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Thursday 5 December 2019
Columbus County Woman Sentenced to 45 Months Imprisonment for Stealing from Her Elderly In-LawsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today United States District Judge James C. Dever III sentenced ELIZABETH WILLIAMSON, age 55, of Evergreen, NC, to 21 months imprisonment for bank fraud and 24 months imprisonment for aggravated identity theft, to run consecutively for a total of 45 months. Judge Dever also ordered WILLIAMSON to pay $95,691.95 in restitution to the victims and to forfeit $30,320.30 to the United States.
On June 17, 2019, WILLIAMSON pled guilty to one count of bank fraud and one count of aggravated identity theft. According to the investigation, between 2015 and 2017, WILLIAMSON stole her elderly in-laws’ life savings for her own benefit. To assist in carrying out her scheme, WILLIAMSON submitted a Power of Attorney to BB&T for use on the their bank accounts, stole their checkbooks, wrote checks listing herself as payee, and forged their signatures on the checks. WILLIAMSON also used their bank account information to pay her bills and shop online. WILLIAMSON submitted a fraudulent change of address form to the United States Post Office redirecting all of her in-laws’ mail from their home to her home. On at least five occasions, WILLIAMSON stole checks mailed to her in-laws and deposited them into her own State Employees’ Credit Union account. The investigation also determined that, as the money dwindled, WILLIAMSON stopped refilling her in-laws’ medication. In issuing its sentence, the Court noted WILLIAMSON stole the victims’ “peace of mind” and “systematically deceived them.” After serving her sentence, WILLIAMSON will be placed on supervised release for five years.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
The U.S. Postal Inspection Service conducted investigation of this case. Special Assistant United States Attorney Tamika Moses prosecuted the case for the government.
Chugiak Man Sentenced to Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Donald Eugene Phillips, 37, of Chugiak, was sentenced today by Sr. District Judge Ralph R. Beistline, to serve nine months in federal prison, followed by three years of supervised release, for failing to register as a sex offender. In July 2019, Phillips was charged with one count of failure to register, and he subsequently pleaded guilty without a plea agreement.
According to court documents, in 2010, when he was 27 years old, Phillips was convicted of a sex offense in Oregon stemming from abuse of a 15-year-old girl who became pregnant with his child. Phillips has been required to register as a sex offender ever since, but prior to the filing of charges in Alaska, the last time he registered was in Oregon in July 2015. This last registration came shortly before he fled an Oregon arrest warrant and moved to Alaska. As a result of Phillips’ sex offense conviction in the State of Oregon, he was required under federal law to register as a sex offender for a period of 15 years. While in Alaska, Phillips knowingly failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
Phillips’ longstanding failure to register was discovered after an Oregon law enforcement officer, who suspected Phillips had moved to Alaska, contacted the Alaska Sex Offender Registry office and reported Phillips was not in compliance.
At Phillips’ sentencing hearing, Judge Beistline noted the importance of deterring other sex offenders from failing to register, explaining that, “the law has to have backbone.”
The United States Marshals Service (USMS) conducted the investigation, with assistance from the Alaska Department of Public Safety and the Oregon State Police, leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Allison O’Leary.
Cambridge Internist Pays More Than $176,000 to the United States to Resolve False Claims Act Allegations that He Administered Medically Unnecessary ProceduresRead the Press Release
Baltimore, Maryland – Noman Thanwy, M.D., an internist in Cambridge, Maryland, associated with the medical practice known as M.S. Shariff, M.D., P.A., has paid the United States $176,686.00 to settle allegations that he submitted false claims to the United States for medically unnecessary autonomic nervous function tests and vestibular function tests.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
In his practice, Dr. Thanwy administered peripheral autonomic nervous function tests and vestibular function tests. Autonomic nervous function disorders are relatively uncommon disorders and tests conducted to determine such disorders should be done only after a clinician suspects an autonomic nervous function disorder. Furthermore, such tests should be conducted only one time per beneficiary, with the necessary equipment, and only by clinicians with specialized training to administer and interpret these tests. Vestibular function tests are tests of function intended to determine whether there is something wrong with the vestibular portion of the inner ear.
According to the settlement agreement, from October 1, 2015 to May 30, 2019, Dr. Thanwy submitted claims to Medicare for medically unnecessary autonomic nervous function tests. The United States alleged that autonomic nervous function tests were not medically necessary because Dr. Thanwy lacked the necessary equipment or specific training to conduct the tests, the patients did not have an autonomic nervous function disorder before the test was conducted, and Dr. Thanwy only used the tests to monitor patient symptoms, not make any clinical decisions about future patient care. Further, the United States alleged that the vestibular function tests were not medically necessary, because an evaluation of a patient’s symptoms was not done prior to ordering the tests, nor were the test results used for clinical decision making.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Dr. Thanwy, nor a concession by the United States that its claims are not well founded.
The civil settlement reached by the U.S. Attorney’s Office for the District of Maryland arose from an initiative inside the U.S. Attorney’s Office, which involves the use dedicated resources and personnel to review Medicare billing data. The review of that data has enabled the United States Attorney’s Office to identify areas of concern where it appears that billing irregularities may have taken place. Partnering with the effected agencies, the United States Attorney’s Office has developed the ability to investigate these billing irregularities to determine whether the matter is appropriate for treatment under the False Claims Act.
United States Attorney Robert K. Hur commended the Office of Inspector General for the Department of Health and Human Services for its work in the investigation. Mr. Hur also thanked Assistant United States Attorneys Thomas Corcoran and Neil White, who handled the case.
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Billings meth dealer sentenced to prisonRead the Press Release
BILLINGS—A Billings man who admitted possessing methamphetamine for distribution and to having a firearm was sentenced today to six years in prison and five years of supervised release, said U.S. Attorney Kurt Alme.
Gary Hollister Ainsworth, 34, pleaded guilty in October 2018 to possession with intent to distribute meth and to possession of a firearm in furtherance of drug trafficking crime.
U.S. District Judge Susan P. Watters presided.
In court records filed in the case, the prosecution said that in April 2018, Yellowstone County Sheriff’s Office deputies responded to a suspicious activity report at a storage facility in Billings. The person who made the report told deputies he had watched a man driving a Suzuki, later identified as Ainsworth, attempt to steal a vehicle off of a nearby lot and had followed Ainsworth to the storage facility. When deputies approached, Ainsworth tried to flee, but stopped and surrendered.
Deputies noted that Ainsworth had several active arrest warrants, was acting erratic and nervous and was wearing latex gloves. Deputies also saw a marijuana pipe, a handgun and a blow torch in plain view in the Suzuki. Deputies detained Ainsworth and impounded the vehicle.
An initial search of the vehicle, based on a warrant, by officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force found only the handgun and drug paraphernalia. Information from an anonymous source led to a second search of the vehicle, which resulted in agents finding about 54 grams of pure meth. Ainsworth subsequently admitted to law enforcement that he was dealing meth.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the EMHIDTA Task Force, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and Yellowstone County Sheriff’s Office.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Billings man sentenced to prison for firearms crimes after admitting guns were for protection while selling methamphetamineRead the Press Release
GREAT FALLS—A Billings man convicted of firearms crimes after he admitted distributing methamphetamine on the Fort Belknap and Fort Peck reservations was sentenced to today to six years and eight months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Gabriel Greg Hazard, 36, pleaded guilty in August to prohibited person in possession of a firearm and to possessing a firearm during a drug trafficking crime.
U.S. District Judge Brian M. Morris presided.
In court records filed in the case, the prosecution said Hazard had been convicted of felony robbery in 2014 and was paroled in 2018. Hazard’s felony conviction prohibited him from possessing firearms or ammunition. One month after being released, Hazard began selling meth on the Fort Belknap and Fort Peck reservations.
On Dec. 16, 2018, a law enforcement officer pulled over Hazard for erratic driving on Highway 2 between Wolf Point and Poplar, on the Fort Peck Reservation. Hazard was under the influence of meth at the time of the traffic stop. In his vehicle were three firearms and an assortment of ammunition. Hazard also had a military style vest in the vehicle and a few grams of meth in his wallet. Hazard cooperated with officers and indicated he used the firearms for protection.
Assistant U.S. Attorney Cassady Adams prosecuted the case, which was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roosevelt County Sheriff’s Office and the Fort Peck Tribal law enforcement.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Beckley Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man was sentenced to federal prison for a federal drug crime, announced United States Attorney Mike Stuart. Kendall Cotten, 30, was sentenced to 30 months in prison for possession of heroin with intent to distribute.
“Cotten was selling fentanyl-laced heroin,” said United States Attorney Mike Stuart. “These cases are tragic and outrageous. We continue to focus on prosecuting the traffickers of these deadly poisons with the goal of removing them from society so that they cannot harm our families or communities any longer.”
Cotten previously admitted that on three separate occasions between November 28, 2017 and December 7, 2017, he sold what he believed to be heroin, but in fact turned out to be a mix of heroin and fentanyl, to a confidential informant working with the Beckley/Raleigh County Drug and Violent Crime Task Force. The drugs sold on these dates were tested by the West Virginia State Police Crime Lab and confirmed to contain heroin and fentanyl. Cotten also admitted that on December 13, 2017, police executed a search warrant at his residence. During the search police officers recovered 122 bindles of heroin, $727 in cash that were the proceeds of drug trafficking activities, and a Ruger LCP .380 pistol. Cotten admitted that he intended to distribute the heroin found during the execution of the search warrant.
Stuart commended the investigative efforts of the Beckley/Raleigh County Drug and Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
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Alien Indicted on Illegal Reentry ChargeRead 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 an indictment charging ANGEL EVARISTO IBARRA-RIVERA, age 30, of Mexico, with Illegal Reentry of a Deported Alien subsequent to a Felony Conviction.
Therefore, if convicted, IBARRA-RIVERA, previously deported five times and found in Wake County, would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment is merely an accusation. The defendant is 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 case.
Akron man charged with possessing a firearm and ammunition in furtherance of a drug trafficking offenseRead the Press Release
A federal grand jury in Cleveland returned a three-count superseding indictment charging Christopher M. Wilson, age 43, of Akron, Ohio, with being a felon in possession of a firearm and ammunition, possessing with the intent to distribute methamphetamine, and possessing a firearm in furtherance of drug trafficking crime.
The superseding indictment alleges that the defendant, after having previously been convicted of burglary, robbery, illegal possession of chemicals for the manufacture of drugs, and aggravated drug possession and heroin possession, knowingly possessed a loaded Ruger .22 caliber pistol. The superseding indictment further alleges that, at the time the defendant was found with the firearm, he also had 50 grams or more of methamphetamine.
The investigation preceding the indictment was conducted by ATF and the Akron Police Department. The case is being prosecuted by Assistant United States Attorney Peter E. Daly.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Additional Charges Filed Against Two Men Related to 2018 Homicide and Armed Robbery of Florida CoupleRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces the return of a superseding indictment charging Alex Jared Zwiefelhofer (22, Wisconsin) and Craig Austin Lang (29, Arizona and North Carolina) with six federal offenses. In addition to the offenses of conspiracy to commit robbery affecting commerce and discharging a firearm during and in relation to a crime of violence, robbery interfering in commerce, and discharging a firearm during and in relation to a crime of violence, which resulted in death, Zwiefelhofer and Lang are also charged with conspiring to kill, kidnap, or maim persons in a foreign country and a violation of the Neutrality Act. If convicted on all counts, Zwiefelhofer and Lang face a maximum sentence of life in federal prison or death. Zwiefelhofer’s arraignment on the superseding indictment is set for December 10, 2019, in Fort Myers. Lang is currently in custody, in Ukraine, pursuant to a provisional arrest request from the United States.
According to court documents, on April 10, 2018, two individuals, S.L., Jr. and D.L., were found dead in Estero, Florida from multiple gunshot wounds to the head and body. Further investigation revealed that the couple had traveled to Estero from Brooksville, Florida to complete the purchase of several firearms from an individual that had listed them for sale on a website known as Armslist. As a result of the investigation, Zwiefelhofer and Lang were identified as the individuals that were believed to have murdered the couple during the course of an armed robbery of the $3,000 that the couple had intended to use to purchase the firearms.
The superseding indictment further alleges that Zwiefelhofer and Lang formed and pursued a plan to fight the Venezuelan government and committed the robbery of S.L., Jr. and D.L. to obtain money to fund their travel to Venezuela for that purpose.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorneys Jesus M. Casas and Josephine W. Thomas.
superseding indictmentA Total of Eight Now Indicted in Insurance Fraud Scheme Involving Staged AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced today the Superseding Indictment charging three additional defendants: GENETTA ISREAL (“ISREAL”), age 51, of Houston, Texas; MARIO SOLOMON (“SOLOMON”), age 48, of New Orleans; and LARRY WILLIAMS (“LARRY WILLIAMS”), age 46, also of New Orleans. Previously, the following five defendants were indicted: DAMIAN K. LABEAUD (“LABEAUD”), age 47, of New Orleans; LUCINDA THOMAS (“THOMAS”), age 63; MARY WADE (“WADE”), age 55; JUDY WILLIAMS (“JUDY WILLIAMS”), age 59; and DASHONTAE YOUNG (“YOUNG”), age 25; all of Houma, Louisiana.
The Superseding Indictment adds three new defendants, expands the conspiracy, adds two new counts of wire fraud, and charges an entirely new staged accident that occurred on June 12, 2017.
According to the Superseding Indictment, before on or about June 6, 2017, Attorney A and LABEAUD met at a restaurant in New Orleans. During their meeting, Attorney A and LABEAUD agreed that Attorney A would pay LABEAUD $1,000 per passenger for staged and legitimate accidents with tractor-trailers. Attorney A and LABEAUD agreed that Attorney A would pay $500 per passenger for staged and legitimate accidents that did not involve tractor-trailers. The Grand Jury alleges that Attorney A knew LABEAUD was staging accidents and Attorney A paid LABEAUD for at least forty (40) illegally staged automobile accidents. In addition, LABEAUD and Attorney A would discuss the staging of accidents before they happened. Attorney A also directed LABEAUD to change the locations of the staged accidents, to vary the number of passengers, to avoid talking to the police, and to avoid cameras. Attorney A would advance LABEAUD thousands of dollars for accidents and would instruct LABEAUD that he owed Attorney A a certain number of accidents based on the amount of money advanced.
LABEAUD, SOLOMON, LARRY WILLIAMS, and ISREAL are charged with staging an accident on June 12, 2017, that occurred on Chef Mentuer Highway near the Danziger Bridge in New Orleans. According to the Superseding Indictment, LABEAUD and LARRY WILLIAMS planned to stage an automobile accident to obtain money through fraud. During their planning, LABEAUD told LARRY WILLIAMS that he had an Attorney who would handle everything. The Superseding Indictment alleges that LARRY WILLIAMS recruited ISREAL and another individual (now deceased) to participate in the fraudulent scheme, that LARRY WILLIAMS borrowed a Chevrolet Trailblazer, and that LABEAUD operated the Trailblazer to collide with a 2015 Peterbilt tractor-trailer. After the staged accident, LABEAUD fled the scene and LARRY WILLIAMS got behind the wheel to make it appear that he was operating the Trailblazer during the staged accident. SOLOMON picked up LABEAUD after the staged accident. LARRY WILLIAMS told the New Orleans Police Department (“NOPD”) that he was the driver of the Trailblazer and that the tractor-trailer was at fault. After the staged accident, LABEAUD introduced LARRY WILLIAMS and ISREAL to Attorney A.
The Superseding Indictment alleges that LARRY WILLIAMS and ISREAL were treated by doctors and healthcare providers at the direction of Attorney A. Attorney A told LARRY WILLIAMS that he would get more money if he had shoulder surgery. On June 12, 2018, Attorney A’s law partner, Attorney B, filed the Larry Williams Lawsuit in Civil District Court (“CDC”) for the Parish of Orleans and on September 14, 2018, Attorney B demanded approximately $60,000.00 in settlement for the deceased passenger and approximately $56,155.00 in settlement for ISREAL. After the suit was filed, LARRY WILLIAMS and ISREAL each provided false testimony in depositions taken in conjunction with the lawsuit filed by Attorney B.
According to the Superseding Indictment and as previously alleged, on June 6, 2017, THOMAS, WADE, JUDY WILLIAMS, and YOUNG drove from Houma, LA, to meet with LABEAUD for the purpose of staging an automobile accident in order to obtain money through fraud. After their meeting, THOMAS, WADE, JUDY WILLIAMS, and YOUNG agreed to allow LABEAUD to drive THOMAS’ 2009 Chevrolet Avalanche vehicle. The defendants then drove around the vicinity of Chef Menteur Highway and Downman Road of New Orleans until they located a 2017 Freightliner tractor-trailer operated by an Arkansas trucking company. At approximately 12:30 P.M., LABEAUD intentionally collided with the tractor-trailer. LABEAUD then exited THOMAS’ vehicle and instructed THOMAS to get behind the wheel of THOMAS’ Avalanche to make it appear that THOMAS was driving the vehicle at the time of the staged accident.
THOMAS, WADE, JUDY WILLIAMS, and YOUNG contacted the NOPD and falsely reported that THOMAS had been the driver of the Avalanche and that the traitor-trailer had struck her vehicle. LABEAUD then returned to the scene and also made false statements to the NOPD that he had witnessed the accident and that the driver of the tractor-trailer had been at fault.
According to the Superseding Indictment, before and after the staged accident, LABEAUD contacted Attorney A and arranged a meeting with THOMAS, WADE, JUDY WILLIAMS, and YOUNG at a fast food restaurant on Chef Menteur Highway. It is further alleged that Attorney A paid LABEAUD $7,500.00 on the day of the staged accident. Attorney A then demanded approximately $1,000,000.00 per plaintiff in settlement for THOMAS, WADE, and JUDY WILLIAMS. Attorney A then filed two lawsuits in CDC. Both of the lawsuits filed in CDC by Attorney A were removed to the U.S. District Court for the Eastern District of Louisiana. The Superseding Indictment alleges that THOMAS, WADE, and JUDY WILLIAMS each provided false testimony in various depositions taken in conjunction with the lawsuits filed by Attorney A.
The Superseding Indictment now additionally alleges that Attorney A contacted LABEAUD because Attorney A was worried about a telephone call made by WADE to LABEAUD prior to the staged accident and Attorney A instructed LABEAUD to contact THOMAS and WADE to instruct them to “get their stories straight.” During a subsequent meeting, Attorney A gave LABEAUD an envelope containing phone records, pleadings, and depositions establishing THOMAS and WADE lied under oath in their September 13, 2018 depositions. Attorney A then met with THOMAS and WADE at a fast-food restaurant outside of New Orleans where Attorney A suggested to THOMAS and WADE a fraudulent scenario to explain a telephone call from WADE to LABEAUD prior to the staged accident.
On or about April 9, 2019, THOMAS, WADE, and JUDY WILLIAMS each provided false testimony in depositions taken in conjunction with the lawsuits filed by Attorney A. Ultimately, but only after a year of pursuing their fraudulent lawsuits, did THOMAS, WADE, and JUDY WILLIAMS settle their cases for $7,500.00 each.
These eight defendants are charged in an eight-count Superseding Indictment. Defendants LABEAUD and SOLOMON are charged with one (1) count of Conspiracy to Commit Wire Fraud (“Conspiracy Count”) in violation of Title 18, United States Code, Section 371 and seven (7) counts of Wire Fraud (“Wire Fraud Counts”) in violation of Title 18, United States Code, Section 1343. THOMAS, WADE, JUDY WILLIAMS, and YOUNG are charged in the Conspiracy Count and six Wire Fraud Counts. ISREAL and LARRY WILLIAMS are charged in the Conspiracy Count and two Wire Fraud Counts. If convicted, the defendants face a maximum penalty of five (5) years for Count 1 and twenty (20) years as to Counts 2-8. Upon their release from prison, each defendant can be placed on a term of supervised release up to three (3) years and fined up to $250,000.00 per count.
All eight defendants were ordered to appear for an initial appearance and arraignment on this Superseding Indictment.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; Assistant U.S. Attorney Shirin Hakimzadeh; and Trial Attorney Jared Hasten of the U.S. Department of Justice’s Fraud Section, Health Care Fraud Unit.
10 Bronx and Westchester-Based Members and Associates of the Gambino Crime Family Indicted in Brooklyn Federal Court for Crimes, Including Racketeering Conspiracy, Loansharking, Obstruction of Justice and BriberyRead the Press Release
Two indictments and one complaint were unsealed today in federal court in Brooklyn variously charging 12 defendants with racketeering conspiracy, bribery, loansharking, fraud, obstruction of justice and related offenses. Those charged with racketeering conspiracy were Andrew Campos, an alleged captain in the Gambino organized crime family of La Cosa Nostra; James Ciaccia, George Campos, Vincent Fiore and Richard Martino, alleged Gambino family soldiers; and Renato Barca, Jr., Benito DiZenzo, Mark Kocaj, Frank Tarul and Michael Tarul, alleged Gambino family associates. The charges relate to the defendants’ criminal activities throughout the New York metropolitan area since February 2013.
Eleven defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. One defendant is a fugitive.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation (IRS-CI); and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“The outstanding investigative work by this Office’s prosecutors and our law enforcement partners uncovered a litany of crimes allegedly committed by members and associates of the Gambino organized crime family, who still don’t get it – handcuffs and a jail cell are waiting for criminals who threaten violence and commit fraud, money laundering and bribery in furtherance of their enterprise,” stated United States Attorney Donoghue. Mr. Donoghue thanked the Queens County District Attorney’s Office, the United States Probation Departments for the Eastern and Southern Districts of New York and the Waterfront Commission of New York Harbor for their assistance during the investigation.
“The Gambino members arrested in this case ran the gamut of criminal activity. Everything from the usual thuggish behavior of beating people up, forcing people to take the fall for their crimes, all the way to defrauding the federal government,” stated FBI Assistant Director-in-Charge Sweeney. “Several suspects even went to prison, were released, and allegedly went right back to breaking the law. At some point, these crime families should realize we see what they're doing, and their actions are going to lead them right back to the same prison cells.”
“Financial gain is the primary motivation of any criminal enterprise and these allegations are no different,” stated IRS-CI Special Agent-in-Charge Larsen. “The criminal investigators of IRS-Criminal Investigation specialize in unraveling such serious charges where multiple financial frauds and extreme measures are utilized for personal enrichment.”
“The NYPD and its law enforcement partners remain committed to eradicating organized crime in New York City,” stated NYPD Commissioner Shea. “Associates of the Gambino Crime Family – or any other enterprise that seeks to enrich its members through racketeering, bribery, loansharking and fraud – should know that investigators will build strong cases against them, and they will be prosecuted. I commend the members of the NYPD, the FBI, and the U.S. Attorney’s Office for their work on this case.”
As alleged in the government’s court filings and summarized below, Andrew Campos and members of his crew used bribery, fraud and extortion schemes to infiltrate the construction industry and earn millions of dollars in criminal proceeds.
Honest Services Wire Fraud Bribery Schemes
Andrew Campos, Fiore, Kocaj and DiZenzo operated a carpentry company, CWC Contracting Corp. (“CWC”), and are charged with paying bribes and kickbacks to employees of numerous construction companies and real estate developers. In exchange, these employees took steps to benefit CWC, including awarding contracts and approving change orders to add or delete from the original scope of a contract. Specifically, between approximately June 2018 and June 2019, CWC paid hundreds of thousands of dollars in bribes and kickbacks to multiple employees of a real estate development company (described in the indictment as “Construction Company #1”), including John Simonlacaj, the company’s current Managing Director of Development. CWC paid the bribes in the form of hundreds of thousands of dollars’ worth of free labor and materials used for renovations on Simonlacaj’s residence that was paid for by a fraudulently approved change order. As Kocaj stated, although the work was paid for by a change order, “it should have been pro bono” because Construction Company #1 “do[es] 50 million a year in business”, and it was “worth it to do some of the paperwork.” In another intercepted conversation, Fiore described the benefits provided by Simonlacaj, “This director, John. There’s a beautiful in there. There’s things we can do with [Kocaj] there, he whispers what he needs to whisper and we get things done.”
Obstruction of Justice – Martino’s Concealment of Financial Assets
In 2005, Andrew Campos and Martino were convicted in the Eastern District of New York for their role in a massive scheme to defraud users of adult entertainment services. Martino was ultimately sentenced to 108 months’ imprisonment and ordered by the court to pay $9.1 million in forfeiture. After his release from prison, Martino, together with Frank Tarul and others, concealed Martino’s substantial wealth and income, falsely reporting that Martino had limited assets and worked for Tarul’s flooring company. In reality, as revealed by court-authorized wiretaps, Martino operated multiple companies that earned millions of dollars, including construction work, investments in pizzerias and other business ventures.
Loansharking and Extortion
As detailed in the government’s court filings, various defendants used extortionate means to collect money. For example, Andrew Campos and Fiore used threats of violence to collect at least $100,000 from one victim. In a lawfully wiretapped phone conversation on March 13, 2019, Fiore warned the victim, “When you get punched in the face and your teeth get knocked out . . . you’re not going to laugh no more, okay? . . . At the end of the day, when you’re upside down [i.e., unable to make certain payments], you deal with him,” referring to Campos.
Kocaj and Lopez, a former professional boxer, are charged with loansharking, including Kocaj’s recovery of tens of thousands of dollars of a gambling debt on behalf of an Albanian organized crime figure. Kocaj bragged about his ability to violently collect money, stating that he could send “a couple of my Albanian guys” and have somebody “grab [a potential victim] by the f-----g neck.” Kocaj helped collect over $30,000, threatening that if the victim did not pay, “[h]e’s going to get his head split open. . . . These are not the guys to f--- around with. . . . These Albanians, you know what they’ll do.” Earlier this morning, law enforcement officers executed a search warrant at Lopez’s home and seized $25,000 in cash, brass knuckles and several large knives.
Retaliation Against Grand Jury Witness – Obstruction of Justice
Andrew Campos allegedly directed that a CWC worker believed to have testified before the grand jury be fired. Subsequently, during a lawfully recorded conversation on November 22, 2019, Fiore directed that the CWC worker be fired as “a personal favor to Andrew,” because the worker “could’ve pled the Fifth.”
Additional Charged Schemes
The indictments and complaint include additional alleged criminal schemes, including (1) laundering money by cashing checks made out to others, purportedly for work performed in connection with CWC construction projects; (2) fraudulently procuring cards from the United States Department of Labor indicating completion of certain Occupational Safety and Health Administration training courses when, in fact, the courses were never completed; (3) defrauding the U.S. government by paying CWC employees millions of dollars in cash without making the required payroll tax withholdings and payments; (4) overbilling CWC clients by causing them to pay for fraudulent or inflated work orders; and (5) evading taxes and money laundering, including by having CWC construct Andrew Campos’s residence.
The charges in the indictments and complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Keith D. Edelman and Kayla C. Bensing are in charge of the prosecution, assisted by EDNY Special Agent Erik Nesbitt. Assistant United States Attorney Claire S. Kedeshian is handling forfeiture matters.
The Defendants:
E.D.N.Y. Docket No. 19-CR-575 (FB)
RENATO BARCA, JR. (also known as “Ronny”)
Age: 32
Bronx, New YorkANDREW CAMPOS
Age: 50
Scarsdale, New YorkGEORGE CAMPOS
Age: 72
Peekskill, New YorkJAMES CIACCIA
Age: 51
Bronx, New YorkBENITO DIZENZO (also known as “Benny”)
Age: 53
New Rochelle, New YorkVINCENT FIORE
Age: 57
Briarcliff, New YorkMARK KOCAJ (also known as “Chippy”)
Age: 49
Tuckahoe, New YorkRICHARD MARTINO
Age: 60
Rye, New YorkJOHN SIMONLACAJ (also known as “John Si” and “Smiley”)
Age: 50
Scarsdale, New YorkFRANK TARUL (also known as “Bones”)
Age: 45
Bronx, New YorkMICHAEL TARUL (also known as “Perkins”)
Age: 43
Bronx, New YorkE.D.N.Y. Docket No. 19-CR-577 (FB)
MARK KOCAJ (also known as “Chippy”)
Age: 49
Tuckahoe, New YorkE.D.N.Y. Docket No. 19-MJ-1126
ADRIAL LOPEZ (also known as “Adriel Lopez” and “Andrew Lopeck”)
Age: 56
Bronx, New York
Wednesday 4 December 2019
Woman sent to prison for smuggling drugs in vehicle doorsRead the Press Release
BROWNSVILLE, Texas – A 26-year-old Brownsville woman has been ordered to federal prison after she admitted to possession with the intent to distribute more than 17 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
Micxi Rueda pleaded guilty Sept. 3.
Today, U.S. District Judge Rolando Olvera sentenced her to 36 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted her age and lack of criminal history.
On May 18, Rueda attempted to enter the United States through the vehicle lanes at the Brownsville & Matamoros International Bridge. An alert for Rueda and her vehicle led to a secondary inspection, where a scan revealed an anomaly located in the vehicle’s passenger-side quarter panel. Authorities extracted 15 packages of cocaine, weighing 17.74 kilograms with an estimated street value of $355,000.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Nikki Piquette is prosecuting the case.
Wisconsin Man Sentenced for Sending Unauthorized EmailsRead the Press Release
St. Louis, MO – Christopher Crivolio, 47, of Sun Prairie, Wisconsin, was sentenced to a four year term of probation for knowingly using, with the intent to commit harassment, the means of identification of another person. Crivolio appeared before U.S. District Court Judge John A. Ross who ordered him to pay $44,847.76 in restitution within 15 days as well as a $2,000 fine.
According to court records, in August 2018, Crivolio sent unauthorized emails claiming to be someone else, an employee of “MH.” Crivolio was previously been employed with and terminated from MH. He sent the emails to more than 10 job applicants who had applied for positions at MH. The rejection emails were offensive in nature. Crivolio signed the emails using the full name of a nurse practitioner who still worked at MH.
Crivolio pled guilty in July 2019 to one count of identity theft.
The case was investigated by the F.B.I. offices in St. Louis and Milwaukee with assistance from the Western District of Wisconsin. Assistant United States Attorney Gwen Carroll handled the case for the U.S. Attorney's Office.
United States Joins Suit against Navistar Defense LLC Alleging False Claims under Marine Corps ContractRead the Press Release
The United States has intervened in a whistleblower suit filed in the United States District Court for the District of Columbia against Navistar Defense LLC. Navistar Defense manufactured armored vehicles for the United States military and is a subsidiary of Navistar International LLC, headquartered in Melrose Park, Illinois. The suit alleges that Navistar Defense violated the False Claims Act by submitting fraudulent invoices to support inflated prices for commercial parts under its contract to supply Mine Resistant Ambush Protected (MRAP) vehicles.
“The Department of Justice will hold accountable those contractors who falsify information and thereby cause the military to pay inflated prices,” said Assistant Attorney General Jody Hunt for the Civil Division. “We will take steps necessary to protect the military’s procurement process from abuse.”
“Through rigorous enforcement of the False Claims Act, we protect taxpayer dollars from waste, fraud, and abuse,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “We expect the utmost integrity and reliability from the contractors that design and build equipment that is meant to ensure that our men and women in uniform are adequately protected as they serve our country.”
In 2007, the United States Marine Corps awarded Navistar Defense a contract to build several hundred MRAP vehicles to replace the Humvee, which proved to be vulnerable to roadside explosive devices. Navistar Defense ultimately provided nearly 4,000 MRAPs under the contract. In 2009, as the focus of the war effort transitioned from the paved roads and flat terrain of the Iraqi deserts to Afghanistan’s rocky terrain, the Marine Corps sought to upgrade its MRAP vehicles with a modified Independent Suspension System (ISS). During the course of negotiations for the ISS, the Marine Corps asked Navistar Defense to provide evidence of prior commercial sales of the various parts that made up the ISS to ensure that the prices paid were fair and reasonable. The lawsuit alleges that Navistar Defense knowingly submitted fraudulent invoices that falsely purported to show prior, comparable commercial sales to conceal the inflated prices it was charging the Marine Corps. In reality, the lawsuit alleges, those sales never occurred.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Duquoin Burgess, a former government contracts manager for Navistar Defense. Under the acts, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. The act permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.
The lawsuit is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Columbia. Investigative support is being provided by the Defense Contract Audit Agency, the Naval Criminal Investigative Service, the Defense Criminal Investigative Service, the Army Criminal Investigation Command, and the Federal Bureau of Investigation.
The case is captioned United States ex rel. Burgess v. Navistar Defense, LLC (D.D.C). The claims alleged in the lawsuit are allegations only, and there has been no determination of liability.
United States Joins Suit Against Navistar Defense LLC Alleging False Claims Under Marine Corps ContractRead the Press Release
WASHINGTON – The United States has intervened in a multimillion dollar whistleblower suit filed in the United States District Court for the District of Columbia against Navistar Defense, LLC. Navistar Defense manufactured large and armored vehicles for the United States military and is a subsidiary of Navistar International, LLC, headquartered in Melrose Park, Illinois. The suit alleges that Navistar Defense violated the False Claims Act (FCA) by submitting fraudulent invoices to support inflated prices for commercial parts on the Mine Resistant Ambush Protected (MRAP) vehicle.
“Contractors who falsify information to induce the military to pay inflated prices will be held accountable,” said Jody H. Hunt, Assistant Attorney General for the Civil Division. “We will continue to protect the military’s procurement process from such abuse.”
“Through rigorous enforcement of the False Claims Act, we protect taxpayer dollars from waste, fraud, and abuse,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “We expect the utmost integrity and reliability from the contractors that design and build equipment that is meant to ensure that our men and women in uniform are adequately protected as they serve our country.”
In 2007, the United States Marine Corps awarded Navistar Defense a contract to build several hundred MRAP vehicles to replace the Humvee, which proved to be vulnerable to roadside bombs. Navistar Defense ultimately provided nearly 4,000 MRAPs under the contract. In 2009, as the focus of the war effort transitioned from the paved roads and flat terrain of the Iraqi deserts to Afghanistan’s rocky terrain, the Marine Corps sought to upgrade its MRAP vehicles with a modified (?) Independent Suspension System (ISS). During the course of negotiations for the ISS, the Marine Corps asked Navistar Defense to provide evidence of prior commercial sales of the various parts that made up the ISS to ensure that the prices paid were fair and reasonable. The government alleges that Navistar Defense knowingly submitted forged documents of prior, comparable commercial sales to conceal the inflated prices it was charging the Marine Corps. In reality, those sales never occurred.
The suit was filed under the qui tam or whistleblower provisions of the FCA by Duquoin Burgess, a former government contracts manager for Navistar Defense. Under those FCA provisions, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Under the FCA, the United States may recover three times the amount of its losses plus civil penalties.
The government’s complaint alleges claims under the FCA, which prohibits knowingly submitting false claims for federal funds, and other common law claims. The lawsuit is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Columbia. Investigative support is being provided by the Defense Contract Audit Agency, the Naval Criminal Investigative Service, the Defense Criminal Investigative Service, the Army Criminal Investigation Command, and the Federal Bureau of Investigation.
The case is captioned United States ex rel. Burgess v. Navistar Defense, LLC (D.D.C). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Two drug traffickers linked to fatal overdose in Bellingham arrested in Skagit CountyRead the Press Release
Seattle – Two Skagit County residents are charged in U.S. District Court in Seattle in connection with a drug distribution ring selling fake oxycodone pills laced with fentanyl in Whatcom and Skagit Counties, announced U.S. Attorney Brian T. Moran. The pills are linked to the overdose death of a 17-year-old Bellingham teen. ROSALIANA LOPEZ-RODRIGUEZ, 21, of Mount Vernon, Washington, was arrested last week, and her supplier, GIOVANNI ALEJANDRO NUNEZ, 21, was arrested December 3, 2019, following a rapidly moving investigation to track down the source of the tainted pills. Both remain in custody.
“Getting these tainted pills off the street are a top priority for law enforcement,” said U.S. Attorney Brian T. Moran. “It is heartbreaking to meet with the families of these overdose victims who lost their children to fentanyl. We will hold those spreading these poisons accountable.”
According to the criminal complaint, a family member found the 17-year-old unresponsive on November 9, 2019. Despite the effort of emergency responders, he could not be revived. Investigators found a whole and a partial pill near the young man. The pills were designed to look like oxycodone 30 mg pills with the letter M and 30 stamped on them. However, they were not genuine and were tainted with fentanyl. Similar pills have been linked to other overdose deaths throughout the Puget Sound region.
The investigation identified LOPEZ-RODRIGUEZ as the person who sold the pills to the victim. In an effort to identify her source of supply, law enforcement utilized undercover officers and confidential sources to purchase pills. Law enforcement subsequently identified NUNEZ as LOPEZ-RODRIGUEZ’s supplier.
Court-authorized search warrants were served last week on the residences of LOPEZ-RODRIGUEZ and NUNEZ. At NUNEZ’s residence, law enforcement located a safe with hundreds of fake oxycodone pills, which matched the appearance of the fentanyl-laced pills linked to the fatal overdose.
“Ingesting any part of these fentanyl-laced pills can be life ending,” warned DEA Special Agent in Charge Keith Weis. “Investigating the sources of these pills remains a top priority for law enforcement along with alerting the public that these pills are dangerous drugs representing dire consequences to our communities.”
“The recent overdose death associated with counterfeit pills laced with fentanyl highlights the growing impact of the opioid crisis,” said Whatcom County Undersheriff Doug Chadwick. “The Whatcom County Sheriff’s Office and the Whatcom Gang and Drug Task Force will continue to aggressively investigate those that bring these drugs into our communities”.
Currently both LOPEZ-RODRIGUEZ and NUNEZ are charged with possession of narcotics with intent to distribute. The charge is punishable by up to twenty years in prison.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Whatcom County Sheriff’s Office, the Drug Enforcement Administration (DEA), and the Whatcom County Drug and Gang Task Force, which is made up of members of the Whatcom County Sheriff’s Office, Bellingham Police Department, U.S. Customs and Border Protection (CBP) and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Seungjae Lee.
nunez_complaint.pdfTwo Sapulpa Sisters Sentenced for Illegally Collecting More Than $350,000 in Death BenefitsRead the Press Release
Two Sapulpa sisters were sentenced today in U.S. District Court for illegally taking more than $350,000 in Social Security and military retirement benefits that were meant for their mother, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Patricia Lee Kendall, 66, and Peggy Lee Larue, 63, both of Sapulpa, to six months in federal prison to be followed by three years on supervised release.
“It is disgraceful that these two sisters fraudulently stole Social Security death benefits and military retirement benefits,” said U.S. Attorney Trent Shores. “Their fraud was ongoing for nearly 20 years. In addition to serving time in federal prison, they will be required to make payments to compensate these federal programs for the more than $350,000 in stolen funds.”
Kendall and Larue pleaded guilty to two-counts of aiding and abetting each other to illegally take and conceal government property in the form of money from both the Social Security Administration and the Department of Defense Military Retirement Fund. The women admitted in court that they failed to notify authorities of their mother’s death in December 2000. Previously, their mother had received the death benefit payments as a result of her husband’s military service. After their mother passed away, the payments should have ceased.
Kendall and Larue illegally took money from the Social Security Administration in the aggregate value of $224,237 in Social Security income as well as money from the Department of Defense Military Retirement Fund in the aggregate value of $129,765 in military retirement funds. During sentencing, Judge Frizzell further ordered the two sisters to repay the $354,002.
The Social Security Administration- Office of Inspector General and Department of Defense Criminal Investigative Service conducted the investigation. Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni prosecuted the case.
Two Men Charged with Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – A federal grand jury has indicted ROLANDO CIFUENTES-LOPEZ, 36, and ERI LEONARDO CIFUENTES-LOPEZ, 40, both of Oklahoma City, on charges of child sex trafficking, announced U.S. Attorney Timothy J. Downing.
According to separate indictments returned by a federal grand jury today, each defendant obtained, solicited, and patronized two minor victims after having had a reasonable opportunity to observe them and knowing and in reckless disregard of the fact that each minor would be caused to engage in a commercial sex act. The indictment against Rolando Cifuentes-Lopez states he engaged in this conduct from November 2016 to January 18, 2019. The indictment against Eri Cifuentes-Lopez states he engaged in this conduct from January 2018 to January 18, 2019. Eri Cifuentes-Lopez is also charged with illegally re-entering the United States; he was removed from the country on November 2, 2005, and was found in the United States on November 20, 2019, without the consent of the Attorney General or the Secretary of Homeland Security.
According to court documents, FBI and Oklahoma City Police Department investigators determined that Rolando Cifuentes-Lopez owned the trailer where the two minor victims lived and threatened to evict their family if they did not comply with requests for sex. He allegedly had sex on multiple occasions with each of the minors, who were as young as 14, in exchange for cash or reduced rent. Eri Cifuentes-Lopez also allegedly had sex with each of the minors for cash.
Both men were arrested by Homeland Security Investigations after traffic stops on November 20, 2019. They have been in federal custody since that time.
If found guilty of child sex trafficking, each defendant faces a mandatory punishment of at least ten years and up to life in prison. If sentenced to less than life, they would be required to comply with terms of supervised release for at least five years and up to life and be required to register as sex offenders. Eri Cifuentes-Lopez also faces up to twenty years in prison for re-entering the United States illegally. Each defendant could also be fined up to $250,000 on each count and be ordered to pay restitution to trafficking victims.
Two other defendants in this investigation have entered guilty pleas to child sex trafficking. On August 28, 2019, Wilson Leonel Gramajo-Maldonado, 29, of Oklahoma City, pleaded guilty to a superseding information that charged him with obtaining the two minor victims for commercial sex acts between June 2018 and January 18, 2019. On September 5, 2019, Natalie Dawn Halbert pleaded guilty to two counts of child sex trafficking, one for each of the minors. She admitted before U.S. District Judge Charles Goodwin that she maintained the minors between November 2018 and January 18, 2019; provided them with condoms; and caused them to engage in commercial sex acts. Both of these other defendants face a mandatory punishment of at least ten years and up to life in prison. Both are in the custody of the U.S. Marshals Service.
These charges are the result of an investigation by the Federal Bureau of Investigation—Oklahoma City Field Office, the Oklahoma City Police Department, and U.S. Homeland Security Investigations. Assistant U.S. Attorneys K. McKenzie Anderson and Mary E. Walters are prosecuting the case.
The public is reminded that the charges against Rolando Cifuentes-Lopez and Eri Cifuentes-Lopez are merely allegations and that they are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Tugboat Owner Charged with Production, Possession and Receipt of Child PornographyRead the Press Release
A Detroit man was indicted yesterday on charges of production, possession and receipt of child pornography, First Assistant United States Attorney Saima Mohsin announced today.
Mohsin was joined in the announcement by Special Agent in Charge Steven M. D'Antuono of the Federal Bureau of Investigation, Detroit Division (FBI).
Indicted was Wade Preston Streeter, 49. Streeter was arrested on November 21, 2019 on a criminal complaint and is being held in custody during the pendency of this case.
According to court records, Streeter is alleged to have sexually assaulted and covertly produced sexually graphic photographs of minor boys as well as engaged in sexually explicit conversations with the minor victims. This alleged conduct took place both at his home in Detroit and on his tugboat.
The FBI is asking for the public’s help to identify potential victims of Streeter, who would befriend young boys on Facebook and other social media sites and then arrange to meet them privately.
Anyone who may have been victimized by Wade Preston Streeter, or anyone who may have information about his alleged criminal behavior, is encouraged to call 313-426-3880 or email the FBI at [email protected].
The FBI is legally mandated to identify victims of federal crimes that it investigates. Identified victims may be eligible for certain services and rights under federal and/or state law. Victims in this investigation can find information about the hearings in this case at https://www.justice.gov/usao-edmi/united-states-v-wade-streeter-docket-19-mj-30602.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
The case is being investigated by special agents of the FBI and is being prosecuted by Assistant United States Attorneys April Russo and Barbara Lanning.
Tomahawk Woman Sentenced for Long-Term Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Becky L. Peterson, 64, Tomahawk, Wisconsin was sentenced yesterday by U.S. District Judge James D. Peterson to 66 months in federal prison for conspiring with Mark W. Moore to distribute more than 50 grams of methamphetamine in Ashland County, Wisconsin over the past several years. Becky Peterson pleaded guilty to the conspiracy charge on June 11, 2019. Moore pleaded guilty to the same charge on November 28, 2018 and was sentenced to 66 months in federal prison on March 13, 2019.
Peterson and Moore engaged in a years-long conspiracy to distribute methamphetamine from a farm near Butternut, Wisconsin in the Town of Peeksville. Drug investigators with the Wisconsin Department of Justice Division of Criminal Investigation developed information that Peterson and Moore were selling methamphetamine from a location known as the “Meth Farm.” Beginning in August 2017, an undercover investigator made contact with Moore and began making purchases of methamphetamine from him on the 80-acre farm. During the investigation police confirmed that Moore was working with Peterson to distribute methamphetamine.
Between August 2017 and June 2018, the undercover officer conducted seven controlled buys of methamphetamine from Moore and one from Peterson, each of these occurred at the farm, either in the residence or in a workshop nearby. The sales to the undercover officer alone totaled more than 60 grams. During the course of these buys, Moore stated that Peterson set the prices and weighed and packaged the methamphetamine for sale. Moore also stated on several occasions that he needed to confirm with Peterson whether he could give a discount for large quantity sales.
On June 26, 2018, police executed a search warrant at the farm. During the search, they recovered approximately 30 grams of methamphetamine and $11,412 in US currency. Another $2,000 was later recovered from a separate location. Peterson and Moore each admitted to their involvement in a multi-year ongoing business of distributing methamphetamine.
In sentencing Peterson, Judge Peterson stated that this was long-term dealing in methamphetamine, which is an epidemic in that part of the state. Judge Peterson told Peterson that while her age and health were mitigating considerations, they were not a free pass to commit crime, and he wasn’t fully confident that she might not reoffend given that she had a past drug trafficking conviction.
In addition to the prison sentences received by Peterson and Moore, the court ordered the forfeiture of the farm property used in distributing the methamphetamine, as well as the $13,412 in cash recovered.
The charges against Peterson and Moore were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Ashland County Sheriff’s Department, and Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Robert A. Anderson.
Texas Mexican Mafia Member Sentenced to 35 Years in Federal PrisonRead the Press Release
In San Antonio this afternoon, a federal judge sentenced 51-year-old Texas Mexican Mafia member Robert Eugene Hernandez (aka “Gino”) to 35 years in federal prison for his role in a conspiracy to extort money from drug traffickers operating in their territory without permission, announced U.S. Attorney John Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Hernandez pay a $5,000 fine and be placed on supervised release for a period of five years after completing his prison term.
On July 2, 2019, a federal jury convicted Hernandez of one count of interference with Commerce by threats or extortion, one count of conspiracy to distribute and possess with intent to distribute methamphetamine and heroin, one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime, one substantive count of possession of a firearm in furtherance of a drug trafficking crime, one count of possession with intent to distribute methamphetamine, and one count of prohibited person in possession of a firearm.
According to court records, Hernandez, a San Antonio Eastside Lieutenant, carried out his duties under the direction of Raul Ramos, Texas Mexican Mafia (TMM) Free World General based in San Antonio. The TMM leadership controls and directs collection of the drug tax. All members who participate in the collection of the tax, and the leaders who direct them, understand and agree that drug dealers are not permitted to sell drugs without paying the tax. Dealers have no choice; payment of the tax is mandatory and this rule is enforced through violence.
Once a drug dealer is identified, this information is passed up to the leadership. The leadership will make an effort to confirm this information, usually through a purchase from the drug dealer. If the information is confirmed, TMM soldiers are instructed to visit the drug dealer. If the dealer denies dealing in TMM territory without permission he is ordered to pay more. If the dealer refuses, he usually is robbed and beaten immediately. If the first visit does not convince the dealer to comply, the second visit will be a “door kick.” The front door is kicked in, armed gang members storm the home, all occupants are beaten and sometimes tied up, and anything of value is taken such as narcotics, jewelry, electronics, guns, and automobiles. After a “door kick,” all dealers begin paying the tax.
This prosecution has resulted in 37 convictions of members and associates of the Texas Mexican Mafia; 27 of which have resulted in sentences ranging from 63 months to life in federal prison. Ten defendants are awaiting sentencing.
This federal prosecution stems from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the FBI, New Braunfels Police Department, Texas Department of Public Safety and the San Antonio Police Department. Homeland Security Investigations (HSI) and the Bureau of Prisons (BOP) assisted in this investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking operations, weapons trafficking operations, money laundering operations, violent street gangs and those primarily responsible for the nation’s illegal drug supply.
Tax Return Preparers Plead Guilty to Filing False Tax ReturnsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that Gregory Doneal Mack, 56, of Charlotte, appeared in federal court today and pleaded guilty to preparing false tax returns while working for a tax return preparation business. The owner of the tax preparation business, Sean Dalton Williams, 48, of Charlotte, previously pleaded guilty to aiding and assisting the preparation of a false tax return.
U.S. Attorney Murray is joined by Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), in making today’s announcement.
“Tax preparers are the gatekeepers of our tax system, tasked with safeguarding its integrity and complying with our nation’s tax laws, not using their expertise to help clients evade their tax obligations at the expense of honest taxpayers. My office’s tax prosecutors are dedicated to uncovering tax fraud and holding cheats accountable for their actions,” said U.S. Attorney Murray.
“Taxpayers should choose carefully when hiring a tax return preparer. While most return preparers are honest and provide excellent service, a few unscrupulous tax preparers file false returns to defraud the government and their clients. All taxpayers should know that IRS Criminal Investigation will vigorously pursue those dishonest tax return preparers and hold them accountable for their illegal actions,” said Special Agent in Charge Line.
According to filed plea documents and today’s plea hearing, from 2012 to 2017, Mack worked as a tax return preparer at SW Financial Group (SWFG), a Charlotte-area tax preparation business owned and operated by Williams. According to court records, while working at SWFG, Mack and Williams prepared fraudulent U.S. Individual Income Tax Returns, Forms 1040, and related IRS Schedules and Forms, that contained fabricated and/or fraudulent items on Schedules A and C. As a result, the defendants’ clients’ tax liabilities were reduced, resulting in inflated refunds.
According to court records, the tax loss to the government associated with the inaccurate tax returns prepared by Mack for tax years 2012 to 2017 is approximately $282,967. The tax loss associated with the fraudulent tax returns prepared by Williams for tax years 2012 to 2015 is $276,540. Court records show that during the time that Williams perpetrated the tax fraud, he was also on pretrial release on federal charges related to a mortgage fraud scheme.
Both defendants pleaded guilty to aiding and assisting the preparation of a false tax return. The charge carries a maximum penalty of three years in prison and a $250,000 fine. A sentencing date for Mack and Williams has not been set.
* * *
In a separate case, Cletise Hammonds, 48, of Charlotte, has pleaded guilty to preparing false tax returns. Court documents filed in this case show that, from 2011 to 2017, Hammonds owned and operated Accurate Tax and Bookkeeping LLC (Accurate Tax), a tax preparation business located in Charlotte. As Hammonds previously admitted in plea documents, through Accurate Tax, Hammonds prepared and filed false tax returns for clients that included fraudulent Schedule C income expenses, education credits, and dependents, among other things. The false and fraudulent items resulted in the fraudulent reduction of the clients’ tax liabilities, and the receipt of fraudulently inflated refunds. According to court records, Hammonds charged between $200 to $700 for preparation of tax returns, and his tax preparation fees were taken directly from the clients’ tax refunds. According to court records, the tax loss associated with the fraudulent returns prepared and filed by Hammonds is $329,568. Hammonds has pleaded guilty to aiding and assisting in the preparation of false tax returns and is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Murray commended IRS-CI for handling these investigations.
Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the cases.
Suspended Pharmacist Charged with Health Care Fraud Conspiracy, Fraudulently Obtaining Controlled Substances and Misbranding DrugsRead the Press Release
PITTSBURGH, PA - A suspended pharmacist has been indicted by a federal grand jury in Pittsburgh, PA, on charges of obtaining controlled substances by fraud, misbranding of drugs, and health care fraud conspiracy, United States Attorney Scott W. Brady announced today.
The 12-count superseding Indictment named Timothy W. Forester, 43, of Venetia, PA 15367, as the sole defendant.
According to the indictment presented to the court, from on or about November 14, 2018, to on or about February 14, 2019, Forester, a registered pharmacist who owned four pharmacies in Pittsburgh’s South Hills, knowingly, intentionally and unlawfully obtained oxycodone and hydrocodone, Schedule II controlled substances, by misrepresentations, fraud, and deception. In addition, the indictment alleges that Forester placed generic drugs into empty bottles of name brand drugs and sold the drugs as if they were name brand drugs. The superseding indictment alleges that Forester conspired with others to commit health care fraud.
The law provides for a maximum per count sentence of four years in prison, a fine of $250,000 or both as to Counts 1-10. As to Count 11, the law provides for a maximum per count sentence of 3 years in prison, a fine of $ 250,000 or both. As to Count 12, the law provides for a maximum per count sentence of 10 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 offenses and the prior criminal history, if any, of the defendant. Defendant was released on a $100,000 secured bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Strangulation death sends Birney man to prison for 25 yearsRead the Press Release
BILLINGS—A Birney resident with a history of domestic abuse convictions was sentenced today to 25 years in prison and five years of supervised release in the strangulation death last year of a woman on the Northern Cheyenne Indian Reservation, U.S. Attorney Kurt Alme said.
Randy Lee Littlebird, 36, pleaded guilty in July to second degree murder, strangulation and domestic abuse by habitual offender.
U.S. District Judge Susan Watters presided.
The prosecution said in court records that Littlebird killed the victim on Feb. 4, 2018 at a shared residence in Birney. Littlebird and the victim were drinking alcohol throughout the day and were drunk. Another individual in the house heard a confrontation between the two and the victim yell, “No Randy, don’t, don’t,” then her scream, followed by silence.
Littlebird entered the individual’s room and said that the victim was unresponsive. The individual found the victim lying on the floor near a rope. Littlebird claimed the victim had killed herself and he had moved the body.
An autopsy determined the cause of death was ligature strangulation and multiple blunt force injuries.
In an interview with FBI and Bureau of Indian Affairs agents, Littlebird confessed to fatally strangling the victim. He admitted to tying ropes around the victim’s ankles to prevent her from leaving and then he left the room. When he returned, the two argued some more. Littlebird grabbed the rope, which was now around the victim’s neck, and while standing, pulled on it, strangling her.
Littlebird has four prior domestic abuse convictions on the Northern Cheyenne Reservation.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI and BIA.
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Steelville Man Pleads Guilty to Felon in Possession of a FirearmRead the Press Release
St. Louis, MO – Johnathan K. Esparza, 27, of Steelville, MO, pleaded guilty to felon in possession of a firearm stemming from a police chase from Illinois into Missouri. Esparza appeared in federal court this afternoon before U.S. District Judge John A. Ross who accepted his plea and set his sentencing date for March 13, 2020.
According to court documents, on September 21, 2018, Brooklyn, Illinois Police Officers responded to a call regarding shots fired from a Nissan vehicle. As Brooklyn police officers attempted to bring the vehicle to a controlled stop, the driver of this vehicle accelerated and drove at a high rate of speed from Illinois into Missouri. Officers observed Esparza, the front seat passenger, throw a pistol out of the window of the vehicle in St. Louis and were able to recover and seize the pistol. The Nissan was eventually stopped and Esparza was apprehended. A computer check revealed that he was a convicted felon.
Esparza faces a maximum sentence of ten years in prison and a fine of not more than a $250,000. He may be subject to a mandatory minimum sentence of 15 years and a maximum sentence greater than described. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Brooklyn, Illinois Police Department and St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney’s Office.
Springfield Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to failing to register as a sex offender.
Alberto Ayala pleaded guilty to one count of failure to register as a sex offender before U.S. District Court Judge Mark G. Mastroianni, who scheduled sentencing for March 26, 2020. Ayala was indicted in February 2019, and has been in custody since his arrest on Sept. 26, 2018, for violating his conditions of parole in another criminal case.
Ayala was convicted in New Jersey of sexual assault in 2006. While in New Jersey from 2011 to 2016, Ayala received, and complied with, many notices of his obligation to register as a sex offender. On Nov. 14, 2016, while Ayala was under parole supervision for the original sex offense, he submitted his last registration as a sex offender and vacated his address in New Jersey without advising his parole officer. Soon thereafter, a New Jersey parole warrant was issued for his arrest.
Ayala subsequently moved to Massachusetts, living in the Boston area in the summer of 2017 and in Springfield starting in April 2018. Ayala never registered as a sex offender in Massachusetts, and was arrested in Springfield on Sept. 26, 2018.
The charging statute provides for a sentence of up to 10 years in prison, a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Alex J. Grant, of Lelling’s Springfield Branch Office, is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Spokane for-Profit College and General Manager to Pay over $120,000 to Resolve False Claims Act Liability in Connection with G.I. BillRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Computer Solutions of Spokane, Inc., doing business as New Horizons Computer Learning Center (New Horizons Spokane), and its General Manager, Spirit Dorris, agreed to pay over $120,000 to resolve their liability in connection with alleged fraud against the Department of Veterans Affairs’ (VA) G.I. Bill program. New Horizons Spokane is a for-profit school located in Spokane Valley, Washington. It is one of over 60 franchises around the country doing business under the New Horizons name.
Under the G.I. Bill, veterans and service members of the United States Armed Forces and their families are eligible for tuition and fee assistance associated with higher education. Under the program, educational institutions such as New Horizons can request reimbursement from the VA for tuition and fee expenses incurred by qualifying veterans and service members and their eligible dependents, provided that the school meets certain eligibility requirements and complies with VA regulations designed to protect the G.I. Bill from overpayment and to ensure that its benefits go only to eligible institutions.
As part of the settlement agreement, New Horizons Spokane and Mr. Dorris admitted that they failed to comply with certain VA requirements, resulting in receiving payments from the VA to which they were not entitled. Specifically, New Horizons Spokane and Mr. Dorris admitted that New Horizons Spokane failed to comply with the “85/15 Rule,” which requires that no more than 85 percent of any course of study be filled with individuals funded by the G.I. Bill. The purpose of the 85/15 Rule is to ensure that the educational institution is offering legitimate courses of interest and value to the general public and not simply offering classes that solely take advantage of VA funding. As part of the settlement agreement, New Horizons Spokane and Mr. Dorris admitted that between 2015 and 2018, New Horizons sought and received reimbursement from the VA in violation of the 85/15 Rule.
Additionally, as part of the settlement agreement, New Horizons Spokane and Mr. Dorris admitted that between 2015 and 2018, New Horizons Spokane failed to comply with the “Last Payer Rule,” which requires that the amount of G.I. Bill reimbursement be reduced by the amount of any discounts, rebates, or other financial incentive provided to veterans. New Horizons Spokane and Mr. Dorris admitted that New Horizons failed to comply with the Last Payer Rule by failing to pass discounts and rebates on to the VA, resulting in overpayment to New Horizons Spokane.
New Horizons Spokane will pay $100,000 to resolve its liability, while General Manager Spirit Dorris will pay $20,950.
Also as part of the settlement agreement, New Horizons Spokane and Mr. Dorris admitted that New Horizons Spokane had received, and acted on, direction from its corporate parent and franchisor, New Horizons Computer Learning Center, Inc., which is headquartered in Conshohocken, Pennsylvania, regarding the 85/15 Rule and the Last Payer Rule.
United States Attorney Hyslop said, “The G.I. Bill is an essential and historic government program that expands opportunity and education to our men and women in uniform who have served and sacrificed on behalf of our Country. The False Claims Act serves as the government’s primary civil remedy to redress false claims for federal funds and property. This case is indicative of the United States Attorney’s Office for the Eastern District of Washington’s continuing commitment to rooting out alleged fraud involving government programs. We will continue to work with our law enforcement partners to ensure that G.I. Bill funds go only to eligible institutions and to hold accountable those who misuse this program.”
“This settlement demonstrates the VA Office of Inspector General’s unwavering commitment to protecting programs intended to assist veterans that have served this nation and rightfully earned their benefits,” said Special Agent in Charge James Wahleithner, VA Office of Inspector General, Criminal Investigations Division.
The investigation was conducted by the VA Office of Inspector General. This case was prosecuted by Dan Fruchter, Vanessa R. Waldref, and Tyler Tornabene, Assistant U.S. Attorneys for the Eastern District of Washington.
South Glens Falls Man Sentenced to 60 Months for Cocaine TraffickingRead the Press Release
ALBANY, NEW YORK – Carlo Varnado, age 41, of South Glens Falls, New York, was sentenced today to 60 months in prison for conspiring to distribute more than 500 grams of cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Field Division.
As part of his guilty plea, Varnado admitted that between January 2013 and October 9, 2017, he distributed cocaine from his apartment in South Glens Falls and in areas around Glens Falls. Some of this cocaine was resold in and around Lake Placid, New York. On October 9, 2017, DEA Special Agents seized approximately 8.8 ounces of cocaine bound for Lake Placid after Varnado distributed it to another person. DEA Special Agents then executed a search warrant at Varnado’s apartment and recovered approximately 20 grams of cocaine, inositol (a common cutting agent for cocaine), approximately $1,000 in U.S. currency, a scale, a vacuum sealer, and plastic baggies. As part of his plea, Varnado admitted trafficking approximately 4 kilograms of cocaine during the conspiracy.
Senior U.S. District Judge Gary L. Sharpe also sentenced Varnado to serve a 4-year term of supervised release.
This case was investigated by DEA and prosecuted by Assistant U.S. Attorney Douglas Collyer.
Skiatook Woman Charged with 14 Counts of Aggravated Identity TheftRead the Press Release
In November, a federal grand jury returned an indictment charging Crystal Lynne Clark, 54, of Skiatook, with 14 counts of aggravated identity theft, announced U.S. Attorney Trent Shores.
Clark allegedly used credit card information from multiple victims to purchase gift cards. She then provided her associates with the gift card information. Clark also allegedly used the victims’ credit cards to make numerous personal purchases.
"Money mules facilitate fraud schemes by receiving funds from victims and forwarding that money to co-conspirators," said U.S. Attorney Trent Shores. "Identity theft and fraud schemes can be financially crippling to their victims. That's why I am proud of the excellent investigative work done by the Postal Inspector and Skiatook Police Department."
Recruiters of money mules lure their candidates in many different ways. This year, cases involving romance scams were reported on the rise, with criminals increasingly recruiting money mules on online dating sites and grooming their victims over time to convince them to open bank accounts under the guise of sending or receiving funds.
The U.S. Postal Inspection Service and Skiatook Police Department are conducting the investigation. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case.
Saint Louis County Man Charged with Federal Drug and Firearm ChargesRead the Press Release
St. Louis – Antonio Bright, 37, of St. Louis, MO, was charged by a federal complaint for possession of firearms and drugs.
According to the complaint, a federal search warrant was executed today by FBI SWAT St. Louis and the St. Louis Metropolitan Police Department at 6526 Leschen Avenue, St. Louis, MO 63121. Law enforcement located twelve firearms in the residence, two plastic bags containing suspected heroin and one plastic bag containing multiple large chunks of rock-like substance suspected to be heroin, two plastic bags containing multiple pills of suspected ecstasy and multiple bags and containers of marijuana.
Bright has been charged with possession with intent to distribute controlled substances; felon in possession of a firearm; and possessing one or more firearms in furtherance of a drug trafficking crime. Bright is presumed to be innocent unless and until proven guilty.
These charges are the result of a joint investigation by the St. Louis Metropolitan Police Department and Federal Bureau of Investigation. Special Assistant United States Attorney Nauman Wadalawala is handling this case.
Rochester Woman Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD, N.H. - Leah M. Stevens, 32, of Rochester, pleaded guilty in federal court to drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court on September 10, 2018, a cooperating individual gave information to law enforcement officers that Stevens had traveled to Lawrence, Massachusetts to pick up drugs. Law enforcement officers conducted a motor vehicle stop as Stevens was returning to Rochester from Lawrence. During the stop, Stevens admitted that she had a number of “sticks” of narcotics in her possession and officers found approximately 288 grams of fentanyl.
On September 14, 2018, a cooperating source informed law enforcement officers that Stevens had received a new delivery of drugs at her residence, which she intended to distribute. Law enforcement officers executed another vehicle stop. During the search of the vehicle, law officers located fentanyl and methamphetamine.
Stevens is scheduled to be sentenced on March 11, 2020.
“Interstate fentanyl traffickers have made large quantities of this deadly drug available for purchase in New Hampshire,” said U.S. Attorney Murray. “In order to deter this illegal trade and thereby protect our citizens, we will continue to work closely with the FBI, Epping Police Department and all of law enforcement partners to identify and prosecute those who bring fentanyl into our state.”
"The transport of dangerous drugs like fentanyl between Massachusetts and New Hampshire is no different from recklessly spreading a deadly plague, and it's a problem the FBI and our law enforcement partners on both sides of the border have fought hard to obstruct for the safety of our neighborhoods," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "Leah Stevens was caught in the act of interstate drug smuggling, only to opt for home delivery days later. We’re pleased to see that today she finally accepted responsibility for her criminal conduct.”
This matter was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force and the Epping Police Department. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes.
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Roanoke Man Sentenced on Drug, Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who possessed with the intent to distribute methamphetamine and illegally possessed a firearm in furtherance of his drug trafficking activities, was sentenced yesterday in federal court to 10 years in prison. United States Attorney Thomas T. Cullen made the announcement today as part of the Western District of Virginia’s ongoing Project Safe Neighborhoods [PSN] initiative to reduce violent crime in the City of Roanoke.
Tahlik Shine, 20, pleaded guilty October 7, 2019 to one count of possession with the intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
“This case illustrates our focus on working with the Roanoke Police Department to target individuals who unlawfully use and possess firearms,” U.S. Attorney Cullen stated today. “We will continue to surge federal resources into this community to reduce violence, gang, and drug-related activity.”
According to court documents, on two separate dates, officers with the City of Roanoke Police Department conducted traffic stops during which time Shine was found to be in possession of a firearm and/or illegal substances. On July 27, 2018, Shine was stopped by police due to a tail light being out and was found to be in possession of a firearm and a measurable amount of cocaine. Again, on October 4, 2018, after being stopped by police for an outstanding arrest warrant, Shine was found to be in possession of 151 grams of methamphetamine.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms, Explosives, and the City of Roanoke Police Department. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven 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.
Randall Comly Faces Federal Gun and Drug Charges After Shooting at PoliceRead the Press Release
DES MOINES, Iowa – United States Attorney Marc Krickbaum and Adair County Attorney Melissa S. Larson announced that a federal grand jury has returned an indictment charging Randall Lee Comly with gun and drug crimes, for which Comly faces a maximum sentence of life in prison. These charges stemmed from an October 2019 incident where Comly allegedly shot at, and attempted to kill, four law enforcement officers in Stuart, Iowa.
On October 17, 2019, a Stuart police officer and three Guthrie County deputy sheriffs attempted to serve an arrest warrant for Comly at his apartment in Stuart. Comly allegedly shot repeatedly at the officers, two of whom were wounded during the exchange of gunfire. The government alleges that a search of Comly’s apartment revealed a .22 caliber revolver and methamphetamine under the bed in the room where Comly barricaded himself.
As a result of these alleged crimes, Comly is charged with being a felon in possession of a firearm; possessing methamphetamine with the intent to distribute it; and possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime. If convicted, Comly faces at least 25 years in prison, and up to life in prison. Under federal law, there is no parole.
“Randall Comly is a felon and alleged drug dealer who shot at law enforcement officers who were doing their jobs and protecting our community, said United States Attorney Marc Krickbaum. “We will hold him fully accountable for his crimes.”
Comly is currently charged in state court with attempted murder. Those charges will be dismissed without prejudice to allow the federal charges to proceed first.
“An essential role of the county attorney is to pursue criminal cases in order to keep our communities safe, and our office takes that role very seriously,” said Adair County Attorney Melissa S. Larson. “I believe that the decision to step back from pursuing the state charges at this time, in order for the federal case to proceed first, accomplishes this. I am confident that the U.S. Attorney’s office will prosecute their case to the fullest extent of the law.”
Comly has been arrested and made his initial appearance in federal court in Des Moines, Iowa. Trial is set for February 3, 2020, before the Honorable Rebecca Goodgame Ebinger, United States District Court Judge. Comly is detained in federal custody pending trial.
The investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Iowa Division of Criminal Investigation; Adair County Sheriff’s Office; Guthrie County Sheriff’s Office; and the Stuart Police Department. The Adair County Attorney’s Office also provided invaluable assistance.
The public is reminded that charges contain only accusations and are 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.
Presque Isle Woman Pleads Guilty to Passing Counterfeit MoneyRead the Press Release
Bangor, Maine: A Presque Isle woman pleaded guilty today in Bangor to passing counterfeit money, U.S. Attorney Halsey B. Frank announced.
According to court records, in December of 2018, Vicky Leclerc, 28, contacted a person who was selling clothes on Facebook. Leclerc stated that she wished to purchase the clothes for $20 and the seller agreed. Subsequently, Leclerc met with the seller and paid for the clothes with a $50 bill. The seller later became suspicious that the $50 bill was counterfeit because it did not feel correct. She brought the bill to the Presque Isle Police Department who confirmed the bill was counterfeit. At the time of the sale, Leclerc was aware that the $50 bill was counterfeit.
The defendant faces up to 20 years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Presque Isle Police Department and the U.S. Secret Service investigated the case.
Pittsburgh Felon, with Prior Convictions for Drug and Domestic Violence Crimes, Admits to Unlawfully Possessing a FirearmRead the Press Release
PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to of federal firearms violations, United States Attorney Scott W. Brady announced today.
Kellan Hanner, 28, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on November 1, 2017, two Pittsburgh Police Officers were on patrol in the Hill District assisting in a call for a foot pursuit for a male with a firearm. The officers observed a group of three males, and noticed that one of them, later identified as Hanner, appeared to have a large weighted object in the front pocket of his hooded sweatshirt. The court was further informed that Hanner fled when the police officers attempted to question him, and that officers witnessed the defendant throwing a firearm into a sewer, which was later recovered. Hanner has a prior felony conviction for conspiracy to possess with intent to deliver heroin and prior misdemeanor crime of domestic violence, and as such, is prohibited from lawfully possessing a firearm or ammunition under federal law.
Judge Bissoon scheduled sentencing for April 9, 2019 at 10:00 AM. The law provides for a total sentence of not more than 10 years in prison, a fine not to exceed $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Hanner remains incarcerated pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Police Department conducted the investigation that led to the prosecution of Hanner. This case was brought under Project Safe Neighborhoods (PSN), 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.
Philadelphia Man Charged for Failure to Report for Service of His SentenceRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Warren Johnson, age 28, of Philadelphia, Pennsylvania, was indicted on December 3, 2019, by a federal grand jury on charges of failure to appear at the Bureau of Prisons for the commencement of his previously imposed sentence.
According to United States Attorney David J. Freed, Johnson was sentenced to a term of 78 months’ imprisonment on October 30, 2019 on a charge of possession with intent to distribute a controlled substance (methamphetamine, cocaine and heroin) to which he had previously pleaded guilty. Johnson, who was on bail at the time of his sentencing, asked the court for permission to surrender to prison on November 15, 2019 so that he could take an electricians’ exam. Instead of reporting to prison as required on that date, Johnson allegedly cut his electronic ankle bracelet monitor and was at large until his arrest by Philadelphia Police on November 23, 2019.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Omaha Man Sentenced for Transportation with Intent to Promote Prostitution, Distribution of Cocaine, and Felon in Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced today that Devontez Bobo, 26, of Omaha, was sentenced to 72 months’ imprisonment by United States District Judge Brian C. Buescher for transportation with intent to promote prostitution, distribution of cocaine, and felon in possession of a firearm. There is no parole in the federal system. Bobo was ordered to serve three years on supervised release after the completion of his prison term.
On or about September 6, 2018, using an internet website identified as skipthegames.com, an adult female was advertised as an escort available in Sioux City, Iowa. Bobo transported the female from Omaha, Nebraska to a hotel in Sioux City, Iowa, for the purpose of engaging in prostitution. Sioux City Police officers identified Bobo, his vehicle, and the female at the hotel. A Sioux City Police officer, acting in an undercover capacity, contacted the female using the telephone number advertised. After providing the officer with the hotel room number, the officer arrived and was allowed entry to the room by the female for purposes of engaging in commercial sex. Sioux City Police officers entered the room and placed the female into custody. Hotel paperwork obtained by law enforcement revealed that Bobo rented the room where the female was detained. Sioux City Police officers subsequently encountered and arrested Bobo as he drove his vehicle away from the hotel.
In November 2018, Bobo sold one ounce of powder cocaine and a Colt .32 caliber revolver to a confidential informant who was monitored in real time by law enforcement surveillance units.
This case was investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Omaha Police Department, and the Sioux City Police Department in Iowa.
Norteno Gang Member Resentenced to 33 Years in Federal Prison for Soliciting Murder for Hire and Drug CrimesRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Gerardo Maderos Loreto, age 34, of Yakima, Washington, was resentenced following conviction after a three-day jury trial in May 2017, for one count of use of the mail to commit murder for hire, one count of use of a telephone to commit murder for hire, one count of conspiracy to possess methamphetamine with intent to distribute, and one count of attempt to possess methamphetamine with intent to distribute. United States District Judge Salvador Mendoza, Jr. resentenced Loreto to a 33-year term of imprisonment, to be followed by 3-years of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Loreto, a Norteno gang member, was serving a state prison sentence for violating a protective order prohibiting contact with his ex-girlfriend. In spite of the protective order and while incarcerated, Loreto mailed a letter attempting to hire another individual to murder his ex-girlfriend in exchange for a pound quantity of methamphetamine.
Loreto’s August 2017, thirty-year sentence was vacated on appeal. While awaiting resentencing, Loreto then unsuccessfully attempted to escape from jail.
United States Attorney Hyslop said, “Loreto callously put a price on another human’s life when he solicited another individual to kill his ex-girlfriend. Thanks to the excellent work of our law enforcement partners, Loreto is now serving a lengthy prison sentence.” This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
The investigation was conducted by the Federal Bureau of Investigation, the Yakima Police Department, Homeland Security Investigations, the Washington Department of Corrections, Yakima County Department of Corrections, and the Washington State Patrol Crime Lab. The case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Newton Accountant Sentenced for Wire Fraud and Filing False Tax ReturnRead the Press Release
BOSTON – A Newton man was sentenced today in federal court in Boston for embezzling $1.6 million from elderly clients and failing to pay taxes on the embezzled funds.
Jeffrey Kellem, 49, was sentenced by U.S. District Court Judge William G. Young to 42 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $1,289,002 and a fine of $250,000. In September 2019, Kellem pleaded guilty to four counts of wire fraud and one count of filing a false tax return.
Kellem used his position as an accountant for an elderly client, and the estate of a deceased client, to steal more than approximately $1.6 million for his own use. Kellem transferred his clients’ funds, without their authorization, to bank accounts he opened and controlled. He also failed to report more than $500,000 in income from the funds he took on his tax returns. As a result, in 2017, Kellem avoided paying taxes totaling more than $150,000.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; 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 Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
New Haven Man Sentenced to 23 Months in Federal Prison for Unlawful Possession of AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NORMAN WIGGINS, 28, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 23 months of imprisonment, followed by three years of supervised release, for unlawful possession of ammunition.
According to court documents and statements made in court, on July 5, 2018, members of the New Haven Police Shooting Task Force conducted a controlled purchase of crack cocaine from Wiggins, who was staying at a motel on Whalley Avenue. A court-authorized search of Wiggins’ motel room revealed a box of Remington .38 caliber ammunition containing four live rounds.
Wiggins’ criminal history includes state felony convictions for drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On June 13, 2019, Wiggins pleaded guilty in federal court to one count of possession of ammunition by a convicted felon.
On July 13, 2019, while he was released on bond and awaiting sentencing, Wiggins was arrested by New Haven Police at the same Whalley Avenue motel and charged with criminal possession of a firearm and breach of peace in the second degree. While Wiggins was being processed for those offenses at the New Haven Correction Center, a cavity search revealed a quantity of crack cocaine. Wiggins was subsequently charged with smuggling contraband into prison, possession of a controlled substance and possession with intent to distribute narcotics. He has been detained since his arrest, and the charges are pending in state court.
This matter was investigated by the New Haven Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Nevada Fraudster Pleads Guilty to Role in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
A Las Vegas resident pleaded guilty today to aggravated identity theft, wire fraud, theft of government property, and access device fraud, relating to a stolen identity tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents and statements made in court, Josiah Ntekume was involved in a scheme to file false tax returns using stolen identities in order to obtain tax refunds. Coconspirators provided Ntekume with names, addresses, dates of birth, and social security numbers, and Ntekume used these stolen identities to establish prepaid debit card accounts. The coconspirators then caused fraudulently obtained federal tax refunds to be deposited into those accounts.
When Ntekume was arrested on March 13, 2012, he had in his backpack approximately 250 prepaid debit cards in others people’s names on which more than more than $200,000 in fraudulent tax refunds had been loaded. The backpack also contained several pages of paper listing stolen identities for nearly 200 individuals that were used either to file false tax returns or to establish additional prepaid debit cards.
Sentencing is scheduled for March 4, 2020. At sentencing, Ntekume faces a statutory maximum sentence of up to 20 years in prison on the wire fraud count, as well as up to ten years in prison on each count of theft of government property and fraud in connection with access devices. He also faces a mandatory minimum of two years for aggravated identity theft. In addition to a prison sentence, Ntekume faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas W. Flynn, Stephen K. Moulton, and Arthur Ewenczyk who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Movie special effects coordinator convicted of illegally possessing explosive materialsRead the Press Release
SAVANNAH, GA: A California man is facing a substantial prison sentence after pleading guilty to illegally possessing explosive materials.
Robert Christopher Bailey, 50, of Los Angeles, pled guilty in U.S. District Court to Possession of Explosive Materials as a Prohibited Person, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The charge carries a penalty of up to 10 years in prison, followed by a period of supervised release. There is no parole in the federal system.
According to evidence presented at the plea hearing, on or about July 9, 2018, Bailey was working on the movie set The Poison Rose starring John Travolta and Morgan Freeman as a special effects and pyrotechnics coordinator. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted an investigation and determined Bailey was a person prohibited from possessing explosive materials.
“The state of Georgia, particularly Savannah, has a tremendous history and relationship with the motion picture industry,” said U.S. Attorney Christine. “Accordingly, we take very seriously our obligations to uphold the law and to preserve the safety of our citizens and those working in our state.”
This case was investigated by Special Agent Lee Hoover of the ATF, and prosecuted for the United States by Assistant U.S. Attorneys Joshua Bearden and Frank Pennington.
Midland Man Sentenced to 20 Years in Federal Prison for Attempted Online Enticement of a MinorRead the Press Release
In Midland today, a federal judge sentenced 37-year-old Midland resident Cole S. Crocker to 20 years in federal prison for attempting to entice a minor into sexual activity, announced U.S. Attorney John F. Bash, Texas Department of Public Safety Director Steven McCraw and FBI Special Agent in Charge Luis Quesada, El Paso Division.
In addition to the prison term, U.S. District Judge David Counts ordered that Cole pay a $50,000 fine, pay a $5,000 special assessment under the Justice for Victims of Trafficking Act (JVTA), and be placed on supervised release for a period of ten years after completing his prison term.
“The defendant in this case attempted to have sex with an eight-year-old girl—eight years old. I would say that parents can rest easy with this man in federal prison, but there are so many more predators like him. We remain committed to the fight against child abuse,” stated U.S. Attorney Bash.
On September 4, 2019, a jury convicted Crocker of one count of attempted online enticement of a minor. Evidence presented at trial revealed that on March 22, 2019, Crocker responded to an online advertisement uploaded by an FBI undercover agent. Crocker began chatting with the undercover agent via messaging applications, and the conversation quickly turned graphic and sexual in nature. The undercover agent represented to Crocker that he had access to an eight-year-old girl for sex, and Crocker expressed interest. As the chats progressed, Crocker also engaged in several recorded phone conversations with the undercover agent where they discussed the logistics of a meet-up to have sex with the eight-year-old girl. Crocker was arrested later that evening when he arrived at the purported meeting location in Midland.
This investigation and arrest was the result of a joint operation between the Texas Department of Public Safety and the FBI. Assistant U.S. Attorney Shane A. Chriesman is prosecuting this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Michigan-Based Prison Consultant Admits Role in Conspiracy to Defraud Federal Bureau of PrisonsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TONY TUAN PHAM, also known as “Anh Nguyen,” 50, of Grand Rapids, Michigan, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to conspiracy and wire fraud offenses for his role in defrauding the Federal Bureau of Prisons (“BOP”). The scheme involved coaching prospective and current federal inmates who would not otherwise require substance abuse treatment how to lie to gain admission into a BOP program that, if completed successfully, would result in a shortened prison term.
According to court documents and statements made in court, the Residential Drug Abuse Program (“RDAP”) is a 500-hour substance abuse treatment program that is administered by the BOP. In order to gain admission to the RDAP, a federal inmate must meet certain criteria, including having a diagnosable and verifiable drug or alcohol abuse disorder. By successfully completing the RDAP, an inmate can qualify for up to 12 months in early release from custody.
Pham was a “Managing Partner” of Michigan-based RDAP Law Consultants, LLC. Pham, and others he supervised at RDAP Law Consultants, contacted federal criminal defendants and inmates through unsolicited emails and telephone calls with offers to assist, for a fee, those individuals in applying to, and qualifying for, the RDAP. Although Pham knew that many of the company’s clients did not abuse alcohol or drugs and were ineligible for the RDAP, he coached them how to feign or exaggerate a drug or alcohol disorder, and to make false statements to the BOP so they could gain admission to the RDAP.
Between September 2012 and January 2019, RDAP Law Consultants earned at least $2,628,137 in client fees through this scheme.
Pham was living in a residential reentry center (“halfway house”) when the scheme began.
Pham was arrested on January 23, 2019.
Judge Meyer scheduled sentencing for March 18, 2020, at which time Pham faces a maximum term of imprisonment of 25 years. Pham is released on a $100,000 bond pending sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Jonathan N. Francis and Trial Attorney Avi Perry of the Department of Justice’s Fraud Section, who has been designated as a Special Assistant U.S. Attorney for this matter.
U.S. Attorney Durham thanked the U.S. Attorney’s Offices for the Southern District of West Virginia and the Western District of Michigan for their assistance in this matter.
Merrillville, Indiana Man Sentenced to 10 Years ImprisonmentRead the Press Release
HAMMOND – Blake King, age 20, of Merrillville, Indiana, was sentenced by U.S. District Court Judge Joseph Van Bokkelen upon his plea of guilty to robbery with a dangerous weapon of a person with custody of money of the United States, announced United States Attorney Thomas L. Kirsch, II.
According to documents in this case, on June 7, 2018, in Gary, Indiana, the defendant, co-defendant Bernard Graham, and Raymon Truitt worked together on a scheme to fake gun sales to customers so they could rob the buyers. The defendant’s role in the robbery was to present the “buyers” with a bag supposedly filled with firearms but which was in fact filled with pots and pans. While this was occurring, Raymon Truitt utilized a firearm to rob the buyers, who were in fact ATF federal law enforcement agents, of $1,550 of United States currency. During this robbery, Truitt and Graham both opened fire on the agents and an ATF agent was wounded, placing his life in jeopardy.
Bernard Graham entered a plea of guilty on September 30, 2019, and is scheduled to be sentenced at a later date in 2020. Raymon Truitt was also wounded during the exchange of gunfire and died from his wounds.
Bernard Graham entered a plea of guilty on September 30, 2019, and is scheduled to be sentenced at a later date in 2020. Raymon Truitt was also wounded during the exchange of gunfire and died from his wounds.
King’s reckless, criminal actions resulted in the shooting of a law enforcement officer,” said U.S. Attorney Thomas L. Kirsch II. “Gun violence will not be tolerated. ATF, along with our federal, state and local law enforcement partners are dedicated to investigating, and my Office is dedicated to prosecuting these individuals who commit irresponsible criminal acts.”
“The dangers law enforcement face while investigating illegal gun crimes should never be taken for granted,” remarked ATF Special Agent in Charge Tim Jones of the Chicago Field Division. “We are grateful to the United States Attorney’s Office for their diligence in bringing these defendants to justice.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Lake County High Intensity Drug Trafficking Area officers and agents, the Indiana State Police, and the Lake County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorneys Thomas McGrath, Thomas Mahoney, and Nicholas Padilla.
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McKees Rocks Man Sentenced for Possessing Heroin and FentanylRead the Press Release
PITTSBURGH, Pa. - A former Allegheny County resident has been sentenced in federal court to a term of imprisonment of 33 months to be followed by 6 years of supervised release on his conviction of possession with intent to distribute heroin and fentanyl, United States Attorney Scott W. Brady announced today.
United States District Court Judge Cathy Bissoon imposed the sentence on Jamorr Mathis, age 41, of McKees Rocks, PA.
According to information presented to the court, on November 16, 2017, FBI agents and other law enforcement officers executed a search warrant at Mathis’ McKees Rocks residence. Agents recovered several bricks and bundles of heroin and fentanyl from a candle jar and a purse located inside of the residence. Mathis admitted that he sold about a brick or two a day and, he also admitted to buying about seven bricks every couple of days for $150 per brick.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Stowe Township Police, McKees Rocks Police and Pittsburgh Bureau of Police Departments conducted the investigation that led to the prosecution of Mathis.
Marshall County man charged with drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Michael J. Blake, of Moundsville, West Virginia, was arrested today and had an initial appearance after being indicted by a federal grand jury sitting in Wheeling on December 3, 2019, U.S. Attorney Bill Powell announced.
Blake, age 40, is charged with one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine,” one count of “Maintaining a Drug-Involved Premises,” and one count of “Possession with Intent to Distribute Methamphetamine.” Blake is accused of selling methamphetamine out of a home on 11th Street in Moundsville from June to November 2019.
Blake faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James P. Mazzone presided.
Man heads to prison in multi-state marijuana conspiracyRead the Press Release
BROWNSVILLE, Texas – A 39-year-old Florida man has been sentenced to federal prison for his role in an Rio Grande Valley-based drug conspiracy, announced U.S. Attorney Ryan K. Patrick.
Roberto Santos-Gonzalez pleaded guilty June 4 to conspiracy with intent to distribute more than 1000 kilograms of marijuana.
Today, U.S. District Judge Rolando Olvera ordered he serve 150 months in prison to be immediately followed by five years of supervised release. The sentence includes upward adjustments because he was found to be a leader within the drug trafficking organization.
Santos-Gonzalez was part of a multi-state drug trafficking and money laundering organization that had existed since 2010. The organization would hire out-of-state tractor-trailer drivers to haul loads of produce with ton quantities of marijuana hidden in false compartments within refrigerated trailers. Drug proceeds would then be transported back to the Rio Grande Valley. The conspiracy extended to Indiana, Kentucky, Illinois, North Carolina and Tennessee.
At the hearing today, the court heard Santos-Gonzalez recruited drivers and was a drug transportation coordinator. He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Seven others have also been sentenced to terms ranging from 45 to 200 months in federal prison. Additionally, authorities have forfeited real estate, currency, cars, tractors, trailers, guns and jewelry valued at more than $1.5 million.
The Drug Enforcement Administration led the three-year Organized Crime Drug Enforcement Task Force investigation with assistance of IRS-Criminal Investigation; Immigration and Customs Enforcement’s Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; sheriff’s offices in Cameron and Zapata Counties; Hidalgo County High Intensity Drug Trafficking Area task force; Border Patrol and the Brownsville Police Department. Assistant U.S. Attorney Angel Castro is prosecuting the case.
Man Who Operated "Provisional Credit" Fraud Scheme Sentenced to 28 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KISHORE BABU AMMISETTI, 31, a citizen of India, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 28 months of imprisonment, followed by three years of supervised release, for operating a “provisional credit” scheme.
According to court documents and statements made in court, Ammisetti used Facebook Marketplace and other media to victimize individuals, primarily of Indian decent, who advertised items for sale or rooms for rent. Through this scheme, Ammisetti would contact a victim to express interest in purchasing an item or renting a room. He would then gather the victim’s bank account information and other personal information under the guise of making a deposit to the victim’s bank account. He also would offer to provide a “deposit” directly into the victim’s account via a Peer-to-Peer (P2P) transfer.
Ammisetti would then contact the victim’s bank and, posing as the victim, would claim to have made an ATM deposit that did not register on the victim’s bank account. While researching the “unregistered deposit,” the bank would credit the victim’s account with a provisional credit. Ammisetti would then contact the victim and claim that the provisional credit to the victim’s bank account was a mistaken transfer by Ammisetti to the victim’s account. Ammisetti would then request either a full or partial refund of that money, which the victim would provide via a P2P transfer. After the bank determined that there was no unregistered deposit to the victim’s account, the funds provided as a provisional credit would be removed from the account.
Ammisetti stole at least $860,000 from approximately 500 victims through this scheme.
The investigation revealed that Ammisetti often operated this scheme while staying at casino hotels in Connecticut.
Ammisetti has been detained since his arrest on January 25, 2019. On April 17, 2019, he pleaded guilty to one count of bank fraud.
Ammisetti entered the U.S. in 2013 on a student visa, which was revoked in 2014. He faces immigration proceedings when he completes his prison term.
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with the assistance of the Mohegan Tribal Police. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Lubbock County Man Convicted of Enticement of 11-Year-Old NieceRead the Press Release
A Shallowater, Texas man was convicted today of enticement and attempted enticement of a minor following an investigation by the FBI’s Lubbock Resident Agency, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
John David Martinez, 32, was indicted in August. Following a day and a half of trial, a federal jury deliberated for just 15 minutes before finding him guilty.
According to evidence presented at trial, Mr. Martinez initiated a text chain with his 11-year-old niece in July 2018.
Over the course of 7,702 text messages, he bullied the young girl into agreeing to have sex with her then 31-year-old uncle.
Fortunately, the child’s babysitter spotted the messages on her phone, and law enforcement was able to intervene before Mr. Martinez could actually molest the child.
The defendant now faces a potential sentence of up to life in federal prison. His sentencing date has not yet been set.
The Federal Bureau of Investigation, Shallowater Police Department, and Lubbock County Sheriff’s Department conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Sean Long are prosecuting the case. U.S. District Judge James Wesley Hendrix presided over the trial.