartel’s leadership sensitive information about a pending DEA investigation. The bribe payments have been corroborated by intercepted communications obtained pursuant to judicially-authorized wiretaps.
Earlier, in the mid-2000s, in exchange for cash bribes, Reyes Arzate allegedly provided sensitive law enforcement information to other Mexican drug cartels, including the Beltran Leyva Organization, which was then a faction of the Sinaloa Cartel led by Joaquin Guzman Loera, also known as “El Chapo.” As a result, these criminal enterprises operated without significant interference from Mexican law enforcement, and imported multi-ton quantities of cocaine and other drugs into the United States.
If convicted of the drug conspiracy charge, Reyes Arzate faces a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.
This 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 DEA 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 handled by the Office’s International Narcotics and Money Laundering Section and the Public Integrity Section. Assistant United States Attorneys Michael P. Robotti, Ryan Harris and Erin Reid are in charge of the prosecution.
The Defendant:
IVAN REYES ARZATE
Age: 57
Mexico City, MexicoE.D.N.Y. Docket No. 20-CR-30 (ERK)
Former Memphis Police Officer and Co-Conspirator Plead Guilty to Civil Rights Conspiracy Involving Robbery and KidnappingRead the Press Release
Memphis, TN – On December 6, 2018, a federal grand jury indicted former Memphis Police Officer, Sam Blue, 61, and co-conspirator, Anthony Davis, for federal criminal civil rights violations which included the violent crimes of robbery and kidnapping. On January 24, 2020, Blue pled guilty to conspiracy to violate civil rights by using force, violence, and intimidation, and conspiracy to commit robbery affecting interstate commerce. On January 24, 2020, Davis pled guilty to conspiracy to violate civil rights by using force, violence, and intimidation, conspiracy to commit robbery affecting interstate commerce, and aiding and abetting the deprivation of civil rights by kidnapping. U.S. Attorney D. Michael Dunavant announced the guilty pleas today.
According to information presented in court, between 2014 and 2018 Sam Blue, a sworn Memphis Police Department officer, conspired with others to rob drug dealers of drugs or drug proceeds. Prior to the planned robberies, various co-conspirators would conduct surveillance of the targets. Officer Blue provided his co-conspirators with information, such as home addresses for the targets of the robberies, obtained from law enforcement restricted sources. Blue also provided his co-conspirators with equipment, including an official MPD badge, and a car dashboard blue light to use during the planned robberies so that they could falsely claim to appear to be law enforcement.
In July 2018, Eric Cain was selected as a robbery target by the conspirators. The defendants began conducting surveillance on Cain and put a GPS tracker on his car. Blue provided the gate code used by law enforcement to access Cain’s apartment complex in furtherance of the plan to commit the robbery.
On July 13, 2018, as Cain was leaving his apartment in Memphis around 4:30 a.m. a black car with flashing blue lights pulled up behind his car. Cain believed he was being stopped by law enforcement. Two of the defendants, dressed in black clothing with the word "police" on it and wearing masks and armed with handguns, got out of the car with the flashing lights and ordered Cain to get out of his car and get on the ground. Cain obeyed and the men handcuffed him, put a hood over his face, and placed him in the back of their car. The defendants then drove Cain to a house on Reese Road here in Memphis.
At this new location, Cain was taken inside the house and restrained while the defendants beat him, burned him on his arms, neck, and head, and demanded that he tell them where he kept his money and/or drugs. Cain was able to escape by jumping through the front window of the house. He was hospitalized for a week in the burn unit and underwent surgery for his injuries.
Sentencing for Blue is scheduled for May 21, 2020, and sentencing for Davis is scheduled for May 28, 2020, before U.S. District Court Judge John T. Fowlkes Jr. where they each face sentences of up to life imprisonment.
U.S. Attorney D. Michael Dunavant said: "A very low percentage of law enforcement officers engage in official misconduct and corruption, but when they do, it tarnishes the entire criminal justice system and damages the trust and confidence of citizens in proper police authority. When police officers use their badges to violate and oppress civil rights by robbery and kidnapping, it is our duty to expose their corruption, hold them accountable, and protect society from their violence and dishonesty. These guilty pleas and significant potential sentences will hopefully deter other violent and corrupt police behavior, restore the public’s faith in honest officers, and send a strong message that nobody is above the law."
This case was investigated by the FBI Tarnished Badge Task Force.
Assistant U.S. Attorney David Pritchard is prosecuting this case on behalf of the government.